Locally-led Development Corporation Consultation

Development Corporations are statutory bodies set up to facilitate development in areas that need large-scale co-ordination of investment and planning. When used in the right circumstances, these powerful delivery vehicles can bring a number of benefits including a clear geographical focus, broad powers to facilitate delivery of the project and the ability to attract private sector investment.

The model has been successfully used since the post-war period and has evolved overtime including the introduction of the Mayoral Development Corporation under the Localism Act in 2011 and the Locally-led New Town Development Corporation in 2018 as part of devolving power from central government to the local level. 

Following the consultation we launched in October 2019, we have legislated to ensure that development corporations have the powers and functions necessary to unlock strategic development in all parts of England. We want to ensure that development corporations can be used effectively and are accessible in all areas of the country.

The Levelling Up and Regeneration Act (LURA) 2023 makes provision for the designation of a new type of Locally-led Urban Development Corporation (LUDC) model with the appropriate powers to support transformational regeneration and growth, overseen by local authorities (‘the oversight authority’) rather than the Secretary of State. This complements the introduction of the Locally-led New Town Development Corporation (LNTDC) model in 2018.

Provisions in the LURA 2023 also provide regulation making powers to modify the Local Government, Planning and Land Act 1980 setting out how an oversight authority is to oversee the regeneration of a Locally-led Urban Development Area. Similar regulations were made in 2018, introducing the LNTDC following amendments to the New Towns Act 1981 via the Neighbourhood Planning Act 2017.

This consultation therefore sets out our proposals and draft regulations (at Annex A) on how the oversight authority is to oversee the regeneration of a Locally-led Urban Development Area. It also asks for comments on updating the New Towns Act 1981 (Local Authority Oversight) Regulations 2018 as a result of changes in the LURA 2023 and to reflect the oversight regulations on LUDCs.

Both sets of regulations will be subject to the affirmative parliamentary procedure, whereby the regulations must be actively approved by both Houses of Parliament.