Combined authority's improvement plan 'on track'

Tees Valley Combined Authority was issued a Best Value Notice in April over concerns about the stewardship of taxpayers' money, but Rob Whiteman, chair of the independent advisory board, said the authority is on track to meet improvement targets and he may recommend the notice be lifted before summer 2026. Whiteman attributed many problems to a misalignment in understanding the terms and conditions of grants and loans with development corporations; interim finance director Jo Moor has assessed potential liabilities and the authority is building a dashboard to track progress across a 47-action plan. Middlesbrough Mayor Chris Cooke disputed the board's thoroughness, saying more than 50% of actions are not on track, highlighting execution risk and the possibility of continued central government scrutiny that could affect confidence in TVCA-led development projects and funding.

Analysis

Tees Valley Combined Authority (TVCA) was issued a Best Value Notice in April over concerns that taxpayers' money was not being spent appropriately, and Rob Whiteman, chair of the independent advisory board, reported the authority is "on track" against its improvement targets and that he may recommend removal of the notice before summer 2026. Whiteman attributed many problems to a "misalignment" in understanding the terms and conditions of grants and loans with development corporations, signaling governance and contract‑interpretation weaknesses rather than unexplained cash losses. Interim finance director Jo Moor has reviewed potential liabilities and TVCA is building a dashboard to track progress across a 47‑action improvement plan, which indicates management is establishing monitoring and remediation mechanisms. Middlesbrough Mayor Chris Cooke disputes the board's assessment, saying over 50% of actions are not on track and multiple items have missed target dates, which highlights execution risk and raises the prospect of prolonged central government scrutiny that could depress confidence in TVCA‑led projects and conditional funding. Investors and counterparties should therefore treat the timeline for remediation and the outcomes of the liabilities assessment as primary risk catalysts that will determine whether confidence and funding flow back to regional development initiatives.

Key Decisions for Investors

• Pause initiating new exposure to projects directly dependent on TVCA until the Best Value Notice is formally lifted or the authority publishes a sustained record of remediation via the new dashboard
• Monitor three near‑term catalysts: the completion rate of the 47 action items, the findings of Jo Moor's liabilities assessment, and any MHCLG decision on removal of the notice expected before summer 2026
• If exposure is unavoidable, require stronger contractual protections or contingency funding clauses and consider hedging or using shorter‑duration commitments to limit downside from execution delays or further central interventions