The Thames Gateway London Partnership and the government are understood to have agreed
in principle to set up an urban development corporation for the 4000 ha region. This would have more power than the urban regeneration company, New Labour’s usual mechanism.
UDCs have two extra powers: a direct line of funding from the Treasury and a capacity to invoke planning powers that override local authorities. Michael Heseltine pioneered the mechanism when he was environment secretary, but was criticised for sidelining local authorities in the regeneration process.
The Thames Gateway UDC would be based on the same 1980 Local Government Planning and Land Act, but it would differ from those set up in the past as it aims to work in greater partnership with local authorities. Representatives from local authorities are expected to make up the majority of the UDC’s board, unlike its predecessors.
The TGLP sent a letter this week to parliamentary undersecretary of state Tony McNulty setting out the plans. This follows talks between McNulty, the TGLP and civil servants. A source close to the Thames Gateway plans said a UDC budget of £500m had been mooted.
The key is the UDC should not throw its weight around too much. We’re calling it a partnership
Stephen Joseph, deputy chief executive, TGLP
Stephen Joseph, TGLP deputy chief executive, said he hoped the UDC would be set up in
12 to 18 months. Joseph said: “The gateway boroughs have endorsed the UDC. The key is that it should not throw its weight around too much. We’re calling it a partnership UDC.”
A government source told Building a shadow UDC should be set up this year. The source added: “There are still some issues that need to be talked through, but you need a single-purpose vehicle with some clout that is accountable to the secretary of state [John Prescott].”
The TGLP proposes that it itself become a strategic body, overseeing the institutions involved in the regeneration of the Thames Gateway.
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