Part 9: Compulsory Purchase Compensation Section 189: Prospects of planning permission for alternative development Effect
Subsection (1) explains that this section amends the 1961 Act.
	Subsection (2) amends section 14 of the 1961 Act. It amends section 14(2)(b) of the 1961 Act and substitutes new sections 14(2A) and 14(2B) for sections 14(3) and 14(4) of the 1961 Act. The effect is that planning permission for a description of development would only be taken as certain for the purposes of assessing the prospect of planning permission under section 14(2)(b) of the 1961 Act if it has been certified under section 17 of that Act as appropriate alternative development. Otherwise, the prospect of planning permission will be assessed under section 14(2)(b) of the 1961 Act and on the basis of the matters set out in section 14(2B) if that Act. Further consequential amendments are made to section 14 of the 1961 Act.
	Subsection (3) amends section 17 of the 1961 Act. Subsection (3)(a) amends section 17(1) of the 1961 Act so that an application for a certificate of appropriate alternative development to a local planning authority is now for a specific description of development, which the applicant must set out. It removes the ability to apply for a certificate that there is no appropriate alternative development. This removes the administrative burden for the local planning authority of assessing all types of possible alternative development. Consequently, following such an application, either a certificate for appropriate alternative development will be issued or the application will be rejected. An application may specify more than one description of development, following section 6(c) of the Interpretation Act 1978.
	Subsection (3)(b) introduces new sections 17(1A), 17(1B) and 17(1C) in the 1961 Act which includes a new definition of "appropriate alternative development" that replaces the previous definition under section 14(4) of that Act. The new definition provides a test to determine whether a description of development is appropriate alternative development. The definition of appropriate alternative development no longer includes a future date. This means that a certificate of appropriate alternative development will only be determined against the "relevant planning date" in section 17(1C) of the 1961 Act. Assessment of the future prospect of planning permission can continue to be assessed under section 14(2)(b) of the 1961 Act. The amendment further deals with an issue where a certificate of appropriate alternative development is applied for before the relevant valuation date and provides that in such cases the date of assessment is the date on which the application is determined.
	Subsection (3)(c) substitutes new subsection (ba) for sections 17(3)(a) and (b) in the 1961 Act, relating to what the application should contain. This is consequential upon the amendment to section 17(1) of the 1961 Act and the nature of the application for a certificate of appropriate alternative development that can now be made.
	Subsection (3)(d) substitutes new subsections (5A) to (5C) for sections 17(5) to (8) of the 1961 Act. It provides the amended framework for the issue of a certificate of appropriate alternative development by a local planning authority because of the amendment to section 17(1) of the 1961 Act. The effect of this is that a local planning authority will no longer need to consider and issue a certificate for all forms of appropriate alternative development, whether applied for or not. Instead, the local planning authority will decide whether to issue a certificate against the description(s) of development applied for. The authority may issue a certificate for the description(s) of development that is less extensive than, but otherwise falls within, the description(s) of development set out in the application. New section 18(4) of the 1961 Act has the effect of substituted section 17(8) of the 1961 Act.
	Subsection (3)(e) amends section 17(10) of the 1961 Act. The consequence of the amendment is that, in assessing compensation payable to any person in respect of any compulsory acquisition, no account is to be taken of any expenses incurred by the person in connection with the issue of the certificate, including any expenses incurred in connection with an appeal under section 18 of the 1961 Act.
	Subsection (4) amends section 18 of the 1961 Act. Subsection (4)(a)(i) of the 1961 Act codifies the test that the Upper Tribunal must apply in determining an appeal. Subsection (4)(a)(ii) of the 1961 Act extends the options for the Upper Tribunal in making a decision on appeal as a result of the changes to section 17 of the 1961 Act.
	Subsection (4)(b) inserts new sections 18(2A) and (2B) in the Land Compensation Act 1961 to provide for an appeal where the local planning authority rejects an application for a certificate of appropriate alternative development.
	Subsection (4)(c) amends section 18(3) of the 1961 Act to provide that if a local planning authority does not determine an application for a certificate of appropriate alternative development within the prescribed time, it is to be treated as if the local planning authority had rejected the application.
	Subsection (4)(d) inserts new section 18(4) in the 1961 Act which ensures that for valuation purposes, the certificate of appropriate alternative development as issued or varied by the Upper Tribunal has effect. This replicates and replaces substituted section 17(8) of the 1961 Act.
	Subsection (5) makes a consequential amendment to section 19(3) of the 1961 Act arising from the amendments to section 17(3) of the 1961 Act. It inserts new section 19(4) in the 1961 Act which makes clarificatory amendments to how an appeal is dealt with under section 18 of that Act if the application for a certificate of appropriate alternative development is made in accordance with section 19 of the 1961 Act.
	Subsection (6) makes a minor clarificatory amendment to section 20(a) of the 1961 Act relating to certificates under section 17 of that Act, changing the words "time within which a certificate is required to be issued" to "the period within which an application under that section is to be determined".
	Subsection (7) inserts new section 22(2A) in the 1961 Act and clarifies that an application for a certificate of appropriate alternative development may still be made despite the acquisition of the interest in land having already occurred. The limitation in section 17(2) of the 1961 Act, where a notice to treat has been served or agreement for sale made and a reference has been made to the Upper Tribunal to determine compensation continues to apply. This measure reflects the different ways in which compulsory purchase powers may be exercised, with acquisition of the interest occurring either before or after compensation has been agreed.
Example
A land interest is subject to compulsory purchase as part of a wider scheme. The owner of the land interest considers that, in the absence of the scheme, there was the prospect of planning permission being granted on their land for a five-storey residential block with 20 units. The owner of the land interest applies for a certificate of appropriate alternative development in accordance with the requirements of section 17 of the Land Compensation Act 1961and will be responsible for their own expenses in making that application. The local planning authority will consider whether it would have been more likely than not to grant planning permission for that description of development in accordance with the test provided in section 17, or for a less extensive form of the same development applied for (e.g. four-storey residential block with 15 units). If it considers it more likely than not that it would not have granted planning permission for that description of development, it should reject the application. If a form of appropriate alternative development is certified, then it will be taken as certain for the purposes of section 14(2)(b) of the Land Compensation Act 1961 that planning permission for the description of development would have been granted on the relevant valuation date. The owner of the land interest or the acquiring authority may appeal the decision under section 18 of the Land Compensation Act 1961 and the Upper Tribunal will determine that appeal in accordance with the provisions and test set out in section 18. If the local planning authority fails to determine the application within the prescribed time, then the applicant may appeal, and the appeal will be considered on the basis the local planning authority rejected the application.