Compulsory purchase reform: progress report December 2024

Introduction

The Scottish Government is taking forward a comprehensive programme of work to reform and modernise the compulsory purchase system. The programme began in earnest in Spring 2024 following the establishment of the Practitioner Advisory Group (PAG). We have been working with the PAG and engaging with stakeholders to help build our evidence base and to inform the development of options for reform. The Programme for Government 2024-25 indicated that we will consult on proposed changes in 2025. Doing so is one of the actions in the Planning and the Housing Emergency: Delivery Plan published in November 2024.

The purpose of this paper is to recap progress to date, summarise emerging proposals and set out next steps heading into 2025. If you have any questions about this paper, or the reform programme more generally, please contact: CPO.reform@gov.scot.

Objectives

Compulsory purchase can support the delivery of projects in the public interest that would not otherwise come forward. This can range from bringing empty properties or vacant land back into productive use, through to the delivery of major infrastructure and town centre redevelopment schemes. However, the underpinning legislation governing compulsory purchase is old, complex and widely regarded as in need of reform. This was underlined by the Scottish Law Commission’s 2014 to 2016 review of compulsory purchase. The review highlighted that the age and complexity of the legislation potentially discourages the use of compulsory purchase by those who might otherwise do so – and that the system does not operate fairly.

The overall objectives of the reform programme are to make the compulsory purchase system simpler, more streamlined and fairer for all parties. In reforming the system, the Scottish Government wants compulsory purchase to fulfil its potential as a tool for delivering projects in the public interest – one that encourages authorities to make positive and proactive use of their powers in appropriate circumstances, including in partnership with third parties (e.g. developers, community groups). Annex A indicates how the emerging reform proposals relate to these strategic objectives.

Stakeholder Engagement and the Practitioner Advisory Group

We recognise that a broad range of organisations and individuals have an interest in compulsory purchase and valuable insights into how the system could potentially be improved. We have therefore been engaging with a wide variety of stakeholders and will continue to do so as the reform programme moves forward.

Compulsory purchase is known for being especially complex. It is also a specialist area bringing together various professional disciplines. The PAG was appointed so that we are able to draw on the knowledge and practical expertise of those with first-hand experience of the current system. Being able to do so will help us develop reform proposals which are robust and evidence-based. The advisory group is co-chaired by Roseanna Cunningham and the Chief Planner; membership is per Annex B. Its terms of reference and meeting minutes can be found on the advisory group webpage. PAG meeting papers are available on request.

Building Blocks

Given the scale and complexity of the task, we have broken down the reform work into five thematic ‘building blocks’. These broadly correspond to the chronological steps of the compulsory purchase process. The policy development phase of the reform programme is structured around these building blocks: they provide the basis for unpacking issues in detail, developing our evidence base and working-up potential reform options, which will be consulted on in 2025.

To date, we have focussed on the first three of the building blocks. In each case, we have begun to identify potential options and emerging proposals for change, which are summarised at Annex A. It is important to stress that these ideas represent early thinking: they will be subject to further refinement, testing and of course public consultation. Nevertheless, we hope the Table provides a useful indication of the kinds of measures that could be delivered through this reform programme – as well as demonstrating the substantial progress that has been made over the last few months.

Next Steps

Our intention is to do some further work on building block 3 (confirmation procedures) and work through building block 4 (taking possession and title) by early 2025. We will then commence engagement and policy development in relation to compensation. This is probably the most complex and contentious of the five building blocks and will take some time to unpack. Reflecting this, we anticipate carrying out some dedicated stakeholder engagement focussed specifically on compensation from Feb/March 2025.

Looking further ahead, we will carry out a public consultation on proposed measures in 2025 and our intention is to do so from Summer/Autumn. Any substantive change to compulsory purchase legislation will involve making amendments to primary legislation, which will require a Bill. Subject to the outcome of the May 2026 election and preferences of the incoming Government, this would need to be taken forward in the next Parliamentary Session.