Teesworks: Tees Valley Combined Authority responds to Government concerns

Deputy Prime Minister Angela Rayner told The Yorkshire Post this was the “quickest and most robust way” to deliver for people on Teesside.

In the letter to Mayor Lord Ben Houchen, Mr McMahon said: “Having carefully considered your response to the Tees Valley independent review and the external auditor’s recent assessment finding weaknesses in value for money arrangements, I have concluded that I require further assurance.

“Specifically, I require assurance of how your action plan will be implemented and embedded over time, to ensure it has the necessary impact on governance, culture and relationships.”

Yesterday, the TVCA confirmed it had submitted its response to government ahead of the July deadline.

It said the Local Government Association assisted with the process, which took representation from a number of different stakeholders, and an LGA representative will sit on the advisory panel to help bring about improvement.

Newly appointed TVCA chief executive Tom Bryant said: “Our plan has been informed by invaluable input and support from our constituent authorities and committees – and we’re pleased it has now received the official backing of our Cabinet.

“The plan sets out actions to embed improvements at the heart of our organisation, and I’m wholly committed to taking this forward at pace.

“We have fully accepted the Best Value Notice and are absolutely committed to demonstrating meaningful and sustained improvement.

“The Best Value Notice has given us an opportunity to take stock, reset and work with our constituent local authorities and committees to strengthen relationships, understand how others see the Combined Authority and pull forward together for the good of local people.”

Ahead of last year’s election, Ms Rayner and Chancellor Rachel Reeves both called for an NAO probe into Teesworks.

The freeport, which covers the former Redcar steelworks site, was initially a 50-50 joint venture between public body South Tees Development Corporation (STDC) and businessmen, Chris Musgrave and Martin Corney.

A transfer of shares in November 2021 saw the businessmen take control of 90 per cent of Teesworks Ltd, the company vehicle for the scheme, which was supported by Lord Houchen.

More than £500m of taxpayers’ money has been spent, with Mr Musgrave and Mr Corney extracting at least £120m via dividends and other payments.

A Government review in January 2024 found “no evidence of illegality” but made 28 recommendations for improvements in governance and transparency with Teesworks and the Tees Valley Combined Authority.

When asked about the NAO probe promises, Ms Rayner said: “We want to see us moving forward, giving people confidence that this Labor government is going to make sure that we get the best value for public money, and that delivers jobs and that economic growth across Teesside.

“This government's focus is on making sure Teesside has a bright future and that people have confidence in that process.”