Politicians in row over cash for former SSI site

In his Budget on Monday, Chancellor Philip Hammond revealed a new Special Economic Area (SEA) will soon be established over the South Tees Development Corporation, the 4,500-acre site which incorporates the former Redcar SSI steelworks.

However, debate has raged between Tees Valley Mayor Ben Houchen and Redcar MP Anna Turley ever since about the amount of funding awarded to the site by Mr Hammond, and divisions within the Tees Valley Combined Authority (TVCA) cabinet have also been exposed.

• Comment: Potential SSI investors will see squabbling politicians like drunks outside a late night parmo shop

Mr Houchen said: “The Labour leaders of Redcar and Middlesbrough specifically approved our approach to secure an immediate £14m in the Budget to unlock a specific piece of land for two specific investors, unlocking a minimum of 1,500 jobs. They didn’t ask for more, and neither did the rest of the Board that they sit on.

• Ben Houchen and Simon Clarke react to Budget 2018 SSI site pledge

“This week’s Budget announcement takes total Government investment on this site this year to £137m. When we need more money, I’ll be the first to ask for it - and we’ll get it.

DEAL: Tees Valley Mayor Ben Houchen

“Yesterday I had to take a frantic call from an investor who was threatening to pull out. After an hour on the phone, I managed to reassure them and I’m pleased to say we’re back on track."

Ms Turley said: "I make no apologies for standing up for my constituents – my constituents come first and they always will.

Redcar Labour candidate Anna Turley.

"If the Mayor and his supporters don't want to hear the hard truths or face the difficult questions, then they shouldn't be in public life with the responsibility it brings.

• Cake: Can you have it and eat it?

"It is my job to demand the best for the people I represent and I won't stop doing that however uncomfortable that makes the Mayor.

"I won't stop holding him and the Government to account."

In a joint statement, Cllr Sue Jeffrey, vice chair of the South Tees Development Corporation and leader of Redcar and Cleveland Borough Council and Dave Budd, board member of the South Tees Development Corporation and Mayor of Middlesbrough, said: "We have been honestly dismayed by the angry response of the Tees Valley Mayor to the legitimate concerns raised by Anna Turley.

Sue Jeffrey, chair of Tees Valley Combined Authority (TVCA) and leader of Redcar and Cleveland Borough Council

"The report on the TVCA website clearly ‘no transfer of SSI land will occur until a business case is agreed by the Treasury in the Autumn budget. This is being worked up over the next 3 months and is estimated at c£200m’.

"Whilst we were aware that that government had said that it would not consider making an allocation of this size in the budget at no time did we agree on an alternative amount of £14m."

Paul Booth, interim chief executive officer at the South Tees Development Corporation, and the former chairman of SABIC UK, said: “I attend all Development Corporation board meetings, and the board has not discussed specifically the need for the exact sum of money to kick start the project.

"The board acknowledged that the overall cost to remediate the site is still largely unknown and so no ask could be made of Government at the moment to help support the clean-up.

"The board specifically discounted making a larger request at this time given the further work that is required.

" What is known is that while Government will need to commit more money, which it did in the budget, this project will require a mixture of public and private sector money."