Dehenna Davison given £2,500 donation by steelworks shareholder

Dehenna Davison, a minister with the Department for Levelling Up, was given the donation in 2019

A government minister has acknowledged receiving a £2,500 donation from a shareholder in a firm involved in the redevelopment of a former steelworks.

Dehenna Davison, of the Department for Levelling Up, was given the payment in 2019 by businessman Ian Waller.

Mr Waller is a director and shareholder of Northern Land Management, which has a 25% stake in Teesworks - the company revamping Redcar's ex-steelworks site.

The government said Ms Davison declared the payment when she received it.

On Wednesday, Ms Davison dismissed Labour claims of wrongdoing around the redevelopment at Redcar.

She wrote to Middlesbrough MP Andy McDonald, who alleged in parliament last month the project had seen "truly shocking, industrial-scale corruption".

In her response to Mr McDonald, Ms Davison said the government had "seen no evidence of corruption, wrongdoing, or illegality".

The Teesworks site could eventually employ about 20,000 people, redevelopment chiefs say

In relation to questions about the donation Ms Davison received from Mr Waller, a well-known Teesside businessman who supports Conservative politicians, the Department for Levelling Up told BBC Newsnight the Bishop Auckland MP had been given it before she became a minister.

Designed to help with her political work, it was registered with parliament's Register of Members' Interests and the Electoral Commission.

A spokesperson said: "Minister Davison received a donation of £2,500 from Ian Waller in November 2019, well before she became a government minister in 2022.

"In line with proper practice, this was declared at the time and appears in the relevant register of MPs' interests."

Mr Waller has made similar donations to Ben Houchen, the Tees Valley mayor who is spearheading the redevelopment of the former steelworks, and to Simon Clarke, the former cabinet minister and Middlesbrough South and East Cleveland MP who criticised Labour's attacks at Prime Minister's Questions on Wednesday.

All of those donations were openly declared.

BBC Newsnight understands the letter sent out in Ms Davison's name was drafted by civil servants.

Lisa Nandy, the shadow Levelling Up Secretary, told BBC Newsnight on Wednesday the government had failed to maintain oversight of the public-private partnership redeveloping the site.

Labour is calling for the National Audit Office (NAO) to examine how a 90% stake in the company operating the site was transferred to two local developers, Chris Musgrave and Martin Corney, without any public tender by the South Tees Development Corporation chaired by mayor Mr Houchen.

Mr Houchen is supporting the calls for an NAO inquiry.

Conservative Tees Valley Mayor Ben Houchen is leading the redevelopment of the site and has defended its business dealings

Teesworks Ltd says a decision to place the site within a much wider Teesside Freeport in 2021 - with time-limited tax breaks - meant contaminated land had to be cleared up more quickly.

In exchange for taking on those costs, the shareholding of the two developers increased from 50% to 90%.

Mr Musgrave told BBC Newsnight: "We are delivering something special that will deliver jobs.

"We have absolutely nothing to hide."

A Confirmation Statement for Teesworks Ltd in December 2021 at Companies House outlined its shareholders.

That shows how many ordinary shares were held at that time out of a total of 100.

It says: "25 ordinary shares held as at the date of this confirmation statement Northern Land Management Limited."

Mr Waller is currently registered as the shareholder with "significant control" of Northern Land Management Ltd.