THE Tees Valley Combined Authority (TVCA) spent £190m in 2020/21, figures show.

Areas which saw the most spending were business growth (£68.5m), followed by education, employment and skills (£48m).

It was the first full financial year that the authority had access to a £30m adult education budget, which had previously been devolved from the Government.

A total of £41m was spent on transport schemes, while £15.8m went towards concessionary bus fares.

The Government sought to maintain the annual funding in place for concessionary travel, despite a drastic reduction in passenger numbers due to the coronavirus crisis in order that transport operators could keep services running.

The funding was allocated to the combined authority from the Department of Transport as it manages the concessionary travel fares budget for the Tees Valley with the cash then ‘passported’ to operators.

Meanwhile, core running costs for the authority in 2020/21 amounted to £5.4m.

TVCA financial chief Gary Macdonald told members of the authority’s audit and governance committee it had been successful in securing additional funding from the Government for its spending plans.

He also said it had attempted to accelerate investments where it could in order to stimulate the economy during a “difficult” coronavirus-affected period.

A report accompanying the authority’s financial statement for 2020/21 acknowledged the “significant impact” of covid-19 on the Tees Valley economy, but said demand from businesses for financial support so they could grow had remained strong with a number of covid-specific support funds able to be delivered.

The report said: “The combined authority will have a significant role to play in driving the region’s economic revitalisation.

“We will continue to deliver transformational programmes and improve outcomes as a direct result of local decision making. 

“Through our determination to secure a greater transfer of funding, powers and responsibility from London we aim to establish the Tees Valley as a flagship of successful devolution.”

During the previous financial year – 2019/20 – the authority utilised powers for the first time to borrow nearly £30m to help fund its investment plans, although no further borrowing was taken out in 2020/21.

In 2020/21 TVCA also successfully undertook a ‘gateway’ review required by the Government as part of the devolution deal that brought it into being.

The five-yearly assessment determines the progress and impact of specific spending decisions and when completed unlocks another five year’s worth of funding worth about £75m.

TVCA, which is chaired by Tees Valley Mayor Ben Houchen, was established in April 2016 and has devolved responsibility for economic development and growth, transport, housing and adult education.

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