Middlesbrough Development Corporation

Simon Clarke Excerpts

Tuesday 14th March 2023 Westminster Hall

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

I am grateful to the hon. Member for giving way, and I am conscious that he has given me his consent to speak momentarily. Does he recognise that the planning powers and funding have been made available precisely because the Government have confidence that the development corporation will be a vehicle for regeneration and renewal of a sort that Middlesbrough Council has, I am afraid, sadly not proved capable of offering for too many years?

[Andy McDonald]

The right hon. Gentleman makes an interesting point. I do not share his confidence, and I will set out the reasons why the structure that has been set out is incredibly dangerous. I share his observations about how Middlesbrough Council has been run of late. I will come back to that, but perhaps it is shared territory for us.

Critically, however, the council will have no say on how any development goes ahead or how decisions are made. That is more akin to a protection racket than to good government. Those decisions about development will be made not by the council, but by an unelected board appointed by Ben Houchen, the Conservative Tees Valley Mayor. He will decide who goes on the board, not the people of Middlesbrough or its elected council.

Much is said about devolution, whereby power and resources should be pushed down and be in the gift of the most local possible form of democratic representation. Here, the opposite is being proposed. This is not devolution; it is gangster politics, taking power and control away from the people, while the elected independent Mayor of Middlesbrough and his Tory deputy will be on the board. It seems—

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[Andy McDonald]

On the point the hon. Gentleman made about Darlington, the Labour party often gets the charge that it is somehow anti-growth. That is utter tosh. It is the most pathetic jibe, and Conservative Members would be better served by engaging in intelligent debate.

On his original point, if the hon. Gentleman genuinely wants to talk about crime, disorder and public order on our streets, I suggest that that is what the police should be doing. I do not expect them to be serving on regeneration boards. They should get out, do their job and ensure they have people on our streets looking after our businesses and making sure people are safe. Serving on regeneration boards is not their function, and they should get on and do the job they were put there to do.

There are lots of questions emerging about how the South Tees development corporation and others have operated. My clear preference would be for the much-needed urban regeneration in central Middlesborough to sit with the elected council. In turn, the council can rely on its internal officer expertise, and, where necessary, external expertise from established professional organisations with track records of successful urban regeneration. Dealing with regeneration in that way ought ordinarily to ensure accountability and transparency.

Although I share the concerns expressed by the right hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) about how duties have been discharged by the current political leadership of Middlesborough Council, which runs until May of this year, I fear that the likelihood of there being proper scrutiny and accountability of the proposed MDC is very low. Yet again on Teesside, a board made up of hand-picked individuals will be making important decisions about how valuable public funds are used without any meaningful accountability or scrutiny. Indeed, the MDC will acquire planning powers that currently—and rightly—belong to the council, which will now lose valuable fee income and business rates. That will inevitably place more pressure on the council, which could lead to further cuts.

[Mr Simon Clarke]

Will the hon. Gentleman give way?

[Andy McDonald]

No; the right hon. Gentleman will get his say. He asked me if he could participate in the debate, and I said yes. I will not give way any further, because I want to give him the opportunity to make his contribution.

Those pressures could lead to further cuts in Middlesbrough. We could be walking into yet another public-private joint venture that will end up transferring assets out of the domain of the MDC and into private hands, as per the recent shenanigans at the South Tees development corporation.

Of course I want investment in Middlesbrough. After 13 years of this Government, almost half the children in our town live in poverty. The town mayor and the executive have just voted through a budget that will turn off the street lights, reduce our libraries and seriously deplete our warden service. I see economic growth and development as one of the key levers to turn that around. In addition, we need a more equitable settlement from central Government, but that is a debate for another day.

We have done some great work in Middlesbrough, despite difficult economic times. Here are some examples of the significant successes. TeesAMP, next to Newport bridge, is a state-of-the-art advanced manufacturing park. It hosts many high-quality businesses at the cutting edge of their respective industries, providing high-quality, high-wage jobs. Boho Digital City is a great success story, with over a decade of starting up and sustaining digital businesses. Centre Square in Middlesbrough brings in the likes of GB Bank and AXA UK, to name but two. The historic quarter around Exchange Square works with Historic England, which has funded some wonderful work. The regeneration and redevelopment of our railway station—a subject very dear to my heart—brings better connections and opportunities for the much-needed economic growth of our town.

All those achievements were begun under previous administrations. The clear evidence is that we already have the systems in place to make this work and to enable Middlesbrough to attract investment. It makes little sense, in my mind, to create another layer of bureaucracy. All those achievements were made by people working together through the various democratic institutions. In particular, they were often in partnership and co-operation with the Tees Valley Combined Authority—from when it was set up before Mr Houchen was elected by what were then five Labour councils across the Tees valley, and continuing subsequent to his election.

There is no reason to suppose that those sorts of arrangements could not work again. We should deploy funds in a way that works, and that holds in our institutions of local democracy. All too often, the rules on good governance, integrity and sound money are undermined, with democratic and accountable control taken away from the people and given to chosen individuals to enable them to use vast quantities of public money as they see fit. I fully anticipate that the Government will plough on regardless, but they need to know that the MDC, despite the absence of transparency and democratic integrity within its structure and architecture, will be held to account by the people of Middlesborough for its decisions. I look forward to the Minister’s response.

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[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

Thank you, Mr Paisley; that is very kind. I am grateful to the hon. Member for Middlesbrough (Andy McDonald) for giving me his consent to speak.

To be in politics is to choose, and I choose progress. I want to put on record why the Middlesbrough Development Corporation is so important. It will turn around those parts of Middlesbrough where decay and decline have unfortunately set in deep for many decades. We need the MDC to deliver a strategic vision and accelerated planning powers that will unlock the growth and reform that we all want. Crucially, it will enable not only Government investment but hopefully private sector investment, which will transform areas such as Gresham and Middlehaven. The Labour party in Hartlepool knows that is a model that will work for the town, and so voted for it just last month; every independent and Conservative councillor in Middlesbrough knows it is right for our town, and has expressed that view. They are joined in that by independent, third-party organisations, such as Teesside University.

The Labour party in Middlesbrough alone opposes these plans. Its reasons against them are, I am afraid, sophistry. The Tees Valley Mayor, Ben Houchen, has given the commitment that the council will be no worse off financially for giving away the assets concerned. There is no democratic deficit; as my hon. Friend the Member for Hartlepool (Jill Mortimer) has said, if the town’s mayor and deputy mayor were Labour councillors, they would sit on the board if they were to win the election in May. A majority of the councillors in the town have written to the Secretary of State supporting the plans.

Notwithstanding the innuendo we have heard, there will be no asset stripping; there are very few assets in Gresham and Middlehaven to be stripped, sadly. These are areas that need help, support, investment and regeneration, and that is what we will give them. Labour tried to close our airport; Labour tried to close our freeport; Labour tried to stop the Treasury opening in Darlington; Labour tried to stop the Brexit that Teesside voted for by two to one; and now it is trying to stop desperately needed regeneration in Middlesbrough. It is unacceptable, and it needs to be called out today.

For the first time in my lifetime, good things are happening in our town. A steady stream of important new developments is ensuring that the future of the town is brighter than it has been for decades. Tomorrow’s Budget will hopefully bring further good news in the form of an investment zone—a pro-growth zone of the kind that I was proud to work on while a Minister in the Department for Levelling Up, Housing and Communities, and which our Mayor, Ben Houchen, has been so helpful in developing the proposition for.

I am grateful to the Secretary of State for the strong support he has provided in ensuring that the MDC will go ahead, despite the best efforts of Labour to wreck the proposition. I am equally grateful for the tireless work of our Mayor, Ben Houchen, and my Conservative colleagues in the Tees Valley, as well as all those people in Middlesbrough who have contacted me to express their disappointment and outrage at the actions of the Labour party—the wreckers, the enemies of progress, and the enemies of investment.

As I said at the outset, to be in politics is to take a side. Labour has once again sided against investment, progress and Middlesbrough’s best interests, and today we expose that sorry legacy. I urge everyone in our town to reflect closely, before the pivotal elections on 4 May, on what is truly in their best interests, and who is truly on their side.