Mayor supports probe into Teesworks claims

Ben Houchen has written to the National Audit Office

A mayor who denied there was "industrial-scale corruption" at a multimillion-pound redevelopment has said he would support a full investigation being carried out.

Conservative Tees Valley Mayor Ben Houchen has faced concerns over the transfer of millions of pounds of assets at Teesworks to private developers.

Labour's Shadow Secretary for Levelling Up Lisa Nandy said there were "serious questions" that "remained unanswered".

Mr Houchen said: "I want this nipped in the bud once and for all."

It followed reports land, potentially worth millions of pounds, at the former steel works site in Redcar were handed to private investors for £100.

Middlesbrough Labour MP Andy McDonald had accused developers of financially benefitting from land that had seen millions of pounds of taxpayer investment.

• Tees Valley mayor denies Labour MP's Teesworks corruption claims

Ms Nandy said the Labour Party had called on the National Audit Office to investigate.

'Tremendous importance'

She cited the Financial Times, which she said "raised questions about the use of public money, the oversight, transparency and accountability of public money".

"We're calling on the NAO to launch an investigation to ensure those decisions are being taken for the benefit of the people, and not just used to line the pockets of a small handful of people," she said.

Ms Nandy said she believed there had been a breakdown of "local scrutiny arrangements".

Lisa Nandy has called for a full independent investigation

Mr Houchen maintained claims of wrongdoing were "untrue" and the site was being "smeared".

He said : "What they [Labour] are trying to do is pull down work that, not just me, but my officials and the team have done to deliver those jobs.

"I am quite happy to put all that to bed and allow the Labour Party to have an investigation."

Mr Houchen later submitted a letter to the NAO, which does not currently have the remit to review decisions made at the site, asking for an exception to allow them to investigate.

'False allegations'

The government previously said the allegations were false and independent audits of accounts had "not raised any concerns".

The NAO previously said it had made inquiries into the government funding that was within its remit, and found funding had been used as intended.

It said it would be liaising with relevant government departments and that no decision on whether to conduct a more detailed audit had yet been taken.