A council leader says it would be “foolhardy” to rely on future business rates income from the massive Teesworks complex.

Alec Brown was quizzed at a Redcar and Cleveland Council meeting about quoted figures set to be generated from the site near Redcar.

As the local billing authority, Redcar and Cleveland Council will collect 50 per cent of the income generated by business rates payments paid by firms locating on the redeveloped former steelworks.

The other half will go to the South Tees Development Corporation.

The entrance to the Teesworks industrial site. Picture/credit: Teesside Live.

placeholder image — The entrance to the Teesworks industrial site. Picture/credit: Teesside Live.

Last year the council’s external auditor Mazars said projections had been “significantly reduced” by approximately £30m over the period of its medium term financial plan which extends over a period of five years.

Meanwhile, a council cabinet report said there had been a “reduction in [business rates] liability due to some reprofiling of growth on Teesworks”.

Coun Brown said the Government’s Valuation Office was currently undertaking work to determine the rateable value of SeAH Wind’s factory, which began production in July producing monopiles, the foundations for wind turbines.

This was expected to be concluded in the next month or two.

Alec Brown, leader of Redcar and Cleveland Council

He said: “Valuation work on some other cases is due to commence soon.”

The council’s medium term financial plan has predicted that business rates income could increase by £21m a year by 2028/29, taking into account Teesworks-based ventures.

Councillor Dr Tristan Learoyd asked what would happen to the council if the “counted for” business rates income did not materialise.

Coun Brown said: “It would be foolhardy of any administration to count solely on this for its future.

“We all know and are aware of the financial strain on children’s services and that is the area for me that we are looking to concentrate on for the council’s sustainability for many years to come.”

Council chief executive Brian Archer previously told the Local Democracy Reporting Service that Teesworks had the “potential to be transformational for our council, but we’re not relying solely on this”.

He said: “With prudent leadership we are preparing for best and worst case scenarios and have plans in place to mitigate that risk.”