The chair of Hartlepool Mayoral Development Corporation (MDC), appointed by Tees Valley Mayor Lord Ben Houchen only seven months ago, has been replaced. And the Corporation may have to be given a cash bail-out by Tees Valley Combined Authority (TVCA), its parent body.
Houchen, who personally appointed Mark Robinson last June after being himself forced out of the position in May by government political pressure, has now concluded his (Robinson) term as chair, according to a report to the Tees Valley Combined Authority (TVCA) cabinet.
The mayor has appointed Councillor Pam Hargreaves, Labour leader of Hartlepool Council and thus a TVCA cabinet member, to replace Robinson, a retail and regeneration expert who previously chaired the UK’s High Streets Task Force. Payment for the 33-days-a-year post at Hartlepool MDC is £15,120.
What’s changed since June?
“The Mayor believes,” according to the report for the TVCA cabinet on 30 January, “that the direction of the organisation and the nature of the projects now coming forward require a different focus.
“In particular, it is increasingly important that the chair is someone who is based locally and present in Hartlepool on a day-to-day basis, to drive progress at pace, provide close oversight of major upcoming schemes, and navigate the current financial position facing the corporation alongside the local council who are a key partner to help regenerate the town.”
That person, Houchen now believes, on second thoughts, is the leader of Hartlepool Council. She “was considered appointable by the interview panel [in June]. This demonstrates her suitability and preparedness for the role,” according to the report,
Hargreaves’ appointment, it adds, “has been made in light of the Hartlepool Development Corporation moving to its next phase to implement the strategic priorities locally. This appointment fully complies with the statutory criteria: she is an elected member representing Hartlepool and brings relevant leadership experience.”
Dire financial straits
Hargreaves is taking over an MDC in dire and unprecedented financial straits and dependent on the willingness of the TVCA cabinet to bail it out. Whether the cabinet is obliged to do so, given that the MDC was created by Houchen three years ago and was chaired by him until last May, has been exercising legal minds in Whitehall and among private-sector lawyers. A finance report to the cabinet explains:
“A key consideration is the principle of whether the authority [TVCA] is required to provide financial support to…MDCs, should the need arise, given that they receive no separate central government or third-party funding. This matter has been considered by the authority’s monitoring (legal) officer in consultation with MHCLG (Ministry of Housing, Communities and Local Government) and external legal advice with the conclusion that the combined authority has no legal obligation to provide financial support to a mayoral development corporation.”
Middlesbrough MDC was set up about the same time as Hartlepool MDC in 2023 and South Tees MDC in 2017.
The TVCA draft budget for 2026/27 as proposed, adds the report “does not currently include any provision for financial support to any of the MDCs. The provision of any financial support to an MDC would be a cabinet decision. This will be a consideration in relation to the Hartlepool Development Corporation and will be discussed further with cabinet ahead of the final budget report in March.”
Financial problems at Hartlepool MDC could cause further delay to the redevelopment of the town’s Middleton Grange Shopping Centre, which the MDC is carrying forward with the aid of £13.8mn from the Towns Fund.
South Tees Development Corporation and Teesside International Airport are already known to have loans totalling more than £500mn from TVCA and outstanding repayments of more than £30mn, as reported in December. Middlesbrough MDC is not expected to need any financial support from TVCA this year.
