Land Securities (LandSec) and Standard Life Assurance’s legal bid to block the designation of the £1bn Ravenscraig scheme as a town centre has been defeated in Scotland’s highest court.
Both LandSec and Standard Life fear that major retail development at Ravenscraig – which town centre status permits – will “impact adversely” on their retail schemes in Hamilton and East Kilbride.
But the Court of Session ruled that the designation of Ravenscraig as a town centre in the local structure plan did not contravene national planning policy guidelines and was “not perverse or irrational”.
In his judgment, Lord Kirkwood said: “It is clear that a structure plan looks to the future. It provides a long-term vision, looking forward at least 10 years, as part of an overview of the area’s development requirements.
“I can see no valid reason, when there is a firm proposal for a new town centre at Ravenscraig within the time scale set out in the structure plan and the regeneration is regarded as a national priority, why steps should not be taken at this stage to safeguard the town centre for the future by its inclusion.”
But LandSec and Standard Life claim that the ruling is an “abuse of the system” and warn that it sets “a dangerous precedent”.
A joint statement said: “While we have always supported the regeneration of the Ravenscraig site, this was on the condition that it was on a scale which did not adversely affect existing retail developments in the surrounding area.
“We are therefore disappointed by today’s decision by the Court of Session.
“The decision of many companies to invest in town centres has been made on the clear understanding that planning policy, at a national as well as local level, was designed to protect existing town centres.
“We believe that an alteration to the Structure Plan in this case is an abuse of the system and sets a dangerous precedent. This decision is not, in our opinion, in the best long term interests of the people of Lanarkshire.”
The two landlords will now review the ruling and have yet to decide whether or not to take further legal action.
Civil cases heard by the Court of Session can go to the House of Lords on appeal.
The proposed mixed-use Ravenscraig scheme – which is to be built by a consortium comprising Wilson Bowden, the Mills Corporation, Corus and Scottish Enterprise Lanarkshire – includes up to 1m sq ft of retail, 2m sq ft of business, industrial and storage space, and 3,500 homes on a 1,151-acre site.
Under the Glasgow and Clyde Valley joint structure plan, the former steelworks at Ravenscraig Scotland’s largest derelict brownfield site – was earmarked for potential development.
However, an alteration to the plan approved by the Scottish Ministers in November 2003 proposed to designate the vacant land as a town centre.
LandSec and Standard Life challenged the alteration on the basis that “safeguarding” the brownfield site as a new town centre did not comply with national policy guidelines.
They also claimed that no proper evaluation of the proposed retail component at Ravenscraig had been carried out.
However, Lord Kirkwood said that the creation of a town centre at Ravenscraig was “clearly foreshadowed” in the original structure plan, and could legitimately be safeguarded as such by the alteration.
The law lords also held that, in respect of the decision to incorporate a large amount of retail in the scheme, “some regard” to the effect upon neighbouring town centres was required but such a consideration could be done independently of national policy guidelines.
References: EGi News 30/03/05
