Council leader emailed Ben Houchen about 'withheld' funding due to controversial roundabout

Newly-released emails show the former leader of Redcar Council trying to talk to Ben Houchen about funds being withheld from her council in relation to work to move a roundabout at the centre of a High Court trial that’s currently ongoing.

Last month The Yorkshire Post revealed leaked emails from March this year in which the MD of Redcar & Cleveland Borough Council (RCBC), John Sampson, wrote that Tees Valley Combined Authority (TVCA) Chief Executive Julie Gilhespie had confirmed “that Ben H has put a hold on a range of funds coming to us.”

At the time, a spokesperson for TVCA said “It is categorically untrue that TVCA withheld money due to RCBC”.

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More emails have been released by RCBC via a freedom of information request, which show then-council leader Mary Lanigan describing the issue as “becoming a bit of a nightmare”.

Tees Valley Combined Authority has continued to deny funding was withheld from Redcar & Cleveland Borough Council until it moved a controversial roundabout.Tees Valley Combined Authority has continued to deny funding was withheld from Redcar & Cleveland Borough Council until it moved a controversial roundabout.
Tees Valley Combined Authority has continued to deny funding was withheld from Redcar & Cleveland Borough Council until it moved a controversial roundabout.

In an email from Mrs Lanigan - who sat as an independent councillor before losing her seat in May’s elections - sent at 7am on May 17 to Tees Valley mayor Ben Houchen, she states that she had been trying to contact him the previous night in regards to journalists getting in touch with her in the wake of a Financial Times report about TVCA and Teesworks published two days previously.

“It would appear [the journalists] want a chat… and they want to know why money was withheld from Redcar and Cleveland Council in breach of protocol until the roundabout at Tees Dock Road was agreed.”

It appears Mrs Lanigan mistakenly used the incorrect name when referring to the roundabout on Smiths Dock Road. The council was first asked to move it by TVCA in November 2022.

Mrs Lanigan could not be reached for comment.

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Asked about the email from Mrs Lanigan, a spokesperson for TVCA said: “No funding was withheld, as has been confirmed by the new Labour leader of Redcar and Cleveland Council.”

At a council meeting this month, RCBC leader, Labour’s Alec Brown, refused to say funds had been withheld by TVCA, saying there was only “a suggestion in e-mails and other communications of TVCA withholding funds until the roundabout could be delivered.”

RCBC were asked to comment on Mrs Lanigan’s emails.

The roundabout was built in 2019 at the public’s expense to provide access to the western side of the South Bank Quay portion of Teesworks - the huge regeneration project currently being undertaken on the site of the former Redcar steelworks.

Roughly three square metres of the roundabout and surrounding pavement sits on land owned by Teesport operator PD Ports. It is understood the neighbouring port operator reached a verbal agreement with Lord Houchen’s South Tees Development Corporation (STDC), granting them the land for free in exchange for guaranteeing access rights across the former steelworks site.

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However, in 2021 STDC instigated legal proceedings against PD Ports in the High Court in order to determine the harbour company’s access rights across the Teesworks estate. If the judge rules in favour of STDC, it’s believed PD Ports could use their interest in the roundabout as a ransom strip to secure access rights regardless.

The trial is currently in its third week, though there are concerns it will overrun its allocated time and will have to be adjourned until a later date.

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