18:47 - The House divided: - Ayes: 166 / Noes: 272 - Question accordingly negatived.
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)
It is, rightly, a long-standing convention that Opposition parties in this place have the opportunity to raise their concerns through debates such as this, to deal with the big issues of the day and to use the precious time of the House to articulate their vision for the future of this country. On these occasions, the Opposition can choose the subjects, the words they use, the allegations they make and the inferences they allow to be drawn.
So here we are today, having a debate about a blighted and costly site, with a massive price tag when industrial activity ceased, that is being transformed for the benefit of those who live and work nearby, in a region that is on the up. The debate is not about the achievements to date, or the failure of successive Labour Governments and Members of Parliament to improve the lives of people on Teesside. Instead, it is a debate about technicalities. It is not about whether a review will happen, look at these matters in depth or be led by independent experts, because all that will happen. Neither is it about whether the facts will be established, as was raised by the hon. Member for Wigan (Lisa Nandy), because they will be.
Instead, the Opposition have chosen to have a three-hour debate about the process by which a decision was made to have a review that is led by one group of people, instead of by another group of people. It is a debate about how we have chosen to set up a review, in the usual way that we choose to set up reviews rather than in the extraordinary way that the Opposition propose. The Labour party makes strange choices.
I want to say this, because it is important: the Government believe in the people and the places that make Teesside special. We have backed them with funding and powers to level up, which was sorely lacking under the 13 years of the previous Labour Government. That was why Ben Houchen was elected as Mayor in the first place. His record of attracting investment and delivering for the Tees Valley speaks for itself. In that spirit, he approached the Government some time ago about an independent review of the South Tees Development Corporation and the Teesworks joint venture after the hon. Member for Middlesbrough (Andy McDonald) had made serious allegations in the House, which he will not repeat outside the House. I want to make it clear now that, as previously stated, Ministers and officials have so far seen no evidence of corruption, wrongdoing or illegality.
Lee Rowley
I give way to the hon. Gentleman, who can, perhaps, tell us precisely what corruption, wrongdoing and illegality he is alleging.
Clive Efford
I just want to point out to the Minister that what he is threatening my hon. Friend the Member for Middlesbrough with is a strategic lawsuit against public participation. We have had debates in this Chamber about SLAPPs; in fact, the Under-Secretary of State for Business and Trade, the hon. Member for Thirsk and Malton (Kevin Hollinrake), who is sitting next to the Minister, has supported action against them and their use to cover up the Londongrad fraud whereby illegal money has been washed through London banks and financial centres. The Minister should think very carefully before he comes here and threatens people with legal action outside the House to silence democratic debate.
Lee Rowley
There is absolutely no silencing going on. We are debating, we will continue to debate, and we have set up a review to ensure that we understand the allegations that have been made. It is perfectly legitimate for me to point out that the hon. Member for Middlesbrough refuses to repeat those allegations elsewhere, and for people to draw whatever conclusion they wish to draw from that. However, it is also clear that the allegations being made threaten to damage confidence in Teesworks and its success—hence the Secretary of State’s decision on 24 May to commission an independent review of the joint venture.
On the “Today” programme this morning, the hon. Member for Wigan was challenged with the observation that
“there is a danger that political parties throw about allegations of corruption”.
To that point no answer came this morning, and an answer certainly did not come in the opening speech. Now that the Labour party has chosen to allocate a significant amount of parliamentary time to this discussion today, it is incumbent on Opposition Members to spell out their specific concerns. They may have tried not to do that, but they need to state the allegations about which they are concerned.
We listened to a long speech from the hon. Member for Wigan, who set out a factual case about the events that happened in the order in which they happened, but made no comment about what element of concern she felt about each of them. There have been no specific allegations; nothing has been forthcoming except rumour, gossip and innuendo. Perhaps the hon. Lady does not wish to provide allegations, but Opposition Members have certainly alleged that this is the case.
Lee Rowley
The hon. Lady has already had a significant amount of time in which to speak, and I am not willing to give her more time to produce similar innuendo. On 20 April the hon. Member for Middlesbrough was very clear about industrial-scale corruption, but provided no further information. If Opposition Members cannot provide specific information, specific allegations and specific concerns in this debate, that will show how little interest they have in the truth rather than innuendo.
Lisa Nandy
Thank you very much, Madam Deputy Speaker, for intervening to make sure that some basic manners and courtesies are respected.
May I ask the Minister to stop this ridiculous politicking? I have just set out for him a series of concerning points that have been raised by a respected national newspaper, with evidence behind them, many of which are not disputed by those involved in the proceedings. I have explained to him why an independent investigation is needed, and I answered those questions on the radio this morning, as he well knows. He may not agree that the National Audit Office is the best body to investigate, but if he disagrees with that, why will he not tell us the reason? That is all we are asking for.
Lee Rowley
I believe the hon. Lady said on LBC this morning that no allegations of corruption were being made. In the spirit of being willing to accept interventions, I am happy to take a further intervention from her. What specific allegations is she actually concerned about?
Lisa Nandy
We are concerned about the fact that no value for money is being achieved in this project, because of allegations raised in the report in the Financial Times, which set out that hundreds of millions of pounds have been put behind a project that Ministers appear to have handed over and then walked away, in a company 90% of which has been transferred into private ownership, where two investors have taken—apparently; allegedly—£45 million out but put not a penny in. We want to ensure that that constitutes value for money for the public and that this asset, which belongs to the people of Teesside, will be used for the benefit of people on Teesside for generations to come. If the Minister can reassure us in detail on those points, it would be absolutely wonderful. If he cannot, why will he not commit to an independent investigation?
Lee Rowley
That is, finally, extraordinarily helpful. For the first time in multiple questions to the hon. Lady, she has actually given an answer. She is concerned about value for money. Excellent! We are all concerned about value for money across local government. That is why we have a best value regime, which means that the Secretary of State announces inquiries and reviews, and appoints people to undertake them. The hon. Lady and her Front Bench team know that, because we have talked about it on numerous occasions in this place. They are completely aware of the best value regime that this Government use, because in 1999 it was the Labour party that endorsed that regime as part of its legislation.
Lee Rowley
I will give way to my right hon. Friend, who actually knows what he is talking about on this issue.
Mr Clarke
My hon. Friend is right to highlight the fact that it is Labour’s own regime that we are applying, but can we also get on record the fact that Department for Levelling Up, Housing and Communities officials do not believe that the threshold for a best value investigation has been met in this case? That is to say, the civil service does not believe that such an investigation is merited. We are doing it to dispel the allegations and smears from the Opposition.
Lee Rowley
I am grateful to my right hon. Friend for clarifying that important point, particularly in respect of the Department.
It is important, given the inferences by the Opposition, to highlight what has actually been put in place. The specific terms of reference and the announcement that was made long before today are clear about the intention of the Government to clarify this matter. The review will be led by Angie Ridgwell, who is currently chief executive of Lancashire County Council and has over 30 years of experience across local government, central Government and the private sector. She will be supported by Quentin Baker, a qualified solicitor and director of law and governance at Hertfordshire County Council, and by Richard Paver, who brings significant financial experience and knowledge of combined authorities from his previous role as the first treasurer of the Greater Manchester Combined Authority. They bring significant experience of senior public leadership, specific financial and legal expertise, and confidence of detailed scrutiny. All Members of the House should support their important work so that they can proceed quickly and free from partisan comments.
There is still time for Labour Members to articulate why they are suddenly so keen on NAO-led inquiries in local government when they have not been keen on them before. When there are challenges or potential questions, there is a long-standing precedent of someone other than the NAO reviewing and assessing those concerns. Why should Labour Members know this? Because, as I said, they endorsed this process in the Local Government Act 1999. They confirmed that the Secretary of State could determine the approach where there were questions about local government bodies, and as far as I am aware, they have not critiqued the use of those powers when they have been used multiple times before, including in the last few weeks. Perhaps Labour Members could tell me which parts of the Local Government Act 1999—their Act, their decisions, their choices—they have randomly, abruptly and arbitrarily decided, simply for the purposes of an Opposition day debate, that they no longer wish the Government to apply.
If Labour Members are deciding that they no longer want to use the established regime, perhaps they could tell me which of the established reviews, inquiries, panels or commissioners they wish to switch into their newly preferred process. I do not remember this being requested when the Secretary of State intervened following an external review of Labour-led Sandwell Council in 2021, following allegations of serious misconduct by members and officers that painted a deeply troubling picture of mismanagement. Should we move that to an NAO review?
I do not remember Labour suggesting this approach when the then Secretary of State determined to appoint experts to carry out an inspection at Labour-led Liverpool City Council in 2020 as a result of arrests made on suspicion of fraud, bribery, corruption and misconduct in public office. [Interruption.] There is a lot of chuntering on the Opposition Benches, but are they seeking to bring the NAO into that? The hon. Member for Wigan talks about hand-picking, but the Labour party appointed its own inquiry into the wrongdoing. That inquiry was led by a former Labour MP, supported by a peer newly ennobled by the right hon. and learned Member for Holborn and St Pancras (Keir Starmer). And I cannot remember the Labour party requesting an NAO review of Labour-led Croydon Council after a number of serious concerns about the council’s governance and risk management were outlined in a public interest report by external auditors in 2020.
The cold, hard facts are these: the Mayor of Tees Valley has had much success over the past half a decade in bringing jobs, growth and economic development to an area that is now on the up and thriving again, thanks to its Conservative leadership and its engaged and constructive Conservative Members of Parliament. On this specific issue, the Government agreed to a request from the Mayor for a review, which is being set up in a similar way to other reviews. Those who will be involved have been appointed as others have been appointed in the past. The terms of reference have been published using a similar process and, if there is an issue, we will deal with it in the normal way. The experts who are giving of their time and expertise should now be given the time to get on with the job, in the normal way, and to present their conclusions when they are ready.
Sir Robert Goodwill
The hon. Member for Wigan (Lisa Nandy) repeatedly called the site an asset, but it was a heavily contaminated industrial site. Indeed the former Labour Member of Parliament for Redcar, Vera Baird, suggested it could cost up to £1 billion to clean up the site. It is now an asset, but only because of Ben Houchen’s actions.
Lee Rowley
My right hon. Friend is absolutely right, and that is one of the few facts that the hon. Member for Wigan left out of her contribution, in which there was no clarity about what she is actually alleging.
These are serious matters. Serious allegations have been made, and it is incumbent on us all to clarify the position as soon as possible, for the good of Tees Valley. The review we have set up will do that, and we look forward to it reporting in the usual way at the earliest opportunity. Members should welcome and support the review, and I hope against hope that, in the next two hours, they may still do that.
The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
It is absolutely right that this place offers right hon. and hon. Members the opportunity to raise concerns about value for money or process, particularly when it comes to public money, so I am grateful for the contributions from both sides of the House, and in particular from so many fellow northern Members. Indeed, as a Back Bencher, I have on a number of occasions used the privilege that this House offers to raise concerns about other alleged wrongdoings, but I think it important that we consider our language, our tone and the content and context of the claims that are made. I think that it is wrong to exonerate someone without due process, as it is to condemn somebody without due process.
In the case of the South Tees Development Corporation and Teesworks joint venture, it remains the case that the Government have seen no evidence of corruption, wrongdoing or illegality. Neither have the auditors of the STDC, nor have my hon. Friend the Member for Stockton South (Matt Vickers) or the hon. Member for West Lancashire (Ashley Dalton). However, the seriousness of the allegations, some of which have been made in the House and discussed today, could damage public trust, so it is right that they are investigated.
It is important to recognise that the review that we have commissioned was called for not only by Members of this House but by the Tees Valley Mayor himself. Our elected Mayors play an important part in championing their areas—convening communities, local leaders, businesses and investors to support levelling up in those places. As my right hon. Friend the Member for Scarborough and Whitby (Sir Robert Goodwill) and my hon. Friend the Member for Sedgefield (Paul Howell) highlighted, industry on Teesside was in decline prior to Mayor Houchen taking office. The project has the potential to deliver more than 40,000 jobs and billions of pounds of economic growth.
The Mayor has understandably raised concerns about the allegations made, recognising the damaging effects they could have on investments and job creation across the Tees Valley. That was a point raised by the hon. Member for Sunderland Central (Julie Elliott). The continued allegation of corruption poses a real risk to our shared ambitions to deliver jobs and economic growth in Teesside. My hon. Friend the Member for Hartlepool (Jill Mortimer) rightly stated that those concerns and allegations—unfounded at this point in time—deter investment in the region, a point also made by my right hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke). As he said in his final words, we have had enough of talking down the region.
The hon. Member for Middlesbrough (Andy McDonald) said that people did not need to rely on his comments about the allegations being raised, citing newspapers that had raised them. But he must be aware that the Financial Times makes no allegations of wrongdoing, but merely quotes his comments made in this House. That is similar to the points made by the hon. Members for Wansbeck (Ian Lavery) and for Warwick and Leamington (Matt Western). They raised facts, but they made no direct allegations as the hon. Member for Middlesbrough did. Those allegations are an ongoing concern, shared by the Secretary of State for Levelling Up, Housing and Communities, my right hon. Friend the Member for Surrey Heath (Michael Gove) and me. That is why my right hon. Friend has announced the independent review, which will address the accusations directly and robustly.
As the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North East Derbyshire (Lee Rowley) confirmed earlier in the debate, the Department for Levelling Up, Housing and Communities has also now published full details on the review, including the independent panel that will lead the review and the terms of reference. I can assure hon. Members that, in line with existing practice, the Government have appointed a panel composed of external, independent experts with extensive experience at senior levels.
As the lead reviewer, Angie Ridgewell brings extensive experience of senior leadership in local government. She is the current chief executive at Lancashire County Council, having previously held senior roles across the public sector, including as director-general of two Departments. Richard Paver and Quentin Baker have been appointed to ensure the panel are fully equipped to consider the complex legal, financial and commercial matters the review is likely to cover. Richard Paver acts as the finance lead for an existing non-statutory intervention at Wirral Council. Quentin Baker is currently director of law and governance at Hertfordshire County Council and has 17 years of experience acting as statutory monitoring officer for several large local authorities.
The shadow Secretary of State raised concerns about the extent of the review and I understand that, given the time that she had to study the announcement. But she was not right to say that the review relates only to general governance, because it clearly specifically refers to allegations that have been raised, and the inquiry needs to respond on those issues, including commercial arrangements.
Members have raised the question of the prospective role of the National Audit Office. The Government considered carefully calls for an investigation to be led by the NAO. It is not, however, the NAO’s role to audit or examine individual local government bodies, and its powers would not normally be used for that purpose. It would not be appropriate to expand so significantly the role of the NAO by asking it to lead this inquiry. In confirming the review, the Government have been clear that we would welcome any action by the NAO to update its review of Government funding arrangements. These are all points that were raised by the hon. Members for Sunderland Central, for Washington and Sunderland West (Mrs Hodgson) and for Stockton North (Alex Cunningham), as well as by the shadow Minister, the hon. Member for Nottingham North (Alex Norris), who described that position as eccentric despite the fact that it is the established process—a process that Labour actually established.
It is important in this debate that we do not lose sight of the value of devolution in empowering our local communities. Mayoral development corporations are but one tool at the disposal of our elected Mayors to support renewal and regeneration where it is much needed—in places such as Redcar and Cleveland, Middlesbrough and Hartlepool, where the challenges of post-industrial deprivation are significant but the opportunities are equally so. Local and regional government working together with the private sector is an opportunity to provide the leadership and strategic direction needed to enable growth.
Equally, this Government have been clear about the importance of accountability and scrutiny for areas with devolved powers. The English devolution accountability framework, published this March by the Department for Levelling Up, Housing and Communities, sets out the ways in which we expect mayoral combined authorities to make themselves accountable to both the public and Government. The forthcoming scrutiny protocol will set out how we expect such bodies to create a sustained culture of scrutiny.
Once again, I thank Members for their important contributions today. We should be focused on ensuring the best outcomes for the Tees valley, so this is an important debate to have. Only a few years ago, the Teesworks site was a burden to the taxpayer and a danger to the public, with a significant price tag merely to maintain its safety and security. We should not lose sight of the fact that investments in that site—public and private—are helping meet our net zero targets, while providing economic opportunity and a sense of prosperity for future generations.
Question put.