Councils are facing scrutiny over their use of the Proceeds of Crime Act (POCA) to enforce planning rules, rules that were originally designed to target serious criminal activity.

POCA allows courts to seize profits gained whilst committing offences such as fraud or money laundering. But a growing number of local authorities have begun using it to recover money from planning breaches, leading to confiscation orders running into hundreds of thousands of pounds.

£1.3m confiscation order

In Westminster, a developer was ordered to pay more than £470,000 under POCA after converting a property into flats without permission. In Barking, two landlords who split a family home into separate units were required to pay over £100,000, while in Ealing, a landlord who ignored an enforcement notice following an unlawful conversion faced a £1.3m confiscation order.

In the latest case, in Lewisham, two restaurant owners had their passports seized and are now facing a potential £2.5m confiscation order after installing an extractor fan without planning permission and breaching a subsequent enforcement notice.

Act was never intended to be used by local authorities as an addendum to planning enforcement.”

According to Planning Resource, the growing use of POCA prompted Simon Hoare MP to raise the issue in Parliament. He said the Act “was never intended to be used by local authorities as an addendum to planning enforcement,” and called on ministers to issue guidance reminding councils that “while they have many tools at their disposal, the Proceeds of Crime Act is not one of them.”

Acknowledging that Hoare had raised “an important point,” Housing Secretary Steve Reed confirmed he would meet the relevant minister so the matter could be reviewed and possible guidance discussed.