TVCA to respond to Teesworks inquiry as Ben Houchen hails success

The Tees Valley Review, published in January, found no evidence of claimed corruption or illegality at Teesworks but criticised governance and transparency, and how public money was being spent.

It said some decisions were not of a high enough standard when managing public money.

On Friday (September 27) the combined authority’s cabinet will discuss how it will respond to recommendations laid out in the review, including renegotiating a deal with private developers. The Mayor will send the Government a formal response to that January review next month.

The current deal has been the subject of much scrutiny with private developers owning 90% of the project with significant liabilities. But the review said the developers did not appear to have made any investment, or be under an obligation to do so.

The Teesworks site is one of the largest regeneration projects in Europe and has already attracted some major job-creating schemes from the likes of SeAH Wind and BP/Equinor.

Mr Houchen positioned himself this week to stand behind the Teesworks project ahead of next week’s meeting, after a report suggested the project could generate £79m in extra business rates a year for the taxpayer.

Teesworks Ltd has commissioned the report from real estate agents Colliers which also states more than 20,000 jobs will be created on the site.

Lord Houchen said: “The transformation of Teesworks is not only creating thousands of good-quality jobs and attracting billions in investment, but it’s also positioning Redcar and Cleveland Borough Council to become one of the wealthiest local authorities in the UK.

"And this is only the beginning - with just 44% of the site developed, this figure will more than double when Teesworks is fully occupied.

Ben Houchen.

"This is a remarkable achievement and a testament to what can be accomplished when the private and public sectors come together to deliver for local communities.

"Thousands of jobs, billions in investment and £79m a year - every year - back to the taxpayer in new business rates.”

Mr Houchen even claimed it could mean Redcar and Cleveland Council could scrap council tax, in a move described by the town’s MP Anna Turley as “another Lord Houchen exaggeration”.

Anna Turley. (Image: ANNA TURLEY)

She said: “The Teesworks site has huge potential for the jobs and opportunities we desperately need, and we have a Labour government looking to invest in carbon capture, steel, hydrogen and green energy – all the things we could be leading the way on in Teesside. We cannot allow these bad deals to cost us.

“The report shows the local authorities were kept uninformed, that there were conflicts of interest which were not recorded, and that it’s the taxpayer who is left on the hook for liabilities, while these developers and their families who get the contracts just keep adding to their collection of luxury cars and stately homes.

Recommended reading:

• Adored Darlington wife and mother who died choking on a sandwich was neglected
• Interest in Darlington Binns store confirmed day after closure announced
• Heartbroken family pay tribute to 'loving and doting dad' as murder probe continues

Get more from The Northern Echo with a digital subscription. Get access for one month for just £1, or get 30% off an annual subscription with our latest offer. Click here.

“The raw facts are that Teesworks is now 90% owned by two developers who have paid next to nothing, went through no procurement process and have made £140million profit, are now able to hold the future of this vital site to ransom.

“This deal absolutely should be renegotiated in the public interest, but there should also be accountability for those who were the public guardians of this vital asset, and who gave it away to their favoured developers at such poor return for the tax payer and on such terrible terms.”