Combined authority faces fresh government probe
TeesworksA mayoral authority is to face a new government inspection into its finances.
Local government minister Jim McMahon said he had "material concerns" about the "long-term financial sustainability" of Tees Valley Combined Authority (TVCA).
The body, led by Conservative mayor Ben Houchen, has been under a Best Value Notice (BVN) for the past 18 months. The North East's six Labour MPs said in a statement this inspection was an "escalation" of the BVN and the probe's findings were due in March.
TVCA said it welcomed the scrutiny and would continue to make improvements where needed.
Under the BVN, TVCA has been required to work with the government to make sure public money is being used appropriately.
McMahon said he had appointed the former head West Midlands Combined Authority Laura Shoaf to inspect TVCA's compliance with the notice.
Three assistant inspectors are yet to be appointed, according to the Local Democracy Reporting Service.
McMahon said he was worried about TVCA's finances due to its high levels of debt, increasing borrowing and interest costs, as well as its declining revenue reserves.
He said: "Given the scale and complexity of the authority's commercial and regeneration activities, I would welcome expert assurance that appropriate arrangements are in place to oversee and mitigate the associated risks."
TVCA said it would work constructively with its inspectors.
A spokesperson said: "This is an opportunity to demonstrate the progress that has been made, while continuing to strengthen the organisation and ensure it delivers effectively for people and businesses across the Tees Valley."
