Case no: CO/94/2000
IN THE HIGH COURT OF JUSTICE
QUEENS BENCH DIVISION
CROWN OFFICE
ROYAL COURTS OF JUSTICE
STRAND, LONDON, WC2A 2LL
Wednesday, 11 October, 2000
MS ALICE ROBINSON (instructed by Brachers, Maidstone, Kent ME16 8IH)
appeared on behalf of the Appellant
JONATHON KARAS and RICHARD BARRACLOUGH (instructed by the Treasury
Solicitor, London SW1H) appeared on behalf of the Respondent
MR DUNCAN OUSLEY QC:
This is an appeal under s289(1) Town and Country Planning Act 1990
against the decision of an Inspector dismissing the Claimant's appeal against
an enforcement notice issued by Maidstone Borough Council on 19th March 1999.
Three enforcement notices were the subject of decisions in the same letter by
the Inspector. I am concerned only with Appeal B, which was made in respect of
an enforcement notice, which, as corrected by the Inspector, alleged that there
had been an breach of planning control by "the partial erection of a dwelling
house," described as Building A. The notice required the demolition of the
building and the removal of all the resultant materials.
The Claimant's appeal raised a number of issues but it is the way in which the
Inspector approached the appeal on ground (d) of s174(2) of the 1990 Act which
gives rise to the challenge.
There was no dispute but that the building had been in the state it was in at
the time of issue of the enforcement notice for at least 4 years.
The issue before the Inspector was whether for the purposes of s171B(1) of the
1990 Act, enforcement action could no longer be taken because for the 4 years
preceding 19th March 1999, "the operations were substantially completed".
The Inspector approached the matter as if the relevant question for the
purposes of an appeal on ground (d), was whether the dwelling house had been
substantially completed in 1995. He held that it had not been substantially
completed. He put it in this way:
"28 The four-year period does not begin until the whole operation of creating
the dwelling house is substantially completed.
29. For a dwelling house, what is substantial completion is likely to entail
finishing the external wall, tiling, woodwork, glazing and guttering. Some
internal finishes may remain to be carried out (paragraph 2.80 of circular
10/97). Building A has no glazing or guttering, no ground floor or access to
the first floor, no service fittings or internal finishes. As a matter of fact
and degree, I consider that Building A is not a substantially completed
dwelling house. The four year period for immunity from enforcement action for
this incomplete structure has not commenced. The appeal on ground (d) does not
succeed."
In brief, the Claimant contends that this approach is wrong in law and that the
completed building, against which substantial completion has to be judged, is
not a dwelling house including its interior finishes nor indeed a building
capable of occupation as a dwelling house, but rather is a building in respect
of which any remaining works fall outside the definition of "development" in
s55(1) of the 1990 Act or inside the scope of the exclusions from "development"
in s55(2)(a).
On that latter approach, uncompleted interior finishes and works of improvement
or alteration to the building affecting only its interior, or not materially
affecting its external appearance, would not be relevant to the question of
whether the "building operations" had been completed, and even less so to
whether they had been substantially completed.
The relevant statutory provisions are as follows.
s171A which defines what is a breach of planning control, in respect of which
an enforcement notice may issue, states:
171A Expressions used in connection with enforcement
"(1) For the purposes of this Act -
(a) carrying out development without the required planning permission; or
(b) failing to comply with any condition or limitation subject to which
planning permission has been granted,
constitutes a breach of planning control."
s171B(1) contains the time limit after which enforcement action in respect of building operations cannot be taken. This is the provision invoked by an appeal under s174(2)(d).
171B Time limits
"(1) Where there has been a breach of planning control consisting in the
carrying out without planning permission of building, engineering, mining or
other operations in, on, over or under land, no enforcement action may be taken
after the end of the period of four years beginning with the date on which the
operations were substantially completed."
s55(1) defines "development" and s55(2)(a) excludes certain activities from
what might otherwise have been the scope of building operations.
s55 Meaning of "development" and "new development"
"(1) Subject to the following provisions of this section, in this Act, except
where the context otherwise requires, "development", means the carrying out of
building, engineering, mining or other operations in, on, over or under land,
or the making of any material change in the use of any buildings or other
land."
s55(1A) defines "building operations":
"(1A) For the purpose of this Act "building operations" includes -
(a) demolition of buildings;
(b) rebuilding;
(c) structural alterations of or additions to buildings; and
(d) other operations normally undertaken by a person carrying on business as a
builder."
"s55(2)(a) The following operations or uses of land shall not be taken for the
purposes of this Act to involve development of the land -
(a) the carrying out for the maintenance, improvement or other alteration of
any building of works which -
(i) affect only the interior of the building; or
(ii) do not materially affect the external appearance of the building."
Miss Robinson, who appeared for the Claimant, submitted that the breach of
planning control was development by "building operations" which required, but
lacked, planning permission. s55(1) defines development for which planning
permission was required under s57 as including "building operations", and
s55(2)(a) excluded from that definition, the carrying out of building works for
the maintenance, improvement or the alteration of any building which affected
only its interior, or which did not materially affect its external appearance.
"The operations" which had to be "substantially completed" for the purposes of
s171B(1) were the "building operations" of which the breach of planning control
consisted. Therefore, activities which were not development requiring
planning permission were not operations which had to be completed, or
substantially completed in order to start the four year period.
This, she submitted, made sense of the enforcement context in which the issue
arose. The local planning authority would be in a position to serve an
enforcement notice as the building took shape but once, in effect, the material
external works had been substantially completed, the four year period would
start to run. This would still leave the builder at risk for four years but
thereafter would provide certainty in relation to that which the planning
control system sought to strike at.
Miss Robinson contended that the advice given in paragraph 2.80 of Circular
10/97 "Enforcing Planning Control" on which the Inspector relied was wrong in
law. It states:
"2.8 The term "substantially completed" in section 171B(1) of the 1990 Act put
into statutory terms, for the avoidance of doubt, the Courts' interpretation of
the provisions in section 172(4)(a), as originally enacted, as to the date from
which the four-year period, within which enforcement action may be taken in
respect of authorised operational development, starts. Judicial authority in
the case of Ewen Developments Ltd v. SSE [1980] J.P.L. 404 established
that in the case of a single operation, such as the building of a house, the
four year period does not begin until the whole operation is substantially
complete. What is substantially complete must always be decided as a matter of
fact and degree. It is not therefore possible to define precisely what is
meant by the term "substantially completed". Arguably, in the case of a house
it is not substantially complete until all the external walls, roof-tiling,
woodwork, guttering and glazing are finished but it might be regarded as
substantially complete if only some external decorating work, remains to be
done, particularly if use of the building for its intended purpose has started.
All the relevant circumstances must be considered in every case."
She submitted that the judicial authority referred to, Ewen Developments Ltd
v SSE, is not authority for the proposition attributed to it. Instead it
is authority for the different proposition that where enforcement proceedings
are taken against a single act of development, in that case the single
engineering operation of constructing an embankment, it was not open to the
developer to say that the enforcement notice should strike only at so much of
that single operation as had been constructed within the four years preceding
the issue of the enforcement notice, leaving the residue of the embankment
intact. Thus the case relied on does not address "substantial completion" at
all or the extent to which "operations" in the enforcement context include
those works for which planning permission is unnecessary. It addresses whether
an enforcement notice must leave intact that part of a single operation, which
was development requiring planning permission, which had been undertaken more
than four years before the notice was issued.
If Miss Robinson's submissions are right, it is clear that the Inspector's
approach cannot be sustained and it would be necessary for the question of
substantial completion to be addressed on a different basis. Some factors at
least, which he relied upon, would appear to be irrelevant.
Mr Karas for the Secretary of State, supported by Mr Barraclough for Maidstone
Borough Council, submitted that Circular 10/97 was correct in its approach for
the following reasons. s171(B)(1) required building operations, ie operations
carried out by builders to be looked at as a whole. Mr Karas submitted that
those operations nonetheless had to be operations which required planning
permission. Mr Karas submitted that the Inspector's conclusion that the
operations were not substantially complete, as a matter of fact and degree, was
correct because what remained to be done were building operations carried out
by builders within s55(1) and s 55(1A)(d) and were not excluded by s55(2)(a).
Mr Barraclough went a little further, submitting that even if not all of the
operations involved a breach of planning control, it was still necessary to
look at the building activities as a whole and ask if they were substantially
complete.
Both stressed the significance of looking at the activities or operations as a
whole and derived support for that from Ewen Developments supra, saying
that the significance of that case was its emphasis on the need to look at
"operations" as a whole.
Mr Karas submitted that s55(2)(a) never applied to this building, so as to
exclude from the general ambit of s55(1) those activities carried on by
builders which included interior works. He submitted that s55(2)(a) only
applied to works of maintenance, improvement or other alteration to a building,
and that phraseology predicated a building which had already been completed.
It could not operate so as to remove from development control those works which
were necessary for or were part of the completion of the building in the first
place.
On that basis, the Inspector's conclusions were unimpeachable conclusions on
matters of fact and degree.
Ably though Mr Karas and Mr Barraclough presented their submissions, I do not
accept them, preferring instead those of Miss Robinson.
In my judgment, the "operations" which must be substantially complete are
"building operations", which amount to "development", and which are in breach
of planning control. To the extent that building activities are not
"development", within s55(1) they are not "operations" which have to be
substantially completed for the four year period to start running. I accept
the approach of Miss Robinson and Mr Karas on this issue and reject that of Mr
Barraclough. Likewise, to the extent that s55(2)(a) excludes other operations
from the scope of development, they too are not operations substantial
completion of which is necessary for the four year period to start running.
I do not accept Mr Karas' limited approach towards s55(2)(a). It applies to
"any building". So long as the feature in question has progressed sufficiently
to be a "building" which Building A had, beyond question, s55(2)(a) applies to
it. It would involve reading too much into the section to read in the words
"completed", or other words to the like effect. So doing would offer no
greater certainty but instead would only raise a series of other questions as
to how one judged "completed" in that new context. This suggested
interpretation derives no support from the purpose of the provision, nor from
the purpose of the enforcement of planning control. It would lead to the
impossible position of planning permission being required for maintenance or
improvement works, which did not themselves constitute development, to
buildings long immune from enforcement, if it could be said of them that the
interior finishes had never been completed. It would be very odd if activities
which involved no development in themselves, could by their absence prevent
immunity arising for a breach of planning control, even after all the works
requiring permission had been long completed.
I do not consider that s55(1A) assists Mr Karas either. The activities upon
which he relies i.e. those normally undertaken by persons in business as
builders still have to be "operations", and therefore still have to fall within
s55(1) and avoid the exclusion in s55(2)(a). The internal finishes, for
example, even if "operations" in s55(1A) are not "development", because of
s55(2)(a).
I do not consider that the statutory words of s171(B) and s55(1) or (2) can be
set aside by appeals to the need to look at the activities involved in building
a dwelling house, as a whole. It is rather to the operational development as a
whole that one looks in assessing substantial completion.. To my mind Ewen
Developments is of no application to the issue with which the Circular had
to grapple in paragraph 2.80, and with which I am concerned. Ewen
Developments prevents a single piece of operational development being split
up into parts completed before or after a four-year period. To split the
single operation into parts would be wholly artificial and would make nonsense
of the concept of operational development being completed or substantially
completed. It does not deal with the question of the nature of "operations" in
this context; it was dealing with a single operation - the erection of an
embankment - all which involved a breach of planning control. That is not at
all the same thing as saying that the interiors which do not constitute
development have to be finished before those building operations which are in
breach of planning control are completed. The remedy of the breach may carry
with it the need to remove works which by themselves would not involve a breach
of planning control i.e. it cannot be argued that the exterior can be required
to be demolished only it leaves the interior intact. But that is not at issue
here.
Accordingly, on Miss Robinson's first ground, this appeal succeeds and it will
be necessary for "substantial completion" and the relevance of and weight to be
attached to the various factors referred to by the Inspector will need to be
reconsidered. Internal finishes are irrelevant, I do not know what "service
fittings" meant. It is not the test either that the building operations are
complete only when the dwelling is capable of occupation as such. The building
operations are complete when those activities which require planning permission
are complete; those operations are substantially complete at an earlier
stage.
Miss Robinson's second ground is that the Inspector failed to reach a
conclusion on an issue which arose at the Inquiry as to whether the absence of
glazing was because the glass had been broken three or four times by vandals
since 1990 and eventually never replaced, as the Claimant said, or whether the
absence of glazing was because none had ever been put in, as the Council
claimed. This issue is said to be a principal controversial issue upon which a
reasoned conclusion had to be expressed, because if the building had been
glazed at some point, more than four years before 1999, that would have been
relevant to judging whether the building had been substantially complete, even
though the glazing had subsequently been removed.
In my judgment, if a building has become substantially completed and then
ceases to be substantially completed because for example fire destroys the
roof, the four year period stops, and a new four year period will not start
running, until once again the building is substantially completed. Those new
operations of replacing the roof would be in breach of planning control, and
there would be no immunity from enforcement control in respect of those
surviving parts of what had ceased to be a substantially completed building.
The building is only immune from enforcement provided it has remained
substantially completed throughout the four year period preceding the issue of
the enforcement notice or, as s171(B) more obviously contemplates, has moved
from substantial to total completion during that period and has remained
completed.
On that analysis, it was unnecessary for the Inspector to have reached a view
on whether the glazing had been removed because of vandals or whether it had
never been inserted at all. All that matters is that for at least the period
of four years before the issue of the enforcement notice, the building had not
been glazed. It would not be necessary for the Inspector to form a view as to
the reason for the absence of glazing in order for him to reach a conclusion
as to whether the building had been substantially completed.
Miss Robinson's complaint that the Inspector never considered whether glazing
or guttering would be operational development is a matter upon which, on
reconsideration, the Inspector may feel it necessary to reach a conclusion.
But that will be a matter to be looked at in the light of this judgment as to
the right approach. It is not a matter for the Court to judge.
Miss Robinson's third ground was that the Inspector's attention had been drawn
on a number of occasions at the Inquiry and in the Claimants' closing
submissions to an earlier appeal decision given by the Secretary of State
reported in 1972 JPL 385. It related to whether a dwelling house was immune
from development because of the extent to which it was completed. It was
helpful to the Claimant in a number of respects: the building there was for
practical purposes complete externally, the internal work, glazing and
guttering were not regarded as necessary for the building to be a viable
dwelling and the enforcement notice was also dealt with on the basis that
immunity attached to that which had been erected more than four years
previously.
The Inspector did not refer to this other decision nor give any reasons for
distinguishing it. It is submitted by Miss Robinson that he ought to have done
so because he was necessarily disagreeing with that decision, which was
sufficiently closely related to the matters in issue in this appeal for the
Inspector to be obliged to deal with it, distinguishing it if necessary. She
relied upon the approach set out by Glidewell LJ in R v Secretary of State
for the Environment ex parte Baber [1996] JPL 1034 CA especially at p
1040.
In my judgment, the submissions in response by Mr Karas and Mr Barraclough are
correct. It is quite clear that the Inspector has followed the approach set
out in Circular 10/97 because that is the up to date Government guidance. That
guidance is clearly different from and at odds with the 1972 decision letter.
The Circular relies upon Ewen Developments which was decided in 1980 and
requires a different approach from that in the 1972 decision letter towards the
immunity from enforcement of those parts of a single building erected more than
four years before the enforcement notice. All the Inspector need have said to
make the position explicit is that he was following the advice in Circular
10/97 which conflicted with the 1972 decision.
In my judgment, he did not need to say that because it is perfectly obvious to
the informed reader that that is what he has done. This third ground fails.
I should add that the allegation that the Inspector had made his mind up in
advance is baseless. The alteration to the enforcement notice by the insertion
of the word "partial" was agreed as an accurate reflection of the Council's
allegation. The Inspector's comment in paragraph 27 of his Decision Letter to
the effect that he agrees that the building is best described as "a dwelling
house in the course of construction" is a view expressed after he has read all
the evidence and held his site visit. He would have known when writing that,
what his conclusion on ground (d) was going to be. He analysed the position
against current Government guidance, and if that guidance had been correct, his
decision would have been unimpeachable, except perhaps in relation to interior
finishes.
However, for the reasons which I have given, the guidance, and hence the
Inspector, approached the issue of "substantial completion" in a way which was
wrong in law.
For that reason, this appeal is allowed and the matter will be remitted to the
Secretary of State for determination.