Tories angered as council asks for development corporation delay
CONCERNS EXPRESSED AT READINESS OF MDC TO TAKE ON EXTENDED POWERS
TEESSIDE Tories have accused Labour of a “Trojan Horse” scheme to stop a regeneration body after the council called for a pause on the plans.
Middlesbrough Council chief executive Clive Heaphy has written to the Department for Levelling Up, Housing and Communities (DLUCH) to ask that the Middlesbrough Mayoral Development Corporation (MDC) does not exercise its powers until September 2023.
Last week, significant planning powers were officially transferred over to the MDC for the town centre and Middlehaven. The MDC will also have powers to acquire, develop, hold and dispose of land, as well as build new infrastructure.
In response to the Conservatives, Labour Middlesbrough mayor Chris Cooke said he was trying to achieve a “deal that works for everyone”, adding there are “three basic agreements” he wants in place.
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.
A council spokesperson said they believed the pause was necessary to “provide assurance around the legal, governance and regulatory framework” regarding the corporation and its relationship with the council.
In his letter, Mr Heaphy said the council was keen to work collaboratively with the MDC but he was concerned about its readiness to take on the powers confirmed by Levelling Up Secretary Michael Gove last week.
He is also worried 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. He flagged that some, like the bus station and car parks, remained operational and some were income-generating for the council and 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 land-banks 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.”
According to Mr Heaphy, the council has also requested that the Civic Centre is removed from the boundary of the MDC, as the car park may be required as an outdoor space for a temporary school based at Middlesbrough House.
Delays to the Outwood Riverside scheme mean that a third temporary site will be required for the 2024/25 academic year.
TVCA chief executive Julie Gilhespie
claims she has not received a request to remove the Civic Centre from the red-line boundary.
In an email seen by the Local Democracy Reporting Service from Ms Gilhespie to the DLUHC in light of Mr Heaphy’s letter, she said that the MDC planning and business rates powers were already live and there was “no mechanism for them not to be exercised.”
An agreement has been reached with Hartlepool where the council will continue to process planning matters for three months until longer-term agreements are reached, but no such deal exists with Middlesbrough.
According to the email, 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.
In relation to the masterplan, Ms Gilhespie said it had been produced following consultation and a copy was provided to Mr Heaphy last week.
She added: “It is disingenuous to suggest that the only thing that exists is a redline boundary map.”
The letter states that Mr Houchen is in favour of a short extension to the asset transfer consultation timetable.
The TVCA has blamed the “disengagement” of council officers in the run-up to the election for the lack of detailed agreements in place.
A consultation by the Secretary of State for Levelling Up, Housing and Communities and the asset owners is ongoing, with Mr Gove having the final say over the transfer.
The letter has caused outrage from Conservatives in Teesside.
Tees Valley Mayor Ben Houchen said: “I am disappointed to hear that Middlesbrough Council is trying to significantly delay the Middlesbrough Development Corporation project.
“A project that will deliver millions of pounds of investment and 4,000 direct local jobs to areas of Middlesbrough that have been neglected for far too long.
“The constitution and governance arrangements referred to in this letter, which were developed alongside Middlesbrough Council officers and signed off by the five local authority leaders in the Tees Valley, have already been agreed and implemented and the MDC is already in force after it passed through Parliament.” Mr Houchen also said that he had written to Mr Cooke to invite him to sit on the board and was “extremely disappointed” that he had not received a response.
Mr Cooke said he told the mayor he would take up the position at a meeting on May 19 and he was planning to attend the next board meeting in July.
The Tees Valley mayor has previously said that Middlesbrough Council’s financial plans will not be adversely affected in any way by the activities of the corporations.
In response, Mr Cooke criticised the masterplan, claiming there was a lack of substance. He went on to add: “There are three basic agreements I want in place. I want any assets transferred to have a clear written process to ensure minimum service disruption for council and residents.
“We need a clearer agreement that it will not obstruct any statutory duties, like the adaptation of schools or the building of schools. We need that in writing.
“We need assurances over assets not being sold on further without the council getting first refusal.”
Middlesbrough South and East Cleveland MP Simon Clarke said it was a “very poor decision” and accused Labour of a “Trojan Horse attempt to kill the entire project.”
Cllr Mieka Smiles said the council’s Conservative Group strongly condemned the move and called it “nonsensical”.
Mr Cooke said: “I’m not going to put the council in a position where they are going to be financially damaged or liable due to the actions of the MDC. We need a deal that works for everyone and that’s what we are trying to achieve.”
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.