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Can MDCs save our towns?

COMMENT Since the Localism Act of 2011, six mayoral development corporations have been established across England. After two and a half years working in Stockport’s MDC, Greater Manchester’s first, I have gained valuable insights into how they work – and whether they can truly revitalise our towns.

I believe the answer is a qualified yes. When done right, they can spark transformative change. But they could also fail spectacularly if key factors are not in place. Here’s what I learned from my time working within an MDC and what it takes to make them succeed.

Follow the recipe

An MDC without a defined problem is a recipe for failure. Stockport had been grappling with town centre decline, outdated infrastructure and under-utilised land. The MDC addressed these challenges, driving the construction of new homes, offices and public spaces, like the new interchange.

Other local authorities might look at Stockport’s success – occupied grade-A office space and thousands of homes in the pipeline – and see an MDC as a silver bullet. But progress was only possible because Stockport Council had already started the process, and the MDC accelerated it. Without that foundation, an MDC risks being ineffective.

Furthermore, for an MDC to thrive, full stakeholder buy-in is essential. Although an MDC operates outside day-to-day council activities, in practice, they are deeply interconnected. Planning powers and other key decisions often remain with the council, so collaboration is critical.

Success depends on support from councillors, residents, developers and businesses. In Stockport, gaining community trust was crucial to advancing projects quickly. Gaining support from all stakeholders and developing a shared vision is key to cutting through bureaucratic hurdles and enabling fast, effective decisions.

Strong leadership is the backbone of a successful MDC. Those leading should have a proven track record in development and regeneration, and the area should have seen some prior success with development efforts.

In Stockport’s case, the leadership team’s experience made a significant difference. Many individuals involved in previous projects ensured continuity and a clear sense of purpose. One key advantage of an MDC is the ability to form a diverse board blending public and private sector expertise. In Stockport, industry leaders and councillors created a high level of accountability and ambition.

Leadership’s direct reporting to both the board and the council maintained accountability. This level of structure is often lacking in traditional local government settings.

Transparency is key

Transparency is often a point of contention with MDCs. In Stockport’s case, this wasn’t a significant issue, likely due to the balance of powers retained by the council. Too much power shifted to an MDC could lead to a lack of transparency and participation, while too little raises the question of why an MDC is necessary if it must follow the same governance as the council.

Retaining key decision-making powers within the council, such as planning and taking significant decisions to cabinet, improves transparency. The balance between council oversight and MDC autonomy needs to be carefully tailored to each specific MDC.

Ultimately, MDCs are facilitators, not developers. Although they possess certain powers, the delivery of large-scale projects, particularly residential developments, requires the expertise of specialists. Forming and maintaining strong private sector partnerships is key to driving these projects forward.

Transparent and fair procurement processes lead to successful partnerships that bring in external expertise and resources. These collaborations inject much-needed skills and experience into MDCs, especially when budgets are limited. The combination of experienced developers and the MDC’s facilitation powers can significantly accelerate progress on complex, large-scale projects.

Factors of success

Not every town needs an MDC, and they are not a one-size-fits-all solution. Success depends on having a clear problem to solve, strong leadership, stakeholder buy-in, transparency, and effective partnerships with the private sector. These factors must align for an MDC to fulfil its potential.

Where these critical elements are in place, MDCs can be powerful tools for regeneration, offering the agility and focus needed to address local challenges at an accelerated pace.

Stockport’s success shows that with the right structure, leadership and community support an MDC can be instrumental in saving and revitalising our towns.

Tom Smith is an associate director at AspinallVerdi

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