Authority considers conflict of interest guidance
BBCA combined authority says it will "reflect carefully" on government advice stating mayors of such organisations should not chair Mayoral Development Corporations (MDCs) to "avoid conflicts of interest".
But Tees Valley Combined Authority (TVCA) did not say whether elected Conservative Mayor Ben Houchen would step down from his role chairing three MDCs.
The advice was issued on 3 April, the same day the TVCA was hit with a Best Value Notice - meaning it must work with the government to make sure public money is being used appropriately.
Houchen declined to comment when approached by the Local Democracy Reporting Service.
Although the government guidance was issued for all MDCs across the country, it was created to address a recommendation from the Tees Valley Review - an independent investigation into the Teesworks project.
MDCs come into existence after a regional mayor designates a mayoral development area with the object of securing regeneration there.
Separate roles
As of January 2025, there are two MDCs in London, one in Manchester and three in the Tees Valley - the latter all chaired by Houchen.
They are the South Tees Development Corporation, the Middlesbrough Development Corporation and the Hartlepool Development Corporation.
The government said oversight of MDCs "should be clearly separate from decision making to avoid conflicts of interest."
Bearing in mind mayors of combined authorities provide oversight of MDCs, and have powers in relation to the issuing of guidance and direction to an MDC, "the mayor should not be the chair of an MDC," the guidance added.
Previously, it was reported that within the Tees Valley Review there was discussion of "perceived conflicts of interest" and this resulted in changes at the top of the South Tees Development Corporation (STDC), however Houchen remained both chair of TVCA and of STDC.
When asked in December what his reasoning was for this, he said: "The development corporation is my project, and it gives more political accountability to have the directly elected mayor as the chairman of the public body."
A TVCA spokesman said MDCs had cut through bureaucracy to secure investment and jobs.
They added: "We will reflect carefully on the government's updated guidance and work with partners to make any necessary adjustments, while keeping our absolute focus on delivering real outcomes for local people."