In Part 1 we looked generally at Development Corporations in the context of the New Towns agenda – exploring previous generations of the delivery vehicle and probing at their proposed reinvention as a means of delivering new communities.
This blog takes a deeper look at the Mayoral Development Corporation (MDC) and the role it might play for the ambitious metropolitan mayor pursuing ambitious regeneration and economic growth within local communities.
MDCs are bodies set up by metro mayors in England (of which there are now 14) to, at least to date, deliver regeneration schemes. Each MDC operates within a specific 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”.
There are currently nine MDCs in England – three having been established in January 2026 (Oxford Street Development Corporation (OSDC), the Old Trafford Regeneration Mayoral Development Corporation, and the Atom Valley Northern Gateway Mayoral Development Corporation) and with more on the horizon in Liverpool, Peterborough, and several other regions.
The Planning and Infrastructure Act 2025
In Part 1 we explained that the Planning and Infrastructure Act 2025 (the Act) has (a) provided flexibility over the size, shape and type of areas DCs cover, (b) updated and standardised the type of infrastructure that they can deliver, and (c) introduced powers permitting greenfield projects to deliver large scale property development.
Previously limited to regeneration projects, MDCs will now be able to pursue development of greenfield sites.
Otherwise, MDCs’ powers remain largely the same – if permitted by their scope and establishment they can take on the role of the Local Planning Authority, may be granted specific powers such as plan making, powers of compulsory acquisition, and the ability to grant discretionary relief from business rates where business trading is impacted by development projects in their local vicinity.
The English Devolution and Community Empowerment Bill (EDCEB) (currently at the report stage in the HoL and a significant marker on the road to genuine devolution) is also looking to expand the remit of MDCs by conferring their functions on all mayoral strategic authorities. The Localism Act 2011 is the statutory instrument which sets out the powers and functions of MDCs – however, s197 (designation of Mayoral development areas) is currently drafted to apply only to land within Greater London. Whilst other Mayors have the power to establish MDCs, following consultation, under the Local Democracy, Economic Development and Construction Act 2009, the EDCEB amends the Localism Act to ensure that any Mayor may designate any area of land within its strategic authority area as a Mayoral development area – thus ensuring consistency of the powers and functions of MDCs across the regions.
The Government has said that it hopes this will create “a substantial increase in the designation of MDAs and establishment of MDCs by Mayors of Strategic Authorities across the country, further promoting the use of MDCs to deliver large-scale regeneration and development.”
What has been the MDC trend?
Very few MDCs have been established over recent years, but this looks set to change thanks to encouragement from central government and a cohort of ambitious mayors who are determined to regenerate and develop sites within their localities, deliver for their constituents, and goldplate the legacy of their respective terms in office.
Late last year, Steve Rotherham (Metro Mayor for the Liverpool City Region) was interviewed for the i-paper and discussed, amongst other things, the potential role of MDCs in new development. Rotherham said that “he is in regular contact with mayors of all parties about Mayoral Development Corporations and that ‘everyone’ is now looking at them“.
Andy Burnham (Greater Manchester Mayor) has described MDCs as a “blueprint for urban regeneration“. Burnham’s 10-year plan for Greater Manchester includes establishing MDCs in Bolton, Oldham, Middleton, the corridor between Ashton and Stalybridge, Leigh and Old Trafford as well as extending the existing MDC in Stockport (amongst other steps).
The first promising step towards the establishment of more MDCs came on the first day of the year(!) in the form of the OSDC. The OSDC was established on 1 January with a view to pedestrianising part of Europe’s busiest shopping street. Whilst this MDC is spatially constrained to a section of one street in London, it could lead to revitalisation and diversification of one of the UK’s most popular tourist destination.
It is hoped that the OSDC’s establishment, largely due to the great deal of publicity it has received, will set out the stall for other MDCs to come forward on a varied scale and for diverse purposes – however, this sets a clear example for any authority looking to encourage town centre and high street regeneration (adding to the plethora of policy in this area and encouragement by government (see Pride in Place Strategy)). MHCLG also announced on 31 January 2026 that high streets will receive £150m to restore community pride and turn the tide on the decline – with a detailed High Streets Strategy to follow.
It seems then that the conditions are favourable for MDCs to come forward in droves – (i) ambitious Mayors with clear visions for their localities, (ii) encouragement from the top of government, (iii) a pro-development agenda, and (iv) an evolving legislative framework conferring greater powers on MDCs – what then is missing?
What needs to happen for MDCs to deliver?
If indeed more MDCs start to come forward, the model will be judged quickly — not by how ambitious it looks on paper, but by whether it translates into land assembled, infrastructure funded, and homes and commercial space delivered at pace.
MDCs are capable of being focused delivery vehicles, but they do not remove the need for political consent, community legitimacy, and a coherent strategy for planning and infrastructure. A few practical points are likely to matter most:
- Start with the delivery problem, then draw the boundary. The most effective MDCs tend to be those created to solve a defined obstacle — fragmented land ownership, cross‑boundary coordination, stalled infrastructure or a long‑running regeneration challenge — and whose geography follows that problem rather than administrative neatness (this is demonstrated helpfully by the OSDC).
- Be clear what planning functions you actually need (if any). Taking on development management and/or plan‑making functions can be a genuine accelerant, but it is also resource‑intensive and can create duplication if the interface with the host authority is not carefully designed. It is likely however that moving the decision making away from local politicians will provide greater certainty over decision making and foster a collective understanding of the vision.
- Put infrastructure and funding at the centre. A credible funding and phasing plan — particularly on transport, utilities and social infrastructure — will usually determine whether an MDC is a delivery body or simply another governance layer. Rotherham believes that MDCs are capable of “[giving] confidence to the market [and] increase the risk appetite” of the private sector to invest.
- Design governance for pace without shortcuts. Early decisions on board composition, transparency, conflicts and delegation are not administrative details; they are what will make an MDC trusted locally and investable commercially.
- Plan for the long run. Even where an MDC unlocks land and permissions, the place still needs stewardship. Thinking early about transfer of assets and liabilities, long‑term management, and the MDC’s eventual wind‑up avoids leaving a governance gap once the initial delivery phase is complete.
None of this is to suggest that MDCs are a panacea. But with an increasingly pro‑delivery agenda and an expanding devolution sentiment, the conditions are in place for more mayors to use MDCs as part of their delivery toolkit. If 2026 does become a year of MDC progress (as is looking increasingly likely), the first wave of new corporations will provide the clearest evidence yet of where the model adds real value — and where the sticking points remain. We will keep an eye on the changing picture.
