Mayoral development corporations

What are mayoral development corporations and what powers do they have?

Mayoral development corporations (MDCs) are statutory bodies set up by regional mayors in England to deliver regeneration and development. While the original remit of MDCs was urban regeneration, the Planning and Infrastructure Act expands this to include development, so MDCs can deliver new settlements and developments on greenfield sites. Each MDC operates over a defined geography and has general powers set out in the Localism Act 2011 to “do anything [the MDC] considers appropriate for the purposes of its object”, including directly constructing buildings and infrastructure or providing funding to partners to do so.

MDCs can also be granted specific powers such as taking on planning duties from the local authority (including to prepare a Local Plan and make decisions on individual planning applications), powers to make compulsory purchases of land or assets, as well as powers to grant discretionary relief from business rates. 

What is the history of development corporations? 

Development corporations were first created in 1946 to enable the construction of ‘new towns’ as part of the government’s post-war housebuilding programme, with more new towns designated in the 1960s. By 2014, some 4.3% of UK households were living in 32 new towns. ⁴⁹ TCPA, New Towns and Garden Cities: Lessons for tomorrow, 2014, retrieved 3 July 2024, https://tcpa.org.uk/wp-content/uploads/2021/11/NTsGCs_P1_LR.pdf   

Under the Thatcher government, ‘urban development corporations’ were introduced, tasked with the regeneration of inner-city urban areas, such as the London Docklands Development Corporation’s redevelopment of Canary Wharf in the 1980s and ‘90s. Unlike MDCs, which are accountable to mayors, these earlier models were established by and accountable to national government and were criticised at the time for taking power away from local decision makers. ⁵⁰ Deas I, Robson B and Bradford M, ‘Re-thinking the Urban Development Corporation ‘Experiment’: The Case of Central Manchester, Leeds and Bristol’, Progress in Planning, 2000, vol 54, no. 1, pp. 1-72  

The power for mayors to establish a development corporation was first given to London in 2011, to enable the creation of the London Legacy Development Corporation (LLDC) and the regeneration of the Olympic site in Stratford. Mayors in other parts of England have been issued with the powers to establish MDCs as part of devolution deals agreed since 2014. 

The Levelling Up and Regeneration Act 2023 also introduced the model of the ‘locally led development corporation’ which can be proposed by any local authority or combination of local authorities in England. In this model, however, the local government secretary retains greater control over the development corporation. In November 2025, Camden Council announced its intention to set up a locally led development corporation for the regeneration of the Euston area. ⁵¹ Camden Council, ‘Camden Council announces intention to lead development corporation at Euston’, 12 November 2025, retrieved 18 December 2025, https://news.camden.gov.uk/camden-council-announces-intention-to-lead-development-corporation-at-euston/

How are mayoral development corporations created? 

Through provisions in the English Devolution and Community Empowerment Act 2026, all regional mayors in England have the power to establish MDCs, subject to a  simple majority vote of the strategic authority board including the mayor. Before designating an MDC, the mayor must undertake consultation with the local authorities whose areas the MDC will operate in and MPs whose constituency is similarly covered ⁵² English Devolution and Community Empowerment Act 2 . In London, the mayor has to consult with the London Assembly.

Under the Localism Act 2011, once an MDC has been designated by the mayor, the secretary of state is required to formally establish the corporation and its functions using secondary legislation. 

How many mayoral development corporations are there, and what have they achieved?

There are currently 10 MDCs in England. In London, as well as the LLDC described above, there is the Old Oak and Park Royal Development Corporation (OPDC), established in 2015 to regenerate the area around the site in west London where HS2 was planned to intersect with Crossrail. In November 2025, secondary legislation was laid before Parliament to establish the Oxford Street Mayoral Development Corporation. ⁷¹ UK Government, ‘Oxford Street Development Corporation (Establishment) Order 2025’, SI 2025/1151, 5 November 2025, https://statutoryinstruments.parliament.uk/instrument/Jt7mJeDG/timeline/UPOiFVeZ  The MDC was legally established in January 2026, which brings the total number of MDCs in London to three.

Having delivered 12,000 new homes over 12 years, the LLDC scaled back its operations and returned its planning powers to the four boroughs of Newham, Hackney, Tower Hamlets and Waltham Forest in December 2024. ⁷² UK Govermment, ‘The London Legacy Development Corporation (Establishment and Planning Functions) (Amendment and Revocation) Order 2024’, SI 2024/918, 9 September 2024, https://www.legislation.gov.uk/uksi/2024/918/made

In Tees Valley, Ben Houchen set up South Tees Development Corporation in 2017, the first of its kind outside of London, as part of the broader Teesworks regeneration project. In 2023, Houchen set up the Middlesbrough Development Corporation and Hartlepool Development Corporation to regenerate the town centres of Middlesborough and Hartlepool respectively.

In Greater Manchester, Andy Burnham set up Stockport Development Corporation in 2019, with the first phase of development delivering 1,100 new homes and 170,000 sq ft of office space. ⁷³ Stockport MDC, Draft Strategic Business Plan, 2023-28,2023, retrieved 3 July 2024, https://democracy.greatermanchester-ca.gov.uk/mgConvert2PDF.aspx?ID=27333  In February 2026, parliament approved legislation to expand Stockport MDC to cover the whole town centre, tripling its footprint. ⁷⁴ Stockport Council, ‘Parliament approves Stockport MDC expansion, unlocking next phase of regeneration’, February 2026, https://www.stockport.gov.uk/news/parliament-approves-stockport-mdc-expansion-unlocking-next-phase-of  In December 2025, secondary legislation was also laid to establish two new MDCs in Greater Manchester: Old Trafford Regeneration MDC and Atom Valley Northern Gateway MDC, both of which were legally established in January 2026. ⁷⁵ UK Government, ‘Atom Valley Northern Gateway Mayoral Development Corporation (Establishment) Order 2025’, SI 2025/1310, 15 December 2025, https://statutoryinstruments.parliament.uk/instrument/vDE4d5UM/timeline/WKT7n5Nk ⁷⁶ UK Government, ‘Old Trafford Regeneration Mayoral Development Corporation (Establishment) Order 2025’, SI 2025/1314, 15 December 2025, https://statutoryinstruments.parliament.uk/instrument/rbt6WjFV/timeline/MBEinA8U  Greater Manchester Combined Authority has also committed to establishing MDCs in Bolton, Oldham, Middleton, Ashton, and Leigh. ⁷⁷ Greater Manchester Combined Authority, ‘Mayoral Development Corporations and Zones’, n.d., retrieved 19 December 2025, https://www.greatermanchester-ca.gov.uk/what-we-do/planning-and-housing/mayoral-development-corporations/

In September 2025, West Midlands Mayor, Richard Parker and then leader of Birmingham City Council, John Cotton announced their intention to establish an MDC that will include the Birmingham Sports Quarter, Birmingham Knowledge Quarter, Curzon Street HS2 station and the Smithfield development. ⁷⁸ West Midlands Combined Authority, ‘Mayoral Development Zone and Mayoral Development Corporation to facilitate delivery of EBNS and Priority Projects’, 17 October 2025, https://governance.wmca.org.uk/documents/s29124/Proposal%20for%20Mayoral%20Development%20Corporation%20Update.pdf  The Birmingham East Mayoral Development Corporation was formally established in May 2026. ⁷⁹ UK Parliament, ‘Birmingham East Mayoral Development Corporation (Establishment) Order 2026’, SI 2026/405, 14 April 2026, https://statutoryinstruments.parliament.uk/instrument/zEmd60Ak

Which mayors have announced plans to set up new mayoral development corporations?

In September 2025, Mayor of the North East, Kim McGuinness, announced an inaugural Mayoral Development Zone for Newcastle and Gateshead in September 2025, with the option to later establish an MDC within this zone. ⁸⁰ North East Combined Authority, ‘The Newcastle-Gateshead Mayoral Development Zone’, 24 September 2025, https://www.northeast-ca.gov.uk/mayoral-development-zone

In December 2025, Liverpool City Region Mayor Steve Rotheram announced plans to establish a new MDC to drive development of brownfield areas around Liverpool's North Docks, working in partnership with Liverpool City Council.

In January 2026, Cambridgeshire and Peterborough Mayor Paul Bristow wrote a joint letter to ministers with the Labour leader of Peterborough Council to express their support for an MDC to regenerate Peterborough. ⁸¹ Cambridgeshire and Peterborough Combined Authority, ‘Letter to Matthew Pennycook MP, Minister for Housing and Planning’, 27 January 2026, https://cambridgeshirepeterborough-ca.gov.uk/wp-content/uploads/PB-AP-SQ-MDC-Letter-1.pdf  In February 2026, the government launched a consultation seeking views on setting up a centrally-led urban development corporation in Greater Cambridge, the board of which would include leaders from local councils and the Mayor of Cambridgeshire and Peterborough. ⁸² MHCLG, ‘Establishing a Development Corporation in Greater Cambridge’, February 2026, https://www.gov.uk/government/consultations/establishing-a-development-corporation-in-greater-cambridge/establishing-a-development-corporation-in-gre…

In May 2026, Mayor of the West England, Helen Godwin, announced the region’s first mayoral development zone covering Brabazon (one of the seven new towns the government has committed to build across England) and the West Innovation Arc, with an intention to later establish an MDC across this area. ⁸³ West of England Mayoral Combined Authority, ‘Region’s first Mayoral Development Zone announced’, 21 May 2026, https://www.westofengland-ca.gov.uk/news/regions-first-mayoral-development-zone-announced/

What are the perceived benefits and disadvantages of mayoral development corporations?

MDCs are claimed to offer several advantages compared to other regeneration models. While local authorities have many of the same powers, MDCs benefit from budgets that are ringfenced and therefore not subject to the same short-term financial pressures faced by local authorities. They also offer the advantage of being able to operate over several local authority boundaries – in theory allowing them to regenerate sites that might otherwise fall between the gaps.

In announcing the Stockport MDC, Burnham said that “the great attraction of Mayoral Development Corporations is that they simultaneously allow us to tackle two big problems – town centre decline and the housing crisis. It provides an integrated solution.” ⁸⁴ Marketing Stockport, ‘Consultation Closing on Regeneration of Stockport Town Centre West’, 5 March 2019, retrieved 3 July 2024, https://marketingstockport.co.uk/news/consultation-closing-on-regeneration-of-stockport-town-centre-west/  Meanwhile, Houchen has praised the model for “cutting red tape and boosting investment while [enabling him to] keep a hand on the tiller”. ⁸⁵ BBC, ‘Teesside planning powers transfer to mayor’s new groups’, 2 June 2023, retrieved 3 July 2024, www.bbc.co.uk/news/uk-england-tees-65782095  

However, there have been criticisms of the model – particularly because they can take powers and assets away from local authorities. For example, the local council voted against the proposed Middlesborough MDC but the scheme proceeded nonetheless with the backing of the directly-elected local authority mayor, who supported the proposal made by Ben Houchen as metro mayor for the wider Tees Valley region. This led Andy McDonald, the Labour MP for Middlesbrough, to criticise the MDC model in parliament because “decisions about development will be made not by the council, but by an unelected [MDC] board appointed by Ben Houchen”. ⁸⁶ House of Commons, Hansard, ‘Middlesbrough Development Corporation’, 14 March 2023, retrieved 3 July 2024, https://hansard.parliament.uk/Commons/2023-03-14/debates/CED6B9BD-2747-4F96-A244-BEE6E58248EB/MiddlesbroughDevelopmentCorporation    

Concerns have also been raised about transparency and accountability. Following allegations of corruption, an independent inquiry into South Tees Development corporation was commissioned in 2023. ⁸⁷ Gove M, letter to Ben Houchen - Tees Valley Mayor, House of Commons Library, 24 May 2023, retrieved 3 July 2024, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1158964/SoS_to_Ben_Houchen.pdf  The inquiry found no evidence of corruption in the MDC, but concluded that there was a need to “strengthen governance and increase transparency”. ⁸⁸ DLUHC, Independent review report: South Tees Development Corporation and Teesworks Joint Venture, 29 January 2024, retrieved 3 July 2024, www.gov.uk/government/publications/independent-review-report-south-tees-development-corporation-and-teesworks-joint-venture  Continued concerns over governance of this MDC contributed to the government’s decision to issue a non-statutory ‘Best Value Notice’ to Tees Valley Combined Authority in April 2025, making TVCA currently ineligible for enhanced powers and funding freedoms offered to ‘Established Mayoral Strategic Authorities’.