The government has renewed the best value notice (BVN) it served on Tees Valley Combined Authority (TVCA) a year ago, dashing the hopes of Mayor Lord Ben Houchen that he would quickly be free of its constraints.
It means TVCA’s hopes of more government funding in line with other combined authorities such as the North East (NECA) are severely undermined and its ability to progress any further down the devolution road almost certainly cannot progress,
The Ministry of Housing, Communities and Local Government (MHCLG) told North East Bylines: “The BVN for TVCA remains in place. We’re continuing to work closely with the authority on its improvement journey. Ministers will consider all available evidence when taking decisions on next steps, with a continued focus on supporting growth in the Tees Valley region and providing assurance that the authority is complying with its best value duty.”
TVCA has been approached for a response.
Humiliating
The MHCLG warned TVCA ominously when the BVN was issued that: “While the authority may continue to receive and be awarded government funding whilst under this notice, we would emphasise that receipt of funding does not indicate the department’s broader view of the performance of the authority, nor would it indicate any change in the status of this notice, with individual funding programmes being managed and assured independently by their respective departments.”
TVCA will continue to be ineligible for the freedom and funding available to strategic mayoral combined authorities such as multi-year integrated financing. Humiliatingly for Houchen, his officials will have to continue reporting to the MHCLG on at least a quarterly basis.
Disappointment
But the need to extend the BVN will also be a disappointment for ministers, who are keen to work with mayors on their economic growth agenda. The ministry told the combined authority a year ago that: “We are committed to removing barriers to growth in the region and will continue to work closely with you to rebuild confidence, so that the authority can continue its journey towards further devolution. The issuance of this best value notice represents the government’s commitment to the future success of the authority.”
Teesworks
TVCA’s troubles date back to the disastrous joint venture partnership agreements it struck with two local businessmen, Chris Musgrave and Martin Corney, over the control and remediation of the Teesworks brownfield regeneration site at Redcar.
These deals led to allegations of corruption in the House of Commons by Andy McDonald MP for Middlesbrough (now Middlesbrough and Thornaby East) and the establishment of the independent Tees Valley Review in 2023. The Review did not find evidence of corruption but did find that standards expected when handling public money had not been met. This history has been extensively covered by North East Bylines, Private Eye, and others over the past three years.
