Sir Keir Starmer has said he agrees with Boro boss Steve Gibson’s damning assessment of Ben Houchen and his Teesworks deal.

Speaking exclusively to the Echo this week Middlesbrough FC owner Gibson accused Houchen of “giving away our children’s future” over the deal at the heart of the controversial Teesworks project.

Mr Gibson, who was vice-chair of the South Tees Development Corporation for five years until 2021, said a the deal which increased the ownership of the former Redcar steelworks site by two private businessmen from 50 per cent to 90 per cent was “unforgivable”.

Sir Keir Starmer said he agreed with the local businessman’s assessment during a visit to the Echo's Darlington newsroom today (Friday, April 25).

The Northern Echo: Sir Keir Starmer visited the Echo's newsroom on Friday.Sir Keir Starmer visited the Echo's newsroom on Friday. (Image: SARAH CALDECOTT)

It comes as a cross-party group of MPs said in a report there should be more scrutiny around the use of public funds and great transparency at freeports including Teesworks, and said Michael Gove “must” call in the National Audit Office (NAO).

But Mr Houchen said it was "nothing more than a witch hunt and more smear by the Labour Party".

The Labour Leader, who has pledged to call in the NAO to probe the project if elected, said: “He (Steve Gibson) was pretty blunt.

“I do agree with him, I’m really glad he spoke out.

“In his position to speak out through your paper was very very powerful and very timely.

“I was up at Teesport last week. It’s got huge potential, already doing great things but could do even better.

“There’s a real sense there on the ground that this deal that’s been done by the Mayor Houchen is going to hold back the potential.

The Northern Echo: Steve Gibson (front, centre) with Labour's Tees Valley Mayoral Candidate Chris McEwan, who he is backing to replace Ben Houchen as mayor. Steve Gibson (front, centre) with Labour's Tees Valley Mayoral Candidate Chris McEwan, who he is backing to replace Ben Houchen as mayor. (Image: Picture: THE NORTHERN ECHO)

“I am extremely worried about it, just look at the numbers in terms of what’s bound up in this deal and it screams out for an inquiry, which is why we said the NAO should look at it and I’m really pleased to see this committee today say yes, they should look at it.

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“If we are privileged enough to come into power then we will get the NAO to look at this. Not just as an exercise in picking open something which looks as though it’s got many questions buried in it but also because if it’s right that it’s going to hold up the potential at Teesport then we need to unpick it straight away.”

A report published by the Business and Trade Select Committee on Friday (April 26), which includes North East MPs Ian Lavery and Andy McDonald, said: "To improve transparency and to facilitate accurate cost-benefit analyses of freeports and investment zones, the Government must publish quantitative assessments of the impact of freeports and investment zones on employment, investment and trade alongside the Freeports Annual Report."

Criticising the deal which shifts an extra 40 per cent of the former Redcar steelworks site into the hands of businessmen Chris Musgraves and Martin Corney, Steve Gibson said: “That extra 40 per cent equals about £500m over a 25-year period, and that £500m could go to some great social uses, so Ben Houchen has gifted away the enhancement of our children’s and our grandchildren’s future.”

In a conciliatory response, Mr Houchen praised Mr Gibson as a “good guy”, 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.”

In January, the deal was criticised by an independent Government inquiry which recommended that it should be renegotiated in the hope a “better settlement” could be reached for the taxpayer.

Mr Houchen said: “This is nothing more than a witch hunt and more smear by the Labour Party.

“We’ve secured around £5billion of private investment for the site, created 9,000 jobs and secured around £1.3billion in business rates - it’s something I’m very proud of. 

“Its good to see Sir Keir Starmer finally visiting the area, I thought he’d forgot where Teesside was

“I’d be more than happy to take him around the site tomorrow morning and show him what real work looks like.”

A Department for Levelling Up, Housing and Communities spokesperson said: “The Secretary of State already commissioned an independent report into the South Tees Development Corporation and Teesworks joint venture which found no evidence of corruption or illegality.

“It is not the National Audit Office’s role to audit or examine individual local authorities. The review was independent and expert, and Mayor Houchen has accepted all recommendations in the report.

“As this report recognises, freeports are key to levelling up and in just two years have generated nearly £3bn investment that will create thousands of jobs – with Teesside generating the most jobs and investment, as the Secretary of State highlighted in his response to the committee earlier this year.”