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'This plan is a direct attack on communities across the country,' one MP said
Andy Burnham is set to hand mayors the power to intervene in local planning decisions on major developments by force - despite locals' concerns.
Under plans to be announced this week, mayors could "call in" decisions and order councils to approve or reject them.
They would also gain the ability to grant developers advance permission to build without needing to submit applications.
The new powers would cover housing schemes of more than 150 homes, commercial projects larger than 15,000 square metres, and buildings taller than 30 metres or roughly ten storeys.
A consultation on the proposals is due to be published next week.
Ten of the 14 devolved mayors in England have given their backing to the proposals.
The changes would bring them into line with London Mayor Sir Sadiq Khan, who received similar powers earlier this year as an emergency measure designed to unlock stalled housing sites and increase affordable housebuilding in the capital.
Labour has so far achieved just over a quarter of its promise to deliver 1.5 million new homes across England within five years.
But Britain is now more than two years into the party's time in power - well over a quarter of the current Parliament.
Mr Burnham admitted to The Sunday Times that granting mayors the power to drive through large developments risked sidelining councillors, MPs and locals alike.
He said: "Sometimes challenge does need to be made to local decision-making, and actually it cuts both ways.
"It's not all about Nimbyism (Not In My Back Yard-ism). Sometimes it's the other way round.
"It's a local authority putting forward something that's unacceptable in terms of the impact on the community - so it's a two-way street."
But Shadow Housing Secretary Sir James Cleverly warned that Labour was "simultaneously stripping councils across the country of their ability to make planning decisions in their own communities, while making it easier to build traveller sites against local wishes".
Any decisions taken by mayors must comply with existing planning rules, local area plans and national policy.
Ministers would also keep hold of a "backstop" power so they can step in if necessary.
Mayors would also gain greater influence over how Homes England distributes national housing funding within their regions.
A new tax on development would also be available to mayors to help fund major infrastructure projects.
But the Liberal Democrats condemned the proposals, with housing and planning spokesman Gideon Amos describing them as an assault on local democracy.
He said: "Taking powers away from communities and local councillors is taking powers away from local people. This plan is a direct attack on communities across the country.
"Labour's chaotic patchwork approach to devolution will simply not work to solve the housing crisis.
"Instead of silencing residents and handing mayors a blank cheque, the Government should be empowering local councils with the resources to deliver genuinely affordable homes alongside the infrastructure to support them."
