The government today (3 April) issued Tees Valley Combined Authority (TVCA) with a Best Value Notice for an initial period of 12 months. This follows the publication of the Tees Valley Review Report in January 2024, which identified serious governance issues and made 26 formal recommendations to TVCA.
The Ministry of Housing, Communities and Local Government (MHCLG) said: “After considering the mayor’s [Lord Ben Houchen’s] response to the Tees Valley Review, and the recent assessment of external auditors of significant weaknesses in the authority’s value for money arrangements, the government is issuing the Best Value Notice to ensure further improvement at the authority.
“Under the notice, TVCA will be required to regularly engage with the Ministry and must also provide the department with a clear strategy for improvement across all recommendations set out in the Tees Valley Review.
“The role of an independent assurance panel – set up by TVCA with support from the Local Government Association (LGA) following the Tees Review – must also be strengthened and embedded into the authority’s day-to-day operations.
“The government is committed to driving growth, supporting the development of new industries and creating new jobs in the region. This notice will enable government to work with TVCA in the interests of residents across Tees Valley to deliver growth and high-quality jobs, support the region’s freeport and finalise the development of the Investment Zone.
“The Best Value Notice will also provide investors, and the people of Tees Valley, with confidence and clarity after a long period of uncertainty – helping ensure the future success of the region.“
‘Every penny must be well spent’
Minister for Local Government and English Devolution Jim McMahon said: “Having carefully considered the response to the Tees Valley Review and the external auditor’s assessment finding weaknesses in value for money arrangements, we have concluded that we require further assurances.
“To provide assurance and to secure continuous improvement, we are issuing the TVCA a Best Value Notice.
“The people of Tees Valley must have confidence that every penny of their money is being spent appropriately and know that the government, in partnership with the combined authority, are working together in the public interest to make sure that is the case.
“The Tees Valley Review also made two recommendations of government: to publish guidance clarifying the governance, oversight and legislation of mayoral development corporations (MDCs); and to clarify proposals for a landfill tax.
“Today the government is publishing the guidance for MDCs to follow. As the government devolves significant powers away from Westminster that will enable mayors to help unlock growth, attract investment and create jobs for their regions, this guidance will help in clarifying how MDCs should be governed, ensuring transparency and accountability to local residents. The department will set out an update on the landfill tax in due course.”
*This report is based on a government statement. TVCA has been approached for a response. More on the story will follow in coming days.
