Exclusive:Labour should make it easier for mayors to create development corporations like in Tees Valley, report finds

Currently combined authorities require two-thirds of councils to approve such a body, which can bypass local planning authorities.

Onward says that this “creates a political obstacle preventing their creation, which is partly why so few have been created”.

As such there are none in Yorkshire and only three exist in England, in the Tees Valley, London and Greater Manchester.

In the capital, a development corporation was used to drive the building in the Docklands area of Canary Wharf.

Callum Newton, from Onward, said: “England’s housing crisis is approaching a breaking point, and it is clear status quo responses are no longer tenable.

“Although planning reform is important, bold action is now needed to build the homes the country needs. 

“Development Corporations have an impressive track record of delivery and should be used to overcome many of the barriers posed by England’s convoluted planning system.”

Ben Houchen, the Tees Valley Mayor, backed Onward’s report saying: “Metro mayors need to be much more empowered to drive growth and regeneration locally. 

“Too much power rests with Whitehall and a much greater shift is needed. 

“Development corporations are a crucial tool to transform a local economy, delivering more homes, bringing back industry and creating well-paid jobs. They need to be unleashed.”

“We’ve seen in Tees Valley the change they can deliver, from tens of thousands of new jobs to scores of new homes. 

He added: “The economy will only grow properly across the UK when mayors have the powers to do so.” 

However, his own South Tees Development Corporation has come under scrutiny after the revelation that it had paid Teesworks Ltd - a company 90 per cent owned by private investors - for delivering aggregate onto land owned by STDC.

A government review published in January found no evidence of corruption regarding Teesworks, but was highly critical of the governance of Lord Houchen’s Tees Valley Combined Authority, saying decisions made did not “meet standards expected when managing public funds”.

It comes as Sir Keir Starmer’s new administration has prioritised reforming the planning system as a way of building houses and generating growth.

Deputy Prime Minister Angela Rayner has said homes will be built on the green belt, and some developments might be forced through despite local concerns if councils fail to hit housing targets.

It also wants to devolve greater powers to metro mayors, particularly around large developments and infrastructure projects.

A government spokesperson said: “Getting the British economy growing is this government’s defining mission. As a first step, we need to get Britain building.  

“Our reforms to the planning system will make it easier to build the key infrastructure this country needs - such as laboratories, gigafactories and data centres – securing our economic future and giving businesses the confidence to invest.”

“We are consulting on changes to national planning policy and will respond in due course.”