_Levelling-Up & Regeneration Bill: New ''game-changing'' form of Development Corporation

Ian Tasker, Partner and Head of Public Sector Advisory, specialises in supporting the public sector with delivering regeneration projects, strategic and commercial advice and the production of business cases. Here, he explains how the new hybrid form of Development Corporation will change the face of regional development.

September 13, 2022

What’s the latest on the Levelling-Up and Regeneration Bill – and why is it important?

Introduced in May 2022, the Bill has gone through a first and second reading in the House of Commons and is currently at Committee stage. It’s a long way from reaching Royal Assent, but we already have a glimpse of what the reformed system will look like once the Bill is passed in 2022-23. It aims to drive local growth, empower local leaders to regenerate their areas, and ensure everyone can share in the UK’s success. So far, there’s been little focus on the Bill’s proposal to create a new form of Development Corporation, but this is extremely important and will fundamentally change the way local authorities can deliver large-scale regeneration in their area.

The proposal will give public sector bodies the ability to create delivery vehicles that operate across local authority boundaries, regionally – reaping the benefits of a statutory vehicle, whilst at the same time being wholly locally led. This type of vehicle has never been created before.

It will give local government power to control and influence inward investment into their local area in line with the concept of local democracy. For local authorities, the ability to collaborate with each other (and the private sector) and regenerate and revive areas that cross boundary lines is huge. Local authorities should be primed and ready to tap into these benefits as soon as the Bill is passed.

Where did the initiative come from?

The provisions in the Bill had their origins in the vision of five local authorities in the East Midlands. They aim to create a region-wide vehicle to unlock greater, faster, sustainable and inclusive growth that will increase jobs, catalyse innovation, and connect communities.

Ahead of the Bill going into legislation, the 5 East Midlands councils have formed an interim vehicle that mirrors the governance and delivery structure of this new form of Development Corporation. They’ve already started pre-planning activities at three identified development sites: Toton (the High Speed 2 hub), Chetwynd Barracks, Ratcliffe-on-Soar Power Station, and the East Midlands Airport Area. These 3 schemes are anticipated to create 84,000 jobs and add billions to the regional economy.

Despite the lack of publicity, interest has been shown by a number of local authorities in this new form of Development Corporation. It will truly be a game-changer for regional development; fuelling local growth, empowering local leaders to regenerate their areas, and ensuring everyone can share in the UK’s success.

For more information, contact Ian Tasker or our Public Sector team.