The Middlesbrough mayor has blasted an MP for trying to “throw mud” after he was accused of having an “obvious conflict of interest”.

During a fiery debate in Parliament, Labour MP Andy McDonald claimed the lack of democratic processes regarding accountability at the Middlesbrough Development Corporation (MDC) meant it was like “living in medieval times”. He also stated Mr Preston owns “vast swathes of land and properties on both banks of the River Tees” and then questioned how the mayor can sit on the MDC board with such interests.

However, Mr Preston has hit back and said he does not own “vast swathes of land” and doesn’t own any land in the MDC area. He said the idea he was trying to make a financial gain from improving Middlesbrough would be “laughable if it wasn’t so offensive.”

The aim of the MDC is to speed up regeneration in the town centre and Middlehaven, however, its critics believe it’s a needless body. Labour has also raised concerns about the transfer of £14.7m worth of council assets, branding it a “smash and grab”.

On Friday, February 24, at a poorly-attended council meeting, 16 Labour councillors refused to back proposals to support the creation of the MDC, defeating the 12 in favour. However, councillors do not have the power to veto the plans so the government was never bound to the decision.

In response to the defeat in the council chamber, Mr Preston, who was not in attendance after being advised he had a conflict of interest due to a building he owns on Albert Road, wrote to Levelling Up Secretary Michael Gove. He expressed his support for the project and claimed the vote “was not a meaningful reflection of elected officials’ opinions”. Alongside the mayor, 25 councillors also signed the plea.

In an attempt to salvage the plans, Tory Tees Valley Mayor Ben Houchen travelled to London to meet with Mr Gove where he secured continued support for the MDC. On Tuesday, February 28, the government confirmed the MDC would still be going ahead and had been created as a legal entity.

Now, Mr McDonald, who represents Middlesbrough, has questioned how Mr Preston could intervene if he has a conflict of interest. He said: “According to the latest Tees Valley Combined Authority register of members’ interests, Mr Preston owns vast swathes of land and properties on both banks of the River Tees—well over 50 properties in total. Clearly, the decisions that the MDC board makes could have a direct bearing on any increase in value of any such interests, and they could potentially directly and financially benefit him.

He went on to add: “There is an obvious conflict of interest, and the question arises: if he cannot vote on the creation of such a corporation, how can he possibly lead on a letter to countermand that very vote and then serve on the board?

“It is utterly farcical; it is almost as though we have gone back to living in medieval times, with wealthy feudal landlords controlling political power over their lowly subjects without any proper democratic processes of accountability.”

However, Mr Preston has responded strongly to Mr McDonald’s allegations calling the MP a “bitter man” and said he was trying to “throw mud and hope that it sticks”. The mayor added: “He can’t stand the progress we’ve made in Middlesbrough since I became mayor and he hates how the Mayoral Development Corporation will transform our town.

“The truth is that I’m the only mayor in Middlesbrough’s history who is financially worse off as a result of being mayor. I categorically do not own ‘vast swathes of land’. In fact, I don’t own any land in the Mayoral Development Corporation area.

He went on to add: “The idea that I’m trying to make financial gain by improving Middlesbrough would be laughable if it wasn’t so offensive. I stood to be mayor because I wanted to help my hometown. Sadly, it seems that to Andy McDonald and Middlesbrough Labour Party being financially successful is a crime.”

Regarding land, Mr Preston has an interest in land at Port Clarence and is a partner at Port Clarence Land Ltd, according to the TVCA’s register of interests.

Speaking in the same debate as Mr McDonald, Conservative Middlesbrough South and East Cleveland MP Simon Clarke claimed Labour were the “enemies of progress”.

He said: “Labour tried to close our airport; Labour tried to close our freeport; Labour tried to stop the Treasury opening in Darlington; Labour tried to stop the Brexit that Teesside voted for by two to one; and now it is trying to stop desperately needed regeneration in Middlesbrough. It is unacceptable, and it needs to be called out today.

He went on to add: “I am grateful to the Secretary of State for the strong support he has provided in ensuring that the MDC will go ahead, despite the best efforts of Labour to wreck the proposition. I am equally grateful for the tireless work of our Mayor, Ben Houchen, and my Conservative colleagues in the Tees Valley, as well as all those people in Middlesbrough who have contacted me to express their disappointment and outrage at the actions of the Labour party—the wreckers, the enemies of progress, and the enemies of investment.”

Rachel Maclean, a minister of state at the Department for Levelling Up, Housing and Communities, said the MDC was the next chapter in Middlesbrough’s levelling-up story.