Westminster Policy News & Legislative Analysis

England: development corporations gain planning powers 14 April

Statutory Instrument 2026/168, the Levelling-up and Regeneration Act 2023 (Commencement No. 10) Regulations 2026, was made at 2.30 pm on 2 March 2026 and published on legislation.gov.uk. It brings sections 174 to 179 and Schedule 17 of the Act into force on 14 April 2026. The package enables Ministers and Mayors to confer defined planning functions on development corporations in England and updates governance and finance rules for those bodies.

Section 174 commences provisions allowing the Secretary of State to designate an Urban Development Corporation (UDC) as the local planning authority for plan-making and neighbourhood planning in its area. Amendments to the Local Government, Planning and Land Act 1980 include new subsections (3A) and (4A) to section 149 and the removal of outdated cross‑references, permitting specified planning functions to be exercised by UDCs. The section also enables a UDC to undertake consenting functions under Schedule 8 to the Electricity Act 1989 for certain planning applications.

A new section 149A is inserted into the 1980 Act. It allows a UDC to arrange for the discharge of its development management functions, in whole or in part, by the relevant council or councils, and to seek assistance from those councils in carrying out other planning functions. This creates a formal route to share capacity while maintaining a single strategic direction for an area.

Section 175 inserts new sections 7A and 7B into the New Towns Act 1981. The Secretary of State may by order make a New Town Development Corporation (NTDC) the local planning authority-separately or jointly, in whole or part-for local plan‑making and neighbourhood planning. An NTDC may also be made the minerals and waste planning authority for plan‑making, may exercise planning functions listed in Parts 1 and 2 of Schedule 29 to the 1980 Act, and may take on Electricity Act 1989 Schedule 8 consenting functions.

New section 7B of the 1981 Act permits an NTDC to arrange for the discharge of its development management functions by the relevant council(s), without prejudice to the corporation’s own ability to perform them. It may require assistance from those councils for other planning functions, including local, minerals and waste plan‑making, and may delegate authorised functions to members, staff, committees or sub‑committees.

Section 176 amends sections 202 to 204 of the Localism Act 2011 in relation to Mayoral Development Corporations (MDCs). A new subsection in section 202 allows a Mayor to decide, case by case, whether an MDC should be the minerals and waste planning authority for plan‑making for all or part of a Mayoral development area. Section 203 is amended to allow an MDC to seek assistance from the relevant council(s) for those minerals and waste functions. Section 204 confirms that, where an MDC has been established, the Mayor may remove its planning functions or impose restrictions on their exercise.

Section 177 and Schedule 17 make minor and consequential amendments connected to the new planning functions of development corporations. These technical changes align the affected statutes to ensure the conferral and discharge of functions operate coherently once the commencement takes effect.

Section 178 removes previous restrictions on the membership of UDC and NTDC boards. Amendments to Schedule 26 of the 1980 Act and section 3 of the 1981 Act lift the board‑size cap and the requirement to stipulate numbers in the establishing order, giving greater flexibility to configure governance in line with programme needs.

Section 179 reforms the borrowing framework. Amendments to paragraph 8 of Schedule 31 to the 1980 Act and section 60 of the 1981 Act remove statutory borrowing limits for English UDCs and NTDCs on money borrowed after commencement. Borrowing from HM Treasury or any other person continues to require HM Treasury approval and the Secretary of State’s consent, preserving central oversight while removing fixed caps.

The instrument is the tenth commencement regulation made under the Levelling-up and Regeneration Act 2023. It does not itself establish or confer planning powers on any named corporation; those changes will occur only through separate orders for specific areas. No standalone impact assessment accompanies the instrument; the Department refers to the impact assessment for the 2023 Act. For local authorities, combined authorities and existing development corporations, the key operational date is 14 April 2026, after which designation orders can switch plan‑making and related functions to a corporation and enable formal delegation and assistance arrangements with councils.