Content

Exemption from publication: There are
confidential parts to this report, which are exempt by virtue of
paragraph 3 of Schedule 12A of Part 1 of Schedule 12a of the Local
Government Act 1972 because they contain information relating to
the financial or business affairs of any particular person
(including the authority holding that information).

Authorise exchange of conditional contracts for the disposal of
Council owned land at Iver/Denham to National Grid Energy
Transmission (NGET) for the construction of an Electrical
Substation and once those conditions are satisfied to complete the
sale contract .

Reasons for the decision

The proposed contract terms are not materially
different to those authorised by the March 2025 Cabinet decision. A
recommendation to proceed is contained in reports from both
Buckinghamshire Council’s in-house Legal and external
property advisors. Links to both reports and the draft contracts
are contained in the confidential annexe to this report.
The proposed disposal will generate a capital receipt to support
delivery of the Council’s services and meeting the
Council’s obligations under Section 123 of the Local
Government Act 1972 achieve best value in relation to land
transactions. The Deputy s151 Officer has considered this details
of the proposed contract exchange and is satisfied that S123
obligations will be met.

1. Background:
1.1 The project involves the construction of a new electricity
substation on Council owned land next to an existing substation. It
will be the largest substation (in Giga Watt capacity) currently on
the UK grid network.
1.2 The upgrade is needed to connect new Data Centre customers to
the Electricity transmission network.
1.3 This project is part of a planned £8bn National
substation increase over England and Wales in the next 5
years.
1.4 National Grid published a section 6 Compulsory Purchase general
vesting notice in 2024, and it is against this background that an
agreement was negotiated between the parties.
1.5 The negotiated settlement (both financial and the route to
sale) is explained in the confidential appendix to this report and
is confirmed by Carter Jonas, Property consultants to the Councils
as being compliant with S123 of the Local Government Act which
requires Local Authorities to achieve best value.

2. Decisions to date:
2.1 March 11 2025 - Cabinet resolved that authority be given to the
Service Director Commercial Property & Regeneration in
consultation with the Cabinet Member for Accessible Housing and
Resources to:

• Finalise the emerging Heads of Terms attached in the
confidential appendices for National Grid Electricity Transmission
to acquire Council owned land at Iver on which to construct and
operate a new Electrical Substation adjacent to National Grid
Electrical Transmissions’ existing electrical facility.
• Subject to finalising the emerging Heads of Terms and to
planning, to accept National Grids offer set out in the
confidential appendices, prepare contracts, exchange and complete
on the transaction.
• Negotiate and agree terms to serve notices on tenants to
obtain vacant possession in so far as they are required to
facilitate this transaction.
• Enter into necessary revised easement / licence agreements
and wayleaves with SSE group, National Grid Electricity
Transmission, Affinity Water and BT for the relocation of their
infrastructure on the subject land surrounding Council owned land
as a direct consequence of this scheme.
2.2 20th March 2025 - following a Legal report on emerging terms
dated the 18th March, an OED was signed, agreeing, subject to
contract, to the Heads of Terms attached to that report, namely to
accept NGET’s offer to buy the land on a conditional basis,
authorising exchange of contracts and to complete on the
transaction subject to final Officer sign off.
2.3 11th April 2025 - final HOT’s approved by way of OED in
consultation with the Cabinet Member for Affordable Housing and
Resources and signed subject to Contract. It was agreed that prior
to contracts being exchanged, a further OED report (this paper)
submitted for approval by the Corporate Director for Resources in
consultation with the Cabinet Member for Resources, seeking
authority to exchange contracts, subject to satisfaction of
conditions set out in the confidential annexe to this report, to
complete the sale contracts.
3. Property Consultants close out report summary
3.1 The property transaction is structured as a conditional
contract therefore completion cannot occur until such time as all
outstanding conditions have either been waived or satisfied. These
are set out in the confidential appendix.

4. Legal close out summary:
4.1 Report from Legal 4th July 25 – Conclusion; The Council
is recommended to proceed with the sale and deal with any
outstanding points before completion. If it does not, NGET has
Compulsory Purchase Order (CPO) Powers it can use to acquire the
property. This will result in statutory compensation being payable
to the Council which is extremely likely to be significantly less
than the capital receipt that has been negotiated. Once the
contract has been exchanged, there will be a legally binding
contract with NGET for the Council to sell the land as soon as the
conditions of the sale have been met or waived.
4.2 The Council is required to meet its duty under section 123 of
the Local Government Act 1972 to obtain best consideration. The
Council has obtained a valuation from its surveyors, Carter Jonas,
and the capital receipt being offered by NGET is best
consideration. The proposed electricity substations being delivered
by NGET following the sale will deliver best value for
Buckinghamshire in accordance with Part 1 of the Local Government
Act 1999 providing vital infrastructure for the local area. The
Council will also be retaining land in the vicinity of this
development and will financially benefit from future connections to
the substations.
5. Financial summary:
5.1 Tenancies affected – The tenant of Mansfield Farm is
Quattro Holdings, and the tenant of the Quarry is
Summerleaze.
5.2 Losses in rent covered in the confidential appendix are de
minimis and can be met from existing budgets in the MTFP.
5.3 Property consultants advise that given the alternative is a
threat of CPO at the present agricultural land value, the current
offer secures significant advantages in value and control and
recommend the disposal on the agreed terms reflects a S123
compliant disposal and a recommended transaction strategy
5.4 This transaction will exceed the current MTFP target for
capital receipts arising from easements relating to the site.
5.5 NGET have agreed a substantial contribution to the
Council’s legal and surveying costs.
5.6 The substation unlocks the opportunity for further additional
receipts for access to the substation across Council land.
5.7 Further decision reports will come forward on these, and
receipts will be factored into future MTFP modelling.
6. Options:
6.1 Do not exchange Contracts with NGET: If we do not proceed as
set out in this report, NGET will compulsorily acquire the land,
and BC will not receive the financial consideration agreed under
the current HOT’s as only statutory compensation will be
payable. This is not a recommended option
7. Key Risks:
7.1 Threat of CPO if we do not proceed which if successful (and
Counsel advice suggests it will be), will mean a much-reduced
capital receipt and risk losing additional income from connection
routes as set out in the confidential appendix.
8. Next steps and review:
8.1 Exchange the conditional Land Sale Agreement.
8.2 Instruct Buckinghamshire Council communications team to make
ready a reactive statement in anticipation of enquiries from media
or the public.

Alternative options considered

Do not exchange Contracts with NGET: If we do
not proceed as set out in this report, NGET will compulsorily
acquire the land, and BC will not receive the financial
consideration agreed under the current HOT’s as only
statutory compensation will be payable. This is not a recommended
option