High Speed 2 Compensation Debate

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Department: Department for Transport

High Speed 2 Compensation

Greg Smith Excerpts
Thursday 18th January 2024

(3 months, 1 week ago)

Commons Chamber
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Greg Smith Portrait Greg Smith (Buckingham) (Con)
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I congratulate my hon. Friend the Member for Stafford (Theo Clarke) on securing this important debate. It gives me the opportunity —I have done this many times before in this Chamber and at the Transport Committee—to continue to detail the plight faced by landowners and small business owners alike who, through no fault of their own, have been swept up in the seemingly endless and needless disruption caused by HS2 Ltd and its contractors in my constituency.

People face losses and hefty legal bills that have left many unprofitable, some facing near bankruptcy and all without the means to recoup their losses in any equitable way. Time and again, I have heard about the inescapable, infinite loop of bureaucracy that surrounds what meagre compensation HS2 Ltd is willing to cough up, which in itself increases and prolongs my constituents’ legal costs. One landowner told me that her land agent is increasingly reluctant to take on more work as more and more of his bills, which under the Act are meant to be compensated by HS2’s own agents Carter Jonas, go unpaid.

A couple in my constituency have been caught up in this legal quagmire, with HS2’s insistence that their septic tank be replaced before the project purchases the property at a predetermined rate. What was supposed to be a relatively straightforward job turned into a multi-month process, preventing my constituents from selling their property at that agreed price, effectively leaving them short-changed, despite them simply following due process. They have yet to be compensated for the difference between the agreed value and the actual value of their property.

In the village Quainton, which in one way or another has been continuously impacted by HS2’s road closures, yet another road closure is about to come into effect, this time for two years. That will devastate my constituents at Doddershall House, whose business will suffer from reduced access to and from the estate, and require a lengthy diversion both for them and their clients. HS2 has not even attempted to offer them compensation.

For our farmers, cattle loss has blighted numerous farms as a result of poor soil treatment and management by HS2’s contractors, often operating right next door. One farm has quoted a total loss of £37,000 as a direct result of HS2’s shoddy practices. How can this possibly be morally justifiable for the project? How can a hardworking family be left with such heavy losses?

Then there is blackleg, a disease in cattle that is caused by bacteria released from disturbed soil. I am aware of at least one case that the farmer has attributed to HS2’s malpractice. It is noteworthy that farmers in this area have never seen a blackleg case before in Buckinghamshire. No prizes, Mr Deputy Speaker, for guessing how much compensation has been offered—for the avoidance of all doubt, it is zero.

It is not just farmers and landowners who suffer from being left out in the cold by HS2. Hundreds of road users across my constituency are forced to sit in endless congestion wherever HS2 decides to cut down a tree, closing whole roads in the process, and there are endless utility diversions. Commuters, buses taking children to school and ambulances responding to life-or-death situations have all had their journeys repeatedly disrupted by HS2, with no recourse to any form of compensation.

Whether it is the A41 through Waddesdon and Fleet Marston, or the villages near Wendover, such as Ellesborough and Butlers Cross, these endless, endless diversions are costing real people real money and real time and, in some cases, lives on a daily basis, and there is no compensation. That is before we even get to the state of Buckinghamshire’s roads, destroyed by thousands of HGV movements linked to HS2 construction, causing endless damage to cars, from tyres to suspension systems. Again, HS2, with its fingers in its ears, does not take any responsibility for what it has broken in Buckinghamshire.

Briefly, I come to businesses, with the example of the Prince of Wales pub in Steeple Claydon, which sits at the heart of HS2 disruption and destruction and is also very near the building of East West Rail. Roads in and out of the village are constantly closed—Addison Road, for example, was closed for many, many months recently. It is costing the pub nigh on £1,000 a month in lost revenue. At one point, the landlord told me that he was £65,000 down. There is no scheme—nothing at all—to compensate businesses affected in this way. Real livelihoods and the real viability of businesses are being challenged. I put that to a former chief executive of HS2 Ltd, Mark Thurston, when he actually bothered to visit my constituency in May, and the language he used about the pub is unrepeatable in this Chamber. There was no sympathy; he just said that it was just a—expletive— “little pub that nobody would want to drink in anyway.” That is not the attitude that we expect from anyone paid by the state.

Just next door in Steeple Claydon is Langston & Tasker, which stands out among the businesses affected by HS2 construction because, as a bus and coach operator, it is hit hard by any road closure. It operates school runs, taking Buckinghamshire children to school daily, yet the constant road closures, the state of the roads and the damage to their vehicles are costing the company considerable amounts of money every single day, which ultimately gets passed on to Buckinghamshire Council and local council tax payers. Does HS2 pay a penny towards it? No, of course not, but it absolutely should.

Mr Deputy Speaker, I could go on with examples like this all afternoon, but I am very aware of the time and the fact that others wish to speak. My message to the Minister, who I know does listen, has visited my constituency and does want to get this right, is that we must do better. HS2 Ltd must do better. The attitude needs to change. The practices need to change. HS2 needs to understand the real lives that it is devastating on a daily basis, be that people who own property or people who are just trying to go about their daily lives—going to work, getting the kids to school, and perhaps having some fun. The people from HS2 need to understand the impact that, as unwelcome aliens in Buckinghamshire, they are having daily as they build this railway. My challenge to the Minister is this: let us get the compensation that real people—my constituents and so many more—deserve.

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Mike Kane Portrait Mike Kane
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Like Napoleon out of Moscow, it is routed through the poisoned-earth strategy with the lifting of the safeguarding today. We have to be responsible. We will have to see what the books tell us if we are to enter Government in the weeks or months to come.

We have seen 14 years of promises to the north and the midlands broken. In the Prime Minister’s desperate, failing attempt to rebrand himself as the change candidate at the next election, he decided to rush through an alternative plan at the party conference—a plan that mentions places such as Crewe, which, as the hon. Member for Crewe and Nantwich rightly said, would have greatly benefited, but a plan that the Prime Minister admitted was only “illustrative”. Illustrative? The Network North plan announced fantastic news for my Wythenshawe and Sale East constituency—a new Metrolink line to Manchester airport. It opened in 2016. That illustrates the chaos and the confusion of that announcement.

The now Foreign Secretary was not alone on the Conservative side in criticising the decision. Two former Chancellors warned the Prime Minister that his actions were “huge economic self-harm”, while the Tory Mayor of the West Midlands described it as “cancelling the future”—a great line, if I may say so to the hon. Member for Lichfield. In what is a consistent theme for this Government, this whole mess has been created by not consulting the communities affected, not speaking to our Metro Mayors and not listening to the businesses across the country that were depending on the project.

After 14 years, communities have had enough of the broken promises from this broken Government. Labour will not repeat those mistakes—mismanaging major projects, turning people’s lives upside down, taking their trust for granted, impacting their businesses and livelihoods and failing to deliver.

Greg Smith Portrait Greg Smith
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I am listening carefully to the shadow Minister, who is telling us that a mythical future Labour Government would not disrupt people’s lives. Does he understand that building HS2 does devastate people’s lives? Big infrastructure devastates people’s lives and there is no way to do it without doing that.

Mike Kane Portrait Mike Kane
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That is exactly why Labour would do it with the Mayors, with the communities and in consultation with those it would affect and impact. HS2 was going to go under my back garden—that was my interest.

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Huw Merriman Portrait Huw Merriman
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I am due to meet the hon. Member. He said that I had declined to meet him after two requests; actually, I had a meeting in his diary yesterday, but according to his office he was unable to make that meeting. We have set another date for 31 January. I will talk to the hon. Member about the matters he raises; the Department and the HS2 team have looked at them before and do not agree with the conclusions he has mentioned, but we will discuss those matters when we meet on the 31st.

As has been set out by my hon. Friends and other Members who have spoken, property owners who have found themselves obliged to deal with HS2 Ltd and its contractors have had varied and, at times, inconsistent experiences. Those property owners are understandably less interested in what HS2 can or cannot deliver for transport and the wider economy: their focus has instead been on seeking the compensation they are entitled to, and navigating what must at times have seemed like an unequal relationship with HS2 Ltd.

I readily acknowledge how important it is that those owed compensation, such as money for the purchase of their property or expenses or costs associated with such transactions, are paid in as timely a manner as is possible. I have always sought to impress on the company and its agents that it is unacceptable that cases should drag on. That is of no benefit to anyone—certainly not the property owner, and certainly not the taxpayer.

When it comes to paying owners for title to properties that they have, in many cases, sold unwillingly, it is only right that those owners should receive recompense in full and as fast as is practicable. That said, each property transaction is unique, so presents its own set of circumstances. As many in this House will be aware, when negotiating and settling compensation claims, HS2 Ltd follows the principles set out in the compensation code. There are also a number of discretionary schemes that offer further help to those not eligible under the statutory framework—in effect, they go above and beyond that framework.

HS2 Ltd must achieve a careful balance between meeting the needs of the claimant and delivering value for money to the taxpayer. The compensation code requires claimants to provide robust evidence for their claims. It is often when claimants are struggling to provide sufficient suitable evidence for their claims that negotiations become frustrated, leading to delays. I will be frank: the extent to which claimants’ agents provide suitable evidence, or are willing to negotiate from a realistic standpoint, varies considerably—I have found myself in the middle of some discussions of that type in constituents’ homes. It is important to understand that background, as it helps to explain why, in some instances, property owners consider that they are having payments withheld. When late payments do occur, they are never acceptable, but our data shows that they are the exception rather than the rule.

Property cases should be concluded as soon as is practicable, within the constraints imposed by the balance of the property owner’s interests and those of the taxpayer. The evidence shows—I will happily write to every right hon. and hon. Member who has taken part in this debate—that HS2 Ltd is succeeding in closing down claims, despite the considerable complexities that those claims involve. However, I acknowledge that there are a number of impacted parties with whom HS2 Ltd has not yet been able to reach agreement and negotiations have become challenging, and we have heard about many of them this afternoon. As I mentioned, I have got myself involved in many of those cases to move them further along and challenge HS2 as to the position taken.

My hon. Friend the Member for Stafford is a tireless advocate for the cases that have arisen in her constituency, some of which she and I have previously discussed, as she mentioned. She has cited some particular cases during the debate; I will write back to her with my latest understanding of where matters sit regarding her constituents Mr and Mrs Tabernor and Mr Collier. The same applies to other constituent cases named in this debate by my right hon. Friend the Member for South Staffordshire and others.

With regard to the point about intimidation—I say this as someone who chaired the Transport Select Committee—I believe that everyone should be able to give clear, frank, open and transparent evidence without fear or favour. If there is any evidence of intimidation, I will of course look at it and make sure that it is eradicated. I give everyone in the House that assurance. As my hon. Friend the Member for Buckingham (Greg Smith) has demanded, I am determined that HS2 Ltd should continue to up its game in dealing with difficult and disputed cases, such as the ones that have been mentioned today and others that I am aware of.

Let me touch on a few matters raised by other hon. Members we have heard from but I have not mentioned. The hon. Member for Chesham and Amersham (Sarah Green) referenced a number of cases. I am very happy to meet her, as I have previously. She is a tireless advocate on her constituents’ behalf and I will meet her again to discuss some of those cases. I have touched on the points made by the hon. Member for North West Leicestershire (Andrew Bridgen) and look forward to meeting him and going through the points he made in the debate.

My hon. Friend the Member for Crewe and Nantwich (Dr Mullan) has been a tireless advocate of the benefits that HS2 could deliver to his constituency, and it is the one part of the country that I believe needs particular mention. I spent a morning with him and local Cheshire East councillors looking at the potential and at what the team had brought. It will not have escaped his attention that the local government Minister—the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North Dorset (Simon Hoare)—has entered the Chamber. The two of us spoke earlier this week about the needs of Crewe, and we also spoke to other colleagues. He has been a tireless champion of the council, with the predicament that it finds itself in, and when I and the local government Minister meet the team from Cheshire East, my hon. Friend is certainly welcome to join us. We have made such points to other colleagues, and we are determined to help and to work together. I know that the local government Minister cares about these matters and will work with us to do so.

I say gently to the hon. Member for Wythenshawe and Sale East (Mike Kane)—he is a fellow football player with me, as well as a good friend—that the Labour position appears to keep changing. Just last week, the Leader of the Opposition went to Manchester to say that HS2 would no longer continue, which was slightly inconsistent with what we heard this afternoon. It may well be the case that many dispute the plan we have in place, but the plan is not to go ahead with HS2 north of Handsacre, and instead to spend that money—the £36 billion—on projects across the country, particularly to benefit all cities across the north and the midlands. That is the plan, but I think we would all like to know what Labour’s plan is. Is it going to deliver HS2? If it is not going to deliver HS2 beyond the midlands, is it going to commit to the £36 billion that this Government are committing to levelling up? I think we would all like that clarity, not least the constituents represented by all those sitting behind me.

Greg Smith Portrait Greg Smith
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Will the Minister give way?

Huw Merriman Portrait Huw Merriman
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I cannot because of the time—by the look on your face, Mr Deputy Speaker.

Let me end with three final points. First, I thank my hon. Friend the Member for Stafford and all the other Members present for tirelessly working on behalf of those affected by HS2 and for the manner in which they have engaged with me. I am at their service. Secondly, I welcome and accept my hon. Friend’s kind invitation to visit Stafford. I will do so, and before the spring is out. Thirdly, and in conclusion, I commit to do the best that I can for property owners impacted by HS2, which includes ensuring the timely payment of compensation, the urgency of which has been laid bare in this debate.