Press releases from the Ministry of Housing, Communities and Local Government (MHCLG) don’t usually garner much attention. But a statement issued on 16 October has piqued interest in the North East of England.
New Faces
The MHCLG has appointed four new Non-Executive Directors (NEDs). No less than two of these NEDs are from the North East. The first of these is Nick Forbes CBE, the former leader of Newcastle City Council. The second is Ada Burns, Chair of Teesside University board of governors and former CEO of Darlington Borough Council.
Heavy hitters
So the presence of two heavy hitters from the North East could provide a welcome counterweight to the power of the London-centric bureaucracy. But the cynical false promises of “Levelling Up” are fresh in the memory. So, we’ll reserve judgment for now.
Closing time
The nationwide “Pride in Place” programme will give local authorities power to block new betting shops, vapes stores and fake barbers. If implemented, this will benefit town centres in the North East. But existing ones need to be closed too. There’ll need to be quick, tangible results. From a department that has been incapable of delivering such results in the past.
But there’s a familiar mantra
The ministry’s press release states that this is a pivotal time for the department, as it focuses on “delivering more homes…reforming the planning system”
Fighting the Treasury
The new NEDs won’t be happy to see the MHCLG’s wings getting clipped by Rachel Reeves in her headlong dash for growth at any price.
What will this mean in practice?
The emphasis on delivering more homes will bring the MHCLG into conflict with local residents. Yarm, a suburb of Stockton-on-Tees, is a case in point. There are now four separate planning applications for housing estates on greenfield sites on the edge of the town. There are 1,500 homes planned.The local authority may reject these applications in the first instance. But, this won’t stop deep-pocketed developers trying again via an appeals process that often delivers wins for them.
Governance
Dame Sarah Healey, the Permanent Secretary of the Department is “delighted to welcome our new NEDs to the MHCLG Board. Their insight and strategic leadership will play a vital role in helping the department achieve its core missions… supporting strong local government.” The NEDs will have to liaise with local authorities such as Durham County Council. Perhaps they may be able to coax council leaders into actually governing, rather than fighting culture wars about flags.
Northumberland
Fortunately, over on the other side of the Tyne, the Reform Party is only the second largest group on Northumberland County Council.
Tees Valley
But, it’s the southern part of the region which should be of most interest to the MHCLG board. The Tees Valley Combined Authority (TVCA) was issued with a Best Value Notice (BVN) in April 2025. This was due to concerns about the TVCA’s inadequate response to the Tees Valley review. The BVN is due for review after 12 months, so the TVCA is currently halfway through the process.
Change at the top
The MHCLG has been in a state of flux recently. Angela Rayner, the Secretary of State, was forced to resign in September. Jim McMahon, the Minister of State who had signed the TVCA BVN letter, was sacked in the subsequent reshuffle. Angela Rayner’s successor, Steve Reed, is another pro-growth fiend. Jim McMahon has been succeeded by Alison McGovern.
Keep an eye on the ball
Fortunately, James Blythe, the senior civil servant with responsibility for the BVN has remained in post throughout this period. But the MHCLG ministers, civil servants and NEDs will need to keep their eye on the ball in Teesside. They may wish to consider the following issues:
- By 2030, the TVCA will have outstanding loans, including interest, totalling £184mn to entities related to Teesside Airport. No repayments of either principal or interest are forecast between 2025 and 2030. Are these loans viable?
- From April 2027, the South Tees Development Corporation (STDC) will have total forecast borrowing of £404.9m. In order to alleviate the STDC’s borrowing costs, the TVCA has offered to bear the c£10m of costs of an interest rate “holiday” on its loans to the STDC. But it hasn’t determined how it will meet these costs, so it may have to raid other current expenditure streams. Are the TVCA’s loans to the STDC viable?
- In addition to the STDC, the TVCA is also financially responsible for two other mayoral authorities. These are the Middlesbrough Development Corporation (MDC) and the Hartlepool Development Corporation (HDC). The TVCA has a facility to provide loans of up to £75mn to both of these corporations. Neither of these loans has been drawn down to date. Given the potential risks of a write-down in loans to Teesside Airport and the STDC, is the TVCA responsible enough to loan money to the MDC and HDC given its track record?
- In the event that any of the above loans become unsustainable, would the MHCLG be prepared to bear the cost of a write-down? Or would the outstanding balances be recovered from the five TVCA constituent authorities by means of a precept to council tax?
- What are the MHCLG’s plans in the event that the TVCA has failed to make sufficient progress under the BVN by April 2026? For example, would the MHCLG consider winding the STDC up?
- Given that the MHCLG issued grant payments totalling £130mn to the STDC on the false promise that it would retain ownership of remediated land, will the department now try to recover this funding from the joint venture partners who now own it?*
*Further information can be in the “Stripped Tees” special report in Private Eye magazine, Edition No. 1660, dated 17 October – 30 October 2025.
Thanks to James Waterson for providing additional research for this article.
