Ministers dismiss corruption claims over Teesworks freeport project

Ministers have dismissed accusations of corruption and illegality at the Teesworks freeport site. In a letter to Labour MP for Middlesbrough, Andy McDonald, levelling up minister Dehenna Davison (pictured) wrote that the department had seen “no evidence of corruption, wrongdoing or illegality”. McDonald raised concerns in the House of Commons about the regeneration of the 4,500-acre site near Redcar, which is the UK’s largest freeport. The project is being overseen by Ben Houchen, Conservative mayor for the Tees Valley. Under the original business plan, taxpayer funding would be used to remediate parcels of land, which would be leased out to industrial tenants while remaining in public ownership. Over 25 years, the lease income, plus the proceeds from around £120m of scrap metal, would pay for parcels to be cleaned up. But the mayor is facing criticism about a decision taken privately in 2021 that changed the model and resulted in 90% of the project’s shares being handed to two developers – Chris Musgrave and Martin Corney – in return for taking on the liabilities of the site, as well as half of the scrap proceeds. McDonald accused Houchen, Musgrave and Corney of being involved in “industrial-scale corruption”, saying “the only economic growth being delivered is into the accounts of Ben Houchen’s pals, Messrs Musgrave and Corney”. McDonald cannot be sued for slander because he was speaking in the Commons but Musgrave and Corney said the accusation was a slur and that he should go to the police if he had any proof. In her letter today Davison, said: “Private sector investment and a joint venture was always a core part of the business case for the site, and the National Audit Office’s review found that government funding has been used as intended and the changed arrangements with the joint venture have not altered the case for this funding.” Davison added she would be happy to meet with McDonald “to review any evidence you would like to present”, adding: “To date, we have not been provided nor are we aware that you have produced any evidence since making your claims.” Shadow levelling up secretary Lisa Nandy has called for a “full inquiry”, while Houchen has himself written to levelling up secretary Michael Gove calling for the NAO to investigate Teesworks, to bring a “swift, decisive conclusion” to the situation. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo from Jonathan Hordle/Shutterstock