Subject to subsection (3) of this section, any sum recovered by the Secretary of State under section 159 of this Act, as applied by subsection (1) of this section, shall be paid to the local planning authority who paid the compensation to which that sum relates.
For the purposes of sections 159 and 160 of this Act, in their application by virtue of this section to compensation calculated under section 164 of this Act, the expression "new development" shall include—
any development of a class specified in paragraph 1 or 3 of Schedule 8 to this Act which is carried out otherwise than subject to the condition set out in Schedule 18 to this Act; and
any development excluded by subsection (2) of section 278 of this Act from that Schedule in its application to any determination to which subsection (1) of the said section 278 applies.