Tees Valley’s six Labour MPs have written to Tees Valley Mayor, Lord Ben Houchen, asking for a timetable for him to stand down as chair of the area’s three mayoral development corporations (MDCs) to avoid conflicts of interest and comply with legal guidance.
The MPs’ letter to Houchen says the move is necessary for improving governance at the Tees Valley Combined Authority (TVCA) and its various boards following the recent issuing of a Best Value Notice (BVN) by the government, as reported by North East Bylines on 3 April.
It also follows a report in North East Bylines on 5 April revealing that the mayor would have to step down as chair of the MDCs if he is to comply with the guidance issued by Deputy Prime Minister Angela Rayner’s Ministry of Housing, Communities and Local Government, which is not legally binding.
Houchen chairs three MDCs in Tees Valley – South Tees, Middlesbrough and Hartlepool – positions to which he appointed himself.
Teesworks
South Tees Development Corporation (STDC) is the location of Teesworks, a flagship regeneration site for Tees Valley and the government; it is said to be the largest in the country and has had £560mn of public funds in grants and loans invested in it. It is now controlled by a joint venture (JV) partnership in which two local businessmen have a 90% stake and STDC 10%.
The Tees Valley Review, set up by former Levelling Up Secretary Michael Gove in 2023, reported last year that it had found no evidence of corruption but did find issues of governance, transparency and value for money that should be addressed.
Letter
The letter to Houchen is signed by Andy McDonald and MPs Luke Myer (Middlesbrough South and East Cleveland), Anna Turley (Redcar), Chris McDonald (Stockton North), Jonathan Brash (Hartlepool) and Lola McEvoy (Darlington).
They say Houchen’s resignation is necessary for improving governance at TVCA and its various boards following the recent issuing of a special BVN by Deputy Prime Minister Angela Rayner’s Ministry of Housing, Communities and Local Government (MHCLG)/
In their letter the MPs state: “The imperative is that everyone must have confidence in all the governance arrangements of the TVCA and its development corporations and therefore we ask that you publicly set out your timetable for stepping down from your positions as chair of the STDC, the Middlesbrough MDC and the Hartlepool MDC.
“We also ask if you will set out how you will secure the endorsement of the relevant local authority of any appointment you make to chair each development corporation. “
They “wholeheartedly share and fully endorse the government’s commitment to removing barriers to growth in our region, as well as supporting the development of new industries and creating new jobs in the region.
“We also welcome and applaud the government’s confirmation of the allocation of up to £21.7bn of funding over 25 years for Net Zero Clusters in Teesside and Merseyside, and we welcome the finalising development of the Tees Valley Investment Zone.”
The MPs go on: “The BVN is focussed on rebuilding trust in the combined authority after a long period of uncertainty, and clearly improvements are needed.
“Minister McMahon [Jim McMahon, Local Government Minister] rightly said that the ‘people of Tees Valley must have confidence that every penny of their money is being spent appropriately,’ and the Best Value announcement is ‘about ensuring that is the case.’
“We trust that the government interventions in recent days are fully embraced and as the Local Government Minister said, we ‘hope that this process will offer the opportunity for a reset, providing the foundations for future investment into the area oriented towards the public good, underpinned by good governance, transparency, and accountability.’”
Mayor Houchen has been approached by North East Bylines for a response. TVCA told the Local Democracy Reporting Service that it would reflect carefully on the government advice that mayors should not chair MDCs.
