The government has ordered a statutory Best Value inspection of Tees Valley Combined Authority, led by Conservative mayor Lord Ben Houchen, amid continuing concerns about its finances, leadership and governance.
In an announcement on 15 October 2026, the Ministry of Housing, Communities and Local Government confirmed that Laura Shoaf CBE had been appointed lead inspector under section 10 of the Local Government Act 1999. Three assistant inspectors are expected to be appointed on her recommendation.
Concerns over debt and financial sustainability
In a written statement to Parliament, local government minister Jim McMahon said he had material concerns about the authority's long-term financial sustainability, citing high debt, rising borrowing and interest costs, and declining revenue reserves.
Ministers also want assurance that the authority has the leadership capacity and governance arrangements needed to make and sustain improvements.
What inspectors will examine
The inspection will assess governance and decision-making, the use of resources, audit and accounting arrangements, leadership capacity, organisational improvement plans, and effects on partnerships, community engagement and service delivery. The findings are expected to be reported to ministers by March 2027.
Earlier review and government oversight
An independent review published in January 2024 made 26 recommendations concerning the authority. The government subsequently issued a non-statutory Best Value Notice in April 2025 and monitored progress alongside an independent advisory board.
Ministers acknowledge that improvement efforts have taken place but say concerns remain. The new inspection is intended to establish whether the authority is meeting its legal Best Value Duty.
Inspection does not establish wrongdoing
The inspection has been commissioned, but its findings have not yet been delivered. The government's reference to signs of potential Best Value failure is not a final determination that the authority has breached its duty, nor is it a finding of personal wrongdoing by the mayor.
The authority has indicated that it will cooperate with the inspection and continue its improvement work.