The government has not committed to a fresh investigation into ongoings at Teesworks by the National Audit Office following calls by senior Labour politicians and peers.

The government said it is "not ruling out any options" including sending in the National Audit Office (NAO)  to carry out a fresh probe into the Teesworks site - but has emphasised it hinges on a response from Tees Valley Mayor Ben Houchen due in September.

Another investigation would follow a probe commissioned by former Levelling Up Secretary Michael Gove that published its results in January. In the 97-page document, "no corruption" was found but 28 recommendations were made.

A deadline of September was given to Lord Houchen to respond and address the recommendations - with the government saying any further action including the NAO depends on that response.

Liberal Democrat life peer Lord Scriven pressed Labour's Lord Kahn of Burnley on a possible NAO probe in a sitting of the House of Lords today (July 29).

Lord Khan said: "The previous government asked the Tees Valley Mayor to provide a progress update in September following the recommendations of the independent review of Tees Valley Combined Authority's (TVCA) oversight of the South Tees Development Corporation and Teesworks joint venture.

Lord Khan of Burnley.Lord Khan of Burnley. (Image: HOUSE OF LORDS)

"Once we have received that update, we will consider if the questions that need to be answered have been and whether any further action should be taken."

Lord Scriven responded: "Many Teessider's jaws will drop on the floor when they hear that answer from the minister as every candidate in Teesside who was Labour promised a national audit office review would take place.

"In light of half a billion pounds of taxpayers money being used, in light of two businessmen making multi million pound profits without taking any liabilities or any risk of their own money, does that constitute best value?

Lord Scriven.Lord Scriven. (Image: HOUSE OF LORDS)

"And, why leave the people who have created the mess to solve the mess without any enforceable action being able to be taken by government?"

Lord Khan responded: "This government believes scrutiny and transparency are important.

"However, we must consider carefully the Mayor's response due in September and we will consider any further action when we receive that."

He added they "are not ruling out any options" and are "looking closely at all the evidence".

Tees Valley Mayor Lord Ben Houchen.Tees Valley Mayor Lord Ben Houchen. (Image: The Northern Echo)

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This call for further enquiries into Teesworks comes weeks after Chancellor Rachel Reeves did not commit to a fresh investigation just weeks ago during a visit to Darlington.

In April, Ms Reeves said bringing in the NAO is "what we would do" should the Labour party win the general election. 

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 to commit to the fresh investigation.