Government launches Best Value Inspection at combined authority
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The Government has announced a Best Value inspection at Tees Valley Combined Authority amid concerns over the authority's high levels of debt and its leadership and governance arrangements.
Local Government Minister Jim McMahon told Parliament in a written ministerial statement on Thursday (15 October) that inspectors would be appointed to assess the authority's compliance with its Best Value Duty, including in relation to governance, decision-making, use of resources, capacity and leadership.
The decision follows the publication of the independent Tees Valley Review Report in January 2024, which made 26 formal recommendations to the authority.
The 2024 review raised a number of concerns, including "issues of governance and transparency" at the authority, and found that a number of decisions taken by the bodies involved did not meet the standards expected when managing public funds.
In April 2025, ministers issued a non-statutory Best Value Notice to the authority, seeking further assurance that improvements were being made.
The notice set out expectations for improvement in areas including governance, culture and partnerships, as well as action to address the recommendations from the 2024 review.
McMahon acknowledged that improvements to governance and assurance arrangements were now "in train", but said he remained concerned about the scale of work outstanding to deliver and embed improvements, and demonstrate their impact.
He said: "Having considered all available evidence to date, including from the Authority, its independent Advisory Board and the External Auditor, I consider there are signs of potential Best Value failure."
McMahon confirmed that Laura Shoaf CBE would be appointed as Lead Inspector, with the remaining assistant inspectors to be appointed on her recommendation.
Setting out the scope of the inspection, the minister said: "The inspection will provide an evidence-based assessment of the Authority’s compliance with its Best Value Duty, focusing on, but not limited to, governance and decision-making across the Authority; use of resources and audit and accounting arrangements; capacity and capability at leadership level and across the organisation; the adequacy of the Authority’s plans and capacity to deliver its Organisational Excellence Strategy; and how these functions and arrangements are impacting organisational culture, partnerships and community engagement, and service delivery."
A spokesperson for Tees Valley Combined Authority said: "We welcome the appointment of Laura Shoaf CBE and her fellow inspectors and will work openly and constructively with them and we’re pleased the Government are committing the appropriate resource and people to bring this process to a conclusion.
“This is an opportunity to demonstrate the progress that has been made, while continuing to strengthen the organisation and ensure it delivers effectively for people and businesses across the Tees Valley.
“We have always been clear that we welcome scrutiny and constructive challenge. There is more work to do, and we will continue to make improvements wherever they are needed.”
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