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Planning Permission: Compensation

Volume 474: debated on Thursday 3 April 2008

To ask the Secretary of State for Communities and Local Government how much was awarded in compensation to planning applications that were rejected but subsequently allowed on appeal in each of the last three years; and how much of this amount was paid to registered social landlords. (198146)

Compensation is not payable for winning an appeal against refusal of planning permission. Parties can apply for an award of costs in planning appeals and applications are determined in accordance with longstanding Government guidance contained in DOE Circular 8/93. Awards are made only where one party is found to have acted unreasonably and as a result caused another to incur quantifiable unnecessary or wasted expense.

The actual amount to be paid is not determined by a costs award. That is for the parties to settle by negotiation initially. Accordingly, no records are available of costs paid following awards on appeal in each of the last three years, whether or not involving social landlords.

The following table shows by financial year, the number of local planning authorities being liable to pay costs following awards made against them by Inspectors and the Secretary of State:

Financial year

Number of local planning authorities liable

Approximate percentage of applications against authorities

2004-05

338

34

2005-06

304

39

2006-07

362

38