Decision

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