The Tees Valley Combined Authority could be asked to provide more information about companies’ accounts to the public following a call for more transparency about a publicly owned hotel.

The Conservatives called on Stockton Council to request and publish profit and loss accounts and directors’ reports from the Stockton Hotels Company, which is responsible for the finances of the Hampton by Hilton hotel in Stockton.

The Labour leadership of the council said they agreed and had nothing to hide, then argued Conservative Tees Valley Mayor Ben Houchen should be asked to “adopt similar measures of transparency”.

Councillor Tony Riordan, Stockton’s Conservative group leader, put forward the motion about the hotels company to get ahead of the new Economic Crime and Corporate Transparency Act requiring small companies to file such information, making turnover available on the public register. He argued this would “promote transparency at the very highest level to our residents”.

Labour member and deputy council leader Cllr Lisa Evans suggested additions to this, expanding it to other organisations including companies linked to the TVCA. She said: “I wish to strengthen it to include all organisations that directly receive public funds. We as a council have no issue with transparency.

“The hotel remains not only an asset to our borough, but also provides a profit that we can use for much-needed public services,” she added, referring to 2022-3 accounts. “The hotel put £242,000 in the coffers for our public from profit and business rate income.” She suggested an annual review of the council’s companies by cabinet, considering financial and operational performance, “to set a precedent for openness and accountability”.

And she called on the council to request Conservative Tees Valley Mayor Ben Houchen “to adopt similar measures of transparency for the companies under the control or influence of the Tees Valley Combined Authority including an annual review by the combined authority cabinet”. She said she put this forward “to lead by example in promoting transparency and accountability”, as a member of the combined authority.

Labour member Cllr Barry Woodhouse said he welcomed this, saying: “I think it’s a bit of sledgehammer to crack a walnut with, because the Stockton Hotels Company is already subject to financial reporting standards. The auditor has given unqualified opinions on all financial transactions to do with Stockton Hotels Company and obviously the Hilton hotel.”

Conservative members questioned the amendment. Cllr Niall Innes said: “The amendment is seeking to pass the buck slightly. We should surely get our house in order in being able to have transparency in our own accounts as opposed to telling others that they should have transparency for theirs.

“This amendment seeks to muddy it even further. I do have questions over trying to open it up to other organisations when we ourselves should be getting our house in order.”

Labour’s Cllr Paul Rowling said he did not understand this: “We are in essence agreeing with your request that we publish these documents as soon as possible. I think it’s part of this campaign that we’re seeing against the hotel to try and create an issue that isn’t there.

“The hotels company has done everything it’s been required to do in the required timeframe. Passing the buck? Absolutely not. Our house is in order. And I really resent the remark that we aren’t transparent.

“We’ve got nothing to hide. The hotel’s a success, bringing in £240,000 last year, being ranked as outstanding. I really do resent the talking down of our town and our hotel for political gain.”

Cllr Riordan invited councillors not to support Labour’s amendment, saying the companies linked to the Tees Valley Mayor were not small companies and already published details with Companies House. He said the quoted £240,000 hotel figure was not profit: “It’s retained earnings, and it’s up to the directors of the company to decide whether they pay that out in dividend or not.

“The profit and loss account will show whether there’s been profit paid to the council. At the moment there’s nothing on those accounts that show money has been put into the council’s coffers.”

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He said Stockton Council had made a commitment to make information available to the public on what it spends, how it spends it, income, expenditure, tendering and procurement: “The hotel is in reality an investment project to generate money into council coffers from its profits. With this further legislation, our residents will be able to better understand the hotels company’s revenue, costs, expenses during a specific period of time.”

The motion was voted through, with the Labour amendment including the request for TCVA transparency measures, by a 29-22 vote.

A spokesperson for the TVCA said: “The organisation follows the Local Government Transparency Code and abides by all statutory requirements. The organisation is also subject to rigorous internal and external audit processes.”