Government refreshes guidance on mayoral development corporations

The refreshed document, published on Friday (5 December), now includes details on clarifying the role of Mayors in appointing chairs and guidance on dealing with liabilities that may remain following the closure of subsidiary companies.

It also provides new advice on the role and responsibilities of mayoral combined and combined county authority officers, and updates the list of statutory instruments conferring Mayoral Development Corporation functions on combined authorities and combined county authorities.

The guidance clarifies legislation in respect of Mayoral Development Corporations, including oversight, reserve matters and consent, and explains how the relevant legislation operates. It also sets out how to manage any stranded liabilities on the closure of subsidiary companies.

The Ministry of Housing, Communities and Local Government (MHCLG) issued the first iteration of the guidance in April 2025 in response to a recommendation made in the Tees Valley independent review report.

The 2024 report, which revealed a series of governance concerns at the Tees Valley Combined Authority (TVCA) and South Tees Development Corporation (STDC), called on the Government to “clarify the regulations” on combined authorities and development corporations, including oversight, reserve matters, consent and stranded liabilities.

Adam Carey