Govt deepens probe into Tees Valley’s ‘financial risk’
Laura Shoaf, a former chief executive of West Midlands Combined Authority and board member of Transport for London, will lead an inspection into the workings of Tees Valley Combined Authority.
Local government minister Jim McMahon wrote to Conservative Mayor Ben Houchen last week to express his concerns about the way in which the combined authority is operating, and whether this meets the duties of public bodies set out in the Local Government Act 1999. The minister’s list of concerns covers capital risk, debt levels, interest rates, decision-making, officer churn, on-lending (borrowing to lend) and more.
Accompanying letters from DHCLG civil servants to Tom Bryant, chief executive of TVCA, further spell out the “financial sustainability risk” and question the “ability to undertake future investment relating to its high level of debt and increasing level of borrowing and interest payments and falling revenue reserves in recent years.”
Many of the concerns relate to the terms of deals around the future of the Teesworks site, which has been subject to several reviews and external audits in the past two years. Earlier this year the government put the combined authority on notice that it would be monitoring its work more closely.
Shoaf will have until March 2027 to report, unless an extension is agreed with ministers. Her fee will be £1,200-a-day.
In a statement following the appointment of the inspector, Tees Valley Combined Authority said: “We welcome the appointment of Laura Shoaf CBE and her fellow inspectors and will work openly and constructively with them and we’re pleased the Government are committing the appropriate resource and people to bring this process to a conclusion.
“This is an opportunity to demonstrate the progress that has been made, while continuing to strengthen the organisation and ensure it delivers effectively for people and businesses across the Tees Valley.
“We have always been clear that we welcome scrutiny and constructive challenge. There is more work to do, and we will continue to make improvements wherever they are needed.”
