HS2 faces disruption due to delays over Compulsory Purchase Orders
MAJOR infrastructure projects in the Midlands such as HS2 could be disrupted due to delays over Compulsory Purchase Orders, a new study has said.
EY undertook a survey of professionals working in the field of CPOs across the UK, with 52% of respondents saying that the biggest challenge in the current landscape is the length of time it takes to reach a settlement.
Time delays were also the biggest concern for 47% of those surveyed working on Crossrail 2 and HS2 projects.
EY said the lack of speed in the CPO process was already a major issue at current levels of activity, with responses from the survey indicating that CPO activity is only going to increase – 65% of respondents said they expected the number of HS2 claims to increase over the next year.
Proposed reforms of the CPO system by the Department for Communities and Local Government aim to make the process ‘clearer, fairer and faster’.
Within the survey sample, there are over 2,000 current CPO cases in the UK with a total value of £1.6bn, with each case having an average value of £775,000. Almost one fifth (18%) of these cases are based in the Midlands.
Future skills shortage and the number of people coming into the profession were also cited as two of the most common concerns for CPO professionals, especially in light of the increasing workload anticipated from the likes of HS2 and other similar projects.
The survey asked respondents how long they have been active in the CPO field, with nearly half (48%) having more than 20 years’ experience and 77% having more than ten years’ experience.
EY said the findings suggested there were fewer people entering the profession than those with the experience necessary to deal with demand.
Sara Fowler (left), EY’s senior partner in the Midlands and joint lead of the EY CPO team said: “Some of the UK’s largest infrastructure projects are being hailed for supporting long-term economic growth and creating thousands of jobs and apprenticeships in regions, such as the Midlands.
“Delays in the CPO process can have UK-wide economic implications so the process must speed up.”
Furthermore, she said the likely short-term skills shortage and the limited number of people coming into the profession could exacerbate the time factors involved with settling the CPO process.
“This could place further strain on professionals and signals the need for substantial, immediate, investment by firms, industry bodies and the Government to ensure there is a future talent pool capable of dealing with CPOs,” she added.
In addition, she said if the UK wanted to attract foreign investment and create more jobs, then world class infrastructure was absolutely essential, particularly outside of London where devolution policies are beginning to gain momentum.
“Compulsory purchase powers will play a significant role in delivering these projects, but change is needed to ensure a ‘clearer, fairer and faster’ process’ that is fit for the future,” she said.
EY’s CPO team in Birmingham, led by Sara Fowler and Hannah Griffin, consists of forensic accountants who work on behalf of acquiring bodies and affected businesses to quantify compensation claims arising as a result of CPOs.
