Tees Valley Mayor Lord Ben Houchen is still out in the cold as far as the government is concerned, if yesterday’s (29 January) speech on economic growth by Chancellor Rachel Reeves is anything to go by.
While most media reporting of the speech was focused on the Chancellor’s support for a third runway at Heathrow and creating a “Silicon Valley” corridor between Oxford and Cambridge, she also announced projects for city regions in the north and Midlands.
Houchen, however, was the only metro mayor of any conurbation north of Birmingham not to be positively name-checked in Reeves’ speech and Tees Valley the only mayoral combined authority not to get something, however small, from it.
The only other exception was David Skaith, mayor of mainly rural York and North Yorkshire.
Metro mayors
The government’s mission, Reeves told her audience, was to grow the economy and raise living standards in every part of the UK. Manchester, she said, was home to the UK’s fastest growing tech sector and Leeds one of the largest financial services centres outside London.
“These great northern cities have so much potential and promise, which our brilliant metro mayors, Andy Burnham and Tracy Brabin, are working hard to realise, just like our other metro mayors are doing to deliver new opportunities in their areas.
“And there is so much more that government can do to support our city regions. To achieve this requires greater focus on two key areas: infrastructure and investment.
“If we can improve connectivity between towns and cities across the north of England, we can unlock their true growth potential by making it easier for people to live, travel and work across the area.”
After recapping projects in the north announced in and since the Autumn Budget, Reeves went on to say that the government was listening closely to the metro mayors: “As the Metro Mayor of Liverpool, Steve Rotherham, has called for, we will review the Green Book [Treasury guidance on the use of public resources] and how it is being used to provide objective, transparent advice on public investment across the country, including outside London and the South East. This means that investment in all regions is given a fair hearing by the Treasury that I lead.
“The Office for Investment is going to be working hand in hand with local areas to develop a commercially attractive pipeline of investment opportunities for a global audience, starting with the Liverpool City Region and the North East Combined Authority (NECA), led by Kim McGuinness.
“The National Wealth Fund is establishing strategic partnerships to provide deeper, more focused support for city regions, starting in Glasgow, West Yorkshire, the West Midlands, and Greater Manchester.
“We are supporting key investment opportunities across the UK. The government is backing Andy Burnham’s plans for the redevelopment of Old Trafford, which promises to create new housing and commercial development around a new stadium to drive regeneration and growth in the area.”
The Chancellor added: “I can announce…that we will work with Doncaster Council and the Mayor of South Yorkshire, Oliver Coppard, to support their efforts to recreate South Yorkshire Airport City as a thriving regional airport.
“And finally, I am pleased to announce a partnership between Prologis and Manchester Airport Group (MAG) in the East Midlands, where the Metro Mayor Claire Ward is doing an excellent job growing the local economy there.
“Prologis and MAG will work together to build a new advanced manufacturing and logistics park at East Midlands Airport unlocking up to £1bn of investment and 2,000 jobs at the site – a major investment from a global business into our country representing a huge vote of confidence in the East Midlands and in the UK.”
The Chancellor made two passing references to Teesside, but in spite of all the projects at the Teesworks regeneration site that could have been singled out for new support, announced nothing specific as in the case of the other conurbations. And there was no mention at all for Houchen.
This is the third disappointment for Tees Valley in three months at the hands of the Chancellor. In the Autumn Budget in October Tees Valley, unlike other mayoral combined authorities, did not get either an integrated settlement giving it greater control of its transport budget or an investment zone.
North East Business and Economy Board
Coincidence or not, the Chancellor’s announcement of the development of a commercially attractive pipeline of investment opportunities for a global audience in the North East by the Office for Investment and NECA came on the same day as North East Mayor Kim McGuinness named John McCabe as chair of the North East Business and Economy Board.
McCabe will combine his role, which is voluntary, with his existing position as Chief Executive of the North East Chamber of Commerce. He will attend NECA cabinet meetings, where according to NECA he will share insights from the business sector as the combined authority continues to develop its projects and plans to grow the regional economy by creating opportunity for the people of the North East.
Emily Cox, Group Ambassador for the North and Director of Colleague Relations at Lloyds Banking Group, has been appointed as Vice-Chair of the Business and Economy Board.
McGuinness said: “This is an exciting time for North East businesses as we harness the power of devolution to support regional businesses, drive forward investment and stimulate the local economy. The message is clear – the North East means business.
“I’m looking forward to working with John and Emily, and the Business and Economy Board to harness the experiences of businesses in the region to deliver tactical, targeted support and investment that will boost growth and opportunities for business in our amazing region.”
McCabe said: “We want to establish the North East as the region of real opportunity, where there is no limit on ambition and where businesses of all sizes and sectors can thrive.
“To realise this potential, leaders in every sector of our economy all need to lean in and put our shoulders to the wheel. I’m very well aware of the urgency and scale of the issues this region faces but we also have incredible opportunities before us. Now is the time to act differently and think bigger, to reset the relationship between politics, local government, and business. That’s how we’ll deliver for the North East.”
Cox said: “Whilst the global outlook remains uncertain, there are grounds for optimism in the North East. The fundamentals we need to deliver growth are all here. We have world leading universities, outstanding further educational colleges, entrepreneurial spirit and above all great people. We are attractive to private capital that can help us build an ambitious, growth economy that can spread prosperity to all parts of our great region.
Comment
The reason for Houchen’s and Tees Valley’s failure in recent months to secure the same level of support as other mayoral combined authorities in the Midlands and north of England seems clear: ministers are not yet satisfied – or at least have not yet made up their minds – that Tees Valley Combined Authority and its mayor have done enough to deal with the issues raised a year ago by the independent Tees Valley Review.
The Review, set up by then Levelling Up Secretary Michael Gove following allegations in the House of Commons of corruption around Teesworks and South Tees Development Corporation (STDC), found no evidence of corruption but did find “issues of governance and transparency that need to be addressed and a number of decisions taken by the bodies involved do not meet the standards expected when handling public funds.”
The Review made 28 recommendations, and in September the Tees Valley cabinet came up with an action plan for implementing them which it hoped the government would accept. But Angela Rayner, Deputy Prime Minister and Local Government Secretary, has not yet responded.
Nor has she yet responded to a recommendation by the House of Commons Business and Trade Committee that that the National Audit Office (NAO) be directed to carry out an investigation into Tees Valley – perhaps because the NAO does not normally investigate local authorities.
There is a danger that Tees Valley will continue to miss out on support going to similar conurbations until Rayner gives it a clean bill of health. One thing Houchen could do to hasten that moment would by to stand aside as chair of South Tees Development Corporation (STDC), as Tees Valley’s audit and governance committee has suggested. For the sake of Tees Valley he should do that now.
CLICK HERE TO DONATE TO OUR CROWDFUNDER
HELP US BECOME STRONGER SO THAT WE CAN CONTINUE TO DELIVER POWERFUL CITIZEN JOURNALISM!
