How will development corporations operate under the Planning and Infrastructure Bill?

Please note that the Planning and Infrastructure Bill is still in draft form and subject to change.

A development corporation is a statutory body responsible for the planning, regeneration, and development of new towns or urban development areas. These corporations have wide-ranging powers, including land acquisition, infrastructure provision, and business management, to facilitate large-scale developments.

Under the Planning and Infrastructure Bill, development corporations will have the ability to manage and oversee more than one new town. Specifically, the bill allows for single development corporations to oversee the development of multiple new towns, if deemed efficient by the secretary of state. This is particularly relevant in cases where adjacent towns are to be developed together, fostering integrated urban planning.

'A single development corporation may be established for the purposes of the development of more than one new town in England if the Secretary of State considers that having a single development corporation would facilitate efficient development.' Section 79(3) inserted into Section 3, New Towns Act 1981.

In this article, we outline how development corporations will operate under the under the Planning and Infrastructure Bill and explore the commercial implications for developers, contractors, and businesses.

How will development corporations operate?

The Planning and Infrastructure Bill gives development corporations more autonomy and expands their powers. Some of the most notable operational aspects include:

Power to develop urban extensions: corporations can now designate existing towns or centres of population as part of new developments. This will enable urban extensions, where new infrastructure and residential areas are integrated with existing communities.

'An order under this section… may designate an area of land which is adjacent to an existing town or other centre of population so that the area is developed as an urban extension rather than as a wholly new town.' Section 79(2) inserted into Section 1, New Towns Act 1981.

Enhanced powers over infrastructure: development corporations will be empowered to facilitate the provision of key infrastructure such as transport, water, telecommunications, and energy. This includes the ability to establish heat networks, a significant move towards sustainability.

'A development corporation established for the purposes of a new town in England may... provide or facilitate the provision of infrastructure.' Section 83(3) inserted into Section 4A, New Towns Act 1981.

The commercial impacts of the provisions

The restructuring of development corporations has several commercial implications for developers, contractors, and businesses operating in urban areas:

New opportunities for infrastructure providers: the expansion of development corporations' powers includes provisions for the creation of comprehensive infrastructure networks, such as heat networks and transport facilities. Companies specialising in construction, energy, and telecommunications could see new opportunities to partner with development corporations for large-scale infrastructure projects.

'In this section 'infrastructure' means water, electricity, gas, telecommunications, sewerage or other services, including heat networks.' Section 81(3) inserted Section 4A, New Towns Act 1981.

Increased land development: development corporations now have greater flexibility to acquire, hold, and manage land for development purposes. This could lead to more land being made available for commercial and residential projects, potentially increasing opportunities for developers and real estate investors.

'A development corporation established for the purposes of a new town in England has the power... to acquire, hold, manage and dispose of land and other property.' Section 81(3) inserted Section 4A, New Towns Act 1981.

Public-private partnerships: the enhanced role of development corporations in coordinating urban development may lead to more public-private partnerships, with private developers working alongside government bodies to deliver new towns and urban extensions. This creates a more integrated approach to urban planning, with the possibility for greater investment in mixed-use developments, retail spaces, and community facilities.

Regeneration and sustainability focus: the emphasis on sustainability and climate change will likely lead to increased demand for 'green' building technologies and eco-friendly solutions. Developers and contractors who specialise in sustainable building practices may find a growing market within these developments.

'An urban development corporation... must aim to contribute to the achievement of sustainable development, and the mitigation of, and adaptation to, climate change.' Section 80(2) - inserting Section 136(1A) Local Government, Planning and Land Act 1980.

Transport and mobility innovations: with the power for development corporations to influence transport functions, there will be greater integration between transport authorities and development bodies. This creates potential for investment in new transport infrastructure, such as smart public transport systems, cycle lanes, and green transportation solutions.

'A relevant transport authority must... have regard to any plans published or shared with the authority by an English new town development corporation that may be relevant to the exercise of the authority’s functions.' Section 82(1) - inserting Section 9A, New Towns Act 1981.

Conclusion

The Planning and Infrastructure Bill significantly reshapes the landscape for development corporations in England. By empowering these bodies with enhanced powers for land management, infrastructure provision, and environmental sustainability, the bill paves the way for more ambitious and coordinated urban development projects.

For businesses in the construction, infrastructure, and planning sectors, this represents a wealth of new opportunities in the coming years, especially as development corporations take a more active role in shaping the future of urban living.

For developers, investors, and contractors, staying informed about the provisions in the bill and aligning strategies with the new regulatory environment will be key to capitalising on these emerging opportunities.

For more information please contact our planning and infrastructure consenting team.

Our series on the Planning and Infrastructure Bill

This article is part of our series analysing the Planning and Infrastructure Bill, which marks a major reform aimed at tackling the UK's housing shortage whilst accelerating infrastructure delivery.

Our articles explore how the key changes will affect various operations across the planning sector and highlight important actions and requirements for authorities, developers and stakeholders.