Tees Valley leaders have signed off a new financial framework designed to support the continuing regeneration of the Teesworks site and tighten oversight of public funding.
The Tees Valley Combined Authority (TVCA) cabinet approved proposals to formalise loan arrangements on July 31 with the South Tees Development Corporation (STDC) to strengthen financial governance and ensure clearer monitoring of public investment in one of the UK’s largest brownfield regeneration projects.
Ben Houchen, Tees Valley Mayor, said: "The transformation of Teesworks is creating jobs, attracting investment and laying the foundations for long-term economic growth across Teesside, Darlington and Hartlepool.
"As the project continues to develop, this ensures financial arrangements supporting that regeneration are robust, transparent and provide value for taxpayers.
"These agreements give greater clarity over how loans are managed and repaid, while providing the confidence needed to continue investing in the infrastructure and development that is helping to bring this site back to life."
The arrangements cover borrowing within the approved £350 million loan facility available to STDC and establish clear repayment principles, monitoring arrangements and financial controls for both existing advances and future borrowing.
The new framework will replace historic informal arrangements with documented and enforceable agreements.
This formalised structure will include clear terms, regular monitoring and annual review.
An independent review separately confirmed that there is sufficient financial capability for all loans associated with site acquisition, site-enabling works and forward-funding activity to be repaid to TVCA.
Independent financial modelling and assurance undertaken by TVCA’s treasury advisers, Arlingclose, has supported the recommendations.
Middlesbrough Mayor Chris Cooke, who is also TVCA’s cabinet portfolio holder for finance, organisational improvement and business growth, welcomed the new framework.
Mr Cooke said: "Teesworks is one of the most significant regeneration projects in the country, and it’s vital that the financial arrangements supporting its continued development are strong, transparent and accountable.
"By formalising these loan agreements, we are putting in place a clear framework that protects public investment, provides certainty for future decision-making and supports the long-term success of the site.
"Independent assurance has demonstrated the strength of these arrangements, giving us confidence that regeneration can continue while delivering value for taxpayers across Tees Valley."
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The proposals form part of TVCA’s wider commitment to strong governance, accountability, and financial management across its regeneration activities.
Independent advice from Arlingclose concluded that, based on current assumptions and the proposed repayment framework, loans associated with site acquisition, site-enabling works and forward-funding activity can be repaid within the remaining period of the business rates retention agreement, including under stressed financial scenarios.
Final approval of the loan agreements will require sign-off from the STDC board through a separate decision-making process.
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