Tees Valley put on notice
The government has issued a formal best value notice to the Tees Valley Combined Authority, raising concerns over governance, financial oversight and its ability to meet statutory duties.
The notice, dated 3 April 2025, was confirmed yesterday in a letter from James Blythe, deputy director of the Local Government Stewardship and Interventions department, to Tom Bryant, chief executive of TVCA.
It follows mounting scrutiny after the independent Tees Valley Review, alongside further assessments by the Centre for Governance and Scrutiny and the Chartered Institute of Public Finance and Accountancy. Collectively, these reviews highlighted “significant weaknesses” in value-for-money arrangements, particularly around governance, financial sustainability, and organisational capacity.
A best value notice is not a formal intervention but signals heightened oversight from central government. It requires the authority to work closely with officials and demonstrate clear improvement.
The notice could lead to caution from investors, slower decision-making, and increased scrutiny of projects. While funding will continue, concerns raised in the Tees Valley Review mean greater oversight and governance reforms could delay schemes in the short term.
Ministers acknowledged that the authority, led by Mayor Ben Houchen, has begun addressing the issues, but said concerns remain about its ability to comply with its best value duty under the Local Government Act 1999.
In this case, TVCA has been instructed to produce a comprehensive improvement plan within three months, addressing all recommendations from the various reviews and setting measurable milestones for progress.
The department has also called for strengthened governance arrangements, including improvements to scrutiny functions and organisational culture.
The role of an external panel from the Local Government Association is expected to be expanded, with a greater focus on governance expertise and more transparent public reporting on progress.
Audit findings for recent financial years also pointed to capacity issues within finance and risk teams, with external auditors considering potential statutory recommendations.
The department said it will rely on both the LGA panel and auditors to assess whether improvements are being delivered at sufficient pace.
The situation will be reviewed after 12 months, with the notice either lifted, maintained or escalated depending on progress.
