Chancellor Rachel Reeves has backed new plans to create a mayoral development zone across north Bristol and South Gloucestershire, admitting that the West Country has "had its potential held back" for "too long."
Mayoral Development Zone Announcement
Speaking at the UK regeneration summit UKREiiF, Reeves endorsed proposals by West of England Mayor Helen Godwin to establish a mayoral development zone (MDZ) that would drive economic growth and tackle the housing crisis by building tens of thousands of homes. Mayoral development zones identify areas with substantial growth potential and can lead to the creation of mayoral development corporations (MDCs), statutory bodies that deliver regeneration and development.
There are currently nine MDCs in other parts of the UK, including the London Legacy Development Corporation, which oversaw the regeneration of Stratford after the 2012 London Olympics, delivering 12,000 new homes.
Scope of the South West Zone
The proposed South West zone would cover the emerging new town of Brabazon and the West Innovation Arc in South Gloucestershire and north Bristol. "For too long the West of England has been denied investment," said Reeves. "That's why alongside Mayor Helen Godwin, we're backing a new mayoral development zone, meaning new homes and better transport links, boosting the region's economy and giving the West of England an ambitious vision for the future."
Godwin has been advocating for the region at the Leeds-based conference this week, coinciding with the publication of a new £17 billion investment prospectus. "It's time to make the most of devolution and more quickly deliver the right homes in the right places, to help tackle the housing crisis," she said. "Our region's first mayoral development zone designation will be a major moment in making that vision a reality."
Legislative Context and Local Engagement
The announcement follows the enactment of the English Devolution and Community Empowerment Act. According to the West of England Combined Authority (Weca), any MDC would be developed through significant local and political engagement. Godwin highlighted ongoing projects: "We have so much to be proud of across the area shortlisted to become one of the government's new towns, with our new Bristol Brabazon train station opening later this year ahead of the new Aviva Arena. Working together, this part of the West of England can deliver 40,000 new homes and the same number of new jobs over the longer term."
Housing Secretary Steve Reed said the MDZ would make "a huge difference" to people's lives, providing thousands more affordable homes, well-paid jobs, and better transport links.
Infrastructure and Partnerships
The opening of Bristol Brabazon train station this year will strengthen connections between the West Innovation Arc growth zone and the Central Bristol and Bath growth zone, including Bristol Temple Quarter and Bath Riverside Innovation District. Maggie Tyrrell, leader of South Gloucestershire Council, called the non-statutory designation "a real opportunity" to focus investment, but stressed the need for close partnership with the council and communities, with proper infrastructure and governance.
YTL UK Group has already invested nearly £1 billion in Brabazon, transforming the former Filton Airfield into a new community with planning permission for 6,500 homes, three schools, and a major park, where over 500 residents have moved in. Colin Skellett, CEO of YTL UK Group, welcomed the MDZ announcement as key to unlocking wider investment in the West Innovation Arc, describing Brabazon as "fast becoming the most exciting multi-purpose destination in the West."
Additionally, Bromford Flagship LiveWest (BFL) and YTL Developments have formed a new strategic partnership. Robert Nettleton, CEO of BFL, said: "Brabazon and the West Innovation Arc has enormous potential and demonstrates what can be achieved when regional leaders and housing providers work together around a shared vision for long-term growth."
The MDZ news follows South Gloucestershire Council's discussions on supporting the new town's delivery earlier in May, ahead of the mayor and council leaders' next meeting on June 5.
