Teesworks inquiry expected to be published as Sunak defends ‘rigorous process’

The long-awaited findings of the probe into claims of wrongdoing at the UK’s largest freeport are expected as soon as Monday afternoon.

Rishi Sunak and Tees Valley Mayor Ben Houchen during a visit to Teesworks in Redcar (Owen Humphreys/PA) (PA Archive)

An independent inquiry into claims of corruption and illegality linked to the finances at the controversial Teesworks development is expected to be published on Monday.

Rishi Sunak appeared to confirm the report’s imminent release during a visit to the North East, saying it would be “published later on”.

It comes amid speculation the long-awaited review will clear Teesworks and the region’s Conservative mayor Ben Houchen of wrongdoing.

It's been an independent, rigorous process

Rishi Sunak

The Prime Minister defended the “rigorous process” behind the Government-commissioned probe, which has faced criticism over the lack of involvement of the public spending watchdog.

The National Audit Office (NAO) was not tasked with leading the investigation ordered by Levelling Up Secretary Michael Gove last year, with an independent panel made up of three local authority officers from elsewhere in the country set up instead.

The conclusion of the inquiry has been delayed several times, having initially been expected last summer.

Housing minister Lee Rowley is set to make a parliamentary statement on the review on Monday afternoon.

Tory former minister Sir Simon Clarke has claimed the report will clear the flagship regeneration project of any impropriety.

“I am 100% confident that that the substantive allegation of corruption will be proved to be false,” the Middlesbrough South and East Cleveland MP told the BBC last week.

“Actually I’m willing to say more broadly than that, the report will clear Teesworks and Ben Houchen of any impropriety.”

Mr Houchen, who chairs the South Tees Development Corporation which oversaw the Teesworks site and who originally requested the inquiry, has denied allegations of corruption.

Mr Sunak declined to comment on the probe’s findings ahead of their release.

Asked whether the results could be taken seriously without the NAO’s involvement, the Prime Minister told reporters: “No, it’s been done by an independent panel, and as you said, it will be published later on.

“It wouldn’t be right for me to comment in advance of that and I couldn’t speculate on the findings.

“But it’s been an independent, rigorous process, as we said it would be. And later on today, we’ll get the results.”

Concerns about the Teesworks project were previously raised by Middlesbrough’s Labour MP Andy McDonald in the Commons, who alleged “truly shocking, industrial-scale corruption” related to funding in Teesside.

He said the site acquired by the public body South Tees Development Corporation for £12 million in 2019 subsequently received hundreds of millions of pounds of taxpayer investment, but “private developers exercised their option to purchase for a mere £1 an acre plus inflation, paying £96.79 in December 2022”.

The Teesworks and freeport project aims to redevelop Redcar’s former steelworks in the north east of England for green industry.

It was set up as a joint venture between Mr Houchen’s public body – the South Tees Development Corporation – and companies run by two local developers, but was then transferred to majority private ownership in late 2021.

Profits tripled to £54 million in the year to March 2023 after the private sector companies increased their stake to 90%, the Financial Times reported earlier this month.