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New Towns Act 1981

Type Public General Act

Publication 1981-10-30

Last updated 2026-04-14

State In force

Department Statute Law Database

Source legislation.gov.uk

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“the relevant transferee”—in relation to an order made under section 41 by the Secretary of State, means the Homes and Communities Agency; andin relation to an order made under section 41 by the Welsh Ministers, means the Welsh Ministers.

Audit.

Short title, extent and commencement.

Other borrowing powers of development corporations ...

Saving and transitional provisions, consequential amendments and repeals.

“ development corporation has (in the application of this Part to Scotland) the same meaning as in the 1968 Act ” and

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Advances and grants to development corporations ....

Other borrowing powers of development corporations ...

Saving and transitional provisions, consequential amendments and repeals.

“ development corporation has (in the application of this Part to Scotland) the same meaning as in the 1968 Act ” and

“ the 1965 Act means the New Towns Act 1965 ”.

Other borrowing powers of development corporations ....

Short title, extent and commencement.

“ the 1965 Act means the New Towns Act 1965 ”.

Audit.

Saving and transitional provisions, consequential amendments and repeals.

“ development corporation has (in the application of this Part to Scotland) the same meaning as in the 1968 Act ” and

“ the 1965 Act means the New Towns Act 1965 ”.

Saving and transitional provisions, consequential amendments and repeals.

“ development corporation has (in the application of this Part to Scotland) the same meaning as in the 1968 Act ” and

“ the 1965 Act means the New Towns Act 1965 ”.

Orders under s. 26.

Restrictions on functions of Commission.

Advances and grants to development corporations ....

Other borrowing powers of development corporations ....

Accounts of ... development corporations.

Saving and transitional provisions, consequential amendments and repeals.

“ development corporation has (in the application of this Part to Scotland) the same meaning as in the 1968 Act ” and

“ the 1965 Act means the New Towns Act 1965 ”.

Application of Schedule: Wales only

A1

This Schedule applies only in relation to an order under section 1 designating an area of land in Wales as the site of a proposed new town.

Local authority to oversee development of new town

1A

(1) This section applies where the Secretary of State is considering designating an area of land in England as the site of a proposed new town in an order under section 1.

(2) The Secretary of State may, in an order under section 1, appoint one or more local authorities to oversee the development of the area as a new town.

(3) But a local authority may only be appointed if the area of land mentioned in subsection (1) is wholly or partly within the area of the local authority.

(4) The Secretary of State may by regulations make provision about how a local authority is to oversee the development of an area as a new town.

(5) Regulations under subsection (4) may, for example—

(a) provide that a local authority is to exercise specified functions under this Act which would otherwise be exercisable by the Secretary of State, the appropriate Minister or the Treasury;

(b) provide that a local authority is to exercise such functions subject to specified conditions or limitations;

(d) make provision about the membership of a corporation established under section 3, including the proportion of the members of the corporation who may be members of or employed by a local authority;

(e) modify provisions of this Act;

(f) make different provision for different purposes;

(g) make incidental, supplementary or consequential provision.

(6) In subsection (5)(a) the reference to “functions” does not include a power to make regulations or other instruments of a legislative character.

(7) Where two or more local authorities are appointed in an order containing provision by virtue of subsection (2), the Secretary of State may in that order provide—

(a) that a specified function is to be exercised by a specified local authority, or

(b) that a specified function is to be exercised by two or more specified local authorities jointly.

(8) In this section—

“local authority” means—a district council,a county council, ora London borough council;

“specified” means specified in—an order containing provision by virtue of subsection (2), orregulations under subsection (4).

4A

(1) This paragraph applies where—

(a) an acquiring authority have given a notice under paragraph 4(1) but have not yet entered on and taken possession of the land, and

(b) the authority become aware of an owner (“the newly identified owner”) to whom they ought to have given a notice to treat under section 5(1) of the Compulsory Purchase Act 1965 but have not.

(2) Any notice already served under paragraph 4(1) remains valid, but the authority may not enter on and take possession of the land unless they serve on the newly identified owner—

(a) a notice to treat under section 5(1) of the Compulsory Purchase Act 1965, and

(b) a notice under paragraph 4(1).

(3) Sub-paragraph (4) applies for the purpose of determining the period to be specified in the notice under paragraph 4(1) served on the newly identified owner if—

(a) the owner is an occupier of the land and the authority were not aware of the owner because they were given misleading information when carrying out inquiries under section 5(1) of the Compulsory Purchase Act 1965, or

(b) the owner is not an occupier of the land.

(4) The period must be a period that ends—

(a) no earlier than the end of the period of 14 days beginning with the day on which the notice of entry is served, and

(b) no earlier than the end of the period specified in any previous notice under paragraph 4(1) given by the acquiring authority in respect of the land.

(5) This paragraph applies instead of section 11A of the Compulsory Purchase Act 1965.

4B

(1) Where the acquiring authority serves a notice under paragraph 4(1) on an occupier with an interest in land, the occupier may serve a counter-notice requiring the acquiring authority to take possession of the land by no later than a date specified in the counter-notice.

(2) If the occupier gives up possession of the land on or before the specified date, the acquiring authority is to be treated as having taken possession on that date (unless the acquiring authority has in fact taken possession before that date).

(3) The date specified in the counter-notice—

(a) must not be before the end of the period specified in the notice under paragraph 4(1), and

(b) must be at least 28 days after the day on which the counter-notice is served.

(4) A counter-notice under sub-paragraph (1) has no effect if the notice to treat relating to the land is withdrawn or ceases to have effect before the date specified in the counter-notice.

(5) A counter-notice under sub-paragraph (1) has no effect if it would require an acquiring authority to take possession of land at a time when either paragraph 4A of this Schedule or paragraph 6 of Schedule 2A to the Compulsory Purchase Act 1965 prohibit the authority from entering on and taking possession of the land.

(6) If sub-paragraph (5) applies, the authority must notify the occupier who served the counter-notice—

(a) that the counter-notice has no effect, and

(b) if the authority serve a notice under paragraph 4(1) of this Schedule as mentioned in paragraph 4A(2)(b) of this Schedule, of the date after which the authority could enter on and take possession of the land.

(7) If a counter-notice served under sub-paragraph (1) has no effect because of sub-paragraph (5), the occupier who served it may serve a further counter-notice.

(8) Where a notice under paragraph 4(1) is served on more than one occupier with the same interest in the land, a reference in this section to the occupier with an interest in land is to all of them acting together.

(9) This paragraph applies instead of section 11B of the Compulsory Purchase Act 1965.

5A

(1) A development corporation submitting an order to the Secretary of State under this Part of this Schedule may include in the order a direction that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored); and if it does so the following provisions of this paragraph apply.

(2) The corporation must submit a statement of commitments together with the order.

(3) A “statement of commitments” is a statement of the corporation’s intentions as to what will be done with the project land should the acquisition proceed, so far as the corporation relies on those intentions in contending that the direction is justified in the public interest.

(4) Those intentions must include the provision of a certain number of units of affordable housing.

(5) The notice under paragraph 2(1) must—

(a) state the effect of the direction, and

(b) name a place where a copy of the statement of commitments may be seen at any reasonable hour.

(6) The Secretary of State may permit the corporation to amend the statement of commitments before the decision whether to confirm the order is made.

(7) But the Secretary of State may do so—

(a) only if satisfied that the amendment would not be unfair to any person who duly made or could duly have made an objection for the purposes of paragraph 4, and

(b) only if the statement of commitments as amended will still comply with sub-paragraph (4).

(8) If the Secretary of State decides to confirm the order under paragraph 3, the Secretary of State—

(a) may confirm the order with the direction included if satisfied that the direction is justified in the public interest;

(b) otherwise, must modify the order so as to remove the direction.

(9) If the order is confirmed with the direction included, the notice under paragraph 5 must—

(a) state the effect of the direction,

(b) explain how the statement of commitments may be viewed, and

(10) In this paragraph—

“the project land” means—the land proposed to be acquired further to the compulsory purchase order, andany other land that the corporation intends to be used in connection with that land;

“unit of affordable housing” means a building or part of a building that is constructed or adapted for use as a separate dwelling and—in the case of a building in England, is to be used as—social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, orhousing of any other description that is set out in regulations made by the Secretary of State, orin the case of a building in Wales, is to be used as housing of a description that is set out in regulations made by the Welsh Ministers.

5A

(1) A development corporation making an application under this Part of this Schedule may include in the application a request for a direction that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored); and if it does so the following provisions of this paragraph apply.

(2) The corporation must submit a statement of commitments together with the application.

(3) A “statement of commitments” is a statement of the corporation’s intentions as to what will be done with the project land should the acquisition proceed, so far as the corporation relies on those intentions in contending that the direction would be justified in the public interest.

(4) Those intentions must include the provision of a certain number of units of affordable housing.

(5) The notice under paragraph 2 must—

(a) state that the request has been made and what the effect of the direction would be, and

(b) name a place where a copy of the statement of commitments may be seen at all reasonable hours.

(6) The Secretary of State and the appropriate Minister may permit the corporation to amend the statement of commitments before the decision whether to make an order on the application is made.

(7) But they may do so—

(a) only if satisfied that the amendment would not be unfair to any person who duly made or could duly have made an objection for the purposes of paragraph 3, and

(b) only if the statement of commitments as amended will still comply with sub-paragraph (4).

(8) If the Secretary of State and the appropriate Minister decide to make an order on the application under paragraph 3, they may include the direction in the order only if satisfied that the direction is justified in the public interest.

(9) If an order is made with the direction included, the notice under paragraph 5 must—

(a) state the effect of the direction,

(b) explain how the statement of commitments may be viewed, and

(10) In this paragraph—

“the project land” means—the land proposed to be acquired further to the compulsory purchase order, andany other land that the corporation intends to be used in connection with that land;

“unit of affordable housing” means a building or part of a building that is constructed or adapted for use as a separate dwelling and—in the case of a building in England, is to be used as—social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, orhousing of any other description that is set out in regulations made by the Secretary of State, orin the case of a building in Wales, is to be used as housing of a description that is set out in regulations made by the Welsh Ministers.

“ development corporation has (in the application of this Part to Scotland) the same meaning as in the 1968 Act ” and

“ the 1965 Act means the New Towns Act 1965 ”.

4A

(1) A development corporation established for the purposes of a new town in England may, to secure the laying out and development referred to in section 4(1), provide or facilitate the provision of infrastructure.

(2) In this section “provide” includes provide by way of acquisition, construction, conversion, improvement or repair (and “provision” is to be read in the same way).

(3) In this section “infrastructure” means—

(a) water, electricity, gas, telecommunications, sewerage or other services, including heat networks,

(b) roads or other transport facilities,

(d) health, educational, employment or training facilities,

(e) social, religious or recreational facilities,

(f) cremation or burial facilities, and

(g) community facilities not falling within paragraphs (a) to (f).

(4) Section 4(5) applies in relation to subsection (1) as it applies in relation to section 4(2).

4A

(1) The confirming authority may appoint a person (“an inspector”) to act instead of it in relation to the confirmation of a compulsory purchase order under this Schedule.

(2) An inspector may be appointed to act in relation to—

(a) a specific compulsory purchase order, or

(b) a description of compulsory purchase orders.

(3) An inspector has the same functions as the confirming authority under paragraphs 2(1)(b), 3, 4, 5A, 7 and 8.

(4) Where an inspector is appointed in relation to a compulsory purchase order, the confirming authority must inform—

(a) every person who has made a relevant objection that has not been withdrawn, and

(b) the acquiring authority.

(5) Where an inspector decides whether or not to confirm the whole or part of a compulsory purchase order, the inspector’s decision is to be treated as that of the confirming authority.

(6) The confirming authority may at any time—

(a) revoke its appointment of an inspector, and

(b) appoint another inspector.

(7) If the confirming authority revokes its appointment of an inspector while the inspector is acting in relation to a compulsory purchase order and does not replace the inspector, the confirming authority must give the reasons for doing so—

(a) to the inspector whose appointment has been revoked, and

(b) to all those informed under sub-paragraph (4).

(8) Where in any enactment there is a provision that applies in relation to a confirming authority acting in relation to the confirmation of a compulsory purchase order under this Schedule, that provision is to be read as applying equally in relation to an inspector so far as the context permits.

(9) In this paragraph—

“confirming authority” means—in a case where the compulsory purchase order relates to land in England, the Secretary of State, andin a case where the compulsory purchase order relates to land in Wales, the Welsh Ministers (see article 2 of, and Schedule 1 to, the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I. 1999/672) and paragraph 30 of Schedule 11 to the Government of Wales Act 2006);

“relevant objection” means an objection that is treated as duly made for the purposes of this Schedule (see paragraph 4(1)).

7A

(1) This section applies in relation to a development corporation established for the purposes of a new town in England.

(2) The Secretary of State may provide by order for the corporation to be the local planning authority for the specified area—

(a) for such purposes of Part 3 of the Town and Country Planning Act 1990, and in relation to such kinds of development, as are specified, or

(b) for such purposes of Part 2 or 3 of the Planning and Compulsory Purchase Act 2004 as are specified.

(3) An order under subsection (2) may provide—

(a) that any enactment relating to local planning authorities is not to apply to the corporation, or

(b) that any such enactment which applies to the corporation is to apply to it subject to such modifications as are specified.

(4) The Secretary of State may provide by order—

(a) for the corporation to have, in the specified area, the functions conferred by such of the enactments mentioned in Part 1 of Schedule 29 to the Local Government, Planning and Land Act 1980 as are specified;

(b) for such of the enactments mentioned in Part 2 of that Schedule as are specified in the order to have effect, in relation to the corporation and to land in the specified area, subject to the modifications set out in that Part;

(c) for such of the provisions of that Part 2 as apply for the purposes of the order to be read, for those purposes, as if—

(i) any reference to an urban development corporation were a reference to a development corporation established under section 3 of this Act, and

(ii) any reference to regenerating an area were a reference to developing a new town.

(5) An order under subsection (4) may provide—

(a) that any enactment relating to local planning authorities applies to the corporation for the purposes of any enactment specified in Schedule 29 to the Local Government, Planning and Land Act 1980 which relates to land in the specified area by virtue of the order;

(b) that any enactment so applied to the corporation applies to it subject to modifications specified in the order.

(6) The Secretary of State may, if the corporation is not a locally-led development corporation, provide by order for the corporation to be the minerals and waste planning authority for the specified area for the purposes of Part 2 of the Planning and Compulsory Purchase Act 2004.

(7) The Secretary of State may provide by order that the corporation is to have, in the specified area, the functions conferred on the relevant planning authority by Schedule 8 to the Electricity Act 1989 so far as it applies to applications for consent under section 37 of that Act.

(8) The area specified under any of the preceding subsections must be the whole, or part, of the area of the new town.

(9) An order under this section may include supplementary or transitional provision or savings.

(10) In this section “specified” means specified in an order under this section.

7B

(1) Subsection (2) applies in relation to any function that a development corporation has by virtue of an order under section 7A(2)(a).

(2) The corporation may make arrangements for the discharge of the function by the council (if any) which would have the function but for the order.

(3) Where arrangements are in force under subsection (2) for the discharge of a function by a council—

(a) the council may arrange for the discharge of the function by a committee, sub-committee or officer of the council, and

(b) section 101(2) of the Local Government Act 1972 (delegation by committees and sub-committees) applies in relation to the function as it applies in relation to functions of the council.

(4) Arrangements under subsection (2) for the discharge of a function do not prevent the development corporation from exercising the function.

(5) Subsection (6) applies in relation to any function that a development corporation has by virtue of an order under section 7A(2)(b) or (6).

(6) The corporation may seek assistance in connection with the discharge of the function from the council (if any) which would have the function but for the order; and that council may give such assistance.

(7) In this section, “council” means a county council, district council or London borough council.

Delegation of planning functions

10A

(1) This paragraph applies in relation to any function conferred on the corporation by virtue of an order under section 7A (planning functions of corporations in England).

(2) The corporation may appoint committees and such committees may appoint sub-committees.

(3) Anything which is authorised or required to be done by the corporation—

(a) may be done by any member of the corporation or of its staff who is authorised for the purpose either generally or specifically;

(b) may be done by a committee or sub-committee which is so authorised.

(4) The corporation may—

(a) determine the quorum of a committee or sub-committee;

(b) make such arrangements as it thinks appropriate relating to the meetings and procedure of a committee or sub-committee.

(5) Anything done for the purposes of sub-paragraph (4) is subject to directions given by the Secretary of State.

(6) The validity of anything done by a committee or sub-committee is not affected by—

(a) any vacancy among its members;

(b) any defect in the appointment of any of its members.

10B

(1) This paragraph has effect in relation to the membership of committees and sub-committees appointed under paragraph 10A.

(2) A committee may consist of—

(a) such members of the corporation as it appoints;

(b) such other persons as the corporation (with the consent of the Secretary of State) appoints.

(3) A sub-committee of a committee may consist of—

(a) such members of the committee as it appoints;

(b) such persons who are members of another committee of the corporation (whether or not they are members of the corporation) as the committee appoints;

(4) The membership of a committee or sub-committee—

(a) must always include at least one person who is a member of the corporation;

(b) must not include any person who is a member of the staff of the corporation.

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