Ben Houchen sends formal response to Government after Teesworks review

Secretary of State Michael Gove, who commissioned the review, had given Lord Houchen until March 8 to reply to the Government on how he intended to implement the 28 recommendations made by the report, which was authored by local government experts.

In his response, Lord Houchen refers to the letter sent by Mr Gove upon publication of the report on January 29 by incorrectly referring to his “letter of 24 January”. He notes how he is “extremely pleased” the report found no evidence of illegality, and explains how a working group formed of statutory officers from Tees Valley Combined Authority’s (TVCA) constituent authorities has put together an action plan based on the report’s recommendations.

The Yorkshire Post understands the working group, known as the Statutory Officers Working Group (SOWG), has only met once since publication of the report a month ago.

In setting out the action plan Lord Houchen describes how TVCA’s cabinet, which is made of the leaders of the constituent authorities, “will receive an update” on the work done by the SOWG at its meeting on March 15. This meeting, the first scheduled since the report’s publication, had originally been cancelled by TVCA because it had “no substantive agenda items requiring a decision”.

However, it is understood four of the cabinet’s five council leaders had threatened to call an Extraordinary General Meeting to discuss the report’s findings unless the original meeting date was reinstated.

A compromise was made to hold the March 15 meeting instead of the EGM, as it is believed Lord Houchen argued with council leaders that a delay to his official response could lead to a delay in funding from central Government relating to Investment Zones.

Of the 28 recommendations made by the report, one was that TVCA’s subsidiary South Tees Development Corporation (STDC) should “renegotiate a better settlement for taxpayers under the [joint venture] agreement” which saw 90 percent of the previously 50-50 Teesworks Ltd handed over to private businesses lead by Chris Musgrave and Martin Corney for free.

The action plan’s commentary states: “It was agreed that [TVCA chief executive Julie Gilhespie] will write to [Teesworks Ltd] in due course.”

TVCA was asked what time frame this meant, and what work she had done on this recommendation since the report made it a month ago, however they did not respond in time for publication.

There are no dates associated with the action plan’s milestones, although it states “the SOWG will meet at least monthly over the coming months to move forward the recommendations.”