If someone's land is compulsorily acquired to deliver a
public benefit, it is accepted that they should receive fair
compensation. But what that “fair
compensation” equates to, is far from straight
forward.
How is compensation calculated?
The principle of equivalence is key to determining compensation
– a landowner should be left in no worse, and no better,
position. They should not end up out of pocket because of the land
they have lost, or costs they have incurred (for example in
relocating), but equally cannot expect to be left in a better
position. This principle permeates the different types of
compensation, or heads of claim, available.
The rules used to calculate the compensation are collectively
known as the Compensation Code. However, this is extremely
misleading – there is no single place where this
"Code " is set out; indeed the rules are spread
throughout various Acts, supplemented by case law, with further
input from Government guidance.
