Will Ben Houchen and Teesworks be damaged by the latest storm?

Teesside is supposed to provide the perfect example of Conservative “levelling up” with Tory mayor Ben Houchen working with his party in government to transform the fortunes of an area once dominated by Labour. At its heart is the redevelopment of Redcar’s former steelworks site. But the mood has been soured by allegations of corruption and counter claims of sabotage.

Now known as Teesworks, it is Europe’s largest brownfield development site. Thousands of new jobs have been promised, assisted by its status as part of a low tax freeport.

The claims of corruption and counterclaims Labour are sabotaging its potential success are both vehemently denied.

This is not the first row about it to capture attention beyond the local area. The deaths of thousands of North Sea shellfish in 2021 led to fears they had been poisoned by industrial chemicals from the river during maintenance dredging near the site.

But now there are allegations about Teesworks' ownership and funding. Middlesbrough Labour MP Andy McDonald recently used parliamentary privilege to call for an investigation into what he described as “industrial-scale corruption”.

The concerns he raised focused on the money being made on-site by two local private developers, Chris Musgrave and Martin Corney, who strongly deny any wrongdoing.

Also denying wrongdoing, Mr Houchen says the businessmen's investment is vital to the site's success.

But the row has seen Teesside once again making headlines for the wrong reasons.

The Daily Telegraph reported that two investors - BP and Equinor - had asked for legal guarantees Teesworks was corruption-free. Mr Houchen says they have been given those assurances via contract clauses, and all their concerns have been satisfied. Their plans to build a green energy plant are going ahead.

But Teesworks was raised in Parliament again on Wednesday by Sunderland Labour MP Julie Elliott at Prime Minister’s Questions.

She asked whether ministers had been involved in giving any guarantees to the companies. Rishi Sunak’s response was to say the contracts were a commercial matter for both firms.

What followed was an attack on Labour by Mr Houchen and Teesside Conservative MP Simon Clarke. They both used social media to accuse the party of a smear campaign that was hindering the prospects of bringing in new companies and jobs.

The mayor levelled his fire at Mr McDonald for making “unfounded allegations”, while Mr Clarke accused Labour of trying to “shatter confidence” in Teesworks for political purposes, warning the claims are “damaging investor confidence”.

He added: “It is damaging our area's reputation. And it is utterly untrue.”

It’s clear the stakes have been raised.

Over the weekend former Countdown presenter Carol Vorderman posted about Teesworks to her 760,000 Twitter followers, adding it to the list of beefs she has with the Conservatives. She echoed some of the allegations made in a series of reports in Private Eye magazine.

All of this is not the best marketing tool for a 4,500-acre development that remains crucial to the area’s economic prospects. You can imagine big companies hesitating when taking in some of the recent reporting.

But Labour remain convinced there are questions to answer. Mr McDonald said the Conservatives should deal with facts rather than insults, and it is the Tees Valley mayor damaging the reputation of the area by failing to do that.

This all comes after Labour made gains in the local elections, giving the party more sway on the Tees Valley Combined Authority of council leaders that works alongside Ben Houchen. There has already been talk of more scrutiny over Teesworks.

The mayor is also up for re-election next May and, judging by last week’s results, faces a much tougher battle than when he strolled to victory in 2021.

Then there is the prospect of a general election in which the area’s Conservative MPs will be trying to hold on to seats which look increasingly in peril. Beyond Teesside, Rishi Sunak’s reputation could even be at stake as the freeport concept is his.

If Teesworks is important economically, its success is also vital to the political fortunes of the Conservatives. Both Tories and Labour insist they want the site to succeed, but it is unlikely we have seen the last of claim and counterclaim.

It could be a decade before we actually know what difference the project makes to the local economy, but its impact on the fate of the area’s politicians could come much sooner.

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