Exclusive:Angela Rayner pours cold water on prospect of NAO investigation into Teesworks

Teesworks, which covers the former Redcar steelworks site, was initially a 50-50 joint venture between public body South Tees Development Corporation (STDC) and businessmen, Chris Musgrave and Martin Corney.

A transfer of shares in November 2021 saw the businessmen take control of 90 per cent of Teesworks Ltd, the company vehicle for the scheme, which was supported by Mayor Lord Ben Houchen.

More than £500m of taxpayers’ money has been spent, with Mr Musgrave and Mr Corney extracting at least £120m via dividends and other payments.

A Government review in January 2024 found “no evidence of illegality” but made 28 recommendations for improvements in governance and transparency with Teesworks and the Tees Valley Combined Authority.

Last week, Local Government Minister Jim McMahon issued a Best Value Notice to the combined authority and Mayor Ben Houchen, requiring improvements in both governance and value for money for taxpayers.

Ms Rayner told The Yorkshire Post that this was “the quickest and fastest route to us making sure that people across Teesside have confidence where the money is going”.

“We want to see us moving forward, giving people confidence that this Labor government is going to make sure that we get the best value for public money, and that delivers jobs and that economic growth across Teesside,” she said.

When quizzed by this paper about the broken promise of a NAO investigation, the Deputy Prime Minister reiterated her support for the Best Value Notice.

“This government's focus is on making sure Teesside has a bright future and that people have confidence in that process.”

Lord Houchen said: “I’m pleased the Government has recognised the real progress we’ve made - and confirmed there is no need for a NAO investigation.

“That’s the right call, and it reflects the work we’ve done to improve governance while continuing to deliver for local people.”