New Chancellor Rachel Reeves refused to commit to a National Audit Office (NAO) probe into Teesworks industrial project.

Senior Labour figures had previously called for the watchdog to conduct a fresh investigation into the site after an independent investigation commissioned by former Levelling Up Secretary Michael Gove reported its findings earlier this year.

Speaking on a visit to the site in April she said: "I think it is right that the National Audit Office is brought in to investigate this. That is what we would do.”  

But when asked by reporters on her first day working at Darlington’s Economic Campus (DEC) on Thursday (July 11) she failed to go as far as commit to the fresh investigation.

Asked if Labour had got “cold feet” over potential NAO involvement in Teesworks now it was in Government, the Chancellor said: “It is really important that we get value for taxpayers and every pound is treated with care and respect.

“We will work with officials and look at the possibilities there.

“But it is important as well that we work with the Mayor of the Tees Valley [Mr Houchen] to deliver for local people.

“Local people here in the Tees Valley have voted for Labour MPs and I want those MPs to work with the mayor to deliver for people here and right across Teesside.”

The NAO itself has previously suggested it would be outside of its remit to conduct a further probe.

Earlier this week Conservative Tees Valley Mayor Ben Houchen, who helped secure the campus for the area, said it would be a Government decision if they wanted to be “sidetracked” by another inquiry.

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He also said, following a meeting with new Prime Minister Sir Keir Starmer, that he didn’t believe the PM wanted to be get involved in “petty politics” and now was the time for delivery, not the same “old, tired and angry political games”.

A review panel set up by Mr Gove during the last Conservative Government found no evidence of corruption or illegality in respect of the massive regeneration project near Redcar after concerns were raised in Parliament by Middlesbrough MP Andy McDonald over the involvement of private sector developers.

But it said expected standards were not being met when it came to managing public funds and deemed that systems of governance and finance did not provide sufficient transparency and oversight to evidence value for money to taxpayers, making 28 recommendations in total which Mr Houchen has pledged to follow.