New towns led by mayoral development corporations would be ‘worrying’, TCPA director says

In previous development corporations, a permanent secretary was accountable. “That meant that central government could not walk away from, ignore or not co-operate with [new towns]. Given how difficult it is to get a road bridge over or under a railway in this country, you need someone at permanent secretary level to negotiate those deals,” he explained.

“If you shift the responsibility to a mayor, the challenge is, does the private sector feel confident in them?”

Dr Ellis also pointed out that many councils do not have the financial resources or staff to take on the role. “Local government, with its current levels of bankruptcy, and with capacity issues, would find it very difficult to take on the role of development corporations.”

He was speaking to the committee as part of its inquiry into new towns to explore whether they are an effective way of delivering homes, and the long-term stewardship of the town after the development body has stopped operating.

Dr Ellis spoke alongside Tom Chance, chief executive of the Community Land Trust Network, and Paul Thomas, director of planning and placemaking at Milton Keynes City Council.

Mr Thomas made the point that any development corporation will need to work “hand in glove” with residents and local authorities and not be as “bullish” as they may have been in the past.

“If there were to be development corporations, and that’s certainly what the mood music is, they do need to be longer term,” he said, with “local leadership” and “buy-in”.

Mr Chance also stressed that engagement with local people was vital and should be done “in good faith”. “There’s very low trust in the planning system currently,” he said.

“We need to do something to recognise the dire state of public trust,” he said, such as giving people some ownership of their local assets.

Dr Ellis also emphasised the need for a “long-term stewardship body with credibility and good governance” and said this should be laid out in the Planning and Infrastructure Bill.

He said: “A development corporation needs a lifespan of at least 40 years. If you’re not interested in multi-decade placemaking, then don’t get into the game.

“The outcome of the mark one to three new towns was that the legislation didn’t contain sense of how stewardship would work, Milton Keynes aside and one or two other examples.

“In general, the premature winding-up of the development corporations in 1980 and the fire sale of their assets broke the model of stewardship.”

Instead, Dr Ellis said the Planning and Infrastructure Bill should stipulate “the kind of stewardship body and the kind of objectives that the development corporation should then be evolved into”.

Dr Ellis said: “You need an oversight body for all the individual development corporations. Homes England has been suggested for that – I think it would be better if it was a bespoke body.”

The government aims to have up to 12 new towns under construction by the next election. More than 100 potential locations in England have already been identified and submitted to the New Towns Taskforce.

Earlier this month, the committee heard that a clear demand pipeline is needed to address the skills gaps in the construction industry.