The government is continuing to pile pressure on Tees Valley Combined Authority (TVCA) over its failure to meet its best value duty in the handling of public funds. A senior civil servant has written to the authority’s chief executive warning him to expect to be told of “next steps” soon.
Meanwhile, the TVCA cabinet has approved a new set of measures which it hopes will persuade ministers by early next year that it is ready to move ahead with devolution and join the neighbouring North East (NECA) and other combined authorities in being eligible for an integrated financial settlement.
The government letter
In a letter dated 22 April to Tom Bryant, TVCA chief executive, James Blythe, deputy director of local government stewardship and interventions at the Ministry of Housing, Communities and Local Government (MHCLG), writes: “The department continues to require assurance of the authority’s compliance with the best value duty and ministers are currently considering appropriate next steps based on the available evidence…I will be in touch in due course regarding next steps.”
Next steps could mean tighter oversight of TVCA, such as monthly instead of quarterly reports; a best value inspection; statutory directions; or the appointment of commissioners to take over the running of the authority.
The “next steps” warning is the same as was given by the MCHLG in response to an inquiry by North East Bylines following the renewal on 3April of the best value notice to which it has been subject since April 2025 but arguably carries more weight when repeated in a letter from the MHCLG to the TVCA chief executive.
There was no mention of the MHCLG letter at a meeting of the TVCA cabinet on 24 April, though by that time it was on the government website.
Single Assurance Framework
At that cabinet meeting, TVCA members were presented by Jeanette McGarry, interim monitoring (legal) officer, with proposals for a Single Assurance Framework (SAF) for submission to the government in the hope of satisfying ministerial requirements. According to McGarry, the purpose of the SAF is:
“to strengthen governance, improve transparency, and ensure robust, proportionate and evidence-based decision making across all devolved funding streams. The SAF reflects national best practice and fulfils the requirements of the English devolution accountability framework, ensuring the combined authority meets its statutory duties to government, partners, and the public.
“The SAF establishes a clear, structured approach to investment planning and assurance across the full lifecycle of programmes and projects. It sets out how proposals enter the system, are assessed, developed, appraised, approved, and monitored through delivery to closure.
“The SAF ensures TVCA has a transparent, consistent and accountable basis for all investment decisions. It strengthens internal controls and supports the combined authority to deliver public value, manage risk effectively, and maintain the confidence of government and local partners.”
The SAF, which is a legal requirement, will need clearance from MHCLG, Department for Transport and Department for Work and Pensions, all of which provide funding to TVCA. The plan is to introduce the SAF through a phased implementation programme to ensure that changes are embedded in a controlled, proportionate and sustainable way. It forms only one part of wider governance review, including a new TVCA constitution, expected to take until January 2027.
Integrated settlements
It is now clear that under the English Devolution White Paper, TVCA will not be eligible for an integrated settlement until 2029/30 at the earliest. It does not expect, as we have seen, to complete its assurance framework until early 2027, with the hope that its best value notice can be lifted in April that year. There must then follow an 18-month period during which it must remain free of the BVN or other intervention, taking it to autumn 2028. It will also have to have its auditing up to date, which it is struggling to do at present. The earliest possible integrated settlement would thus come into effect in April 2029.
Integrated settlements give mayoral strategic authorities like the North East (NECA) flexibility within limits to move their government grants between certain spending themes that align with the government’s growth policy, from year to year and between capital and revenue. The relevant spending themes are economic development and regeneration; transport and local infrastructure; adult skills; employment support; housing and strategic planning; environment and climate change; and health, wellbeing; and public service reform.
