Tees Valley Combined Authority Best Value Inspection ordered

The government confirmed on 15 October 2026 that a Best Value Inspection will take place at Tees Valley Combined Authority. Ministers said they have “ongoing concerns and remaining questions about financial sustainability and management, leadership and governance” at the authority. Inspectors are due to report their findings to Ministers by March 2027.

The decision affects the authority itself, its mayor and its chief executive, who each received formal letters from the Ministry of Housing, Communities and Local Government (MHCLG). It also matters to people across Tees Valley, because the authority handles public money and regional investment. The government’s published material does not say that any services will change as a result, and it does not set out what action might follow the report.

What the combined authority inspection will examine

The inspection is made under section 10 of the Local Government Act 1999. Ministers have appointed Laura Shoaf CBE as lead inspector. They will appoint three assistant inspectors on her recommendation in due course.

According to the government, the inspection “will focus on but is not limited to” several areas. These are governance and decision-making, use of resources and audit and accounting arrangements, and capacity and capability at leadership level and across the organisation. They also include the adequacy of the authority’s plans to deliver its Organisational Excellence Strategy, and how all of this affects culture, partnerships, community engagement and service delivery.

The Best Value Duty is a legal requirement to “make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness”, the government said. Ministers said they acted because of “signs of potential Best Value failure”.

How the council governance Best Value review came about

This is not a sudden step. The inspection follows an independent Tees Valley Review Report published in January 2024, which made 26 formal recommendations. In April 2025, Ministers issued a non-statutory Best Value Notice seeking further assurance of improvement on governance, culture, partnerships and continuing improvement.

The government said the department has worked closely with the authority and its independent Improvement and Advisory Board over the past 18 months. It acknowledged that “sustained improvement efforts have been made”. Even so, Ministers said they still have concerns about risks from the authority’s high levels of debt and its leadership and governance arrangements. They want assurance that it can deliver and embed improvements “with sufficient pace”. The Local Government Chronicle reported that the 2025 notice related to concerns about governance of the Teesworks regeneration.

What happens next

The timetable is about five months from the announcement to the deadline for the report. In that time, the three assistant inspectors will be named and the team will gather evidence. Ministers have said they will “carefully consider” the report before deciding any next steps. The sources do not say whether the findings will be published.

Jim McMahon OBE, the Minister for Local Government, Devolution and Regional Growth, framed the inspection as part of the wider devolution agenda. In an update to Parliament he said: “As powers and investment increase, so too does the responsibility to demonstrate strong governance, sound financial management, transparent-decision making and effective stewardship of public resources.”

The government also said further devolution will be rolled out “as quickly as possible”. Additional powers under its Rewiring the State plan will be available to Tees Valley Combined Authority, as with all Mayoral Strategic Authorities, and more detail is due this autumn. Residents can read the letters to the mayor, the chief executive and the inspector on GOV.UK.