A further update on plans to tackle shortcomings raised in a review of the Teesworks project has been requested by Government.

Michael Gove asked Tees Valley Mayor Ben Houchen to contact him in six months’ time to report on progress relating to the recommendations of the independent investigation. Mr Houchen had earlier written to the Levelling Up and Communities Secretary stating the TVCA would “work at pace” to implement an action plan.

In response, Mr Gove said he was pleased with some of the progress made, adding: “It is clear from your initial response that you are committed to develop and implement an action plan which covers each of the recommendations of the review in order to ensure governance and accountability arrangements are strong and transparent and that scrutiny is robust.”

He requested a further report in September to provide an update on detailed proposals for the recommendations, the progress in their implementation and the impact.

He added: “Improvement takes time, and where the recommendations related to cultural change especially it is important that sufficient time is given for you to develop these and for change to take effect.”

The review was ordered last year by Mr Gove, following a request from Mr Houchen amid strongly denied claims of wrongdoing at the regeneration scheme.

Published in January, the report found no evidence of corruption or illegality but highlighted failings related to governance and transparency at the brownfield site. Expected standards were not being met when it came to managing public funds, it concluded, and systems of governance and finance did not provide sufficient transparency and oversight to evidence value for money to taxpayers.

A working group with representatives from the five Tees Valley local authorities has been formed to progress with the recommendations. Actions outlined include the TVCA working with experts from the Local Government Association and the Centre for Governance and Scrutiny to ensure issues are not repeated.

Any actions ultimately agreed will be submitted to the TVCA cabinet annual general meeting in June. In a written ministerial statement, also issued this week, Simon Hoare, Minister for Local Government, said he was “encouraged” by the progress made since the report was published and was confident the Mayor and his Cabinet would successfully implement the plans.

He was keen to give time for the Mayor to develop the plans further and implement required changes, he said. “Given the issues raised in the report, it is important that rapid progress is made that engages comprehensively with the substance of the report’s findings to implement lasting change,” he added.

The Teesworks project was set up as a joint venture between the South Tees Development Corporation and companies run by two local developers. It was transferred to 90 per cent private ownership in 2021.

The investigation found the private developers put no money into the scheme, but made money on the back of public sector investment of more than £560m. The deal should have been scrutinised more by the Tees Valley Combined Authority, it said.

Around 9,000 jobs are being created with the Teesworks development with a potential of £2.7bn in business rates. The project brings huge value to Teesside, according to Mr Houchen, who said he failed to see how anyone could suggest it was not value for money.