New committees have been formed to oversee the new development corporations in Middlesbrough and Hartlepool. So far, so good.
That was then, this is now
It’s starting to feel like ancient history now. Almost two years ago, Levelling Up Secretary Michael Gove ordered a review into allegations of corruption at Teesworks. Gove selected Angie Ridgwell to lead what would become known as the Tees Valley Review (TVR). However the narrow scope of the review ensured that Angie Ridgwell and her colleagues didn’t specifically investigate allegations of corruption.
Clean bill of health
And so the world was shocked, shocked I tell you, when the TVR report didn’t find any corruption. However, the report was extremely critical of the governance of the Tees Valley Combined Authority (TVCA) when it reported back on 29 January 2024. The Tees Valley Review report included 28 recommendations to improve oversight and governance.
Inaction plan
Over the following eight months, until 27 September 2024, the TVCA worked on an action plan to implement the recommendations. Or some of them, anyway. In reality, Tees Valley mayor Ben Houchen cherry picked the more routine recommendations. Houchen then disregarded most of the ones that would have actually made any difference.
It’s a review, Jim, but not as we know it
For example, Houchen ignored a request to relinquish his chairmanship of the South Tees Development Corporation (STDC). And Houchen’s TVCA CEO Julie Gilhespie failed to renegotiate the Teesworks Joint Venture (JV). Some of this failure may be attributed to Gilhespie making no attempt to renegotiate the JV until August 2024, This was some seven months after the publication of the TVR. Gilhespie later resigned.
Golden handshake
When I first wrote about this in December, I’d calculated that the reward for Julie Gilhespie’s abject failure would be in the region of £144,000 in public funding. That turned out to be an under-estimate. The final figure is £250,000 plus a year’s pension contributions. Meanwhile, the Tees Valley has some of the worst child poverty in the United Kingdom. There is a direct correlation between these statements.
It ain’t over ‘til it’s over
As at the time of writing, Deputy Prime Minister Angela Rayner still hasn’t responded to Ben Houchen’s proposals to address the TVR recommendations. But, on the ground, TVCA staffers are continuing a process of improving oversight and governance. Imagine my surprise when I discovered, over the past week, that this process is beginning to produce results. Yes, you read that right, the TVCA is beginning to resemble a competent public authority.
Hartlepool Development Corporation, Audit and Governance Committee
The inaugural meeting of the HDC ACG was held at Hartlepool Civic Centre on 5 February 2025. This should have been the second meeting of the committee, but the first one, which had been scheduled for 27 November 2024, had to be cancelled due to a lack of a quorum. The TVCA has struggled to recruit people to its committees. This is understandable, because this role is both unpaid and demanding at the same time.
Phew, that was a close shave
There are only four committee members. One of these, Hartlepool Councillor Melanie Morley, sent last-minute apologies to the 5 February meeting, and her nominated substitute was unable to replace her in time. Fortunately, the other three members of the committee were able to attend, and so the quorum, which is three, was met.
Join the professionals
The meeting was chaired by Kayleigh Fuller. Kayleigh, along with the other two members present, Owen Williams and Clare Wilson is an independent member. It was immediately apparent, having attended numerous TVCA/STDC meetings over the past year or so, that this committee is going to be different to its predecessors. The adults are finally in the room. One criticism though, and that’s the ongoing problem with microphones at TVCA-run meetings. Kayleigh is softly spoken, and it’s difficult to hear her.
To absent friends
But first, something bizarre. Item 4 on the agenda was due to be an update from the TVCA Chief Executive Officer. This was presented by Group Director of Finance and Resources Gary Macdonald. But Gary isn’t the CEO of the TVCA, because there isn’t one anymore. I know that it’s difficult to keep track of the musical chairs at the TVCA, but that role has been abolished. The previous, and sole, incumbent of the role of TVCA CEO was Julie Gilhespie. Whatever happened to her?
Auditors
But down to serious matters. We received updates from Andrew McCulloch, the Director of Audit at TIAA, the internal auditors of the HDC. This was followed up by something similar from Clare Mellons, of external auditors Ernst & Young. Guy Close, the TVCA Governance and Scrutiny Manager, had to remind Clare that she was supposed to present a report to the committee. Clare had misunderstood an earlier request, and had assumed that this could wait. However, this was a genuine oversight. An effective audit of the HDC is being implemented, and it’s a pleasant surprise after the eight years of chaos ushered into the TVCA by Ben Houchen in 2017.
I’m a nonentity, get me out of here
Members of the public were excluded from the meeting for the last item on the agenda. I left the room, but couldn’t find my way out of the building because all of the doors were locked. I had to interrupt the meeting to ask somebody to let me out. Very awkward, but this is because this part of Hartlepool Civic Centre is pretty much a ghost town.
Middlesbrough Development Corporation, Audit and Governance Committee
And so to the MDC AGC, held exactly a week after the HDC one. The inaugural meeting of this committee was held in the Mandela Room at Middlesbrough Town Hall on 4 December 2024. But why was this second meeting held, not in Middlesbrough, but at some tinpot semi-abandoned airstrip in the middle of nowhere? You’d have thought that the clue would be in the title ‘Middlesbrough Development Corporation’, but I suppose we’ll never know.
Meet the crew
The MDC AGC has six members, and all of them showed up on 12 February. Five of the members are independent. The sixth, Middlesbrough Councillor Nicky Walker, represents the TVCA AGC. Jonathan Munby is the chair, and he’s accompanied by Kayleigh Fuller, who chaired the HDC AGC the previous week. Next up, Owen Williams. Owen is also a member of both the HDC and MDC AGCs, and he also attended both recent meetings. The final two members are Catherine Dillon-Goodier and Matt Hewison
Down to business
The MDC AGC followed a similar format to the HDC one the previous week. The chair, Jonathan Munby, is an accountant by profession. This is an excellent choice, and I was left wondering why it has taken the TVCA so long to find people like this. Andrew McCulloch was unable to attend to provide an internal auditor update, but was replaced by his colleague, Jane Butterfield, via Zoom. Clare Mellons from Ernst and Young provided the external auditor update, as she had done at Hartlepool.
Bean counters
Gary Macdonald gave an update on the bewildering number of unfinished issues related to previous years accounts. Most of these issues pre-date the formation of the MDC, but an overlap is inevitable. Jonathan Munby proposed that an extraordinary meeting of this committee would need to be convened in March, in order to examine issues related to the 2023/24 TVCA accounts. This was agreed by the committee. Matt Hewison noted the almost overwhelming amount of information that members need to digest prior to meetings. This highlighted, again, the difficulty in recruiting the most able people to committees such as this.
Asset transfer
But the committee will have its work cut out over the coming months. The MDC has already purchased the former House of Fraser, aka Binns, store, and the AGC will need to monitor expenditure on this closely. The MDC has also bought land in the Gresham area, to facilitate the commencement of that development in April. The Gresham zone includes the Crown pub.
The money pit
The Crown pub has proved to be a disastrous black hole, and the AGC will need to keep a close eye to prevent a further drain on public cash. Other assets are due to be transferred from Middlesbrough Council to the MDC. This was first promised by Michael Gove in May 2024, but has been delayed by the fallout from the Tees Valley Review.
And finally…
As happened at Hartlepool, members of the public were excluded from the last item on the agenda. Councillor Nicky Walker suggested that, should this happen in future, more detail should be provided regarding the reasons for this exclusion. The chair, and the TVCA statutory officers, agreed that this would be considered on future occasions. This needs to apply to all meetings of TVCA and STDC cabinet, committees and boards. I left the meeting. But, unlike at Hartlepool the previous week, I was able to find my way out of the building without assistance. Things can only get better.
Further reading
Hartlepool Development Corporation, Audit & Governance Committee meeting agenda, 5 February 2025
Middlesbrough Development Corporation, Audit & Governance Committee meeting agenda, 12 February 2025
CLICK HERE TO DONATE TO OUR CROWDFUNDER
HELP US BECOME STRONGER SO THAT WE CAN CONTINUE TO DELIVER POWERFUL CITIZEN JOURNALISM!
