DCLG revises guidance for councils on use of CPO powers to save community assets

Local authorities will be required to take seriously all viable requests put to them by voluntary and community groups for the compulsory purchase of a threatened community asset, under revised guidance issued by the government today.

Councils will also have to respond formally to those requests, outlining the reasons behind their decisions on whether or not to use their powers.

The changes are contained in a new appendix to the Office of the Deputy Prime Minister Circular 06/2004 Compulsory Purchase and the Crichel Down Rules. It is to be made available for download here.

The DCLG said the appendix would remind authorities that, “as with any compulsory purchase, they must be able to finance the cost of the scheme (including the compensation to the owner) and the Compulsory Purchase Order process either from their own resources, or with a partial or full contribution from the requesting organisation”.

“In order to assess whether there is a compelling case in the public interest for a compulsory purchase order, councils will have to ensure (as they must for all orders) that there is a viable scheme for the asset and that there are no other impediments to the scheme going forward. Local authorities should ask those making the request for such information that is necessary for them to do so.”

This information could include:

• the value of the asset to the community
• the perceived threat to the asset
• the future use of the asset and who would manage it (including a business plan where appropriate)
• any planning issues, and
• how the acquisition would be financed.

Planning Minister Greg Clark said community groups with viable, fully financed schemes can currently feel shut out of the process, left without a voice in shaping local plans, as councils do not have to engage with them or acknowledge their contribution.

Clark said the guidance had been revised because some groups were not in a position to wait to take advantage of the government’s proposed Right to Buy, which is contained in the Localism Bill and allows them to bid to buy assets when they come up for sale.

“Communities often have good ideas for making better use of these buildings or assets but are thwarted by negligent owners interested only in rising land prices,” the DCLG also said.

The DCLG suggested that the revised guidance would help groups to take action quickly. It insisted that the new approach would not mean “special treatment or an automatic green light but it might mean that communities know that their hard work and enthusiasm will not simply be met by a blank face or stuck at the bottom of a never ending in-tray”.

The Planning Minister said: "Communities often feel powerless when they see local assets going to waste. Voluntary and community groups who know their area best should have more of a say in determining how their neighbourhoods develop and local authorities - acting in the best interests of local people - should take seriously all viable requests put to them for the compulsory purchase of a threatened community asset.

"Community groups would of course have to pay a fair price for the asset, as well as the costs incurred by the local authority. But they should be given the opportunity to save their village shop, the last remaining pub or bring dilapidated buildings back to life to help preserve the character and social fabric of their neighbourhood."