Town and Country Planning Act 1954

40 Exchequer contribution towards compensation in certain cases

(1) Where a notice under the last preceding section is given to the Minister in consequence of the making of an order under section twenty-one of the principal Act, and the circumstances are such that, if the permission revoked or modified by the order had been refused, or, as the case may be, had been granted as so modified, at the time when it was granted, compensation under Part II or Part V of this Act could have been claimed and would have been payable by the Minister, the Minister may, subject to the provisions of this section, pay to the local planning authority a contribution of the amount appearing to him to be the amount of compensation which would have been payable by him as aforesaid under the said Part II or Part V:

Provided that the amount of any such contribution shall not exceed—

(a) the amount of the compensation for depreciation paid by the local planning authority ; or

(b) the unexpended balance of established development value at the date of the making of the order of the land in respect of which that compensation was paid.

(2) Regulations made under this section shall provide, as respects cases where the Minister proposes to pay a contribution under this section—

(a) for requiring the Minister to give notice of his proposal to persons entitled to such interests as may be prescribed in the land to which the proposal relates, and to such other persons (if any) as may be determined in accordance with the regulations to be affected by the proposal;

(b) for enabling persons to whom notice of the proposal is given to object to the proposal, on the grounds that compensation would not have been payable as mentioned in the preceding subsection, or that the amount of the compensation so payable would have been less than the amount of the proposed contribution;

(c) for enabling any person making such an objection to require the matter in dispute to be referred to the Lands Tribunal for determination ; and

(d) where a contribution under this section is paid, for applying with any necessary modifications the provisions of Part II of this Act as to the reduction or extinguishment of the unexpended balance of established development value of land as if the contribution had been a payment of compensation under Part II of this Act.