Government "not ruling anything out" with potential Teesworks investigation

Liberal Democrat peer and former leader of Sheffield Council, Lord Scriven, asked the government in the House of Lords yesterday if it would commit to an NAO investigation of the enormous regeneration project at the site of the former Redcar steelworks, after chancellor Rachel Reeves told The Yorkshire Post in April that a Labour government would do so.

Lord Khan, answering on behalf of the government, said it would await the official response from Tees Valley mayor Ben Houchen to an independent review of the scheme which made 28 recommendations and said decisions being made "do not meet standards expected when managing public funds.”

“Once we’ve received that update,” said Lord Khan, “we will consider if the questions that need to be answered have been, and if any further action should be taken.”

The Tees Valley Review, commissioned by previous Secretary of State Michael Gove, set out to consider allegations of “corruption, wrongdoing, or illegality” at Teesworks. It found no evidence of corruption or illegality, but said: “In the time available to the Panel, we have not been able to pursue all lines of evidence or examine all transactions.”

In March, Mr Gove asked Lord Houchen to provide a response to the review’s recommendations in six months’ time.

Lord Scriven responded: “In light of half a billion pounds of taxpayers’ money being used, in light of two businessmen making multi-million pound profits without taking any liabilities or any risk of their own money, does that constitute best value for money? And why leave the people who created the mess to solve the mess without any enforceable action being taken by government?”

Lord Khan said there were “outstanding questions to which the public deserve answers,” adding, “we must consider the mayor’s response due in September and we will consider any further action to take when we receive that. We are not ruling out any options, one of the options could be requesting the NAO to review.”