Failure by the Government to repeal an ‘outdated' law is likely to cost town halls millions of pounds, a council leader has warned. Wandsworth LBC's council leader, Edward Lister, was dismayed when ministers announced they were not planning to fix part of the Land Compensation Act 1961, which could force taxpayers to pay out millions in compensation to property developers. Cllr Lister's concerns centre on a clause which was used by property company, Greenweb, last year, to claim £1.6bn compensation from the council, after it was refused planning permission to build homes on land worth only £15,000. This was possible because homes had once stood on the land until they were destroyed by bombs during the Second World War. Cllr Lister wrote to communities secretary, Hazel Blears, urging her to change the law and compensate the council he believed incurred the cost because of the negligence of the Government. But a reply from junior minister, Sadiq Khan, informed him the Government had no plans to change the law. Mr Khan said: ‘Given the many other priorities for Parliamentary time, I do not foresee an opportunity to enact the reforms relevant to the Greenweb case in the near future. We are aware that there are some anomalies still in compulsory purchase and compensation legislation.' He added: ‘I am afraid that the department is unable to contribute to your compensation payment.' Cllr Lister said: ‘I'm astonished that the Government intends to do nothing to fix this broken law which has unfairly forced taxpayers to fill the pockets of property developers. Ministers are effectively saying they don't care less, even though other town halls could suffer the same expensive fate.' In the original hearing last summer, the three judges said the ruling was unsatisfactory. Lord Justice Thomas said: ‘It is a highly regrettable for the taxpayers of the London Borough of Wandsworth.'
