Ben Houchen urges decision ‘once and for all’ on development body but Chris Cooke says it’s happening

The Tees Valley Mayor has urged Labour to decide “once and for all” whether a controversial regeneration body will go ahead.

However, Labour Middlesbrough mayor Chris Cooke has said the town’s development corporation is definitely happening but he wants to ensure the correct documentation is in place. Earlier this week, Middlesbrough Council chief executive Clive Heaphy asked for a delay so the Middlesbrough Development Corporation (MDC) would not exercise its powers until September 2023 over concerns about the transfer of £14.7m worth of council assets.

Last week, significant planning powers were officially transferred over to the MDC for the town centre and Middlehaven. There has been a shake-up of leadership at Middlesbrough Council since the start of the MDC process, with Mr Cooke replacing Andy Preston as mayor and Mr Heaphy taking over from Tony Parkinson as the chief executive.

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In a letter seen by the Local Democracy Reporting Service to Mr Cooke from Ben Houchen, the Tory mayor suggested a decision was brought to the next full council meeting to confirm the future of the MDC. He claimed “kicking decisions into the long grass” would only prolong the decline of parts of Middlesbrough.

At a council meeting in February, 16 Labour councillors voted against the proposals, defeating the 12 who were in favour of the plans. However, Mr Gove intervened and gave his support to the development corporation following letters from former Middlesbrough mayor Andy Preston, alongside the three Conservative councillors and all 22 of the independents.

Mr Houchen added: “Clarity is needed. A decision is needed. Dither and delay will only damage the prospects of our local community. I ask that you bring a decision to your next full council meeting on the 5th July to decide once and for all what the council’s position is so that the people we represent are not left in limbo… Should I not have a decision from Middlesbrough Council at the next council meeting, I will take this as your lack of support for the plans and we will not move forward with the MDC.”

Mr Houchen warned that without the transfer of public assets schemes planned in Gresham and Middlehaven would be “impotent from the get-go.”

However, Mr Cooke said the scheme was “way too far down the line” to row back on and has previously spoken about wanting to secure a “deal that works for everyone.” He added: “I think it’s definitely happening and I am definitely going on the board but we need the right documentation in place.

“I honestly believe that we are doing the right thing, all we are doing is asking for assurances they have already promised in their own documents.”

He also did not believe that a vote should be held at the council meeting on July 5, partly because the masterplan could already be voted on earlier that day at the MDC board meeting and partly because that date might not give enough time for councillors to see the most up-to-date documents beforehand.

Mr Cooke added: “I think, personally, that the MDC, if it’s set up correctly and transparently, it’s a good thing. But we need all of these assurances in place, we want to see development but we don’t want to see council assets taken from us with no compensation for them or structure around it.”

The assets set to be transferred include the former Crown pub, almost 40 acres of land in Middlehaven, Middlesbrough bus station and the Civic Centre.

TVCA chief executive Julie Gilhespie blamed the “disengagement” of Middlesbrough Council officers in the run-up to the local election for the lack of detailed agreements in place for each of the assets that are set to be transferred. Mr Cooke said he has requested a meeting between officers from the council and the TVCA so the work can be completed and a solution reached.

Mr Houchen has stated that Mr Cooke will have a veto on any plans that could financially affect the council.

In his letter, Mr Heaphy said he is concerned that “greater confusion and uncertainty” could be caused if all parties involved were not “crystal clear” about the plans and believes more time is needed to iron out the details. He has also raised concern about the £14.7m worth of assets that are set to be transferred and flagged that some, like the bus station and car parks, remained operational and some were income-generating for the council so a compensation scheme would need to be agreed.

He added: “We do not support a wholesale transfer of these properties with the impact that MDC effectively landbanks assets to strengthen its balance sheet whilst MBC loses balance sheet value, cannot provide service and loses income including business rates.”

However, in his letter Mr Heaphy does state the council supports a phased transfer providing there is compensation and an “open and transparent business case” for each parcel of land, before adding “to date, we have not seen a single business case.”

On Thursday, a council spokesperson said a pause is necessary to “provide assurance around the legal, governance and regulatory framework associated with the corporation and its relationship with Middlesbrough Council.”

According to Ms Gilhespie, a clear constitutional framework is already in place for the MDC, interim agreements would be put in place where there are operational assets, and a compensation plan has been agreed with council finance staff but is still waiting for sign-off by statutory officers.

The Middlesbrough Independent Councillors Association (MICA), the council’s second largest group behind Labour with 14 members, has raised concern that Gresham could remain a “bombsite” without the £8m funding promised to the area through the MDC.

MICA leader Cllr Mick Saunders added: “Whilst Chris Cooke shockingly made no election pledges for further regeneration investment into Middlesbrough, he did not say that he would stop approved investment plans.

“It seems that the town has been sold another ‘dud’ as the new mayor has already done a U-turn on his scrutiny election pledge and now seems determined to shut down this new investment without any alternative proposal.”

Previously, Mr Cooke said cross-party scrutiny chairs were a longer-term constitutional change that will happen.

MICA has urged the mayor to ensure the letter sent to the government by Mr Heaphy is withdrawn. Cllr Saunders wanted to make clear that this letter does not represent the views of his group.

In response, Mr Cooke said: “I would like to know if the MICA group feels like we don’t need any of these agreements in place. Hartlepool already had these agreements in place on assets, would they suggest I get a lesser deal?”

Middlesbrough South and East Cleveland MP Simon Clarke accused Labour of a “Trojan Horse attempt to kill the entire project, however, Mr Cooke said he was not going to put the council in a position where it was “financially damaged.”

The development corporation has proven controversial in Middlesbrough. For those in favour it’s an opportunity to cut red tape and turbocharge development, however, those against the scheme have said it’s a needless body that’s conducting a “smash and grab” of £14.7m worth of council assets.

As part of the proposals, £18m of investment that’s lined up for Middlesbrough, including £8m to transform Gresham, has been championed by the Conservatives. However, Labour councillors have argued that the money should be available for the council, regardless of whether an MDC is set up.

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