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BBC News
09-04-2025
- Business
- BBC News
TVCA to 'reflect' on mayoral conflict of interest guidance
A combined authority says it will "reflect carefully" on government advice stating mayors of such organisations should not chair Mayoral Development Corporations (MDCs) to "avoid conflicts of interest".But Tees Valley Combined Authority (TVCA) did not say whether elected Conservative Mayor Ben Houchen would step down from his role chairing three advice was issued on 3 April, the same day the TVCA was hit with a Best Value Notice - meaning it must work with the government to make sure public money is being used appropriately. Houchen declined to comment when approached by the Local Democracy Reporting Service. Although the government guidance was issued for all MDCs across the country, it was created to address a recommendation from the Tees Valley Review - an independent investigation into the Teesworks come into existence after a regional mayor designates a mayoral development area with the object of securing regeneration there. Separate roles As of January 2025, there are two MDCs in London, one in Manchester and three in the Tees Valley - the latter all chaired by are the South Tees Development Corporation, the Middlesbrough Development Corporation and the Hartlepool Development government said oversight of MDCs "should be clearly separate from decision making to avoid conflicts of interest."Bearing in mind mayors of combined authorities provide oversight of MDCs, and have powers in relation to the issuing of guidance and direction to an MDC, "the mayor should not be the chair of an MDC," the guidance it was reported that within the Tees Valley Review there was discussion of "perceived conflicts of interest" and this resulted in changes at the top of the South Tees Development Corporation (STDC), however Houchen remained both chair of TVCA and of STDC. When asked in December what his reasoning was for this, he said: "The development corporation is my project, and it gives more political accountability to have the directly elected mayor as the chairman of the public body."A TVCA spokesman said MDCs had cut through bureaucracy to secure investment and added: "We will reflect carefully on the government's updated guidance and work with partners to make any necessary adjustments, while keeping our absolute focus on delivering real outcomes for local people." Follow BBC Tees on X, Facebook, Nextdoor and Instagram.


BBC News
03-04-2025
- Business
- BBC News
Tees Valley Combined Authority led by Ben Houchen 'must improve'
A combined authority has been told it must improve following concerns about governance and value for Tees Valley Combined Authority (TVCA), chaired by elected Conservative Mayor Ben Houchen, has been issued with a Best Value means it will have to work with the government to make sure public money is being used - a Tory peer - said: "I've always said I'll put politics to one side and work constructively with the government and the prime minister to secure jobs, investment and opportunity for our region." The TVCA is a partnership of five local councils: Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland and Ministry of Housing, Communities and Local Government (MHCLG) said its "concerns relate primarily to governance, culture, partnerships and continuous improvement".The notice follows the Tees Valley Review report, which in January 2024 highlighted serious governance issues and made 26 recommendations. Teesworks investigation The notice said that a "clear, overarching and holistic improvement plan" needed to be agreed by officers and members of the authority within three noted the combined authority was "already taking steps to address the concerns raised".Local Government Minister Jim McMahon told the House of Commons: "The people of Tees Valley must have confidence that every penny of their money is being spent appropriately and today's announcement is about ensuring that is the case."The mayor is also chairman of the South Tees Development Corporation, which is a public-private body overseeing the huge Teesworks redevelopment project at the former British Steel plant near have been calls over recent years for an investigation from public spending watchdog the National Audit Office into the said: "I'm pleased the government has recognised the real progress we've made - and confirmed there is no need for a National Audit Office investigation."That's the right call, and it reflects the work we've done to improve governance while continuing to deliver for local people." Additional reporting by PA Media and Stuart Arnold, Local Democracy Reporting Service. Follow BBC Tees on X, Facebook, Nextdoor and Instagram.