Tees Valley Combined Authority (TVCA) best value notice remains

The notice – a formal notification of concerns about governance and value for money and requiring improvements – was issued last April and subject to a 12 month review.

A letter sent this week to TVCA chief executive Tom Bryant said – 12 months being up – the notice would remain in place until the Department of Housing, Communities and Local Government deemed it “necessary to continue to seek assurance through such a notice or not, or that further action is needed”.

It could have been withdrawn, or even escalated.

The letter said: “The department continues to require assurance of the authority’s compliance with the best value duty and ministers are currently considering appropriate next steps based on the available evidence.”

The letter, written by a senior official, James Blythe, deputy director of local government stewardship and interventions, praised Mr Bryant and his senior team for their ongoing dialogue over the past year and recognised the “hard work you’ve led in response to the issues identified”.

Last month Tees Valley Mayor Ben Houchen said he did not think the notice would be removed any time soon.

He said: “I personally believe that the best value notice won’t be lifted for some time, because we need a clean set of audited accounts.

“I don’t think an official in MHCLG would make a recommendation to the Secretary of State to get rid of [the notice], until they have audited and signed off accounts, so they can hide behind those and say ‘well the auditors have signed it off so that’s fine’.” 

Citing improvements made, he gave one example as making a “huge difference”, which was a clearer explanation of  budget arrangements detailed in cabinet papers and how TVCA and its constituent bodies were managing loan arrangements.

Last summer cabinet members approved an organisational improvement plan with five strategic priorities

• Rebuild trust and shared ownership across the combined authority
• Strengthen governance, oversight and accountability
• Build a high-performing organisation with a strong operating model
• Embed a culture of continuous improvement and openness
• Deliver strategic clarity, long-term planning and prepare for the next phase of devolution.

Alongside this, an independent advisory board has been guiding the authority in making improvements. 

TVCA is also reviewing governance structures so that decisions are made more transparently, consistently, and in line with national expectations for devolved authorities. 

An investment committee is set to be created to oversee how TVCA develops, prioritises, and approves investments. 

This is to ensure decisions follow clear rules, provide better value for money, and give cabinet members strategic oversight without becoming overloaded by detailed business case work.

A recent cabinet report said: “These proposals strengthen TVCA’s governance, fill clear gaps identified through the improvement process, and ensure that the combined authority’s decision‑making arrangements keep pace with both national legislation and government expectations on transparency, assurance and accountability.”

Additional governance mechanism recommendations include strengthened delegations, enhanced pre-cabinet processes, improved cabinet member support, and clearer informal governance arrangements to further support the cabinet in delivering more transparent, balanced and effective decision making. 

Prior to the imposition of the notice, TVCA was already working on an action plan in response to a Government commissioned independent review published in March 2024 which examined its oversight of the South Tees Development Corporation and a joint venture partnership set up to attract investment to the Teesworks site near Redcar.

This made 28 recommendations to strengthen governance, legal and administrative frameworks and related bodies in order that value for money for taxpayers is achieved. 

When the notice was announced, the then Minister of State for Local Government and English Devolution, Jim McMahon said residents of the Tees Valley had been living under a “shadow of uncertainty” with investment in the region demanding full confidence from both the public and the private sector. 

He said: “I hope that this process will offer the opportunity for a reset, providing the foundations for future investment into the area oriented towards the public good, underpinned by good governance, transparency, and accountability. “

A TVCA spokesperson said: “TVCA is continuing its work to deliver the objectives set out in our organisation improvement plan, including strengthening governance and further developing partnership working. 

“We will continue to work closely with the Government, our improvement board and all partners as this process moves forward.”