Why are Mayoral Development Corporations now the favoured regeneration vehicles of England’s Metro Mayors?
14th January, 2026
Every Metro Mayor is now looking at setting up one or more Mayoral Development Corporations according to Liverpool City Region Mayor Steve Rotherham, in an interview published in the i-paper on New Year's Eve 2025.
This insight appears to be substantiated by the rise in numbers – between 2012 and 2025 only six Mayoral Development Corporations were formally created, but that number is expected to double in the first half of 2026. In this article, Alexander Rose looks into why so many Mayoral Strategic Authorities are now taking steps to establish Mayoral Development Corporations in order to deliver their regeneration ambitions and the legal issues which arise.
What is a Mayoral Development Corporation?
A Mayoral Development Corporation (“MDC”) is a regeneration vehicle created to drive the development of one or more identified sites (the Mayoral Development Area) which is equipped with extensive powers for this purpose, including the ability to recruit experts to oversee projects, to act as the planning authority, to install infrastructure and to construct buildings (either directly or through partners). The process to establish a MDC is set out within legislation and involves a Metro Mayor designating a Mayoral Development Area and consulting with key stakeholders, after which the setting up of the MDC is ratified by the Secretary of State for Housing, Communities and Local Government.
Why are Metro Mayors so excited about Mayoral Development Corporations?
On 30th December 2025, the i-paper published an interview with the Metro Mayor for the Liverpool City Region, Steve Rotherham, in which he said that “he is in regular contact with mayors of all parties about Mayoral Development Corporations and that ‘everyone’ is now looking at them“.
He said that a major benefit of MDCs is their ability to “give confidence to the market” that a regeneration scheme will go ahead and thereby “increase the risk appetite” of the private sector to step in and invest.
Other Metro Mayors have been similarly enthusiastic about the MDC model. Tees Valley Metro Mayor, Ben Houchen has set up three MDCs (the most in any region at the date of this article) and praised the model for its ability to “slash red tape so we can supercharge the redevelopment” of areas. He argues that one of the key benefits of a MDC is the ability to accelerate planning applications faster than usual – in a talk at last year’s UKREiiF he cited a £200m scheme which received planning permission within just 10 weeks from submission of documentation to approval, thanks to the intervention of a MDC.
Greater Manchester Mayor Andy Burnham sees the success of the MDC in Stockport as a “blueprint for urban regeneration that the whole country can look to” which demonstrates “ambitious, place-first regeneration that can drive national growth“.
He has published a ten year plan to create MDCs in Bolton, Oldham, Middleton, the corridor between Ashton and Stalybridge, Leigh and Old Trafford as well as extending the existing MDC in Stockport. He is also taking forward plans to establish a Mayoral Development Zone in Atom Valley and the Northern Gateway (across Bury, Rochdale, and Oldham). In doing so, he has been eager to bring in experts in regeneration but also to bring in high profile individuals that able to attract national and international interest, for example the actor and comedian Steve Coogan who is co-chairing the new Middleton Mayoral Development Corporation and who Andy Burnham has described as a “real champion of community-led change“.
Richard Parker, the Metro Mayor for the West Midlands, is a strong advocate for Mayoral Development Corporations viewing them as a crucial mechanism to deliver regeneration at “speed, certainty and scale” thereby helping “supercharge growth“.
Support for Mayoral Development Corporations is not limited to Metro Mayors of Combined Authorities and County Combined Authorities. Secretary of State for Communities, Housing and Local Government, Steve Reed MP has praised MDCs as being able to deliver the type of “regional renewal that local people will really feel” and argued that the MDC model is an example of devolution in action.
What lessons can be drawn from existing Mayoral Development Corporations?
There are six established MDCs – these being the London Legacy Development Corporation (established March 2012), Old Oak and Park Royal Development Corporation (established April 2015), South Tees Development Corporation (established August 2017), Hartlepool Development Corporation (established February 2023), Middlesbrough Development Corporation (established February 2023) and Stockport Town Centre West Mayoral Development Corporation (established September 2019). Each of these has its own history which can provide useful lessons to the new wave of Mayoral Development Corporations.
In November 2025, Ward Hadaway hosted a webinar bringing together experts with valuable experience of working either within or alongside existing Mayoral Development Corporations.
Bev 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 non-contiguous 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. The recording of the webinar can be downloaded here.
What legal issues do Mayoral Development Corporations create?
Different phases of a MDC require different legal input. Setting up a MDC involves following a procedure set out in secondary legislation which includes identifying the ‘Mayoral Development Area’ precisely (usually requiring real estate expertise). Public law experts may be brought in to assist with the consultation process and commercial lawyers will normally be involved in the setting up of boards and putting in place processes around accountability.
Once a MDC is established, there will be a need for regular legal input, for example in:
- Planning – Prime Minister Sir Keir Starmer has described planning delays as “a major brake on economic growth” and MDCs taking on planning responsibilities will need to ensure decisions are accelerated whilst being made in line with the relevant rules and processes.
- Acquisitions and Compulsory Purchase Orders –the delivery of highways and other infrastructure requires the MDC to have access and control of strategic sites. The quickest route is usually an agreed purchase, but if landowners are reluctant to sell, it may be necessary to pursue a compulsory purchase order (CPO).
- Awards of grants and other incentives – financial assistance may well need to be provided to encourage delivery of capital projects on brownfield sites or to bridge viability gaps. Advice will be required to ensure grant funding agreements deliver the public policy priorities whilst also safeguarding public funds.
- Subsidy control– so often a brake on the delivery of large public funded projects, involving specialists early on can avoid projects involving financial assistance to economic operators being delayed or stalling because of subsidy control issues.
- Public procurement – the delivery timescales of large projects often turn on the ability to appoint the right contractors and suppliers. Failure to establish robust procurement processes can threaten the ability of MDCs to deliver their plans on time and to specification.
- Real Estate – legal input will be required to deliver infrastructure but also to direct and private development meets the highest standards and that no delays arise.
- Employment – with so many new MDCs being created there will be competition for the best experts and therefore employment law issues will arise. It will also be the case that some experts will be seconded into the organisation.
- Corporate and Commercial law – the MDC is a body corporate with a board.
Corporate and commercial law issues will arise during operation. - Engagement, Consultation and Challenges – the impact of developments on local residents and stakeholders is not to be underestimated. Legal input is often required to manage the process of taking the views of local businesses and communities into account, whilst also allowing other considerations to be properly evaluated and taken into account, whilst ensuring balanced decisions are reached. Reforms are being made with the aim of ensuring “engagement with how, not if, homes and infrastructure are built“.
The Monitoring Officer for the Combined Authority or Combined County Authority which establishes the Mayoral Development Corporation will also be the monitoring officer for any MDCs in the authority’s area and therefore oversee that appropriate processes are in place to ensure the organisation operates in line with its powers and has appropriate processes in respect of managing public money and assets.
Conclusion
The time is right for Mayoral Development Corporations to become major drivers of regeneration and economic growth across the country. Indeed it ought to be no surprise that all Metro Mayors are looking at setting up Mayoral Development Corporations because this is a model that has succeeded in areas such as Stockport. However past success is no guarantee of future success and as numbers of MDCs grow there will be competition to secure the best talent, to pursue the best ideas and to establish the most effective processes. In terms of the legal support provided to support these processes, the challenge will be to be bold while remaining lawful.
Ward Hadaway is a leading UK law firm providing expert legal advice on matters involving funding from Central Government, Mayoral Combined Authorities and Local Government. Our experienced team of lawyers have advised public authorities on the setting up of Mayoral Development Corporations, but also regeneration projects delivered by MDCs. As such we are perfectly positioned to support upon MDC initiatives from our offices in Birmingham, Leeds, Manchester, Newcastle and Teesside. Please do get in touch if we can be of assistance.
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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