The Impact of the Land Reform Bill in Scotland

Transcription

1 The Impact of the Land Reform Bill in Scotland Wednesday 16 September 2015 savills.com

2 Welcome and introductions Sir Bertie Ross Presentations Sarah-Jane Laing Scottish Land & Estates, Director of Policy and Parliamentary Affairs Where are we now and what s next? Christine O Neill Brodies LLP, Chairman Land Reform Legal Obstacles and Opportunities Q &A Panel discussion Chaired by Toby Metcalfe, Savills incorporating Smiths Gore, Director Rural Rory Kennedy Chiene + Tait, Private Client Partner Alan Barr Brodies LLP, Personal and Family Partner Hugo Struthers Savills, Rural Director

3 Land Reform: Where we are now, and what s next?

4 Land Reform Bill Aims of the Bill Ensure the development of an effective system of land governance and ongoing commitment to land reform in Scotland; Address barriers to furthering sustainable development in relation to land and improve the transparency and accountability of land ownership; and Demonstrate commitment to effectively manage land rights in land for the common good, through modernising and improving specific aspects of land ownership and rights over land.

5 Land Reform Bill Timetable: Written evidence by 14 August Stage 1 Oral evidence sessions: Bill Team 2 Sept Land reform general 7 Sept (Skye) Ag Holdings 16 Sept Deer and sporting rates 30 Sept Core paths and human rights 7 Oct Cab Sec & Minister 2 Nov Stage 1 report before end of 2015 Stage 2 Jan/Feb Stage 3 March 2016 and beyond secondary legislation and guidance

6 Land Reform Bill What s not in the Bill No absolute right to buy for communities or agricultural tenants. No upper limit on land ownership No limit on who can own land in Scotland No land value taxation No reintroduction of non-domestic rates for agriculture or forestry No National Community Land Agency with land acquisition powers. Many of the agricultural holdings review recommendations (to come in a future Bill!)

7 Land Reform Bill Land Rights and Responsibilities statement Scottish Ministers must prepare w/in 12 months of section coming into force a statement of their objectives for land reform Land Commission Corporate body consisting of 5 Land Commissioners and the Tenant Farming Commissioner Commission must prepare a strategic plan setting out objectives/priorities and cost of exercise of functions Functions of Land Commissioners are in relation to ownership, management and use of land in Scotland Land. Must consider and advise on any matter referred by Scottish Ministers and have regard to the land rights and responsibilities statement.

8 Land Reform Bill Commissioners Expertise or experience in land reform, law, finance, economic issues, planning and development and environmental issues Tenant Farming Commissioner Prepare and promote codes of practice on agricultural holdings in relation to areas such as rent reviews, improvements, succession, compensation at waygo, management of sporting leases and game management. TFC can inquire into breaches of the code and refer to the Land Court on questions of law and is to collaborate with the Land Commissioners.

9 Land Reform Bill Part 3 -Information about control of land etc Scottish Ministers may make regulations regarding control of land, including defining persons in control and those affected by land. In the explanatory notes, a specified level of shareholding is exemplified as possible control. Ministers are under a duty to consult before laying regulations before Parliament. Only those affected by that land can access the information and regulations are to provide for when information can be requested, fees payable by requestor of information, circumstances when information need not be supplied and other matters. The Keeper is also to be given new power to request certain information regarding proprietors of land.

10 Land Reform Bill Furthering the sustainable development of land Parts 4 & 5 Engaging communities in decisions relating to land Requirement on Scottish Ministers to produce guidance for landowners, tenants and occupiers on engaging with communities on land based decisions. Right to buy land to further sustainable development Right for communities to apply to Scottish Ministers to exercise a right to buy to further sustainable development. This right can be exercised by the community body alone or in conjunction with a third party partner. While protection is given to owner occupied homes, this does not extend to those which are tenanted. An application can also be made to purchase a tenant s interest in land in certain circumstances.

11 Land Reform Bill Set of key tests: Transfer of land is likely to further the achievement of sustainable development in relation to the land; Transfer of land is in the public interest; Transfer of land is likely to result in a significant benefit to the community; and is the only practicable way of achieving that significant benefit; and not granting consent to the transfer of land would result in significant harm to the community. Scottish Government believes that landowners rights are protected as a result of the inclusion of right of representation, compensation and right of appeal. Provision is made for mediation to reduce the need for enforced sale taking place.

12 Land Reform Bill Rights and responsibilities over land Entry in valuation roll of shootings and deer forests End the current non-domestic rates exemptions for shootings and deer forests. Will apply to all shooting rights and not just those let on a commercial basis Proposed change to take effect from 1 April 2017 Basis of valuation is as set out in ratings legislation i.e. the rent at which the lands and heritages might reasonably be expected to let from year to year if no grassum or consideration other than rent were payable in respect of the lease and if the tenant undertook to pay all rates and to bear the cost of repairs and insurance and other expenses, if any, necessary to maintain the lands and heritages is a state to command that rent.

13 Land Reform Bill Deer Management Increase the powers of SNH to require deer management plans to be written, introducing penalties for failure; and creating additional functions for deer panels. Access Rights Focuses on local authority review and amendment of core path plans. Consultation with landowners is now explicit in the Bill where there is an amendment to the plan

14 Land Reform Bill Agricultural Holdings Measures Modern limited duration tenancies Conversion of 1991 Act tenancies into MLDTs Pre emptive right to buy Sale where landlord is in breach Amended rent review process Widening of succession and assignation Amnesty for tenants improvements

15 Other Land Reform Measures Community Empowerment (Scotland) Act 2015 neglected and abandoned land 1 million acre target LRRG Housing measures Stage 2 amendment or another Bill? Another Ag Holdings Bill

16 Land Reform Part of an ongoing land reform process, and a piece of legislation which: will support the Government s existing work to pass power to people and local communities, encourage and support responsible and diverse landownership and ensure communities have a say in how land in their area is used. the message is clear, it is no longer acceptable to own land in Scotland and not take the public responsibilities that come with that ownership seriously.

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18 Land Reform Legal Obstacles and Opportunities Christine O Neill, Chairman, Brodies LLP 16 September 2015 Brodies LLP 2015 ABERDEEN EDINBURGH GLASGOW BRUSSELS

19 A Parliament of Limited Competence

20 A Parliament of Limited Competence Scotland Act 1998 Hadrian s Wall ECHR EU Law Westminster Protected Legislation

21 New avenues for legal challenge Before a Bill becomes law. After Royal Assent. Mixed outcomes since 1999:

22 The Land Reform Precedent Agricultural Holdings (Scotland) Act 2003 Dissolution of limited partnerships by the limited partner. Provisions of the 2003 Act were an infringement of Article 1 of Protocol 1 of European Convention on Human Rights peaceful enjoyment of possessions. Provisions struck down by the Supreme Court and remedial legislation enacted.

23 The Land Reform Bill Areas of concern. Areas of potential legal vulnerability. How to respond.

24 Land Reform Legal Obstacles and Opportunities Christine O Neill, Chairman, Brodies LLP 16 September 2015 Brodies LLP 2015 ABERDEEN EDINBURGH GLASGOW BRUSSELS

25 Q &A Panel discussion Chaired by Toby Metcalfe, Savills incorporating Smiths Gore, Director Rural Rory Kennedy Chiene + Tait, Private Client Partner Alan Barr Brodies LLP, Personal and Family partner Hugo Struthers Savills, Rural Director