(1)Before determining an appeal under section 6, the Secretary of State or the National Assembly for Wales may, if he or it thinks fit—
(a)cause the appeal to take, or continue in, the form of a hearing, or
(b)cause a local inquiry to be held;
and the appeal authority shall act as mentioned in paragraph (a) or (b) if a request is made by either party to the appeal to be heard with respect to the appeal.
(2)Subsections (2) to (5) of section 250 of the [1972 c. 70.] Local Government Act 1972 (local inquiries: evidence and costs) apply to a hearing or local inquiry held under this section as they apply to a local inquiry held under that section, but as if—
(a)references in that section to the person appointed to hold the inquiry were references to the Secretary of State or the National Assembly for Wales, and
(b)references in that section to the Minister causing an inquiry to be held were references to the Secretary of State or the Assembly.
(3)Where—
(a)for the purposes of an appeal under section 6, the Secretary of State or the National Assembly for Wales is required by subsection (1)—
(i)to cause the appeal to take, or continue in, the form of a hearing, or
(ii)to cause a local inquiry to be held, and
(b)the inquiry or hearing does not take place, and
(c)if it had taken place, the Secretary of State or the Assembly or a person appointed by the Secretary of State or the Assembly would have had power to make an order under section 250(5) of the [1972 c. 70.] Local Government Act 1972 requiring any party to pay the costs of the other party,
the power to make such an order may be exercised, in relation to costs incurred for the purposes of the inquiry or hearing, as if it had taken place.
(4)This section has effect subject to section 8.