R (on the application of Sainsbury’s Supermarkets Ltd) v Wolverhampton City Council and another

R (on the application of Sainsbury’s Supermarkets Ltd) v Wolverhampton City Council and another

A local authority may not lawfully take into account off-site benefits, such as the regeneration of an unconnected site through cross-subsidy, when deciding to exercise compulsory purchase powers under section 226(1)(a) of the Town and Country Planning Act 1990. Only benefits with a real and direct connection to the development of the CPO site are material considerations. The opportunity for redevelopment of the Royal Hospital site was not a lawful consideration in deciding whether to make a CPO in relation to the Raglan Street site.

Parties
Appellant: Sainsbury’s Supermarkets Ltd; 1st Respondent: Wolverhampton City Council; 2nd Respondent: Tesco Stores Ltd
Jurisdiction
England and Wales
Judgment Date
12 May 2010
Procedural Posture
Appeal / Supreme Court Judgment
Outcome
Appeal allowed
Legal Topics
Compulsory Purchase Orders, Material Considerations in Planning, Cross Subsidy in Development, Judicial Review of Local Authority Decisions, Statutory Interpretation
Administrative Law Planning Law Compulsory Acquisition Compulsory Purchase Orders Material Considerations in Planning Cross Subsidy in Development Judicial Review of Local Authority Decisions Statutory Interpretation

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Parties

Sainsbury’s Supermarkets Ltd

Appellant

Wolverhampton City Council

1st Respondent

Tesco Stores Ltd

2nd Respondent

Procedural Posture

Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether a local authority may take into account off-site benefits (cross-subsidy) offered by a developer when deciding to exercise compulsory purchase powers under section 226(1)(a) of the Town and Country Planning Act 1990.
  2. 2 Whether such off-site benefits are material considerations under section 226(1A) or section 226(1)(a) of the 1990 Act.

Ratio Decidendi

A local authority may not lawfully take into account off-site benefits, such as the regeneration of an unconnected site through cross-subsidy, when deciding to exercise compulsory purchase powers under section 226(1)(a) of the Town and Country Planning Act 1990. Only benefits with a real and direct connection to the development of the CPO site are material considerations. The opportunity for redevelopment of the Royal Hospital site was not a lawful consideration in deciding whether to make a CPO in relation to the Raglan Street site.

Court Disposition

Appeal allowed

Orders

  • Declaration that the opportunity for redevelopment of the Royal Hospital site is not a lawful consideration in deciding whether to make a CPO in relation to the Raglan Street site.