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.

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.