New Towns Act 1981

Development corporations E+W

3 Establishment of development corporations for new towns. E+W

(1) The Secretary of State shall by order establish a corporation, in this Act called a development corporation, for the purposes of the development of each new town the site of which is designated under section 1 above F1 . . .

(2) A development corporation shall be a body corporate by such name as may be prescribed by the order, and shall consist of—

(a) a chairman;

(b) a deputy chairman; and

(c) such number of other members, not exceeding 11, as may be prescribed by the order.

[F2 (2A) Before making an order under this section in relation to a site in England, the Secretary of State must consult the following persons—

(a) persons who appear to the Secretary of State to represent those living within, or in the vicinity of, the site;

(b) persons who appear to the Secretary of State to represent businesses with any premises within, or in the vicinity of, the site;

(c) every county or district council for an area which falls wholly or partly within the site;

(d) any other person whom the Secretary of State considers it appropriate to consult.]

(3) Schedule 3 to this Act has effect with respect to the constitution and proceedings of a development corporation.

(4) Nothing in this Act (except the express provision relating to stamp duty in section 72(1) below) shall be construed as exempting a development corporation from liability for any tax, duty, rate, levy or other charge whatsoever, whether general or local.

Textual Amendments

F1 Words in s. 3(1) repealed (1.10.1998) by 1998 c. 38, s. 152, Sch. 18 Pt. IV (with ss. 137(1), 139(2), 141(1), 143(2)); S.I. 1998/2244, art. 4

F2 S. 3(2A) inserted (13.7.2016) by Housing and Planning Act 2016 (c. 22), ss. 169(3), 216(3); S.I. 2016/733, reg. 3(g)

4 Objects and general powers of development corporations. E+W

(1) The objects of a development corporation established for the purposes of a new town shall be to secure the laying out and development of the new town in accordance with proposals approved in that behalf under this Act.

[F3 (1A) In pursuing those objects a development corporation that is established for the purposes of a new town in England must aim to contribute to the achievement of sustainable development.

(1B) For the purposes of subsection (1A) a development corporation must (in particular) have regard to the desirability of good design.]

(2) To secure such laying out and development every development corporation shall have power (subject to section 5 below)—

(a) to acquire, hold, manage and dispose of land and other property,

(b) to carry out building and other operations,

(c) to provide water, electricity, gas, sewerage and other services,

(d) to carry on any business or undertaking in or for the purposes of the new town,

and generally to do anything necessary or expedient for the purposes or incidental purposes of the new town.

(3) In relation to subsection (2) above—

(a) the power of acquiring land conferred by that subsection on a development corporation includes power to acquire any land within the area of the new town, whether or not it is proposed to develop that particular land; and

(b) the power of disposing of land conferred by that subsection on a development corporation includes, in relation to any land within the area of the new town, power to dispose of that land, whether or not the development of that particular land has been proposed or approved under section 7(1) below.

(4) A development corporation (without prejudice to the generality of the powers conferred on development corporations by this Act)—

(a) may, with the Secretary of State’s consent, contribute such sums as he may, with the Treasury’s concurrence, determine towards expenditure incurred or to be incurred by any local authority or statutory undertakers in the performance, in relation to the new town, of any of their statutory functions, including expenditure so incurred in the acquisition of land; and

(b) may, with the like consent, contribute such sums as the Secretary of State, with the like concurrence, may determine by way of assistance towards the provision of amenities for the new town.

(5) A transaction between a person and a development corporation shall not be invalidated by reason of any failure by the corporation to observe—

(a) the objects in subsection (1) above, or

(b) the requirement in subsection (2) above that the corporation shall exercise the powers conferred by that subsection for the purpose there mentioned,

but (it being declared for the avoidance of doubt) nothing in this section shall be construed as authorising the disregard by a development corporation of any enactment or rule of law.

Textual Amendments

F3 S. 4(1A)(1B) inserted (13.7.2016) by Housing and Planning Act 2016 (c. 22), ss. 170, 216(3); S.I. 2016/733, reg. 3(g)

Modifications etc. (not altering text)

C1 S. 4(4) functions made exercisable (E.) (24.7.2018) by The New Towns Act 1981 (Local Authority Oversight) Regulations 2018 (S.I. 2018/891), regs. 1, 3(1) (with reg. 3(2))

5 Restrictions on powers of development corporations. E+W

(1) A development corporation does not have power to borrow money except in accordance with sections 58 to 60 below.

(2) The Secretary of State may give directions to any development corporation—

(a) for restricting the exercise by them of any of their powers under this Act, or

(b) for requiring them to exercise those powers in any manner specified in the directions.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

(3) Before giving any directions to a development corporation under subsection (2) above, the Secretary of State shall—

(a) consult with the chairman of the corporation, or,

(b) if the chairman is not available, consult with the deputy chairman,

unless he is satisfied that, on account of urgency, such consultation is impracticable.

(4) A transaction between—

(a) a person, and

(b) a development corporation acting in purported exercise of their powers under this Act,

shall not be void by reason only that it was carried out in contravention of a direction given by the Secretary of State under subsection (2) above, and such person shall not be concerned to see or enquire whether a direction under that subsection has been given or complied with.

(5) Nothing in this Act shall be construed as authorising a development corporation to carry on—

(a) any undertaking for the supply of water, electricity or gas [F5 or for the provision of sewerage services], or

(b) any railway, light railway, tramway or trolley vehicle undertaking,

except under the authority of an enactment not contained in this Act specifically authorising them to do so or, in the case of a trolley vehicle undertaking, under the authority of such an enactment or of an order under section 32 below.

Textual Amendments

F4 Words repealed by New Towns and Urban Development Corporations Act 1985 (c. 5, SIF 123:3, 4), s. 14(2), Sch. 4

F5 Words inserted by Water Act 1989 (c. 15, SIF 130), s. 190(1), Sch. 25 para. 64(1) (with ss. 58(7) ), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 57(6), 58)

Modifications etc. (not altering text)

C2 S. 5(2)(3) functions made exercisable (E.) (24.7.2018) by The New Towns Act 1981 (Local Authority Oversight) Regulations 2018 (S.I. 2018/891), regs. 1, 3(1) (with reg. 3(2))

6 Allocation or transfer of new town functions. E+W

(1) If, in the case of the area of any new town—

(a) it appears to the Secretary of State that there are exceptional circumstances which render it expedient that the functions of a development corporation under this Act should be performed by the development corporation established for the purposes of any other new town instead of by a separate corporation established for the purpose, then

(b) instead of establishing such a corporation, he may by order direct that those functions shall be performed by the development corporation established for that other new town.

(2) If it appears to the Secretary of State that there are exceptional circumstances which render it expedient that the functions of a development corporation established for the purposes of a new town should be transferred—

(a) to the development corporation established for the purposes of any other new town, or

(b) to a new development corporation to be established for the purposes of the first-mentioned new town,

he may by order provide for the dissolution of the first-mentioned corporation and for the transfer of its functions, property, rights and liabilities—

(i) to the development corporation established for the purposes of that other new town, or, as the case may be,

(ii) to a new corporation established for the purposes of the first-mentioned new town by the order.

(3) An order under this section—

(a) providing for the exercise of functions in relation to a new town by the development corporation established for the purposes of another new town, or

(b) providing for the transfer of such functions to such a corporation,

may modify the name and constitution of that corporation in such manner as appears to the Secretary of State to be expedient; and for the purposes of this Act that corporation shall be treated as having been established for the purposes of each of those new towns.

This subsection is without prejudice to the other provisions of this Act with respect to the variation of orders.

(4) Before making an order under this section—

(a) providing for the transfer of functions from or to a development corporation, or

(b) providing for the exercise of any functions by such a corporation,

the Secretary of State shall consult with that corporation.

Modifications etc. (not altering text)

C3 S. 6 modified (E.) (24.7.2018) by The New Towns Act 1981 (Local Authority Oversight) Regulations 2018 (S.I. 2018/891), regs. 1, 5(b)