Tees Valley Combined Authority Crisis: Governance Under Fire as Government Issues Best Value Notice..

The Tees Valley Combined Authority Headed by Mayor Ben Houchen is accused of 'Serious Governance Issues'

Major blow to Teesside, as flagship authority is slapped with a Government Best Value Notice over what's been described as "serious governance concerns"

3rd April 2025

The embattled Tees Valley Combined Authority, helmed by Conservative Mayor Ben Houchen & has long been heralded as the beacon of regional devolution and economic revitalisation of Teesside has today been dealt a major blow, after Government Ministers slapped the failing authority with what's known as a Government Best Value Notice, citing major concerns over finance & governance. With high-profile projects like the Teesworks redevelopment—Britain’s largest industrial zone—Houchen promised thousands of jobs and billions of pounds in investment. However, as of April 3, 2025, the TVCA now faces an ever deepening crisis..

What's Gone Wrong ?

The government’s decision to issue the Best Value Notice, effective for an initial 12-month period, marks a significant escalation in the concerns relating to the management of the public institution. The formal action, announced by the Government today, April 3, 2025, reportedly stems from ongoing issues identified in a 2024 Tees Valley Review & reinforced by external auditors’ findings of alleged "significant weaknesses" in the authority’s value-for-money arrangements.

The notice zeroes in on deficiencies in "governance, culture, partnerships, and continuous improvement," compelling the TVCA now to work closely with the Governments Ministry of Housing, Communities and Local Government (MHCLG) and devise a robust improvement plan.

The Tees Valley Review, sparked in 2023 by allegations of corruption tied to the Teesworks project, laid bare a troubling picture. Whilst it stopped short of proving illegality, it flagged perceived conflicts of interest, poor transparency, and lax oversight, issuing 28 recommendations—26 aimed at the TVCA. Despite Houchen’s assurances of progress, backed by a cabinet of five Labour council leaders and an independent assurance panel, the government’s move signals that these efforts have fallen way short of what's been expected.

Ben Houchen’s Leadership Under Pressure

There's mounting pressure on the Tees Valley Mayor to act on the Government Best Value Notice quickly to prevent yet another scandal

Ben Houchen, often referred to as Lord Houchen since his ennoblement, has been a dominant figure in Tees Valley politics since 2017. Re-elected in 2024 with a strong mandate, he’s credited with securing a £1 billion settlement after the HS2 cancellation and luring major players like SeAH Wind and BP/Equinor to the region. His backers argue he’s transformed Teesside’s fortunes, turning industrial wastelands into economic engines.

Labour MP for Middlesbrough & Thornaby East Andy McDonald was one of the first to publicly raise concerns over the Combined Authority in Parliament...

Yet, the shine has reportedly worn off for many. The Teesworks project, a public-private partnership, has drawn fierce criticism for allegedly favouring Houchen’s alleged business associates with lucrative deals whilst saddling taxpayers with all the risks. Local Labour MP Andy McDonald, who first sounded the alarm on allegations of corruption at the TVCA in Parliament, has hailed the Best Value Notice as a step toward "robust oversight and accountability." pointing to years of financial and governance red flags.

Houchen's pushed back, pledging to "work constructively" with the government and framing the TVCA’s challenges as par for the course for a large organisation. He’s leaned on his cross-party cabinet’s support, noting their backing of responses to the Tees Valley Review. But the government’s notice makes clear that these assurances haven’t quelled concerns in Whitehall & that concerns over the running of the 'troubled' organisation are mounting....

What It Means for Teesside

The Best Value Notice, now in effect, throws a wrench into the TVCA’s plans. A key blow is its disqualification from achieving what's known as "established strategic authority" status, which would have granted a single integrated funding settlement for greater autonomy. Per the government’s devolution white paper, authorities under such notices face an 18-month delay, stunting Houchen’s vision for financial independence & potentially throwing a spanner in the works to many of Teesside's regeneration projects...

The notice also threatens the TVCA’s flagship initiatives—like the Freeport and a prospective Investment Zone both in Hartlepool and Middlesbrough—by risking investor confidence and deepening public scepticism. Houchen’s bold claim of turning Redcar and Cleveland into one of the UK’s richest areas, now seems more fanciful than feasible.

The TVCA’s predicament reverberates beyond Teesside, spotlighting the fragile balance between local power and central accountability in England’s devolution experiment. Mayors like Houchen wield outsized influence, but the Best Value Notice underscores the government’s readiness to step in when governance falters, just like it did with nearby Middlesbrough Borough Council last year. As the government now seemingly looks to champion both economic growth and transparency, the TVCA’s handling of this crisis could influence the trajectory of regional devolution nationwide.

The Road Ahead doesn't look good & could even end Houchen's political career if the situation fails to improve...

The fact that the TVCA has visibly failed to improve on its governance situation suggests the book may fall to the man elected to oversee it....

With the notice now active, the TVCA is under the governments starting gun. It now must engage regularly with the Minister for Housing & Local Government, bolster its independent assurance panel with Local Government Association support, and prove it can reform. Houchen has vowed to prioritise jobs and investment over political squabbles, but the 12-month timeline is unforgiving.

Failure to show any active progress could also trigger harsher measures, like government-appointed commissioners being brought in to run certain TVCA departments—a dire outcome for a mayor who’s built his brand on delivering results.

The Tees Valley Combined Authority’s future therefore hangs in the balance. It could emerge from this as a reformed powerhouse, silencing doubters with real change. Or it could stumble, cementing perceptions of cronyism & systemic mismanagement. For the residents of Teesside, Darlington, and Hartlepool, the outcome will ultimately determine whether their combined authority delivers not just grand promises, but a future they can believe in.