It was confirmed earlier this week (22^nd September) that a new Mayoral Development Corporation (MDC) will be set up for Birmingham, forming part of a wider Mayoral Development Zone (MDC) for the West Midlands. This signals a government-backed partnership between Birmingham City Council and the West Midlands Combined Authority, intended to drive regeneration and investment on a strategic scale. Below, we explore what this means for the region and what opportunities it may create for delivery of new development and regeneration projects.

What are MDCs and what powers do they have?

Mayoral Development Corporations (MDCs) are statutory bodies established by any one of England’s twelve metro mayors with the purpose of delivering large scale regeneration schemes. MDCs can operate over one or more defined locations within a wider geographical area. These wider geographical areas are also known as “Mayoral Development Zones” (MDZs).

MDCs generally have a wide range of powers, including, but not limited to:

• Taking on decision-making and plan-making duties, and in doing so, acting as the local planning authority for the whole or any portion of the area;
• Carrying out the direct delivery and construction of buildings and infrastructure;
• Funding or investing in the delivery and construction of buildings and infrastructure;
• Making Compulsory Purchase Orders (CPOs); and
• Granting discretionary relief from business rates.

What is the history behind Development Corporations?

Development Corporations were first established in 1946 following the Second World War to enable the creation and development of New Towns such as Telford and Redditch. In the 1980s, Urban Development Corporations (UDCs) were introduced, tasked with regenerating inner-city areas and tackling both urban decline and decay. Notable examples of UDCs include the London Docklands Development Corporation (LDDC) and the Merseyside Development Corporation.

Whilst today MDCs are accountable to metro mayors, earlier development corporations were established by, and accountable to, national government. At the time, this was heavily criticised for taking power away from local decision makers, and so under the Localism Act 2011, the Government sought to devolve power to mayors to establish development corporations.

Where else have MDCs been established and how successful have they been?

Today, there are a total of 12 MDCs. The London Legacy Development Corporation (LLDC) was the first MDC to follow the Localism Act in 2011. The main purpose of the LLDC was to facilitate and coordinate the regeneration of the Queen Elizabeth Olympic Park and surrounding areas in East London, serving as a cornerstone of the legacy from the 2012 Olympic and Paralympic Games.

The most recent MDC is the Stockport MDC which was established in 2019 within the Greater Manchester region. Its purpose is to lead the regeneration of Stockport Town Centre West with a focus on creating new homes, commercial space and improving local infrastructure. So far, the first phase of Stockport’s MDC has overseen the delivery of over 1,200 new homes and 170,000 sq ft of Grade A office space, equating to nearly £600 million in private investment.

What do we know so far about the MDC for Birmingham?

This week’s announcement confirms the intention to launch the “biggest and most ambitious Mayoral Development Corporation in the country”. However, the exact details – including the extent and coverage of the MDC and MDZ – are yet to be published and will be highly anticipated by the development industry. There is also a clear opportunity to align the geography of the MDC and MDZ with the East Birmingham and North Solihull Growth Corridor and West Midlands Investment Zone, both of which feature sites of strategic importance, benefiting from a combination of public capital investment, and in some instances, tax incentives.

What we do know at this early stage is that the MDC will incorporate the following flagship regeneration schemes:

• Knighthead’s East Birmingham Sports Quarter
• The Birmingham Knowledge Quarter
• The HS2 Curzon Street Station
• Lendlease’s Smithfield development
• A creative industries hub in Digbeth

What might the opportunities be for planning within the MDC and MDZ?

The MDC can be granted planning powers that allow it to take over certain planning functions from Birmingham City Council and other local planning authorities within its designated area. This essentially means the MDC could become the local planning authority for the designated regeneration sites. Decision-making should be much faster as a result, aligning with the aim of MDCs to provide “speed, scale and certainty” for investors and developers. By bringing together planning, land, funding, and delivery under one body, the MDC is expected to streamline the planning process and accelerate the delivery of major projects in Birmingham and potentially the wider region.

Aside from speeding up the planning process, the MDC should be effective at unlocking regeneration in areas with complex land ownership or challenging viability conditions, where traditional planning approaches might not have worked. Within the MDC area, these sites could be brought forward by a single entity which assembles the land (potentially via compulsory purchase powers), coordinates the infrastructure investment, and fast-tracks its delivery through the planning process.

Over time, it is envisaged that the MDC could create a stable and certain planning environment for the promotion of major projects within its administration, with clear opportunities to expand boundaries as well as remits, which would go further in terms of achieving the intended outcomes for regeneration and investment.

How do I learn more?

Our strong regional presence in Birmingham and the West Midlands, coupled with the expertise of our Planning, Regeneration + Infrastructure (PR+I) team, means that we are well placed to advise on the opportunities that come out of these announcements. To learn more, please do reach out to one of the local team members below.