Farmers will be forced to sell land at cut-rate prices as Labour expands councils’ compulsory purchase powers

Farmers across Britain face a devastating financial blow as the Labour Government moves to strip them of land for a fraction of its potential value. Under sweeping reforms in the new Planning and Infrastructure Bill, local councils will gain expanded powers to forcibly acquire land for housing, hospitals, and schools—without paying what it would be worth if developed.

Currently, when land is taken through a compulsory purchase order (CPO), owners are compensated based on the “hope value”—the potential price if planning permission were granted. The new legislation, spearheaded by Deputy Prime Minister Angela Rayner, will remove this, allowing councils to buy at its existing value, often drastically lower than what landowners could expect in a free market sale.

The move is part of Labour’s aggressive push to deliver 1.5 million new homes by 2030, but furious farmers say it’s yet another attack on the rural economy. Many are already reeling from Labour’s controversial 20% inheritance tax on agricultural land, which will force some to sell off property to cover the tax bill when it comes into force in April 2026.

“This punishes landowners,” said Gavin Lane, deputy vice-president of the Country Land and Business Association. “We urgently need more affordable housing, but pushing farmers into selling land for less than its true worth isn’t the answer.”

The Bill, set to be introduced in Parliament on Tuesday, also aims to accelerate infrastructure development by limiting legal challenges against energy projects like onshore wind farms and nuclear plants. Households near new pylons will be offered £250 a year for a decade as compensation, while a new nature restoration fund will streamline environmental offsets for construction projects.

However, the most controversial element remains the stripping of farmers’ land value, with critics warning it could drive many out of business.

Under current rules, government ministers must sign off on CPOs that remove hope value. The new law will hand that power directly to local councils, planning inspectors, and mayors—removing a key layer of oversight. Even parish, town, and community councils will find it easier to acquire land at cut-price rates.

If land already has planning permission, owners will still receive the higher valuation. But for vast swathes of farmland and rural plots without such approval, compensation could be a fraction of its true potential worth.

Rural groups see the move as yet another Labour attack on the countryside. Tim Bonner, of the Countryside Alliance, warned: “We’ve supported many of the Government’s planning changes, but this is a step too far. This isn’t about stopping development—it’s about making sure the state pays a fair price for land.”

Legal challenges may slow the process, but landowners will face lengthy and costly battles to contest CPOs. While objections can be raised on procedural grounds or if decisions are deemed unreasonable, history suggests councils rarely back down once land is earmarked for development.

Angela Rayner insists the reforms are essential to tackling Britain’s housing crisis. “We’re creating the biggest building boom in a generation,” she declared, vowing to “cut through bureaucracy” and unleash economic growth.

“The Planning and Infrastructure Bill will bring seismic reforms to get shovels in the ground quicker, improve transport links, and make Britain a clean energy superpower,” she added.

But Labour ministers have already begun tempering expectations. Housing Minister Alex Norris admitted on Monday that Labour may struggle to meet its ambitious target of 370,000 homes per year, with Minister Matthew Pennycook calling it “an incredibly stretching target.”

With growing unrest in rural communities and concerns that Labour’s plan could devastate farmers already struggling with inheritance tax hikes, the backlash is only beginning.

SKY NEWS

The UK government has announced sweeping planning reforms to accelerate construction, fulfilling Labour’s pledge to build 1.5 million homes by 2029. The Planning and Infrastructure Bill, unveiled on Tuesday, aims to streamline approvals, reduce bureaucracy, and facilitate major infrastructure projects.

Key changes include allowing planning officers to approve applications without councillors’ input, cracking down on legal challenges, and giving households near new pylons energy bill discounts. Developers can now contribute to broader environmental projects rather than individual site initiatives.

Deputy PM Angela Rayner called it “the biggest building boom in a generation,” but environmental groups warn of risks to nature. Critics also question the fairness of shifting costs onto taxpayers. As consultations proceed, Labour faces pressure to balance economic growth with sustainability while overcoming local opposition.

THE GUARDIAN

Councils in England and Wales will gain greater powers to seize land for affordable housing under Labour’s planning overhaul. The new Planning and Infrastructure Bill, set for introduction on Tuesday, removes the need for Whitehall approval of compulsory purchase orders (CPOs).

A key change allows councils to buy land without considering its “hope value” – a speculative estimate based on potential development. Labour says this will make housing projects faster and cheaper, aiding their ambitious 1.5 million homes target.

Deputy PM Angela Rayner said the move will unlock vacant sites for “the biggest boost to affordable and social housing in a generation.” However, critics warn of potential legal battles with landowners. With Labour determined to tackle housing shortages, this reform signals a bold shift in planning policy.