After section 59B (as inserted by section 33 of this Act) insert—

“59CInterest payable on overdue compensation

(1)

This section applies in respect of any amount of a relevant type of compensation which has not been paid by or on the date on which the compensation is due to be paid (whether that date is specified or determined under the 1991 Act, this Act or otherwise).

(2)

Interest is payable, at the rate mentioned in subsection (3) on any amount of the compensation which remains unpaid after the due date (calculated on a daily basis over the period from the due date to the date of payment).

(3)

The rate is the rate equivalent to an annual rate of 1.5% above the Bank of England base rate.

(4)

In subsection (3), “Bank of England base rate” means—

(a)

the percentage rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, or

(b)

where an order under section 19 of the Bank of England Act 1998 is in force, any equivalent percentage rate determined by the Treasury under that section.

(5)

For the purposes of this section, “relevant type of compensation” has the same meaning as that given in section 59B.”.