Mayoral Development Corporations – Frequently Asked Questions (July 2026 Update)
16th July, 2026
What is a Mayoral Development Corporation?
A Mayoral Development Corporation (MDC) is a statutory body established to drive the regeneration of one or more sites (the Mayoral Development Area) and is equipped with specialist powers for this purpose, including ability to act as the planning authority, to offer subsidies and install infrastructure as well as to own, develop and dispose of property.
MDCs are one of four types of development corporation in England. The other types are the New Towns Act Development Corporations (NTDCs) and Urban Development Corporations (UDC). There are also some who cite a fourth type of development corporation, Locally Led Development Corporations (LLDCs), which are a form of NTDC.
It is clear that the preferred form of development corporation are MDCs which were originally used to assist in the development of the New Towns during the 20th century. Currently, there are no established NTDCs, although there have been government discussions about making use of these in relation to the New Towns programme. There is only one UDC which is set to be officially established on 23 July 2026, being the Ebbsfleet Development Corporation.
How are they established?
The Secretary of State establishes an MDC following the submission of a proposal by a Mayor that meets the statutory criteria in the Localism Act 2011. MDCs can only be created in England as they can only be created by strategic authority Mayors and there are no powers to establish strategic authorities in Wales, Scotland, and Northern Ireland.
The process to establish a Mayoral Development Corporation involves the designation of a ‘Mayoral Development Area’ by a Metro Mayor (leading a Mayoral Combined Authority or a Mayoral Combined County Authority) following a consultation involving prescribed stakeholders and a notice being submitted to the Secretary of State for Housing, Communities and Local Government. This will lead to an order being created to establish the Mayoral Development Corporation, which is laid in Parliament and specifies the powers and functions of the new organisation.
Following the English Devolution and Community Empowerment Act 2026 (“EDCE 2026”), there is no longer a requirement for all local authorities within the combined authority areas to consent to the creation of the MDC. Now, a majority will suffice.
Once a Mayoral Development Corporation is set up, the relevant Metro Mayor has the power to appoint board members to the MDC, but also to give directions and guidance to support the MDC in the carrying out of its activities and functions.
The relevant legislation sets out a process for the transfer of property, rights and liabilities into an MDC, which involves the Secretary of State consulting with the individuals or institutions whose property, right or liabilities are intended to be transferred, as well as relevant Metro Mayor.
What powers do Mayoral Development Corporations have?
Mayoral Development Corporations can be set up to have a wide range of powers, including:
- Taking on the role of the local planning authority (including the giving of planning consent which is now possible based on agreement from a simple majority of all affected local authorities under the EDCE 2026) / minerals and waste planning authority for its area (as derived from the Levelling-up and Regeneration Act 2023)
- To remediate, regenerate or develop land (either directly or through partners) to bring about its more effective use
- To install new infrastructure, including utilities and roads
- To repair, renovate or demolish buildings
- To acquire land through commercial agreement or compulsory purchase orders
- To extinguish public rights of way, and in relation to burial grounds and consecrated land
- Adopt streets
- Establish or acquire businesses
- Set up joint ventures with the private sector
- Award subsidies (including rates relief)
Although it is important to note that there are a number of decisions that can only be made with the consent of the Mayor, including:
- Forming or acquiring interests in bodies corporate
- Making a compulsory purchase order
- Disposing of land for less than its market value
- Giving financial assistance
What are the advantages of MDCs?
Given that MDCs are not directly impacted by changes in political leadership of local authorities, MDCs are able to create long-lasting plans which survive such changes. The latest development corporations research briefing (dated 8 July 2026) states that MDCs can last between 20-30 years if necessary.
MDCs are also free from the standard local authority pay banding which can be barrier to recruiting skilled workers. This freedom enables MDCs to more easily fulfil its development goals.
What lessons can we learn from existing MDCs?
In November 2025, Ward Hadaway hosted a webinar bringing together experts with valuable experience of working either within or alongside existing Mayoral Development Corporations.
Beverley Bearne, the Chief Operating Officer for the Hartlepool and Middlesbrough Development Corporations, underlined the importance of having clear roles and responsibilities, as well as the benefits of building close working relationships with local stakeholders.
Stuart Howie, Principal and Devolution Delivery Lead at Avison Young, explained that ‘one size does not fit all’ and emphasised the importance of identifying at the outset, the role that the Mayoral Development Corporation is expected to play in local growth plans and how it is anticipated that the organisation will intervene within the market.
Ian Freshwater, Programme Manager (Major Projects) at the North East Combined Authority provided an overview of the North East Combined Authority’s recent decision to establish a Mayoral Development Zone spanning sites in both Newcastle and Gateshead, providing insight into the evidence base that will be built up ahead of a decision being made as to whether to establish a Mayoral Development Corporation.
Alexander Rose explained that we’re about to see a new wave of Mayoral Development Corporations created that will change how regeneration is delivered, but their effectiveness will be determined by the decisions made when they are set up and start operating.
The full recording of the webinar can be downloaded here.
What governance safeguards apply to Mayoral Development Corporations?
The government is committed to ensuring that there are robust governance and scrutiny arrangements in place for all MDCs and published a good practice guide to the establishment and scrutiny of MDCs in April 2025. The guidance emphasises that:
- the Monitoring Officer of the Mayoral Combined Authority also acts as the Monitoring Officer of the MDC
- the Scrutiny Protocol for English institutions with devolved powers applies to decision made in regard to a MDC
- MDCs should “seek legal advice to properly assess risks arising from MDCs, and MDCs should seek commercial advice on risks arising from joint ventures and subsidiaries that they establish, and subsequent contractual arrangements“
- Mayors should not chair MDCs as they have an oversight role which should remain distinct from decision-making to avoid any conflicts of interest.
It is interesting to note that MDCs themselves cannot be subject to a best value review or intervention but that the mayoral strategic authority behind the MDC could. The National Audit Office have also been deemed to have no jurisdiction over MDCs, as they are instead subject to be audited under the Local Audit and Accountability Act 2014.
What legal issues arise in the running of Mayoral Development Corporations?
There is a range of legal issues which arise in the establishing and running of MDCs.
This includes public law issues relating to the decision making process, use of powers and consultation processes. It also includes commercial law advice in regard to agreements and appointments, whilst specialist planning and real estate advice is often required in respect of capital projects supported or delivered by the MDC. The projects MDCs deliver are often back by public funding which means subsidy control and public procurement advice is often sought.
Ward Hadaway can support you with all issues that arise in the creation and operation of a Mayoral Development Corporation.
Which Mayoral Combined Authorities are setting up Mayoral Development Corporations?
There are ten existing Mayoral Development Corporations as of July 2026, these are:
- London Legacy Development Corporation (established 9 March 2012)
- Old Oak and Park Royal Development Corporation (established 1 April 2015)
- South Tees Development Corporation (established 1 August 2017)
- Hartlepool Development Corporation (established 27 February 2023)
- Middlesbrough Development Corporation (established 27 February 2023)
- Stockport Town Centre West Mayoral Development Corporation (established 2 September 2019)
- Oxford Street Development Corporation (established 1 January 2026)
- Old Trafford Regeneration Mayoral Development Corporation (established 23 January 2026)
- Atom Valley Northern Gateway Mayoral Development Corporation (established 16 January)
- Middleton Mayoral Development Corporation (established 28 March 2026)
Current plans for six new Mayoral Development Corporations include:
In December 2025, Liverpool City Region Mayor Steve Rotherham announced plans to create Liverpool’s first Mayoral Development Corporation unlocking regeneration across 174 hectares of mainly brownfield land, stretching from Everton’s Hill Dickinson stadium into the city’s Pumpfields and commercial business districts. It is expected that the MDC will bring in the investment to create 17,500 new housing units and 5 million square feet of additional commercial space.
In September 2025, West Midlands Mayor, Richard Parker and Birmingham City Council leader, John Cotton announced the creation of a new Mayoral Development Corporation that will encompass East Birmingham and North Solihull, including the £3 billion Birmingham Sports Quarter, £4 billion Birmingham Knowledge Quarter, the new HS2 Curzon Street station and £2 billion Smithfield development.
On 30 January 2026, plans were announced to establish three new MDCs in Greater Manchester. These are to be located in Bolton, Oldham, and Ashton and Stalybridge. Oldham is intended to host new sporting facilities using funds of £70m, whilst Bolton will focus on regeneration and the creation of new homes, and the MDC in Ashton and Staybridge is to focus on improving transport links.
In May 2026, Helen Godwin, the Mayor of West England announced plans to create a Mayoral Development Zone (MDZ) (for more information on MDZs please see our FAQS on the topic here) over Brabazon and the West Innovation Arc. The aim is for this to later be established as an MDC, although formal plans have not yet been announced.
Why has there suddenly been a surge in Mayoral Development Corporations?
Two reasons. Firstly there’s a strong focus on delivery across both Central and Local Government at this time. This is best articulated by the Secretary of State for Communities, Housing and Local Government, Steve Reed declaring that his mantra is “Build, Baby Build”. Mayoral Development Corporations closely align with this focus on delivery.
Secondly, development corporations are effective. The New Towns Taskforce report praises development corporations’ “significant powers to coordinate investment, develop expertise, assemble land and facilitate faster delivery, ensuring joined-up infrastructure and amenities are in place from the outset, as well as providing more certainty about the future path of delivery“.
In terms of impact, the report goes on to state “development corporations have consistently delivered higher build out rates than alternative models” citing data from the Lichfields “Start to Finish” study which found “development corporation-led new towns of 10,000 or more homes tend to have build out rates averaging 600 or more per year; whereas commercially-led large sites with master-planned schemes (without government coordination) tend to deliver an average of c.150 homes per year, taking an average of six years from submitting a planning application to completing the first homes“. Having a Mayor involved is considered to assist the process, adding additional accountability and helping resolve cross-boundary issues.
Therefore the ‘surge’ in new MDCs reflects their potential to be effective catalysts for delivering regeneration, but this is driven by delivery being a political priority at this time.
Conclusion
Mayoral Development Corporations are rising in importance and that means greater scrutiny will be applied to their operation. Ward Hadaway is the first choice law firm for many public sector bodies and can support in the setting up and running of MDCs. Please do get in touch if our Public Funding team can be of assistance to you.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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