Localism Bill

House of Commons

Session 2010 - 11
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Localism Bill

Localism Bill
Part 7 — London
Chapter 2 — Mayoral development corporations
154

(c)
creating an attractive environment.
(5)
An MDC may facilitate—
(a)
the regeneration or development of land,
(b)
the more effective use of land,
(c)
the provision of buildings or other land, or
5
(d)
the carrying out of activities mentioned in subsection (4).
(6)
In this section—
(a)
a reference to a “building” is a reference to—
(i)
a building or other structure (including a house-boat or
caravan), or
10
(ii)
any part of something within sub-paragraph (i);
(b)
“develop” includes redevelop (and “development” includes
redevelopment);
(c)
“improve”, in relation to buildings, includes refurbish, equip and fit
out;
15
(d)
“provide” includes provide by way of acquisition, construction,
conversion, improvement or repair (and “provision” is to be read in the
same way).
178
Acquisition of land
(1)
An MDC may by agreement acquire land in its area or elsewhere.
20
(2)
An MDC may acquire land in its area, or elsewhere in Greater London,
compulsorily if the Secretary of State authorises it to do so.
(3)
An MDC must obtain the consent of the Mayor of London before submitting a
compulsory purchase order authorising an acquisition under subsection (2) to
the Secretary of State for confirmation.
25
(4)
The power under subsection (2) includes power to acquire new rights over
land.
(5)
Subsection (6) applies where—
(a)
land forming part of a common, open space or allotment is being
acquired under subsection (2), or
30
(b)
new rights are being acquired under subsection (2) over land forming
part of a common, open space or allotment.
(6)
The power under subsection (2) includes power to acquire land compulsorily
for giving in exchange for that land or those new rights.
(7)
Part 1 of Schedule 2 to the Housing and Regeneration Act 2008 (compulsory
35
acquisition of land by the Homes and Communities Agency) applies in relation
to the acquisition of land under subsection (2) as it applies in relation to the
acquisition of land under section 9 of that Act.
(8)
In that Part of that Schedule as applied by subsection (7)—
(a)
references to section 9 of that Act are to be read as references to
40
subsection (2),
(b)
references to the Homes and Communities Agency are to be read as
references to the MDC concerned, and

Localism Bill
Part 7 — London
Chapter 2 — Mayoral development corporations
155

(c)
references to Part 1 of that Act are to be read as references to this
Chapter.
(9)
The provisions of Part 1 of the Compulsory Purchase Act 1965 (other than
section 31) apply, so far as applicable, to the acquisition by an MDC of land by
agreement.
5
(10)
In subsection (5)—
“allotment” means any allotment set out as a fuel allotment, or a field
garden allotment, under an Inclosure Act;
“common” has the meaning given by section 19(4) of the Acquisition of
Land Act 1981;
10
“open space” means any land which is—
(a)
laid out as a public garden,
(b)
used for the purposes of public recreation, or
(c)
a disused burial ground.
179
Powers in relation to acquired land
15
(1)
Schedule 3 to the Housing and Regeneration Act 2008 (powers, in relation to
land of the Homes and Communities Agency, to override easements etc, to
extinguish public rights of way, and in relation to burial grounds and
consecrated land) applies in relation to an MDC and its land as it applies in
relation to the Homes and Communities Agency and its land.
20
(2)
In that Schedule as applied by subsection (1), references to the Homes and
Communities Agency are to be read as references to the MDC concerned.
(3)
The power of the Secretary of State under Part 2 of that Schedule
(extinguishment of public rights of way) as applied by subsection (1) is
exercisable only with the consent of the Mayor.
25
(4)
Schedule 4 to that Act (powers in relation to, and for, statutory undertakers)
applies in relation to an MDC and its land as it applies in relation to the Homes
and Communities Agency and its land.
(5)
In that Schedule as applied by subsection (4)—
(a)
references to the Homes and Communities Agency are to be read as
30
references to the MDC concerned, and
(b)
references to Part 1 of that Act are to be read as references to this
Chapter.
180
Restrictions on disposal of land
(1)
An MDC may not dispose of land for less than the best consideration which can
35
reasonably be obtained unless the Mayor consents.
(2)
Subsection (1) does not apply to a disposal by way of a short tenancy if the
disposal consists of—
(a)
the grant of a term of not more than 7 years, or
(b)
the assignment of a term which, at the date of assignment, has not more
40
than 7 years to run.
(3)
An MDC may not dispose of land which has been compulsorily acquired by it
under this Chapter unless the Mayor consents.

Localism Bill
Part 7 — London
Chapter 2 — Mayoral development corporations
156

(4)
Subject to subsections (1) to (3), an MDC may dispose of land held by it in any
way it considers appropriate.
181
Power to enter and survey land
(1)
Sections 17 and 18 of the Housing and Regeneration Act 2008 (power to enter
and survey land) apply in relation to an MDC as they apply in relation to the
5
Homes and Communities Agency.
(2)
In those sections as applied by subsection (1), references to that Agency are to
be read as references to the MDC concerned.
Other functions
182
Adoption of private streets
10
(1)
Where any street works have been executed on any land in a Mayoral
development area which was then or has since become a private street (or part
of a private street), the MDC for the area may serve a notice (an “adoption
notice”) on the street works authority requiring the authority to declare the
private street (or part) to be a highway which for the purposes of the Highways
15
Act 1980 is a highway maintainable at the public expense.
(2)
Subsections (2) to (5) of section 157 of the Local Government, Planning and
Land Act 1980 (appeal against corresponding notice served by an urban
development corporation, and deemed adoption where no appeal or
compliance) apply in relation to an adoption notice under subsection (1) of this
20
section as they apply in relation to an adoption notice under subsection (1) of
that section.
(3)
Section 157(6) of that Act (interpretation) applies for the purposes of this
section.
183
Businesses, subsidiaries and other companies
25
(1)
An MDC may carry on any business.
(2)
An MDC may with the consent of the Mayor—
(a)
form, or
(b)
acquire interests in,

bodies corporate.
30
(3)
An MDC must ensure that no subsidiary of the MDC engages in an activity
which the MDC would not be required or permitted to carry on.
(4)
An MDC must ensure that no subsidiary of the MDC—
(a)
borrows from a person other than the MDC, or
(b)
raises money by the issue of shares or stock to a person other than the
35
MDC,

without the consent of the Mayor.
(5)
In subsection (1) “business” includes undertaking.
(6)
In this section “subsidiary” has the meaning given by section 1159 of the
Companies Act 2006.
40

Localism Bill
Part 7 — London
Chapter 2 — Mayoral development corporations
157

184
Financial assistance
(1)
An MDC may, with the consent of the Mayor, give financial assistance to any
person.
(2)
Financial assistance under this section may be given in any form.
(3)
Financial assistance under this section may, in particular, be given by way of—
5
(a)
grants,
(b)
loans,
(c)
guarantee or indemnity,
(d)
investment, or
(e)
incurring expenditure for the benefit of the person assisted.
10
(4)
Financial assistance under this section may be given on such terms and
conditions as the MDC giving it considers appropriate (including provision for
repayment, with or without interest).
185
Powers in relation to discretionary relief from non-domestic rates
(1)
Subsection (2) applies if the Mayor designates a Mayoral development area.
15
(2)
The Mayor may decide that the MDC for the area is to have—
(a)
in relation to qualifying hereditaments in the area, the function of
making decisions (under section 47(3) and (6) of the 1988 Act) to the
effect that section 47 of the 1988 Act applies as regards a hereditament,
and
20
(b)
in relation to a hereditament as regards which that section applies as a
result of a decision made by the MDC, the function of making the
determinations mentioned in section 47(1)(a) of the Local Government
Finance Act 1988 (determination of amount of discretionary relief).
(3)
The Mayor may at any time decide that a decision under subsection (2) should
25
be revoked.
(4)
The Mayor may make a decision under subsection (2) or (3) only if—
(a)
the Mayor has consulted the persons specified by section 168(4) in
relation to the area,
(b)
the Mayor has had regard to any comments made in response by the
30
consultees, and
(c)
in the event that those comments include comments made by the
London Assembly that the Mayor does not accept, the Mayor has
published a statement giving the reasons for the non-acceptance.
(5)
If the Mayor makes a decision under subsection (2) or (3), the Mayor must—
35
(a)
publicise the decision, and
(b)
notify the Secretary of State of the decision.
(6)
If the Secretary of State receives notification under subsection (5) of a decision,
the Secretary of State must give effect to the decision—
(a)
when making the order under section 169(2) that establishes an MDC
40
for the area, or
(b)
by exercising the power to amend that order (see section 14 of the
Interpretation Act 1978).

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Chapter 2 — Mayoral development corporations
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(7)
Exercise by an MDC of functions mentioned in subsection (2) requires the
Mayor’s consent.
(8)
If an MDC has the functions mentioned in subsection (2) it has them in place of
the authority that would otherwise have them.
(9)
For the purposes of subsection (2), a hereditament is a “qualifying
5
hereditament” on a day if neither—
(a)
section 43(6) of the 1988 Act (charities and community amateur sports
clubs), nor
(b)
section 47(5B) of the 1988 Act (certain organisations not established or
conducted for profit),
10

applies on that day.
Dissolution
186
Reviews
It is the duty of the Mayor to review, from time to time, the continuing in
existence of any existing MDCs.
15
187
Transfers of property, rights and liabilities
(1)
The Mayor may at any time make a scheme (a “transfer scheme”) transferring
to a permitted recipient, upon such terms as the Mayor considers appropriate,
any property, rights or liabilities which are for the time being vested in an
MDC.
20
(2)
A transfer scheme may provide for a transfer to a person within paragraph (c),
(d) or (e) of the definition of “permitted recipient” in subsection (4) only if the
person consents.
(3)
The Mayor must publish a transfer scheme as soon after it is made as is
reasonably practicable.
25
(4)
In this section—
“functional body” has the meaning given by section 424(1) of the Greater
London Authority Act 1999;
“permitted recipient” means—
(a)
the Greater London Authority,
30
(b)
a functional body other than the MDC concerned,
(c)
a London borough council,
(d)
the Common Council of the City of London, or
(e)
any other person.
188
Dissolution: final steps
35
(1)
Subsection (2) applies if no property, no rights and no liabilities are vested in
an MDC (“the MDC”).
(2)
The Mayor may request the Secretary of State to revoke the order under section
169(2) which established the MDC.
(3)
If the Secretary of State receives a request under subsection (2), the Secretary of
40
State must make an order giving effect to the request.

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Chapter 2 — Mayoral development corporations
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(4)
Where the Secretary of State makes an order under subsection (3)—
(a)
the MDC is dissolved on the coming into force of the order, and
(b)
the Mayor must revoke the designation of the Mayoral development
area for which the MDC was established.
(5)
Where the Mayor makes a revocation under subsection (4)(b), the Mayor
5
must—
(a)
publicise the revocation, and
(b)
notify the Secretary of State of the revocation.
General
189
Transfer schemes: general provisions
10
(1)
In this section—
“transfer scheme” means a scheme under section 171(1) or (4) or 187(1);
“transferee”, in relation to a transfer scheme, means the person to whom
property, rights or liabilities are transferred by the scheme;
“transferor”, in relation to a transfer scheme, means the person from
15
whom property, rights or liabilities are transferred by the scheme.
(2)
The things that may be transferred under a transfer scheme include—
(a)
property, rights or liabilities that could not otherwise be transferred;
(b)
property acquired, and rights and liabilities arising, after the making of
the scheme.
20
(3)
A transfer scheme may make consequential, supplementary, incidental or
transitional provision and may in particular—
(a)
make provision for certificates issued by the Secretary of State to be
conclusive evidence that property has been transferred;
(b)
create rights, or impose liabilities, in relation to property or rights
25
transferred;
(c)
make provision about the continuing effect of things done (or having
effect as if done) by or in relation to the transferor in respect of anything
transferred;
(d)
make provision about the continuation of things (including legal
30
proceedings) in the process of being done by, on behalf of or in relation
to the transferor in respect of anything transferred;
(e)
make provision for references to the transferor in an instrument or
other document in respect of anything transferred to be treated as
references to the transferee;
35
(f)
make provision for the shared ownership or use of property.
(4)
The Transfer of Undertakings (Protection of Employment) Regulations 2006
(S.I. 2006/246), as from time to time amended, apply to a transfer under a
transfer scheme where the transfer relates to rights or liabilities under a
contract of employment (whether or not it is a relevant transfer for the
40
purposes of those regulations).
(5)
A transfer scheme may provide—
(a)
for modification by agreement;
(b)
for modifications to have effect from the date when the original scheme
came into effect.
45

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Part 7 — London
Chapter 2 — Mayoral development corporations
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(6)
In this section “rights” and “liabilities” include rights, or (as the case may be)
liabilities, in relation to a contract of employment.
190
Guidance by the Mayor
(1)
The Mayor may give guidance to an MDC as to the exercise of any of the
MDC’s functions.
5
(2)
Before giving guidance under this section, the Mayor must consult such
persons as the Mayor considers appropriate.
(3)
The Mayor must publish any guidance given under this section as soon as
reasonably practicable after giving it.
(4)
The Mayor may revoke guidance given under this section.
10
(5)
The Mayor must—
(a)
consult, before revoking guidance given under this section, such
persons as the Mayor considers appropriate, and
(b)
publish the fact that guidance given under this section has been
revoked as soon as reasonably practicable after the revocation of the
15
guidance.
(6)
An MDC must, in exercising its functions, have regard to any guidance given
to it under this section that is for the time being in force.
(7)
References in this section to giving guidance include references to giving
guidance by varying existing guidance.
20
191
Directions by the Mayor
(1)
The Mayor may give an MDC general or specific directions as to the exercise of
any of the MDC’s functions.
(2)
The Mayor must publish any directions given under this Chapter by the Mayor
as soon as reasonably practicable after giving them.
25
(3)
The Mayor—
(a)
may revoke any directions given under this Chapter by the Mayor, and
(b)
must publish the fact that directions given under this Chapter have
been revoked as soon as reasonably practicable after the revocation.
(4)
An MDC must comply with any directions given by the Mayor under this
30
Chapter that are in force in relation to the MDC.
(5)
Subsections (2) and (3)(b) do not apply to directions given under paragraph
8(1) of Schedule 21.
(6)
References in this Chapter to the Mayor giving directions include references to
the Mayor giving directions by varying existing directions.
35
192
Consents
(1)
A relevant consent may be given—
(a)
unconditionally or subject to conditions, and
(b)
generally or specifically.