Teesworks Project: Audit

Lord Scriven Excerpts

Wednesday 20th March 2024 Lords Chamber

[Baroness Swinburne (Con)]

I thank the noble Baroness for her supplementary question. I assure her that the letter is on its way; I thought that it was already sent, so I apologise if she has not received it yet. As I outlined in my response to the debate on the regeneration of industrial areas on 7 March, it is not the NAO’s role to audit or examine individual local authorities, and its power would not normally be used for that purpose. I have since looked into this, and expanding its remit previously required the Chief Secretary to the Treasury to grant statutory powers. Therefore, given that we have had a thorough independent review, it is time that we learned from it and implemented those lessons rather than repeat it.

[Lord Scriven (LD)]

My Lords, two businessmen are making multi-millions of pounds of profits on the back of £0.5 billion-worth of taxpayers’ investment, without them putting any of their own cash at risk or taking any liabilities until they are negated against guaranteed income streams. The Tees Valley Review said that these generous contractual arrangements should be renegotiated, as the businessmen are making super-profits at the expense of local taxpayers. Do the Government agree with that finding and the suggested change that needs to be made?

[Baroness Swinburne (Con)]

I can assure this House that the mayor has accepted all the recommendations in that report and is enacting them now. We have asked for a report in six months’ time on how much progress has been made. We expect that there will be significant progress, including any renegotiation of those contracts.