Funding, governance and staffing must be aligned for new development corporations, report says

Between 10 and 15 new development corporations are expected to be formed over the next two years, with a growing number expected to be established by mayoral strategic authorities rather than central government.

The bodies are designed to help drive regional urban development, including new towns and major infrastructure.

However, a report from the research partnership has warned that some of the new delivery bodies may lack the long-term finance, leadership and planning capacity needed to maximise their success.

It stresses that substantial early investment, multi-year funding settlements and patient finance will be essential if these bodies are to deliver effectively.

The report also highlights the need for clear divisions of responsibility, shared objectives and strong local partnerships agreed at the outset, particularly where a corporation covers several council areas or a substantial proportion of an existing planning authority.

It meanwhile calls for consideration of how staff can be developed, specialist expertise pooled, and best practice shared through a national peer-support network, warning that the wave of new development corporations could make it harder to recruit experienced staff.

The report also calls for long-term funding arrangements in light of the technical and lengthy nature of the work, which includes acquiring land and providing infrastructure years before homes or commercial schemes begin generating income.

Funding arrangements should therefore reflect the full timescale of development, rather than rely on short-term or fragmented settlements, it said.

Kevin Fenning, Director of Evidence First and author of the report, said: "The value of these bodies lies in combining long-term focus with the powers and capacity to coordinate land, infrastructure, planning and investment. But their effectiveness will depend on whether they have a clear purpose, the right powers, secure finance and people with the experience to use those tools well.

"Government and sponsoring authorities must settle those fundamentals from the outset and design each corporation around the task they are established to undertake."

Adam Carey