Teesworks Programme: Audit

Debate between Lord Khan of Burnley and Lord Scriven

Monday 29th July 2024 Lords Chamber

[Lord Scriven (LD)]

I beg leave to ask the Question standing in my name on the Order Paper, and so doing draw the House’s attention to my interest set out in the register as a vice-president of the Local Government Association.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Lord Khan of Burnley) (Lab)]

The previous Government asked the Tees Valley mayor to provide a progress update in September, following the recommendations of the independent review of Tees Valley Combined Authority’s oversight of the South Tees Development Corporation and Teesworks Joint Venture. Once we have received that update, we will consider whether the questions that need to be answered have been and whether any further action should be taken.

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[Lord Scriven (LD)]

My Lords, many Teessiders’ jaws will drop on the floor when they hear that Answer from the Minister, as every Labour candidate in Teesside promised that a National Audit Office review would take place. In the light of half a billion pounds of taxpayers’ money being used and two businessmen making multimillion pound profits without taking any liabilities or any risk to their money, does that constitute best value? Why leave the people who have created the mess to solve the mess without any enforceable action being taken by Government?

[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.

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[Lord Khan of Burnley (Lab)]

That is absolutely the case. However, there are recommendations on decision-making, governance and scrutiny. I appreciate the noble Lord’s question.

[Lord Scriven (LD)]

My Lords, I appreciate that the Minister has said the Government have to wait for the mayor’s answers to the questions, which is different from what was being said before the Government were on the Government Benches. However, the review panel said in the report that the responses

“reduced our confidence that we have been given access to all relevant materials”.

The panel also said that it had

“not been able to pursue all lines of evidence or examine all transactions”.

Is that not why a full statutory audit is required: so that the Government convince themselves that Teessiders are getting value for money? With a response from the mayor, the report will have not seen all relevant information.

[Lord Khan of Burnley (Lab)]

The noble Lord again makes an important point. I remind the House that it is not the normal role of the NAO to examine or to audit local bodies. However, I understand that the NAO previously stated that it is willing to work outside its usual scope to undertake a review about Teesworks. We cannot prejudge the response of the Mayor of Tees Valley. When we get that response, we will look at it. In relation to the noble Lord’s question, that is another issue for the combined authority and the Mayor of Tees Valley to look at. Whatever happens, once that response is back with the Government, we will look at it and take further action then.