Nobody is standing in the way of a full investigation into claims of wrongdoing at the UK’s largest freeport, a minister said, amid calls to swiftly carry out the review.

There have been cross-party calls for a full National Audit Office (NAO) investigation into the management of the Teesworks freeport, on Teesside, with Labour’s shadow communities secretary Lisa Nandy and the Conservative Tees Valley mayor Ben Houchen both backing one.

In the House of Lords, peers urged the Government to go ahead with the review into the freeport site, which was once home to the Teesside steelworks.

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Communities minister Baroness Scott of Bybrook said “nobody is stopping a full review” by the NAO, after peers called for the Government to use its powers to start one.

She added her department had seen “no evidence of corruption, wrongdoing or or illegality” in the management of the site.

Lady Scott told peers: “The department has seen no evidence of corruption, wrongdoing or or illegality within the South Tees Development Corporation.

“The mayor and the Combined Authority are working tirelessly to level up the area of Teesside, including supporting economic growth and high quality job creation.

“Private sector investment and a joint venture was always a core part of the business case for this site and the National Audit Office review in 2022 found that the Government funding had been used as intended.”

Lib Dem peer Lord Scriven urged ministers to approve a full investigation as soon as possible.

The former leader of Sheffield City Council said: “The Tees Valley mayor yesterday said he has no objection to the National Audit Office carrying out a full audit, that has to be at the instigation of the Government.

“So what is stopping the Government agreeing to implement section 63D of the National Audit Act, allowing a full National Audit Office audit to investigate that taxpayers are not being short-changed by excessive profits going to one private company?”

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Lady Scott told peers: “Nobody is stopping a full review if that is necessary. But what is important in this is that we have millions of pounds of private sector investment in an area that desperately needs it, for the jobs for the people of Teesside.

“That is levelling up. That is the important bit of this.”

Labour peer Baroness Chapman of Darlington also urged ministers to instigate a the review as soon as possible, claiming that uncertainty over the site is “going to damage future investment in Teesside”.

The former MP for Darlington told peers: “The mayor has said he wants an investigation. Voices, clearly, in this chamber are calling for an investigation. I have not heard anybody either here or in Teesside oppose an investigation.

“It is important that this is done quickly and it should be the fullest possible type of investigation that the NAO I think can offer in order to regain the confidence that we really need to enable more investment in the Tees valley.”

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Labour shadow minister Ms Nandy wrote to the NAO on Monday urging it to open the investigation, claiming there were “very serious questions regarding the use of public money” at the site.

Tory regional mayor Mr Houchen said such a review would “restore confidence in the professionalism, integrity and objectives of the Government”, adding that concerns about oversight of the Teesworks site were “increasingly becoming a political football”.