Legislation – Planning and Infrastructure Act 2025
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Part 4Development corporations
100Areas for development and remit
(1)
The New Towns Act 1981 is amended as set out in subsections (2) and (3).
(2)
“(3)
An order under this section—
(a)
may include in the area designated as the site of the proposed new town any existing town or other centre of population;
(b)
may, in relation to a proposed new town in England—
(i)
designate separate parcels of land as the area for the site of the proposed new town;
(ii)
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;
and references in this Act to a new town or proposed new town are to be construed accordingly.”
(3)
“(1A)
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.”
(4)
The Local Government, Planning and Land Act 1980 is amended as set out in subsections (5) and (6).
(5)
“(1C)
An area of land designated as an urban development area in England must include, but need not wholly consist of, an area in an existing town or centre of population.”
(6)
In section 171 (interpretation of Part 16)—
(a)
the existing text becomes subsection (1);
(b)
“(2)
In this Part as it applies in relation to England, references to the regeneration of an area are to be read as references to the regeneration or development of the area.”
(7)
In section 201 of the Localism Act 2011 (objects and powers of Mayoral development corporations), in subsection (1) after “regeneration” insert “or development”
.
101Relationship between different types of development corporation
(1)
(2)
“(3ZA)
An order under this section may designate an area of land that includes any area (the “overlap area”) that is, or forms part of, an area that has already been designated (the “previously designated area”) under—
(a)
section 1ZB(2) (designation of locally-led new town in England),
(b)
section 134(1B) of the Local Government, Planning and Land Act 1980 (designation of locally-led urban development area), or
(c)
section 197 of the Localism Act 2011 (designation of Mayoral development area).
(3ZB)
On the coming into force of an order that makes provision as mentioned in subsection (3ZA), the overlap area no longer forms part of the previously designated area.
(3ZC)
Where the Secretary of State makes an order that contains provision as mentioned in subsection (3ZA), the Secretary of State may also make regulations—
(a)
amending any order relating to the previously designated area to show the new boundaries of the area, which may reflect not only the removal of the overlap area but also any other changes that are necessary or appropriate in consequence of its removal;
(b)
providing for the transfer of functions relating to the overlap area to the development corporation established for the purposes of the new town;
(c)
where the overlap area completely covers the previously designated area, providing for the dissolution of the development corporation for the previously designated area;
(d)
making consequential, incidental, supplementary, transitional or saving provision.
(3ZD)
The Secretary of State may, in connection with regulations under subsection (3ZC), make one or more schemes for the transfer of property, rights and liabilities relating to the overlap area to the development corporation established for the purposes of the new town (see also section 9B (transfer schemes: general provisions)).”
(3)
“(1A)
A proposal area must not include any area of land that is, or forms part of, an area that is designated under—
(a)
section 1 (designation of new town area by Secretary of State),
(b)
section 134(1) of the Local Government, Planning and Land Act 1980 (designation of urban development area by Secretary of State), or
(c)
section 197 of the Localism Act 2011 (designation of Mayoral development area).
(See also section 1(3ZB) and (3ZC), section 197(2B) and (2C) of the Localism Act 2011 and section 134(1E) and (1F) of the Local Government, Planning and Land Act 1980.)”
(4)
In section 1ZB (designation of locally-led new town in England, as inserted by section 172(2) of the Levelling-up and Regeneration Act 2023), in subsection (2)—
(a)
for “may” substitute “must”
;
(b)
omit from “if” to the end.
(5)
In section 77 (regulations and orders)—
(a)
in subsection (2A), after “section” insert “1(3ZC) or”
;
(b)
in subsection (3C), after “order” insert “or regulations”
.
(6)
(7)
In section 197 (designation of Mayoral development areas)—
(a)
in subsection (1), for “any” substitute “an”
;
(b)
“(2A)
An area of land designated under subsection (1)—
(a)
may include any area (the “overlap area”) that is, or forms part of, an area of land that has already been designated (the “previously designated area”) under—
(i)
section 1ZB(2) of the New Towns Act 1981 (designation of locally-led new town in England), or
(ii)
section 134(1B) of the Local Government, Planning and Land Act 1980 (designation of locally-led urban development area);
(b)
may not include any area that is, or forms part of, an area that is designated under—
(i)
section 1 of the New Towns Act 1981 (designation of new town area by Secretary of State), or
(ii)
section 134(1) of the Local Government, Planning and Land Act 1980 (designation of urban development area by Secretary of State).
(See also section 1(3ZB) and (3ZC) of the New Towns Act 1981 and section 134(1E) and (1F) of the Local Government, Planning and Land Act 1980.)
(2B)
Where the Mayor designates an area as mentioned in subsection (2A)(a), the Secretary of State must make regulations providing that the overlap area no longer forms part of the previously designated area.
(2C)
The regulations may also—
(a)
amend any order relating to the previously designated area to show the new boundaries of the area, which may reflect not only the removal of the overlap area but also any other changes that are necessary or appropriate in consequence of its removal;
(b)
provide for the transfer of functions relating to the overlap area to the development corporation established for the purposes of the Mayoral development area;
(c)
where the overlap area completely covers the previously designated area, provide for the dissolution of the development corporation for the previously designated area.
(2D)
The Secretary of State may, in connection with regulations under this section, make one or more schemes for the transfer of property, rights and liabilities relating to the overlap area to the development corporation established for the purposes of the Mayoral development area (see also section 218 (transfer schemes: general provisions)).”
(8)
In section 218 (transfer schemes: general provisions), in the definition of “transfer scheme” in subsection (1), after “section” insert “197(2D),”
.
(9)
In section 235 (orders and regulations)—
(a)
“(ja)
regulations under section 197;”;
(b)
in subsection (14), after “52” insert “or regulations under section 197”
.
(10)
(11)
In section 134 (urban development areas)—
(a)
in subsection (1B) (as inserted by section 171(2) of the Levelling-up and Regeneration Act 2023)—
(i)
in the words before paragraph (a), for “may” substitute “must”
;
(ii)
omit paragraph (b) (and the “and” immediately before it);
(b)
“(1D)
An order under subsection (1) may designate any area of land that includes an area (the “overlap area”) that is, or forms part of, an area that has already been designated (the “previously designated area”) under—
(a)
subsection (1B) (designation of locally-led urban development area),
(b)
section 1ZB(2) of the New Towns Act 1981 (designation of locally-led new town in England), or
(c)
section 197 of the Localism Act 2011 (designation of Mayoral development area).
(1E)
On the coming into force of an order that makes provision as mentioned in subsection (1D), the overlap area no longer forms part of the previously designated area.
(1F)
Where the Secretary of State makes an order that contains provision as mentioned in subsection (1D), the Secretary of State may also by regulations made by statutory instrument—
(a)
amend any order relating to the previously designated area to show the new boundaries of the area, which may reflect not only the removal of the overlap area but also any other changes that are necessary or appropriate in consequence of its removal;
(b)
provide for the transfer of functions relating to the overlap area to the development corporation established for the purposes of the urban development area;
(c)
where the overlap area completely covers the previously designated area, provide for the dissolution of the development corporation for the previously designated area;
(d)
make consequential, incidental, supplementary, transitional or saving provision.
(1G)
The Secretary of State may, in connection with regulations under subsection (1F), make one or more schemes for the transfer of property, rights and liabilities relating to the overlap area to the development corporation established for the purposes of the urban development area (see also section 140B (transfer schemes: general provisions)).”;
(c)
in subsection (4), after “(1B)” insert “or regulations made by the Secretary of State under subsection (1F)”
;
(d)
in subsection (4A), after “(1B)” insert “or regulations made by the Secretary of State under subsection (1F)”
.
(12)
“(1A)
A proposal area must not include any area of land that is, or forms part of, an area that is designated under—
(a)
section 134(1) (designation of urban development area by Secretary of State),
(b)
section 1 of the New Towns Act 1981 (designation of new town area by Secretary of State), or
(c)
section 197 of the Localism Act 2011 (designation of Mayoral development area).
(See also section 134(1E) and (1F), section 1(3ZB) and (3ZC) of the New Towns Act 1981 and section 197(2B) and (2C) of the Localism Act 2011.)”
(13)
In section 171 (interpretation), in the definition of “urban development area”, after “it” insert “by virtue of subsection (1E) of that section or”
.
102Duties to have regard to sustainable development and climate change
(1)
“—
(a)
the achievement of sustainable development, and
(b)
the mitigation of, and adaptation to, climate change.”
(2)
“(1A)
In pursuing that object, an urban development corporation that is established for the purposes of regenerating or developing an urban development area in England must aim to contribute to—
(a)
the achievement of sustainable development, and
(b)
the mitigation of, and adaptation to, climate change.
(1B)
For the purposes of subsection (1A) an urban development corporation must (in particular) have regard to the desirability of good design.”
(3)
“(1A)
In pursuing that object, an MDC must aim to contribute to—
(a)
the achievement of sustainable development, and
(b)
the mitigation of, and adaptation to, climate change.
(1B)
For the purposes of subsection (1A), an MDC must (in particular) have regard to the desirability of good design.”
103Powers in relation to infrastructure
(1)
The New Towns Act 1981 is amended as set out in subsections (2) to (5).
(2)
In section 4 (objects and general powers of development corporations)—
(a)
“(1C)
To secure such laying out and development every development corporation established for the purposes of a new town in England has the power (subject to section 5)—
(a)
to acquire, hold, manage and dispose of land and other property,
(b)
to carry out building and other operations,
(c)
to carry on any business or undertaking in or for the purposes of the new town,
and generally to do anything necessary or expedient for the purposes or incidental purposes of the new town. (See also section 4A (powers in relation to infrastructure).)”;
(b)
in subsection (2), in the words before paragraph (a), after “corporation” insert “established for the purposes of a new town in Wales”
;
(c)
in subsection (3)—
(i)
in the words before paragraph (a), for “subsection (2)” substitute “subsections (1C) and (2)”
;
(ii)
in paragraph (a), for “that subsection” substitute “those subsections”
;
(iii)
in paragraph (b), for “that subsection” substitute “those subsections”
;
(d)
in subsection (5)(b), after “subsection” insert “(1C) or”
.
(3)
“4APowers in relation to infrastructure: England
(1)
A development corporation established for the purposes of a new town in England may, to secure the laying out and development referred to in section 4(1), provide or facilitate the provision of infrastructure.
(2)
In this section “provide” includes provide by way of acquisition, construction, conversion, improvement or repair (and “provision” is to be read in the same way).
(3)
In this section “infrastructure” means—
(a)
water, electricity, gas, telecommunications, sewerage or other services, including heat networks,
(b)
roads or other transport facilities,
(c)
retail or other business facilities,
(d)
health, educational, employment or training facilities,
(e)
social, religious or recreational facilities,
(f)
cremation or burial facilities, and
(g)
community facilities not falling within paragraphs (a) to (f).
(4)
Section 4(5) applies in relation to subsection (1) as it applies in relation to section 4(2).”
(4)
In section 5 (restriction on powers of development corporations), in subsection (5)—
(a)
in paragraph (a), after “services” insert “or heat networks”
;
(b)
in paragraph (b), at the beginning insert “in the case of a development corporation established for the purposes of a new town in Wales,”
;
(c)
in the words after paragraph (b), after “undertaking” insert “in Wales”
.
(5)
““heat networks” has the meaning given by section 216 of the Energy Act 2023;”.
(6)
The Local Government, Planning and Land Act 1980 is amended as set out in subsections (7) to (9).
(7)
In section 136 (objects and general powers)—
(a)
“(2A)
Subject to sections 137 and 138, for the purpose of achieving the object an urban development corporation established for the purposes of an urban development area in England may—
(a)
acquire, hold, manage, reclaim and dispose of land and other property;
(b)
carry out building and other operations;
(c)
carry on any business or undertaking for the purposes of the object; and
(d)
generally do anything necessary or expedient for the purposes of the object or for purposes incidental to those purposes.
(See also section 136A (powers in relation to infrastructure).)
(2B)
But nothing in this Part authorises an urban development corporation established for the purposes of an urban development area in England to carry on any business or undertaking for—
(a)
the supply of water, electricity or gas, or
(b)
the provision of sewerage services or heat networks.”;
(b)
in subsection (3), in the words before paragraph (a), after “corporation” insert “established for the purposes of an urban development area in Wales”
;
(c)
in subsection (4), for after “subsection” insert “(2A) or”
;
(d)
in subsection (7), for “subsection (3)” substitute “subsection (2A) or (3)”
.
(8)
“136APowers in relation to infrastructure: England
(1)
An urban development corporation established for the purposes of an urban development area in England may, for the purpose of achieving the object in section 136(1), provide or facilitate the provision of infrastructure.
(2)
In this section “provide” includes provide by way of acquisition, construction, conversion, improvement or repair (and “provision” is to be read in the same way).
(3)
In this section “infrastructure” means—
(a)
water, electricity, gas, telecommunications, sewerage or other services, including heat networks,
(b)
roads or other transport facilities,
(c)
retail or other business facilities,
(d)
health, educational, employment or training facilities,
(e)
social, religious or recreational facilities,
(f)
cremation or burial facilities, and
(g)
community facilities not falling within paragraphs (a) to (f).
(4)
Section 136(7) applies in relation to subsection (1) as it applies in relation to section 136(3).”
(9)
““heat networks” has the meaning given by section 216 of the Energy Act 2023;”.
(10)
The Localism Act 2011 is amended as follows.
(11)
In section 205(4) (powers of Mayoral development corporations in relation to infrastructure), at the end of paragraph (a) insert “including heat networks within the meaning of section 216 of the Energy Act 2023,”
.
(12)
In section 212 (power of Mayoral development corporations to carry on businesses or undertakings)—
(a)
“(1A)
This section does not authorise an MDC to carry on a business for—
(a)
the supply of water, electricity or gas, or
(b)
the provision of sewerage services or heat networks.”;
(b)
“(7)
In this section “heat networks” has the meaning given by section 216 of the Energy Act 2023.”
104Exercise of transport functions and transfer schemes
(1)
“Transport functions relating to new towns in England
9AExercise of transport functions
(1)
A relevant transport authority must—
(a)
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, and
(b)
co-operate with an English new town development corporation in the development and implementation of the corporation’s plans.
(2)
If the Secretary of State considers that a relevant transport authority has failed to comply with the duty in subsection (1), the Secretary of State may direct the authority to exercise its functions in such a way as to comply with that duty.
(3)
If a relevant transport authority fails to comply with a direction under subsection (2), the Secretary of State may by regulations provide for any function of the transport authority that has an effect on the area of the new town for which the development corporation was established to be exercisable by the development corporation.
(4)
Regulations under subsection (3) may make provision for the function to be exercisable by the development corporation either generally or subject to such conditions or limitations as may be specified in the regulations.
(5)
Regulations under subsection (3) may make provision for the function to be exercisable by the development corporation—
(a)
instead of by the relevant transport authority,
(b)
concurrently with the relevant transport authority, or
(c)
jointly with the relevant transport authority.
(6)
Regulations under subsection (3) may—
(a)
make different provision for different purposes;
(b)
include consequential, supplementary, incidental, transitional or saving provision.
(7)
The Secretary of State may, in connection with regulations under subsection (3), make one or more schemes for the transfer of property, rights and liabilities between the corporation and the relevant transport authority to which the regulations relate (see also section 9B (transfer schemes: general provisions)).
(8)
In this section—
“English new town development corporation” means a new town development corporation established for the purposes of a new town in England;
“relevant transport authority” means any of the following for an area in England—
(a)
a local transport authority within the meaning of Part 2 of the Transport Act 2000 (see section 108(4) of that Act),
(b)
a local highway authority within the meaning of the Highways Act 1980 (see section 329 of that Act), or
(c)
a local traffic authority within the meaning of the Road Traffic Regulation Act 1984 (see section 121A(5) of that Act).
Transfer schemes: general
9BTransfer schemes under sections 1 and 9A: general provisions
(1)
(2)
The things that may be transferred under a transfer scheme include—
(a)
property, rights and liabilities that could not otherwise be transferred, and
(b)
property acquired, and rights and liabilities arising, after the making of the scheme.
(3)
A transfer scheme may—
(a)
create rights, or impose liabilities, in relation to property or rights transferred;
(b)
make provision about the continuing effect of things done by, on behalf of or in relation to the transferor in respect of anything transferred;
(c)
make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the transferor in respect of anything transferred;
(d)
make provision for references to the transferor in an instrument or other document in respect of anything transferred to be treated as references to the new regulator;
(e)
make provision for the shared ownership or use of property;
(f)
make provision which is the same as or similar to the TUPE regulations;
(g)
make other consequential, supplementary, incidental or transitional provision.
(4)
A transfer scheme may provide—
(a)
for modifications by agreement;
(b)
for modifications to have effect from the date when the original scheme came into effect.
(5)
In subsection (3)(f), “the TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246).
(6)
For the purposes of this section—
(a)
references to rights and liabilities include rights and liabilities relating to a contract of employment;
(b)
references to the transfer of property include the grant of a lease.”
(2)
“Transport functions relating to urban development areas in England
140AExercise of transport functions
(1)
A relevant transport authority must—
(a)
have regard to any plans published or shared with the authority by an English urban development corporation that may be relevant to the exercise of the authority’s functions, and
(b)
co-operate with an English urban development corporation in the development and implementation of the corporation’s plans.
(2)
If the Secretary of State considers that a relevant transport authority has failed to comply with the duty in subsection (1), the Secretary of State may direct the authority to exercise its functions in such a way as to comply with that duty.
(3)
If a relevant transport authority fails to comply with a direction under subsection (2), the Secretary of State may by regulations provide for any function of the transport authority that has an effect on the urban development area for which the urban development corporation was established to be exercisable by the development corporation.
(4)
Regulations under subsection (3) may make provision for the function to be exercisable by the development corporation either generally or subject to such conditions or limitations as may be specified in the regulations.
(5)
Regulations under subsection (3) may make provision for the function to be exercisable by the development corporation—
(a)
instead of by the relevant transport authority,
(b)
concurrently with the relevant transport authority, or
(c)
jointly with the relevant transport authority.
(6)
Regulations under subsection (3)—
(a)
are to be made by statutory instrument;
(b)
may make different provision for different purposes;
(c)
may include consequential, supplementary, incidental, transitional or saving provision.
(7)
A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.
(8)
The Secretary of State may, in connection with regulations under subsection (3), make one or more schemes for the transfer of property, rights and liabilities between the corporation and the relevant transport authority to which the regulations relate (see also section 140B (transfer schemes: general provisions)).
(9)
In this section—
“English urban development corporation” means an urban development corporation established for the purposes of an urban development area in England;
“relevant transport authority” means any of the following for an area in England—
(a)
a local transport authority within the meaning of Part 2 of the Transport Act 2000 (see section 108(4) of that Act),
(b)
a local highway authority within the meaning of the Highways Act 1980 (see section 329 of that Act), or
(c)
a local traffic authority within the meaning of the Road Traffic Regulation Act 1984 (see section 121A(5) of that Act).
Transfer schemes: general
140BTransfer schemes under sections 134 and 140A: general provisions
(1)
(2)
The things that may be transferred under a transfer scheme include—
(a)
property, rights and liabilities that could not otherwise be transferred, and
(b)
property acquired, and rights and liabilities arising, after the making of the scheme.
(3)
A transfer scheme may—
(a)
create rights, or impose liabilities, in relation to property or rights transferred;
(b)
make provision about the continuing effect of things done by, on behalf of or in relation to the transferor in respect of anything transferred;
(c)
make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the transferor in respect of anything transferred;
(d)
make provision for references to the transferor in an instrument or other document in respect of anything transferred to be treated as references to the new regulator;
(e)
make provision for the shared ownership or use of property;
(f)
make provision which is the same as or similar to the TUPE regulations;
(g)
make other consequential, supplementary, incidental or transitional provision.
(4)
A transfer scheme may provide—
(a)
for modifications by agreement;
(b)
for modifications to have effect from the date when the original scheme came into effect.
(5)
In subsection (3)(f), “the TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246).
(6)
For the purposes of this section—
(a)
references to rights and liabilities include rights and liabilities relating to a contract of employment;
(b)
references to the transfer of property include the grant of a lease.”