‘Hang Your Head in Shame!’ – Labour MP Launches Scathing Attack on Lord Houchen Over TVCA Failures
Another Fine Mess, Lord Houchen! MP Slams TVCA as Government Orders Fresh Inspection
16th October 2026
Labour MP Andy McDonald has delivered a scathing condemnation of Tees Valley Mayor Lord Ben Houchen and the former leadership of the Tees Valley Combined Authority, accusing them of colossal failures and catastrophic incompetence after the government yesterday ordered yet another investigation into the authority's finances and governance.
Middlesbrough and Thornaby East Labour MP Andy McDonald launched the extraordinary attack on Tees Valley Mayor Lord Ben Houchen, declaring the Conservative politician and the authority's former chief executive should hang their heads in shame over what he describes as years of disastrous decision-making and financial mismanagement.
His blistering intervention follows confirmation on Thursday, 15th October, that the Labour government has ordered a formal statutory Best Value Inspection into the Tees Valley Combined Authority (TVCA), amid continuing concerns over its financial sustainability, leadership and governance.
The decision represents yet another major setback for an organisation already subjected to considerable scrutiny following the controversial Teesworks regeneration arrangements, allegations of 'Sweatheart Deals' to developers and previous government investigations.
McDonald, who's repeatedly raised concerns about the authority's management of public money, made little attempt to disguise his frustration.
In one of his strongest public attacks on the mayor to date, he declared:
"The Mayor, Lord Houchen of High Leven and the former Chief Executive should hang their heads in shame for their colossal failures and catastrophic incompetence."
The Labour MP said he was deeply disappointed that government inspectors were once again being drafted in to examine the organisation, arguing that TVCA had failed to demonstrate that it had put its affairs in order.
However, he distinguished between the authority's previous leadership and its newer officers, whom he described as professional individuals attempting to repair the problems they had inherited.
McDonald said he felt sorry for the relatively new management team, who he believes are now left dealing with the consequences of decisions taken by their predecessors.
Teesworks Deal Back in the Firing Line
At the centre of McDonald's criticism is said to be the controversial Teesworks regeneration project, which has already been the subject of intense political scrutiny over its governance, transparency and claims of Sweatheart Deals with private-sector development partners.
The Labour MP argued that the new inspection must go further than the previous independent Tees Valley Review, which was commissioned under former Conservative communities secretary Michael Gove.
Although that review raised significant concerns about governance and transparency, McDonald believes its scope was deliberately restricted, preventing investigators from following the financial arrangements surrounding the development as far as he considered necessary.
He accused Gove of restricting the original investigation and claimed the review team, led by Angie Ridgwell, was unable to properly investigate money passing through the authority and the financial benefits received by selected private-sector joint venture partners.
The original review, published in January 2024, made 28 recommendations overall, including 26 directed at the authority and associated local bodies and two for central government. The review stopped short of establishing any claims of corruption or illegality, instead, carefully worded its report to highlight instead claims of serious governance weaknesses.
McDonald insists that the latest investigation must ensure those recommendations are properly addressed, including reconsideration of the Teesworks arrangements.
He warned:
"This fresh inspection cannot be hampered or restricted in what stones it turns over."
Questions Over Borrowing, Debt and Missing Accounts
The MP also drew attention to the financial questions surrounding the TVCA, including its borrowing commitments, exposure to debt and delays in producing audited accounts.
McDonald believes these issues are fundamental to understanding why the government has decided that further external scrutiny is necessary.
In his statement, he suggested that the continuing problems were also jeopardising the authority's ability to secure government funding intended to stimulate economic growth across Teesside. The government has confirmed that concerns remain about financial sustainability and management, including whether appropriate oversight arrangements exist for the authority's complex commercial and regeneration activities. However, ministers have also said that further devolution powers will remain available to Tees Valley, with details of their implementation to follow.
The inspection will be led by Laura Shoaf CBE, with three assistant inspectors to be appointed, and will examine whether the authority is meeting its statutory Best Value Duty under the Local Government Act 1999.
Inspectors are expected to report their findings to ministers by March 2027.
‘Manchester and Liverpool Are Our Benchmarks’
McDonald contrasted the problems facing Tees Valley with what he considers the successes of other devolved authorities in northern England.
He highlighted Greater Manchester under Andy Burnham and the Liverpool City Region under Steve Rotheram as examples of what regional devolution should be capable of achieving.
According to McDonald, both regions demonstrate the economic opportunities that can emerge when devolved authorities are managed effectively.
But he suggested that Tees Valley has instead been held back by years of poor decisions, governance failures and mismanagement.
Labour MP Says He Repeatedly Warned Ministers
McDonald also revealed that he's continued raising his concerns about TVCA directly with government ministers since Labour came to power following the 2024 general election.
He said he'd previously challenged the authority's spending and decision-making during the last Parliament and maintained that the government's latest intervention demonstrated ministers remained dissatisfied with the progress achieved.
His comments increase the political pressure on Lord Houchen, whose administration has previously defended the regeneration programme and the improvements being made to governance arrangements as calls grow for the Tees Valley mayor to step aside as members of the government are now set to examine the TVCA's accounts & governance structure with a fine tooth comb.
