Asked by: Lord Scriven (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government what assessment they have made of the value for money to taxpayers of the South Tees Development Corporation (STDC) given the recent external auditors’ finding of “significant weaknesses” in its value for money arrangements and the auditors being unable to give an opinion on STDC’s 2021–22 and 2022–23 financial statements.
Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)
As part of the local government audit framework, local auditors make assessments of authorities’ arrangements to secure value for money. The findings of ‘significant weaknesses’ in value for money arrangements in the recent audit reports for South Tees Development Corporation (STDC) reflect concerns raised in the independent review of Tees Valley Combined Authority’s oversight of the South Tees Development Corporation and Teesworks Joint Venture.
In September, the Tees Valley Combined Authority (TVCA) Mayor submitted an update on their work to address issues identified in the independent review. My department is assessing this update and will respond in due course.
Asked by: Lord Scriven (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government, following the response to the Secretary of the State for Levelling Up, Housing and Communities from the Tees Valley Mayor in September, what assessment they have made of whether all 28 recommendations from the Tees Valley Review, published 23 January, will be carried out effectively and at the best value for the taxpayer.
Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)
We received a response from the Mayor on the recommendations made by the independent Tees Valley Review. We are currently reviewing that response against the recommendations made and we will publish our response as soon as our review is completed.
Asked by: Lord Scriven (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government whether they plan to respond to the reply to the Secretary of State for Levelling Up, Housing and Communities from the Tees Valley Mayor in September about the recommendations from the Tees Valley Review and, if so, when and how they will publish their response.
Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)
We received a response from the Mayor on the recommendations made by the independent Tees Valley Review. We are currently reviewing that response against the recommendations made and we will publish our response as soon as our review is completed.
Asked by: Lord Scriven (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government on what date they have asked the Tees Valley Mayor to submit his final response to the independent Tees Valley Review published on 23 January, and whether they plan to publish this response in full.
Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)
The previous government’s independent review into the Tees Valley Combined Authority’s oversight of the South Tees Development Corporation and Teesworks Ltd was published 29 January 2024. The then Secretary of State wrote to the mayor in March 2024 requesting a further report in six months’ time. We expect to receive this report in September 2024, and to publish this in due course.
Asked by: Lord Scriven (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government how they intend to monitor progress on the implementation of the 28 recommendations in the Tees Valley Review; and whether they intend to make their findings public.
Answered by Baroness Scott of Bybrook - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
On 7 March, the Secretary of State responded to the Mayor’s initial response to the independent review, acknowledging that the Authority is working collaboratively to engage with the recommendations from the review and working out how best to implement them, and requesting a further report in six months’ time.
When the Mayor’s further response is received, we will issue a Government response as soon as possible.
Asked by: Lord Scriven (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government how many councils have indicated that they are in financial distress and may have to issue a section 114 notice within the next two years.
Answered by Baroness Scott of Bybrook - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
Individual councils are responsible for managing their budgets, and any decision to issue a Section 114 report is made locally. We stand ready to speak to any council that has concerns about its ability to manage its finances or faces pressures it has not planned for.
The Government monitors the financial health of local authorities on a regular basis using a wide range of data as well as through extensive direct engagement with councils.
The final Local Government Finance Settlement for 2024-25 makes available up to £64.7 billion, an increase in Core Spending Power of up to £4.5 billion or 7.5% in cash terms on 2023-24 – an above inflation increase. This Settlement includes additional measures worth £600 million announced on 24 January.
On the 29 February, the Government published details of financial flexibilities agreed with a small number of other councils that requested financial support on an exceptional basis, due to specific local issues that they are unable to manage themselves.
Asked by: Lord Scriven (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government when they plan to publish the findings of the independent review of the Teesworks Joint Venture, and at whose request and for what reasons publication has been delayed.
Answered by Baroness Penn
The timing of the review is dictated by the pace at which the independent panel are able to conduct their investigation. Ministers have not yet received the report. We understand that the report is of interest to parliament and the public alike and hope to be able to publish it shortly.
Asked by: Lord Scriven (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government what grants they provided to the Church of England in 2020, 2021 and 2022.
Answered by Baroness Scott of Bybrook - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
Information on all Government grants to the Church of England is not held centrally by the department. The Government does not routinely pay the Church of England, though it may provide grants to its constituent entities or affiliated organisations via a range of funding programmes, including to deliver on some of the Government's objectives.
Asked by: Lord Scriven (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government, further to the answer by Baroness Scott of Bybrook on 17 May (HL Deb col 251), what discussions they have had with the Tees Valley Mayor about the Redcar Steelworks sites and the Government implementing section 6(3)(d) of the National Audit Act 1983; and whether they plan to implement that section with the agreement of local authorities.
Answered by Baroness Scott of Bybrook - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
On 24 May the Secretary of State for Levelling Up, Housing and Communities wrote to the Mayor of Tees Valley, Ben Houchen, confirming that he had taken the exceptional decision to support the commissioning of an independent review to consider the specific allegations made and Tees Valley Combined Authority’s oversight of the South Tees Development Corporation and Teesworks joint venture. A copy of his letter has been placed in the House of Commons Library and has also been published on Gov.uk. Furthermore, on 25 May, a Written Ministerial Statement from the Minister for Local Government, Lee Rowley, was made in the house detailing the exceptional decision taken by the Secretary of State and that the Terms of Reference and appointments to undertake the Review will be announced shortly.
The Tees Valley Mayor approached Government some time ago regarding the possibility of an independent review of STDC and Teesworks to address allegations which he was concerned could have a damaging effect on investment and job creation across Teesside.
The Secretary of State considered calls for such an investigation to be led by the National Audit Office. It is not the NAO’s role to audit or examine individual local government bodies and its powers would not normally be used for that purpose. As the letter to the Mayor confirms, the Secretary of State does not think it would be appropriate to expand so significantly the role of the NAO by asking them to lead an inquiry. The Secretary of State has stated that he would welcome the NAO updating its previous review of Government’s funding arrangements for the South Tees Development Corporation.
The Government intends to publish detailed terms of reference for the independent review shortly and confirm the appointments to the review Panel.
Asked by: Lord Scriven (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government whether they will provide an update on plans for the former Redcar Steelworks site, and (1) what recent assessment they have made of the terms of the original business case used to agree public funding, and (2) whether they have agreed any changes or amendments to that business case.
Answered by Baroness Scott of Bybrook - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
Further to the PNQ last week, the SSI steelworks in Redcar closed in September 2015, with the loss of more than 3100 jobs. The Government appointed Lord Heseltine to review how the economic fortunes of the area could be turned around, including through the redevelopment of the former SSI site. The Government accepted Lord Heseltine's recommendation in his report Tees Valley: Opportunity Unlimited that it should establish the first mayoral development corporation outside London, the South Tees Development Corporation (STDC).
In 2020, the Tees Valley Combined Authority (TVCA) submitted a full business case to Government. The business case was developed and then approved in line with Green Book principles. The funding is governed by a memorandum of understanding between Government and TVCA, including quarterly monitoring reports on spend, risks and delivery.