Loss Payments - Compulsory Purchase Association

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Reverse the loss payment uplift

What is the Problem

The present law provides for a payment of up to £75,000 to investment owners but a payment of up to only £25,000 for Occupiers of a property. However it is the Occupier that bears the burden of having to relocate its business operation and so incurs the greater cost burden; not all of which burden qualifies for compensation.


Change the 2004 Act allocation between investment owner and occupier.


What we seek

Reversing the 7.5% and 2.5% uplifts, so that Occupiers have the greater benefit from the loss payment regime.

Notes from discussion

This would apply to commercial property only.

Suggestion that it might be better to consider setting different rates rather than seeking simply to reverse the existing ones – i.e. what was the rationale for the rates that currently apply and are these still the right ones to use?
Suggestion that the payments to owners be dropped altogether with a 10% payment for occupiers.

Question as to what the LC Report recommended with regard to this but if it is accepted that this is really part of the consequential loss equation should it not be determined on a case by case basis rather than by a standardised rate?

Next Steps/Actions

Investigate means of alteration not involving primary legislation, but include in any major reform package

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