A VISION to hand local decision-makers new powers aimed at attracting investment and creating jobs in an area rocked by a steelworks closure has cleared another hurdle.

Plans to create a Mayoral Development Corporation on Teesside have been formally approved.

Officials say the venture has the potential to transform an area of 4,500 acres, which includes the former SSI UK steelworks in Redcar, by enticing new businesses and inward investment and improving infrastructure.

The proposals have now been backed by new Tees Valley Mayor Ben Houchen and cabinet members at the Tees Valley Combined Authority regeneration body.

Bosses say the cabinet is now seeking Parliamentary approval to establish the corporation, which originated in the Tees Valley Devolution Deal.

The latter includes powers to create locally-accountable organisations aimed at accelerating economic growth through the revival of industrial sites.

According to officials, the Tees Valley is the first area outside Greater London to benefit from such functions.

Mr Houchen has now formally proposed the creation of the new corporation, which has been operating in shadow form, with Parliament asked to approve an order that should lead to the endeavour being founded with new statutory powers this summer.

He said: “The South Tees site is an area of great opportunity; it has excellent access to infrastructure, good transport connections and a catchment area with an exceptional skilled workforce.

“It benefits from access to Teesport and thereby creates new opportunities to access international markets.

“The site provides a unique environment for industrial use, with land particularly suitable for new investment in the process and energy sectors, and a wide range of other global business sectors.”

The area is already home to a number of companies, including MGT Power, which is building the £650m Tees Renewable Energy Plant it says will provide electricity for hundreds of thousands of homes by burning wood chips and pellets imported predominantly from the US.

Potash miner Sirius Minerals also plans to build a storage and distribution hub to house polyhalite from its York Potash development, near Whitby, while British Steel has taken a 50 per cent holding in the Redcar Bulk Terminal, which oversees rail and sea operations, to target further international markets.

Mr Houchen added: “These projects, and many more in our inward investment pipeline, demonstrate the level of ambition for our area.”

SSI UK had more than 2,000 staff at its peak but they were made redundant, alongside about 850 in the supply chain, when depressed steel prices and Chinese imports compounded the business’ massive investment to relight the former Corus blast furnace.

According to bosses behind the SSI Task Force, set up to help workers move on with their lives, the vast majority are now back in employment, though a significant number are earning lower salaries.