Teesworks Programme: Audit

Debate between Lord Khan of Burnley and Baroness Armstrong of Hill Top

Monday 29th July 2024 Lords Chamber

[Lord Khan of Burnley (Lab)]

My Lords, I pay tribute to the work the noble Lord, Lord Scriven, does in local government, and I understand the deep emotions that he talks about, because there are outstanding questions to which the public deserve answers. We understand that this issue, like all local issues, is emotive. This is evidenced by it being raised in this House and in the other place several times. In fact, the noble Lord, Lord Scriven, has asked this question before. This Government believe that scrutiny and transparency are important. However, we must carefully consider the mayor’s response, due in September, and we will consider any further action to take when we receive it. We are not ruling out any options, and one option could be requesting the NAO to review.

[Baroness Armstrong of Hill Top (Lab)]

My Lords, as the Minister knows, this is an issue that the people of Teesside take very strongly. When I was working in the Tees Valley across a number of constituencies during the election, they really wanted transparency. They want to know what has happened to the money that the public, via the Government and other agencies, have put in and whether the arrangement, which gives 90% of the benefit to two individuals and only 10% to the public, can stand up. I appreciate that the Minister will bring the report, but will he also ask his department to look at an overall system of audit and accountability, because that disappeared when the Audit Commission disappeared, and there is no coherent across-the-board system for the devolved mayors. We want to give them more power, but if they get more power there must be transparency and proper accountability.

[Lord Khan of Burnley (Lab)]

I thank my noble friend for raising those important issues. It is true that the previous Government scrapped the Audit Commission and replaced it with a fragmented, locally led audit regime that is failing. This Government are committed to overhauling local audit and restoring better value for money for taxpayers. We are looking closely at all the evidence, and we will set out our plans, including legislation, shortly. I must remind the House that until we get the response of the Mayor of Tees Valley we cannot explore the options. We will wait for the response to the 26 recommendations which the mayor was asked to look at and then take further action.