Tees Valley Combined Authority told to make improvements and handed 'best value notice' from the government

The Tees Valley Combined Authority (TVCA) was given the notice from the government “to ensure further improvement at the authority”. The Ministry of Housing, Communities and Local Government raised concerns with “governance, culture and partnerships, and asked for the authority to provide “assurance of improvement”.

This follows the Teesworks review last year, which found no evidence to support allegations of corruption or illegality but criticised governance with “inappropriate decisions”, “lack of transparency” and “excessive confidentiality”, and made 28 recommendations to improve. Audit reports also found “significant weaknesses”.

Mr Houchen responded during a meeting on Friday (April 4): “I think it’s a pretty positive outcome. It’s basically the minimum the government could have done without doing nothing.” He said the government had “ruled out any suggestion of a National Audit Office investigation”, which he said would give clarity and confidence to investors.

Middlesbrough Labour mayor Chris Cooke and five Labour leaders of local councils – Councillor Lisa Evans from Stockton Council, Cllr Alec Brown from Redcar and Cleveland Council, Cllr Brenda Harrison from Hartlepool Council and Cllr Steve Harker from Darlington Council – responded to the announcement of the notice in a joint “statement from Tees Valley leaders”. They said: “Combined authorities must be bodies which set the standard for good governance, allowing them to lead their region as innovators and enablers of prosperity, as demonstrated elsewhere in the country.

“At our last cabinet meeting we yet again raised concerns about processes which don’t meet the standard that our residents deserve to ensure proper accountability and value for their money. We all got into politics because we want the Tees Valley to succeed, but without proper governance and accountability at the combined authority level, that just can’t happen.

“We are committed to working with the TVCA and the government to secure investment, growth, opportunity and jobs across all five authorities in the Tees Valley.”

A joint statement was also made by six Labour MPs – Andy McDonald for Middlesbrough and Thornaby East, Luke Myer for Middlesbrough South and East Cleveland, Chris McDonald for Stockton North, Anna Turley for Redcar and Cleveland, Jonathan Brash for Hartlepool, and Lola McEvoy for Darlington. They said: “The Tees Valley Mayoral Combined Authority (TVCA) has become the third combined authority in the UK to be issued a best value notice – a formal notice that the government is concerned about governance, financial management and ability to improve.

“This follows the 2023-24 independent review, which found that arrangements at TVCA ‘do not include the expected sufficiency of transparency and oversight across the system to evidence value for money’. Given the seriousness of the issues identified, it is imperative that those responsible act to address them.

“The Tees Valley is a region of major opportunity, with significant new investment coming in to create jobs and drive economic growth. Every week, we are speaking to investors and our government about the enormous potential our region has.

“The Prime Minister has recognised Teesside’s ‘unique potential’ for new industries, and in recent months we have already seen the confidence this government has in Teesside with the billions committed to projects in carbon capture and storage, sustainable aviation fuel and other industries. It is important that local governance at the Tees Valley Mayoral Combined Authority puts us in the strongest position to continue this progress, and build a stronger future for our region.”

Mr McDonald added in the House of Commons: “I note the government has today issued a best value notice to the Tees Valley Mayoral Combined Authority. Concerns around governance, financial mismanagement and procurement have been voiced over a number of years.”

Referring to demands for openness and transparency, he added: “Time for this house to consider how we balance our laudable further devolution ambitions with the need for a much more robust system of oversight and accountability.”

Conservative Stockton West MP Matt Vickers said: “As mayor, Ben Houchen has overseen a transformation of Teesside. The government has recognised real progress has been made – and confirmed there is no need for a National Audit Office investigation.

“Teesside’s Labour MPs are always desperate to talk our region down,” he said, referring to previous “untrue allegations about corruption”. He added: “This week’s decision by the Labour government not to undertake a National Audit Office investigation confirms even they don’t buy into… politically motivated mud-slinging.

“Ben has put politics to one side and always works with the government – whatever party – to secure jobs, investment and opportunities across Teesside.”

A TVCA spokesperson said it would work constructively with the government: “We remain absolutely confident in the value we deliver for local people every single day — thousands of good jobs, rising wages, billions in private investment, and major global companies now setting up on Teesside.”

Mr Houchen said: “No organisation is perfect and my fellow Labour council leaders and I must reflect on this as the combined authority improves. But let’s not lose sight of what really matters: thousands of good-quality jobs, billions in private investment, and global companies choosing Teesside as their home. That’s the ‘best value’ we’re delivering for local people every single day.”