Explanatory Notes

Infrastructure Act 2015

2015 CHAPTER 7

12 February 2015

Commentary on Sections

Part 5 – Planning and Land

Nationally significant infrastructure projects

130.The Planning Act 2008 (“the 2008 Act”) established the regime governing applications in respect of nationally significant infrastructure projects.  In 2013, the Government launched a review of the regime, which concluded that it is operating well and that major change is both unnecessary and undesirable. The review did, however, identify a number of minor improvements which would strengthen the regime further.  Some of these can only be implemented by amendment of the 2008 Act.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/306404/Government_response_to_the_consultation_on_the_review_of_the_Nationally_Significant_Infrastructure_Planning_Regime.pdf

131.Sections 26 and 27 make changes to the procedures under which a major infrastructure project under the 2008 Act is examined.  The 2008 Act provides for an “Examining authority” to carry out examination of a project. The Examining authority may be a single person, or a panel of three, four or five people.  Section 26 provides for the Examining authority to be appointed earlier in the process than at present.  Section 27 provides that examinations of projects may, additionally, be conducted by panels of two people.

132.The Secretary of State has powers to make changes to, or to revoke, a development consent order which grants permission in respect of a major infrastructure project. Section 28 makes amendments to the powers under which the Secretary of State may make regulations governing the way in which applications to make such a change are considered.

Section 26: Timing of appointment of examining authority

133.Section 26 amends section 61 of the 2008 Act to enable the earlier appointment of examining authorities on applications for development consent for nationally significant infrastructure projects. The amendment enables the Secretary of State to appoint an examining authority immediately after an application for consent has been accepted under section 55 of the 2008 Act.

Section 27: Two-person Panels

134.Section 27 amends the 2008 Act to enable the Secretary of State to appoint a two-person panel as the examining authority for an application for development consent for a nationally significant infrastructure project. The 2008 Act provides for the appointment of a single person, or a panel of three, four or five people. Subsection (1) amends section 65 of the 2008 Act and subsections (2) to (4) make three consequential amendments to that Act: section 68 is amended so that the appointment of additional panel members is only required if a panel is reduced to a single member (rather than reduced to two members); section 73 is amended to remove a current reference to a panel consisting of two members; and section 75 is amended to clarify the procedure for decision-making for two-person panels.

Section 28: Changes to, and revocation of, development consent orders

135.Section 28 amends the provisions set out in Schedule 6 to the 2008 Act relating to changes to, and revocation of, orders granting consent in respect of nationally significant infrastructure projects (“development consent orders”) by the Secretary of State.

136.The existing paragraph 2 of Schedule 6 provides for an application to be made seeking a “non-material” change to a development consent order. Paragraph 2(8) of Schedule 6 provides, in respect of an application for such a change, that the Secretary of State must comply with prescribed consultation and publicity requirements.

137.Subsection (2)(a) amends paragraph 2(8) to provide that the duty to comply with consultation and publicity requirements may be placed upon the person who has made the application for a non-material change to a development consent order.

138.Subsection (2)(b) clarifies that the power to make regulations under paragraph 2(8) of Schedule 6 includes power to allow the Secretary of State, or the person making the application, to exercise a discretion. The intention is to clarify that the power allows regulations to include, for instance, provision allowing the Secretary of State to disapply prescribed consultation requirements where this is considered appropriate.

139.Paragraph 3 of Schedule 6 makes provision in respect of “material” changes to development consent orders, including in circumstances where an application for such a change is made. Subsection (3) confirms that the Secretary of State may refuse to exercise the power to make a material change in response to an application if it is considered that the development that would be authorised as a result of the change should properly be subject to an application under section 37 (applications for orders granting development consent) of the 2008 Act. This provision is to ensure that the Secretary of State can refuse to change an existing order where it is considered that an application for a change should be treated as a new application for development consent.

140.Paragraph 4(4) of Schedule 6 provides power for the Secretary of State to make regulations about the procedure to be followed where an application for a material change to a development consent order is made. Subsection (4) clarifies that this power includes power to allow a person to exercise a discretion. The rationale for this change is the same as that in respect of the amendment to paragraph 2(8) of Schedule 6.

Deemed discharge of planning conditions

141.A ‘deemed discharge’ provision is introduced for certain types of planning conditions which require the approval, agreement or consent of the local planning authority where a decision has not been made within a specified period. The effect of a deemed discharge is that the applicant is treated as having received that approval. Exclusions that may be required may be set out in secondary legislation.

Section 29: Deemed discharge of planning conditions

142.Section 29 inserts a new section 74A into the Town and Country Planning Act 1990 (the 1990 Act). Section 74A will allow the Secretary of State to provide by order for the deemed discharge of certain conditions attached to planning permission. The conditions in question are those which require the consent, agreement or approval of the local planning authority and which are imposed on planning permission for development in England.

143.Subsection (1) introduces the power of the Secretary of State to make provision by development order for the deemed discharge of a condition covered by section 74A. A “development order” is an order, subject to the negative resolution procedure, which can set out the procedure for applying for planning permission (see section 59 of the 1990 Act).

144.Subsection (2) limits the provision to conditions placed on planning permission in relation to development in England only. It further limits the provision to the types of conditions which require the consent, agreement or approval of a local planning authority. For example a condition might require the applicant to submit a scheme for the management of construction works on site for the approval of the local authority before development can take place.

145.Subsection (3) sets out that where a condition is deemed to be discharged this means that the approval, consent or agreement of the local planning authority to any matter required by the condition is deemed to have been given. So a deemed discharge would have the effect of ‘discharging’ the applicant from the requirement of gaining the consent, approval or agreement from the local planning authority. This means the authority cannot take enforcement action against the development on the basis that there has been a failure to obtain such consent, approval or agreement. So in the example above, the local planning authority would not be able to take enforcement action and stop development on site on the basis that the scheme did not have its actual written approval.

146.Subsection (4) sets out what a development order must specify in relation to the process for deemed discharge. It must provide that the deemed discharge can only apply where an applicant has applied for the approval, agreement or consent of the local planning authority as required under the condition in question, and that the determination period has lapsed without a decision from the local planning authority having been made and notified to the applicant. Further the applicant must have taken any procedural steps laid down by the Secretary of State in the development order before a condition can be deemed to be discharged.

147.Subsection (5) provides that the Secretary of State can provide for the procedure to be followed in the development order. For example, the order might provide under the powers in paragraphs (a), (b) and (e) of subsection (5) that the applicant must serve a notice in a prescribed form on the Secretary of State, stating his intention to rely on the deemed discharge provisions, after a certain number of weeks have elapsed from the date of the original application for the authority’s approval to a condition. Under subsection (5)(d), the Secretary of State may provide for the prescribed time periods within the deemed discharge procedure to be varied by agreement. This power could be exercised, for example, to allow the applicant and the local planning authority to extend such periods by agreement, which might be useful in a complex development.

148.Subsection (6) sets out that the Secretary of State may provide in a development order that the deemed discharge provisions will not apply in particular circumstances. For instance, the order may prescribe that certain types of conditions are exempted from the section.

149.Subsection (6)(b) gives the Secretary of State the power to exempt certain types of conditions by reference to the type of planning permission to which they relate. This is needed because planning permission may be granted in different ways for example following a planning application submitted to the local planning authority, by the Secretary of State on cases following an appeal or call-in or by development order, and it may not be appropriate for conditions attached to planning permission granted by particular routes to be subject to the deemed discharge provisions.

150.Subsection (6)(c) gives the Secretary of State the power to exempt certain types of conditions by reference to description of the development, for example based on thresholds, character or any other category.

151.Subsection (6)(d) gives the Secretary of State the power to provide that the deemed discharge provisions will not apply in any other circumstances. For example, the power could be used to provide that the deemed discharge provisions will not be available where the underlying application for planning permission is subject to appeal. In addition the applicant and the local planning authority may agree the deemed discharge provisions should not apply to a condition (subsection (7)).

152.Subsection (8) gives the Secretary of State the power, by development order, to disapply section 78(2) of the 1990 Act or to apply it with modifications in relation to the deemed discharge provisions. The Secretary of State will be able to provide in the development order that where an applicant intends to rely on the deemed discharge provisions, he or she will not also be able to appeal the authority’s non-determination of his or her application for approval under section 78(2).

153.Subsection (9) explains that the deemed discharge provisions may only apply to conditions attached to planning permissions where the application for the planning permission was submitted after the order comes into force. This is to ensure that the provision will not apply retrospectively.

Mayoral Development Orders

Section 30 and Schedule 4: Mayoral development orders

154.Section 30 gives effect to Schedule 4 and enables the Secretary of State by regulations to make consequential provision in connection with any provision made by that Schedule. Part 1 of Schedule 4 inserts new sections 61DA to 61DE into the Town and Country Planning Act 1990 (the 1990 Act) to make provision for Mayoral development orders. Part 2 of Schedule 4 makes consequential amendments to the 1990 Act.

155.New section 61DA of the 1990 Act enables the Mayor of London to make Mayoral development orders granting planning permission for specified development on a site or sites in Greater London. This is subject to any development order made by the Secretary of State under subsection (3) which specifies an area or class of development in respect of which a Mayoral development order may not be made.

156.New section 61DB makes provision for conditions that may be attached to planning permission granted by a Mayoral development order. A condition may require the consent, agreement or approval to a specified matter to be given by the Mayor or a relevant local planning authority (i.e. local planning authority that has within its area a site or part of a site that a Mayoral development order relates to, see subsection (9)). Subsection (4) enables the Secretary of State to make provision by development order for such consent etc. to be sought from a specified person where it is not given within a specified period (i.e. a person and period specified in the development order). Under subsection (6), the Secretary of State may by development order provide for a person to apply for permission to develop land without complying with a condition of a Mayoral development order (provision may be similar to that made by section 73 of the 1990 Act, see subsection (7)).

157.New section 61DC sets out the procedures for preparing and making a Mayoral development order. Subsection (1) enables the Secretary of State to set out much of the procedure in a development order, including provision about notice, publicity and inspection by the public, consultation, the making and consideration of representations. Subsections (3) to (5) provide that the Mayor may only make a Mayoral development order in response to an application by each relevant local planning authority, and may only consult on a proposed order and make the final order with the consent and approval of those authorities.

158.New section 61DD makes provision for the revision or revocation of a Mayoral development order by the Mayor or by the Secretary of State. This includes a power for the Secretary of State to make further provision by development order for the procedure for revising or revoking a Mayoral development order and about the steps the Secretary of State must take before revoking, or directing the Mayor to revise, an order. New section 61DE describes the effect of revision or revocation of an order on development that has been started but not completed. The general position is that the development may be completed (see subsection (3)), but this is subject to specific provision made by the Mayor or by the Secretary of State when revising or revoking the order.

The Homes and Communities Agency and other bodies

159.From April 2015, the Homes and Communities Agency (HCA) is taking on a new role as the land disposal agency for Government in England (outside of London). In London this role will be carried out by the Greater London Authority (GLA).

160.Until this Act, land held by an arm’s length body of a government department could not transfer directly to the HCA. Instead it first transferred to the sponsor Department, before being transferred to the HCA. This method required two independent legal processes. Section 31 amends the Housing and Regeneration Act 2008 (HRA 2008) and the Greater London Authority Act 1999 (GLAA 1999) in order to allow the direct transfer of land held by arm’s length bodies to the HCA or the GLA.  Only land identified as no longer required will transfer to the HCA or the GLA. The transferring body must give consent to the transfer before this can take place.

161.The HCA, the GLA and Mayoral development corporations (MDCs) have powers to override third-party rights and restrictions (such as easements and restrictive covenants) affecting their land.  However, once any freehold interest in that land is sold, these powers cease to be available and so cannot be used by any purchaser and these interests can no longer be overridden.

162.Section 32 amends the HRA 2008, GLAA 1999 and Localism Act 2011 to ensure future purchasers of land owned by the HCA, the GLA (or a company or body carrying out housing or regeneration functions on the GLA’s behalf) or an MDC will be able to develop and use that land without being affected by easements and other rights and restrictions. This is regardless of whether they have purchased a freehold or leasehold interest in that land. Section 32 will allow purchasers of land from these bodies to achieve parity with buyers of land belonging to local authorities and other public bodies involved in regeneration and development (such as housing action trusts and urban development corporations). It will not apply in relation to any freehold interest in land which is sold before the commencement of section 32.

Section 31: Property etc transfers to the HCA

163.This section inserts new sections into the HRA 2008 and the GLAA 1999.

164.HRA 2008: The section inserts new sections 53A (other property etc transfers to the HCA) and 53B (tax consequences of transfers under section 53A) after section 53 of the HRA 2008. Section 51 of the HRA 2008 allows the Secretary of State to make schemes for the transfer to the HCA of the property, rights and liabilities of the Urban Regeneration Agency, the Commission for New Towns or a Minister of the Crown. New section 53A of the 2008 Act empowers the Secretary of State to make schemes for the transfer to the HCA of the property, rights and liabilities of a public body or a description of public bodies which is specified by the Secretary of State in regulations. Transfer to the HCA will only take place with the transferring body’s consent. For these purposes, ‘a public body’ is defined as a person or body with functions of a public nature. The bodies which will be specified are intended to be arm’s length bodies of government departments such as non-departmental public bodies. Subsection (6) explicitly prevents any part of the Public Forest Estate from being transferred to the HCA by a scheme made under the new section.

165.GLAA 1999: This section inserts new sections 333DA (transfer of property to the GLA or a company or body through which the GLA exercises functions in relation to housing or regeneration), 333DB (provision that may be made by a transfer scheme) and 333DC (tax consequences of transfers under section 333DA). New section 333DA empowers the Secretary of State to make schemes for the transfer to the GLA of property, rights and liabilities of a public body or a description of public bodies which is specified by the Secretary of State in regulations. Transfer to the GLA will only take place if the transferring body has given consent. The transfer of any public forest is excluded from any scheme made under new section 333DA.

166.New section 53B of the HRA 2008 enables the Treasury to make regulations which provide for the tax consequences of transfers under new section 53A. New section 333DC of the GLAA 1999 enables the Treasury to make regulations which provide for the tax consequences of transfers under new section 333DA.

Section 32: Easements etc affecting land

167.This section amends section 11 of, and paragraph 1 of Schedule 3 to, the HRA 2008 which provide powers in relation to land of the HCA. The amendments ensure that a purchaser of land which has been vested in or acquired by the HCA who undertakes works on or makes subsequent use of that land is empowered to override any relevant rights and interests and restrictions as to user. Similar amendments are also made to section 333ZB of the GLAA 1999 and section 208 of the Localism Act 2011 so that a purchaser of land of the GLA or an MDC will be similarly empowered.

Section 33: Expenditure of Greater London Authority on housing or regeneration

168.Section 33 amends the GLAA 1999. Section 30 of the GLAA 1999 (the general power of the authority) empowers the Greater London Authority to do anything which supports its three principal purposes of promoting economic development and wealth creation, promoting social development and improving the environment in Greater London. In the exercise of this general power, the Greater London Authority may carry on activities in the field of economic development and regeneration, which the London Development Agency and Homes and Communities Agency might previously have undertaken.

169.The Greater London Authority’s general power is limited by section 31(1) of the GLAA 1999 (limits of the general power), which prohibits the Authority from incurring expenditure in doing anything that can be done by Transport for London, the Mayor's Office for Policing and Crime and the London Fire and Emergency Planning Authority.

170.This section amends section 31 of the GLAA 1999 to remove a prohibition against the Authority incurring expenditure on anything that can be done by Transport for London. This enables the Greater London Authority to incur expenditure on transport for the purposes of housing or regeneration and applies in relation to expenditure incurred before as well as after the coming into force of the section.

Her Majesty’s Land Registry

171.The Land Registry’s principal function is to keep a register of title to freehold and leasehold land and charges throughout England and Wales and to record dealings in land once it is registered. On behalf of the Crown, it guarantees title to registered estates and interests in land.

172.It is a non-Ministerial Government department consisting of a Chief Land Registrar (CLR), appointed by the Secretary of State, and staff appointed by the CLR.

173.Section 34 and Schedule 5 make provision about the transfer of responsibility for local land charges from individual local authorities in England and Wales to the CLR.

174.The Land Registry has developed a Business Strategy for 2013 to 2018. The strategy was based on meeting the needs of its customers and stakeholders, facilitating digitisation of land registration services and improving the management and re-use of land and property data.

175.Section 35 provides for an extension of the Chief Land Registrar’s powers to enable the Land Registry to provide services relating to land and other property. Section 36 provides for the transfer of responsibility for nominating the consumer affairs member of the Rule Committee appointed under the Land Registration Act 2002 from the Lord Chancellor to the Secretary of State.

Section 34 and Schedule 5: Transfer of responsibility for local land charges to Land Registry

176.Local land charges are generally in the nature of restrictions or prohibitions on a particular parcel or parcels of land, binding on successive owners and occupiers of the land, which either secure the payment of money or limit the use to which the land may be put. Local land charges would not normally be disclosed by inspection of the land or an investigation of the register of title to the land (or the title deeds where the land is unregistered). For the protection of purchasers, there is a duty to register them. The registers involved are open to public access.

177.Under the current legislation – the Local Land Charges Act 1975 (LLCA 1975) – local land charges are entered in local land charges registers, open to public inspection and administered by each local authority in England and Wales in relation to the local land charges that affect the land within their respective administrative areas. The way in which the local registers are administered, in particular as to whether and to what extent the registers have been computerised, varies widely across England and Wales, as do the fees charged for searches of the register in England (where individual local authorities have power to set the fees for their own areas, subject to general guidance from the Lord Chancellor). Following investigation of the position by the Land Registry, and a consultation exercise which ended on 9 March 2014, the Government has decided that responsibility for its administration should be transferred from the local authorities in England and Wales to the Land Registry. The Land Registry should then provide a composite fully computerised local land charges system accessible to users by electronic communications.

178.Schedule 5 Parts 1 - 4 sets out the amendments required to the relevant legislation and provides for the necessary transitional arrangements to enable Land Registry to assume responsibility for the registration of local land charges from the existing local authorities in England and Wales. Part 1 sets out amendments to the LLCA 1975; Part 2 sets out amendments to the Land Registration Act 2002 (LRA 2002); Part 3 sets out amendments to other legislation; and Part 4 sets out the necessary transitional provisions.

Schedule 5 Part 1: Amendments to the Local Land Charges Act 1975

179.Section 3 of the LLCA 1975 provides for the existing local authorities in England and Wales to be the registering authorities for local land charges that affect land in their respective administrative areas and for them to maintain individual local land charges registers. Paragraph 3 replaces this with a new section 3 that provides for the Chief Land Registrar (CLR) to keep a single local land charges register and the intention is that the new register will be fully electronic. Such register is to comprise the local land charges registered in a local authority’s local land charges register immediately before the CLR becomes the registering authority for that authority’s administrative area and each local land charge that is subsequently registered in respect of land wholly or partly in that area.

180.Section 4 of the LLCA 1975 defines “appropriate local land charges register.” Paragraph 4 omits this section as it is unnecessary when the separate local authority local land charges registers administered by individual local authorities in England and Wales are replaced by a composite local land charges register for which the CLR will be responsible.

181.Section 5 of the LLCA 1975 deals with the registration of local land charges and defines “originating authorities” as those authorities by whom a local land charge is brought into existence or by whom, on its coming into existence, the charge is enforceable. Originating authorities include the local authorities that are also the registering authorities for local land charges affecting land in their respective administrative areas. Such authorities therefore effectively have a dual role where they are responsible for the origination of a local land charge. Section 5 of the LLCA 1975 requires a local authority that is both the originating authority and the registering authority to register the local land charge in the local land charges register for which it is responsible. In other cases, section 5 requires the originating authority for a local land charge to apply for its registration to the local authority that is the registering authority for the land affected by the charge. Paragraph 5 amends section 5 to require all originating authorities to apply to the CLR for registration of the local land charge where he or she has become the registering authority for the area in which the land affected by the charge is situated.

182.Paragraph 6 amends section 6 of the LLCA 1975 in relation to its application to general charges. General charges are charges that arise under certain conditions in favour of local authorities in advance of their being able to register a specific local land charge. Section 6 provides for the registration of general charges by the local authority that is the registering authority for the area in which the land affected by the general charge is situated. The provision is amended to require the CLR to register such charges on the application of the originating authority for the charge, where he or she has become the registering authority for the area in which the land affected by the general charge is situated.

183.Sections 8 and 9 of the LLCA 1975 provide for persons to be able to make personal searches of the existing local land charge registers for which local authorities in England and Wales are responsible as registering authorities and to requisition official searches of the register from the registering authorities. Paragraphs 7 and 8 amend sections 8 and 9 respectively so as to place the responsibility for providing personal search facilities and official searches results on the CLR where he or she has assumed responsibility for the registration of local land charges from any local authority.

184.Section 10 of the LLCA 1975 provides for a compensation scheme under which registering authorities are made responsible for compensating a purchaser of land that is subject to a local land charge for loss suffered by that person where that person has relied upon a personal or official search but the search has failed to disclose the existence of a local land charge that it should have disclosed. Paragraph 9 amends section 10 to place the responsibility for paying compensation to such a purchaser on the CLR in place of the relevant local authority where he or she has taken over responsibility from the local authority. Section 10 is also amended to include provision that entitles the CLR to recover from an originating authority any compensation he or she is required to pay to a purchaser as a consequence of an error by the originating authority. The CLR is also given power to insure against the risk of liability to pay compensation under section 10 by insertion of a new subsection (6A).

185.Section 14 of the LLCA 1975 provides for the Lord Chancellor, with the concurrence of the Treasury as to fees, to make rules for carrying the LLCA 1975 into effect. Revised rules will be required to give effect to the amended Act as it applies to the CLR when he or she assumes responsibility as the registering authority. Paragraph 13 provides for the inclusion of such additional enabling powers in section 14 as are required to allow rules to be made for this purpose. In particular, the additional powers include the making of rules—

186.It is the intention that the local land charges registration system administered by the CLR should be electronic and operate on the basis that applications to the CLR are received by electronic communications, in order to maximise the efficiency and speed with which the system operates.  Paragraph 13 therefore substitutes new paragraphs (b), (ba) and (bb) in subsection (2) of section 14 in place of the existing paragraph (b).  The purpose of the changes is to make it clear that the power to make rules under section 14(1) includes power to make rules as to the use of particular means of communication (such as electronic communication) that may or must be used for the purposes of the LLCA 1975 (such as making applications for the registration of local land charges and the making of personal or official searches of the register), the circumstances in which the particular means of communication is to be used and the form and contents of anything sent by that particular means of communication. It will also include power to make rules requiring or enabling anything provided to or by the CLR for the purposes of the LLCA 1975, or any other statutory provisions under which any matter is registrable in the local land charges register, to be provided in electronic form. The changes further provide that the details concerning the use of particular means of communication and anything which is provided to or by the CLR may be specified in the rules or determined by the CLR, or by a person who is providing services to the CLR, such as a third party provider of the computerised registration and communications systems that are envisaged (who will in practice operate in accordance with specifications determined by the CLR).

187.The effect of sub-paragraphs (4) to (6) of paragraph 13 of the Act is that the Lord Chancellor (with the concurrence of the Treasury) has power to set local land charges fees for England. The Welsh Ministers retain their current power to set local land charges fees in Wales.

Schedule 5 Part 2: Amendments to the Land Registration Act 2002

Paragraphs 17 to 20

188.The amendment to section 100 of the LRA 2002 (Conduct of business) makes it clear that the functions of the CLR, which any member of Land Registry may carry out when authorised by him or her, include all functions of the CLR under any legislation.

189.The amendment to section 106 (incidental powers of the registrar in relation to companies) means the CLR’s power to form, or participate in the formation of, a company or to purchase or invest in a company is extended to include the CLR’s functions under the LLCA 1975.

190.The LRA 2002 contains an indemnity for the CLR and staff appointed by him or her, so that they will not be liable in the performance of their duties in the absence of bad faith, and any claims for indemnity under the LRA 2002 are dealt with under the statutory indemnity scheme. The amendments also provide that this exclusion of liability is extended to functions performed under the LLCA 1975. Claims for compensation will be dealt with in the LLCA 1975, as amended.

Schedule 5 Part 3: Amendments to Other Acts

Paragraphs 21 to 39

191.This Part of the Schedule contains amendments to a number of Acts of Parliament which refer to the LLCA 1975 in areas such as land compensation, where local land charges issues are applicable. The amendments alter the wording of the legislation to reflect the fact that there will be a composite register in all cases where in the future the CLR has become the registering authority, rather than separate registers held by each local authority. As this Part of the Schedule only applies once the CLR has formally taken responsibility for the register in a particular area, the amendments to the Acts of Parliament do not take effect in respect of areas where the local authority is still the registering authority.

Schedule 5 Part 4: Transitional Provision

Paragraphs 40 to 44

192.The CLR will take over responsibility for the LLCA 1975 functions in stages from the existing local authorities in England and Wales. The CLR will take over responsibility for each area only after the necessary preparation for the transfer of data at each local authority has been carried out.

193.Paragraph 40 therefore provides for the CLR to give and publish a notice, once the preparatory work has been completed at the relevant local authority. On expiry the notice has the effect of bringing the new regime into force for the relevant area. This will allow the CLR to determine the point at which he or she takes over as the registering authority. Any rules made under the LLCA 1975 as amended will apply only to those areas for which the CLR has taken over responsibility as registering authority.

194.Paragraph 41 requires local authorities to provide information and assistance to the Chief Land Registrar to enable him to take on the role of registering authority.

195.The provisions of paragraph 42 ensure continuity in the administration of the local land charges system. Anything the local authority was doing at the time of the change will automatically become the responsibility of the CLR. If for example there was a pending application which had not been completed, this would automatically become the responsibility of the CLR when the functions were taken over, and the same applies to any legal proceedings in which the local authority may have been involved. Any liability which the CLR may acquire in this way, which arises by reason of a mistake made by the local authority, is dealt with under the following paragraph.

Paragraph 43

196.This clarifies the position with regard to payment of compensation under the statutory scheme contained in the LLCA 1975. In particular the CLR can recover compensation paid by him or her where his or her liability to pay was in consequence of a local authority’s failure to-

(a)

register a local land charge before the CLR replaced it as registering authority,

(b)

provide appropriate electronic facilities for personal searches or

(c)

provide a correct official search.

197.Compensation cannot however be recovered from a local authority which has failed to register, or register correctly, a local land charge in the register it formerly maintained, or to provide information about such a charge to the CLR, where that local authority is not the originating authority and the error was due to the equivalent failure of the actual originating authority. In that case the CLR can seek recovery of compensation paid from the originating authority instead.

Section 35: Conferral of additional powers on Land Registry

198.At present, under the LRA 2002, the CLR’s powers are limited to functions and services relating to land registration. These powers are to be extended to enable Land Registry, in addition, to provide services relating to land and other property.

199.Section 105 of the LRA 2002 enables the CLR to provide, or arrange for the provision of, consultancy or advisory services about the registration of land in England and Wales or elsewhere and to set the terms on which they are provided. Section 35 amends section 105 to broaden the CLR’s powers to enable Land Registry also to provide (a) consultancy and advisory services about land and other property in England and Wales or elsewhere and (b) information services and services relating to documents or registers, relating to land or other property in England and Wales (subsection (1) as amended by the section). As at present, it will be for the CLR to set the terms on which services are provided, including the charges for them. The CLR’s power under section 106 of the LRA 2002 to form, or participate in the formation of, a company or to purchase or invest in a company could be used in connection with these services.

Section 36: Transfer of power to nominate member of Rule Committee

200.Under section 127(1) of the LRA 2002, the power of the Secretary of State to make land registration rules is exercisable with the advice and assistance of a Rule Committee, whose membership is governed by section 127(2) of that Act. One of the members is required to be a person with experience in, and knowledge of, consumer affairs. That member is nominated by the Lord Chancellor (section 127(2)(h)). The purpose of section 36 is to transfer the power to nominate this member to the Secretary of State as and when there is a future vacancy.

Off-site carbon abatement measures

Section 37: Provision in building regulations for off-site carbon abatement measures

201.The Building Act 1984 empowers the Secretary of State to make building regulations establishing the standards to be met by building work for a number of purposes, including furthering the conservation of fuel and power and furthering the protection or enhancement of the environment. Under these powers, building regulations provide that a building that is erected shall meet a target rate for maximum emissions of carbon dioxide. The Government is committed to introducing a zero carbon emissions standard for new dwellings in England from 2016. However, the Government recognises that it may not be technically feasible or cost effective to require house builders to meet the zero carbon standard just through on-site measures, like further increased insulation, solar panels etc. The intention is therefore to set a maximum on-site carbon dioxide emission standard for new homes and for the remainder of the zero carbon target to be met by house builders supporting off-site carbon abatement measures, doing more on-site or a combination of both – these are termed ‘allowable solutions’.

202.Allowable solutions will include measures taken in relation to the new building. There will be options however to offset residual emissions by reduction of emissions elsewhere, for example by measures taken in relation to existing buildings, or by investment in energy-efficient infrastructure projects. Such measures may be undertaken by the developer or by a third party for the developer. There will also be an option to pay at a capped rate into a fund which invests in carbon-saving measures. Existing powers in the Building Act 1984 do not extend to providing for measures relating to buildings that are not in or on the building, or connected to it. The purpose of the section is to allow for such measures for the purposes of abating carbon emissions. The Welsh Government shares the desire to reduce carbon dioxide emissions from buildings and also recognises the technical and economic limits to reducing carbon dioxide emissions through measures on the buildings themselves. The Welsh Government intends to consult in 2016 on a review of the current energy performance requirements of the Building Regulations in Wales, including the off-site abatement of carbon dioxide, and so is working to a different timeframe to England.

203.The section establishes the necessary powers for the Secretary of State or Welsh Ministers to make building regulations provisions in relation to off-site measures for abating carbon dioxide emissions, taken by the developer or by a person on the developer’s behalf, or consisting of payment into a fund that invests in carbon abatement projects. It provides also for administrative provisions to be made to facilitate offsetting of those emissions against emissions from a building. These include provisions relating to the administration, by or on behalf of the Secretary of State or Welsh Ministers, of funds for carbon abatement measures into which allowable solutions payments can be made, and to establishing a maximum level of payment into a fund. There is also provision for a register of certificates showing compliance with the carbon emissions standard by use of allowable solutions to be set up and maintained by or on behalf of the Secretary of State or Welsh Ministers, and for charges to be made in connection with use of the register.