Planning Powers Could Return to Hartlepool Council Under Development Corporation Review

Mar 16
4 min read

Planning Powers Could Return to Council in Hartlepool Shake-Up

Middleton Grange Costs Add Pressure as Future of Hartlepool Development Corporation Reviewed

16th March 2026

Planning Powers could soon be set to return to a Teesside Council as the future of the body responsible for leading the regeneration of a seaside town is under review, with senior figures considering whether the organisation should continue to exist.

Newly published papers for the Tees Valley Combined Authority (TVCA) Cabinet meeting on the 20th of March reveal the Tees Valley Mayor has begun a formal review into the future of both the Hartlepool Development Corporation (HDC) and the Middlesbrough Development Corporation (MDC). The review will examine whether one or both of the development corporations should be disbanded entirely, potentially marking a significant shift in how regeneration projects in the region are managed.

Planning powers could return to Hartlepool Borough Council

Pamela Hargreaves Brash Could Find Herself Unemployed if the HDC is disbanded as part of the Tees Valley Combined Authorities review.

One of the most significant implications of the possible closure of the Hartlepool Development Corporation would be the return of planning powers to Hartlepool Borough Council & would be marked as a major victory for the towns Labour MP Jonathan Brash who's previously been highly critical of the organisation, despite his wife Pamela Hargreaves Brash recently being appointed as the chair for the troubled organisation.

When the corporation was established back in 2023, it was granted special planning authority powers over parts of Hartlepool's town centre to allow regeneration schemes to be delivered more quickly. However, the cabinet papers state that if the development corporation were to be dissolved, those powers would revert back to Hartlepool Borough Council during the winding-down process and thereafter.

The review comes as the Government’s new English Devolution Act & is expected to give stronger planning powers directly to elected mayors, reducing the need for separate statutory planning bodies such as development corporations.

Officials say the change in national policy's prompted a reassessment of whether maintaining separate planning authorities through development corporations is still necessary, however auditor warnings over breakdowns in governance & financial failures all point to concerns both the HDC & MDC may need to be dissolved in order to consolidate the combined authorities financial 'chaos', following its Best value Notice served on it by the government almost a year ago.

Assets such as Middleton Grange would need to be transferred

Middleton Grange Shopping Centre in Hartlepool had its financial status recent re-evaluated & found to be almost 'worthless' in terms of its asset value

If the Hartlepool Development Corporation was to be closed, its assets would also have to be dealt with as part of a formal disposal process.

The corporation currently owns key property assets in the town centre, most notably The Middleton Grange Shopping Centre in Hartlepool, which was acquired as a strategic intervention to stabilise the town centre and enable future regeneration.

According to the cabinet report, any closure of a development corporation would require a plan for the disposal or transfer of assets, to be agreed with the relevant local councils and reported back to the Combined Authority Cabinet.

Assets could potentially be transferred to the local council, the Tees Valley Combined Authority, or another delivery organisation responsible for regeneration.

Financial pressures linked to Middleton Grange

The review also comes amid what's claimed to be significant growing financial pressures linked to the operation of Middleton Grange Shopping Centre. The cabinet papers acknowledge that rising borrowing costs, construction inflation and ongoing revenue pressures linked to regeneration projects — including the running of the shopping centre — are factors behind the need to reassess future funding commitments.

The acquisition of Middleton Grange was originally intended to prevent further decline in the town centre and provide a platform for large-scale redevelopment, including the potential introduction of housing, leisure and alternative uses alongside retail.

However, the ongoing costs of operating the centre have now become part of the wider financial considerations facing the development corporation with a previous financial report earlier this year revising the value of the towns crumbling shopping centre to be almost completely 'worthless'...

What would happen if one corporation closed?

The review will consider several possible outcomes for the two development corporations currently operating in the Tees Valley. One option would see both organisations continue to operate, albeit potentially with revised responsibilities. Another option could see one development corporation closed while the other continues. Under proposals outlined in the report, if the Middlesbrough Development Corporation were closed but Hartlepool’s remained, any remaining funding originally allocated to Middlesbrough could be transferred to support regeneration in Hartlepool.

The funding forms part of a £20 million pot approved in 2022 to support the creation and operation of the two development corporations.

Conversely, if Hartlepool’s corporation were disbanded, planning powers and assets would return to the control of Hartlepool Borough Council or transferred to another public body.

Regeneration projects still expected to continue

Despite the review, officials insist regeneration of Hartlepool town centre remains a strategic priority. The development corporation was originally created to help unlock complex sites, assemble land and attract investment into the town centre. Key projects include the redevelopment of Middleton Grange Shopping Centre and the wider transformation of the surrounding town centre area.

The review will now examine whether those ambitions can be delivered more effectively through different governance arrangements, potentially involving closer collaboration between the Combined Authority and Hartlepool Borough Council.

No final decision has yet been made, and any proposal to close a development corporation would likely require further consideration and formal approval.