The taxpayers of Teesside have been "sold down the river" according to one MP who hit out at Tees Valley Mayor Ben Houchen just over a week before he faces the chance of re-election.

Teesworks and Tees Valley Mayor Ben Houchen have come under fire in today's Prime Minister questions as one MP referenced the view that a deal with private businessmen is "unforgivable".

Warwick & Leamington MP Matt Western referred to an exclusive interview featured in today's Northern Echo with Middlesbrough Chairman Steve Gibson.

Mr Gibson, who was vice-chairman of the South Tees Development Corporation for five years until 2021, hit out at the deal which saw the private stake in the former Redcar steelworks site increase from 50 to 90 per cent.

Accusations then emerged of "industrial scale corruption" regarding the deal, in June 2023, an independent review found no evidence of corruption and made 28 recommendations to the South Tees Development Corporation (STDC) to improve transparency and decision-making.

But, this deal is “unforgivable” according to Mr Gibson who was vice-chair of the board when it agreed to a 50:50 deal.

He added: “That inquiry came up with 28 different recommendations – not one or two or a dozen but 28 – which were damning for the mayor and his board,” said Mr Gibson. 

“That extra 40 per cent equals about £500m over 25 years, and that £500m could go to some great social uses, so Ben Houchen has gifted away the enhancement of our children’s and grandchildren’s future.”

Mr Western said in PMQs: “In today’s Northern Echo, Middlesbrough Chairman Steve Gibson describes the Mayor of the Tees Valley as having ‘given away’ the future of the region's children.

“He was referring to the 40% of Teesworks with a forecast worth £500 million gifted by Lord Houchen in a deal to two local business mates.

“Mr Gibson, who helped establish the local development corporation, describes it as ‘unforgivable’.

“Will the government finally admit Lord Houchen and the Conservatives have sold the Teesside taxpayers down the river?”

Responding was Deputy Prime Minister Oliver Dowden who praised Lord Houchen for his work at Teesside Airport.

Mr Dowden said: “He talks about Teesside taxpayers when Ben Houchen has never imposed a precept full stop.

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“Yet at the same time, he has saved Teesside Airport and secured a new freeport for Teesside, so no wonder people will be voting for him again.”

In a conciliatory response to Mr Gibson, Mr Houchen praised Mr Gibson as a “good guy”, and thanked him for his time on the board but said that he was “wrong about the facts”.

He added that the deal would return £1.3bn to the local economy over the next 40 years, he finished defiantly: “It’s a deal I would do every day of the week.”