The UK government has confirmed an inspection of Tees Valley Combined Authority to assess its financial management and governance, as ministers seek evidence that earlier improvement efforts can be sustained.
The statutory Best Value inspection will be conducted under the Local Government Act 1999. It will assess whether the authority meets its duty to pursue continuous improvement while considering economy, efficiency and effectiveness. The Ministry of Housing, Communities and Local Government cited concerns about the authority’s debt and its ability to carry improvements through and demonstrate progress at a sufficient pace.
Inspectors will review how the authority makes decisions and manages resources, along with its audit and accounting arrangements. They will assess leadership capacity across the organization and whether the authority’s plans for its Organisational Excellence Strategy are adequate and achievable. The review will also consider effects on services, workplace culture, partnerships and community engagement. Three assistant inspectors are expected to be appointed on Shoaf’s recommendation.
The inspection follows a non-statutory Best Value Notice issued on April 3, 2025, calling for evidence of progress on governance, culture, partnerships and continuous improvement. A government letter dated April 22, 2026, said the notice would stay in place until the department confirmed its next steps.
A separate review published Jan. 29, 2024, examined the authority’s oversight of the South Tees Development Corporation and Teesworks joint venture. Its panel identified governance and transparency shortcomings but said it found no evidence to support allegations of corruption or illegality.
Jim McMahon, minister for local government, devolution and regional growth, said, “Stronger local leadership must be matched by strong local institutions.”
The inspection is not itself an intervention. Under the 1999 law, ministers have powers to intervene if they determine an authority is failing its Best Value Duty. They will consider the report before deciding whether further steps are needed. Findings are due to ministers by March 2027.
