Part 8: Development Corporations Local authority proposals and oversight 134A Local authority proposal for designation of a locally-led urban development area in England
New section 134A(1) makes provision for one or more local authorities acting jointly to make a proposal to the Secretary of State to designate an urban development area. New section 134A(2) and (3) provides that a proposal must contain the name, which local authority or local authorities should be designated as the oversight authority, a map of the area to be designated and may also specify other matters that may be specified in the order. This could include what planning functions should be conferred on the Locally-led Urban Development Corporation. New section 134A(4) provides that a proposal can be for separate parcels of land and therefore do not have to be contiguous. New section 134A(5) provides that a local authority may only make a proposal where the proposal area falls within its whole area or where a proposal is made by two or more local authorities, they may make a proposal if the proposal area falls partly or wholly within each area and wholly within their combined area. New section 134A(6) provides that a proposing authority must consult before making a proposal to the Secretary of State with individuals and bodies specified in new section 134A(7). The proposing authority or authorities must have regard to the responses and publish a consultation statement setting out reasons for non-acceptance from comments made by a local authority or Greater London Authority.
	New section 134A(8) sets out who can be an oversight authority. A local authority can only be an oversight authority if the proposal area is partly or wholly within the area of the local authority. New section 134A(9) provides that where there are two or more local authorities being proposed as the oversight authority they may propose who carries out a particular function. New section 134A(10) sets out the definitions for ‘local authority’, ‘locally-led proposal’, ‘proposing authority’ and ‘constituent council’ for this section.
	Subsections (4) to (7) amend section 135 (urban development corporations). Subsection (5) has the effect of separating the consultation provisions for Urban Development Corporations from Locally-led Urban Development Corporations that are designated under new section 134A(1).
	Subsection (6) inserts new subsection (4A) to (4C). It provides that the order designating the Locally-led Urban Development Corporation must give effect to the proposal including, by giving it the name, designating the oversight authority, setting out the number of board members, and establishing which authorities are to perform which functions where there are two or more local authorities that make up the oversight authority. The order must also contain other functions that the proposal sets out.
	Subsection (7) inserts new section 135A after section 135. Subsections (1) to (5) provides the Secretary of State with the power to make regulations, via the affirmative parliamentary procedure, setting out how an oversight authority is to oversee the regeneration of a locally-led urban development area. Regulations may prescribe the transfer of functions under the Act from central government to the local authorities and other changes to the Act to enable this to work in practice. These regulations may include how an oversight authority is to exercise specified functions, such as plan making and development management powers, and may make provision about the board membership of a Locally-led Urban Development Corporation.
Example
A proposed locally-led urban development area covers three sites in close proximity to each other. The proposed area covers three Districts and two County Councils.
Districts A and B plus both County Councils want to propose and become an oversight authority for a locally-led Urban Development Corporation. They also want to transfer local plan making, neighbourhood planning and development management planning powers to the development corporation to facilitate the delivery of the three sites.
District C only covers a small portion of the area and therefore does not want to become part of the proposing or oversight authority.
Before making a proposal to the Secretary of State, Districts A, B plus both County Councils consult on designating the proposed area, establishing a development corporation and transferring planning powers.
District C is content with the proposals and responds positively to the consultation on designating the urban development area, establishing the development corporation and transferring planning powers.
Districts A and B, plus both County Councils have regard to the consultation responses. Districts A and B, plus both County Councils may then submit the proposal to the Secretary of State for designation and conferral of planning powers.