New Towns Act 1981

Part I — New Towns and Their Development Corporations

New towns

Designation of areas.

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• (1) If the Secretary of State is satisfied, after consultation with any local authorities who appear to him to be concerned, that it is expedient in the national interest that any area of land should be developed as a new town by a corporation established under this Act, he may make an order designating that area as the site of the proposed new town.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) An order under this section—

• (a) may include in the area designated as the site of the proposed new town any existing town or other centre of population;

• (b) may, in relation to a proposed new town in England—

• (i) designate separate parcels of land as the area for the site of the proposed new town;

• (ii) designate an area of land which is adjacent to an existing town or other centre of population so that the area is developed as an urban extension rather than as a wholly new town;

and references in this Act to a new town or proposed new town are to be construed accordingly.

• (3A) Before making an order under this section designating an area of land in England as the site of a proposed new town, the Secretary of State must consult the following persons (as well as the local authorities mentioned in subsection (1))—

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

• (4) Schedule 1 to this Act has effect with respect to the procedure to be followed in connection with the making of orders under this section designating areas of land in Wales and with respect to the validity and date of operation of such orders.

• (5) An order under this section shall, when operative, be a local land charge . . .

Reduction of designated areas

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• (1) The Secretary of State may make an order excluding any land specified in the order from the area of a new town if, after consulting—

• (a) the development corporation for the town, and

• (b) any county council and district council or, in the case of land in Wales, any county council or county borough council in whose area the land is situated,

he is satisfied that it is expedient to make the order.

• (2) Subject to subsections (3) and (4) below, on the coming into force of an order under subsection (1) above—

• (a) the land specified in the order shall cease to be contained in the area of the new town; and

• (b) the order made under section 1 above designating the area shall cease to operate as regards that land.

• (3) The Secretary of State may in an order under this section make such provision by way of savings and transitional provisions (including provisions amending provisions made by or under an enactment) as he thinks fit, and subsection (2) above applies subject to any such savings and transitional provisions.

• (4) Schedule 2 to this Act applies with respect to the effect of an order made under this section.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Development corporations

Establishment of development corporations for new towns

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• (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 . . .

• (1A) A single development corporation may be established for the purposes of the development of more than one new town in England if the Secretary of State considers that having a single development corporation would facilitate efficient development.

• (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) at least one other member.

• (2ZA) In the case of a development corporation established by an order under this section made by the Welsh Ministers—

• (a) the number of members other than the chairman and deputy chairman must be prescribed by the order, and

• (b) the prescribed number is not to exceed 11.

• (2ZB) In the case of a locally-led development corporation, the number of members other than the chairman and deputy chairman must be prescribed by the order.

• (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.

Objects and general powers of development corporations

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• (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.

• (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—

• (a) the achievement of sustainable development, and

• (b) the mitigation of, and adaptation to, climate change.

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

• (1C) To secure such laying out and development every development corporation established for the purposes of a new town in England has the power (subject to section 5)—

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

• (b) to carry out building and other operations,

• (c) 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. (See also section 4A (powers in relation to infrastructure).)

• (2) To secure such laying out and development every development corporation established for the purposes of a new town in Wales 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 subsections (1C) and (2) above—

• (a) the power of acquiring land conferred by those subsections 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 those subsections 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 (1C) or (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.

Restrictions on powers of development corporations

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• (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.

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• (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 or for the provision of sewerage services or heat networks, or

• (b) in the case of a development corporation established for the purposes of a new town in Wales, 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 in Wales, under the authority of such an enactment or of an order under section 32 below.

Allocation or transfer of new town functions

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• (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.

Planning control in new towns

Planning control

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• (1) In relation to a new town—

• (a) the development corporation shall from time to time submit to the Secretary of State, in accordance with any directions given by him in that behalf, their proposals for the development of land within the area of the new town; and

• (b) the Secretary of State, after consultation with the district planning authority within whose area the land is situated, and with any other local authority who appear to him to be concerned, may approve any such proposals either with or without modification.

• (2) A special development order made by the Secretary of State under section 59 of the Town and Country Planning Act 1990 with respect to the area of a new town—

• (a) may grant permission for any development of land in accordance with proposals approved under subsection (1) above; and

• (b) such permission shall be subject to such conditions, if any (including conditions requiring details of any proposed development to be submitted to the district planning authority) as may be specified in the order.

This subsection is without prejudice to the generality of the powers conferred by sections 59 to 61 of that Act of 1990.

• (3) In this section the references to a district planning authority shall, in relation to proposals for development of land in Wales or in a metropolitan county, be construed as references to the local planning authority; and in relation to proposals for any development which is a county matter as defined in paragraph 1 of Schedule 1 to the Town and Country Planning Act 1990 and which is of land in a non-metropolitan county, be construed as references to the county planning authority.

Features of special architectural or historic interest

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It is the Secretary of State’s duty to give to a development corporation such directions—

• (a) with respect to the disposal of land acquired by them under this Act, and

• (b) with respect to the development by them of such land,

as appear to him to be necessary or expedient for securing, so far as practicable, the preservation of any features of special architectural or historic interest, and in particular of buildings included in any list ( compiled or approved, or having effect as if compiled or approved, under section 1 of the Planning (Listed Buildings and Conservation Areas) Act 1990 (which relates to the compilation or approval by the Secretary of State of lists of buildings of such interest) or under section 76 of the Historic Environment (Wales) Act 2023 (which makes similar provision for Wales).

Frontages and abutments

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• (1) In the case of land—

• (a) which forms a frontage to a road, or

• (b) which abuts on or is adjacent to a road,

a local highway authority or the Secretary of State may enter into an agreement with any owner of the land imposing on the land, so far as that owner’s interest in the land enables him to bind it, restrictions for controlling the development of the land.

• (2) Any restrictions imposed by an agreement under subsection (1) above may be enforced by the local highway authority or the Secretary of State, as the case may be, against the owner referred to in that subsection and any person deriving title under him in the like manner and to the like extent—

• (a) as if that authority or the Secretary of State were possessed of, or interested in, adjacent land; and

• (b) as if that agreement had been entered into for the benefit of such land.

Acquisition of land by development corporations and highway authorities

Acquisition of land by development corporations

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• (1) A development corporation may, with the Secretary of State’s consent, acquire by agreement, or may, by means of an order made by the corporation and submitted to and confirmed by the Secretary of State in accordance with Part I of Schedule 4 to this Act, be authorised to acquire compulsorily—

• (a) any land within the area of the new town, whether or not it is proposed to develop that particular land;

• (b) any land adjacent to that area which they require for purposes connected with the development of the new town;

• (c) any land, whether adjacent to that area or not, which they require for the provision of services for the purposes of the new town.

• (2) A compulsory purchase order under this section shall, in so far as it relates to land—

• (a) which is the property of a local authority, or which is held inalienably by the National Trust, or