‘Poor quality’ accounts
Auditors EY say they are unable to sign off on the Tees Valley Combined Authority’s 2024-25 accounts having identified a catalogue of financial reporting errors, including “material misstatements” that were evident simply from reading the document.
A report from Jennifer Williams in the FT said that criticisms of the accounts’ “poor quality” came as other details emerged about TVCA’s finances, including more than £500m in lending it has done in recent years without loan agreements in place.
Two big TVCA debtors - the South Tees Development Corporation and Teesside International Airport - are said to be struggling to repay their loans and the authority intends to borrow more from the Government as a result.
TVCA, which is chaired by mayor Ben Houchen, oversees the Teesworks site, a regeneration project that has been embroiled in controversy over profits made by private developers on the scheme.
EY in its report noted TVCA had “several individually significant” and “complex” transactions that were not typical of a local authority, concluding that it had not understood how to account for them.
Peter Morris has filed a detailed report for North East Bylines. He comments that Jo Moore, who was brought in as group director of finance & resources in July on a 12-month contract, presented two updating reports to the TVCA cabinet “and they are brutal in exposing the way the budgets of the TVCA Group – principally the authority itself, the STDC and the airport – have managed their borrowing and lending”.
He concludes: “Houchen has been mayor and thus chair of the TVCA cabinet throughout the relevant time; he was chair of STDC until being forced out by Government pressure in June, thus being both a lender and a borrower; and the airport has been his pet project since it formed the centrepiece of his first mayoral election campaign in 2017. He must carry the prime responsibility for the current mess.”
Caught off guard
Another story concerning Ben Houchen this week - he says Cleveland chief constable Victoria Fuller is refusing to meet after telling him she did not want Town Guards in Middlesbrough.
It was announced in September that £1.3m from the combined authority would be used to vet and recruit individuals who would be given formal police powers to tackle crime and disorder in the town centre.
The mayor said in a Facebook post: “For Cleveland Police and the Police and Crime Commissioner to turn their backs on our plans and attempt to frustrate them every step of the way, ignoring the concerns of local businesses and residents, is nothing short of unbelievable.”
PCC Matt Storey said he was not opposed to the scheme in principle. “That’s why it was so disappointing when the Mayor announced it on social media without any prior consultation with me,” adding it was not true that he is unwilling to have discussions about the plans.
Police and Crime Commissioner roles are being abolished at the end of the current electoral cycle in 2028, with their powers - which includes the hiring and potential firing of chief constables - transferred to regional mayors.
Cultural change
Two years ago the chief executive of Newcastle City Council was questioned by the audit and standards committee and refused to deny that there was the presence of a “toxic” atmosphere and bullying within the council.
With a wider investigation now being conducted into the governance of the council, Pam Smith was back in front of the same committee this week and the subject of culture at the council understandably came up.
She said: “At that time I gave a particular answer. If you were to ask me that question again today, I would say that the culture in the council that we have now is very professional. There are good relationships with cabinet and the leadership of the council and I can sit here and say that my team have very good, excellent relationships.”
What’s changed? Hopefully the inquiry will tell us.
Ex mayor goes Green
Former North of Tyne mayor Jamie Driscoll has joined the Green Party. He ran as an independent in the 2024 North East mayoral election after failing to secure the Labour nomination and came second to Kim McGuinness.
He then set up his own party, Majority, with his eyes fixed on picking up council seats in Newcastle in May’s all-out elections.
“Britain’s a mess. British politics is a mess and it’s not the fault of immigrants,” he said. “Food prices, energy prices, housing prices are all too high. Our economy isn’t working for workers, it isn’t working for small businesses. It doesn’t have to be like this. I’m joining the Green Party because I see an organisation that’s serious about running our country in the long-term interests of all our people.”
Spanish ayes
Spanish company Aena Internacional, which operates most airports in Spain, has bought a significant stake in Newcastle International Airport.
The airport will continue to be controlled by the seven North East councils, the LA7, who retain a 51% stake. InfraBridge, which had the remaining 49%, has sold just over half its shares to state-controlled Aena - who have also bought a 51% stake in Leeds Bradford from InfaBridge. The two companies are trusted partners and already own Luton Airport.
CEO Nick Jones said: “This agreement is significant news for the airport’s future ambitions recently outlined in our Masterplan 2040, and we are delighted that our performance, potential and ambitious growth plans, have been recognised by Aena.
There were strong suggestions in March that the Saudi Public Investment Fund (PIF), owners of Newcastle United, would take on the entire InfraBridge shareholding. This deal is just a reminder that it’s gone very quiet on the Saudi investment front (and I’m not talking about the football transfer window).
Talking of the airport…
Bad news: Newcastle International Airport is closing its free 15-minute drop-off point outside the terminal. Good news: It is opening a new waiting zone for taxis and the public offering up to 90 minutes of free parking ahead of a forecasted six million passengers that will pass through the airport in 2026.
Good or bad news?: The new waiting zone is a Metro stop away next to Callerton Parkway station in Woolsington. From January 6, the airport will run free electric shuttle buses every half hour.
New Leaf
Production of the all new Leaf began at Nissan’s plant in Sunderland on Tuesday, the same day the Government announced a £50m fund for the North East to protect and grow jobs by backing supply chain firms to make the most of the opportunities from electric vehicle transition.
The production of the third generation of its electric vehicle marks a £450m investment from the Japanese company. The new Leaf is also the first model to be produced under Nissan’s EV360 strategy, using renewable energy produced on site and batteries from the neighbouring AESC gigafactory.
Speaking at an event to mark the start of production, Adam Pennick, Nissan’s vice president of manufacturing in the UK, welcomed a series of Government measures intended to support the automotive sector.
Meanwhile, 26 new EV charging points are now available for use across County Durham and Northumberland as part of North East mayor Kim McGuinness’s plan to instal 1,000 charge points in the next five years.
At the top table
Generator CEO Mick Ross has been appointed to the influential Creative Industries Council where he will sit among leading figures from film, TV, design and other creative sectors to champion the regional music industry.
“For too long, we’ve been trying to shout from the outside in,” said Mick. “Having a seat at the table means we can more confidently represent the outstanding work happening right across the North - a region that’s now attracting not just national, but global attention.”
The council serves as a strategic forum for collaboration between industry leaders and government. Other new appointees include Alison Lomax, MD of YouTube UK & Ireland, Ben Roberts, CEO of the British Film Institute, and Sinead Rocks, chief executive of nations and regions for Channel4.
Must do better
Newcastle City Council is facing a £10m overspend this year - not helped by its property portfolio currently projecting a £4.5m deficit, blamed on a series of “significantly underperforming” sites.
An action plan for improvement in its property services was agreed with a programme of reviews to identify whether the authority should retain or dispose of certain assets. The Partnership House office building in Gosforth is £2.3m off its agreed budget. Other underperformers include The Core, Higham House, the Grainger Market and Eldon Square - the council has a 40% stake in the shopping centre.
A quick word
Pop star Jade and Colman’s fish and chip shop boss Richard Ord received the Freedom of South Tyneside this week at a ceremony in the Town Hall in South Shields. Angel of the North creator Sir Antony Gormley has withdrawn his plan to purchase the old fire station in Hexham and turn it into a gallery and storage space - despite widespread community support. Newcastle MP Chi Onwurah hasn’t given up all hope of the Swing Bridge swinging again in time for its 150th birthday next year saying restoration work is “finally moving in the right direction”. It’s a year since the first of the new Metro trains came into operation and Cathy Massarella, MD of operator Nexus, said she expects to have all the old trains replaced by the summer. The Grotto on Marsden beach in South Shields has been forced to shut and cancel its Christmas bookings. The only way to get down to the bar and hotel is via a lift or steps, which the council have closed for safety reasons. The fire brigade has now forced the venue to close because of “inadequate means of escape in the event of fire”. Anyone hoping to hire an e-scooter in Newcastle between 9pm and 4 in the morning during the festive season will be locked out unless they pass a cognitive test in the app. Operator Neuron is also sending out safety ambassadors equipped with ‘educational’ breathalysers. Sunderland University said the £4.2m Northern Ophthalmic Research and Innovation Institute (NORI) will open alongside the city’s new eye hospital in 2026. Some town and parish councils across County Durham are facing a cut in their budgets as the Reform-led council has proposed cutting the entirety of the £1m grant funding it gives out each year.
Bright lights
County Durham’s flagship cultural programme, Into the Light, has had quite a first year, supporting 600 creative practitioners and freelancers, reaching more than 7,000 people through workshops, performances, and creative activity, and welcoming a combined audience of 14,000 to events.
Programme director Julia Handelman-Smith said: “These numbers make clear how Into the Light is shining a light on County Durham’s unique and thriving cultural identity.”
A big success was Horden-based theatre company Ensemble ‘84 who took a group of people and put them on a six-month paid acting course, before putting on two productions - then winning three North East Culture Awards, including Newcomer of the Year, Performance of the Year, and the Arts Council England Award.
Data bonus
A Newcastle-based rates solutions team is taking up the fight against data poverty on high streets across the North East.
Fuse Media fills dormant business spaces with free Wi-Fi and offers unique advertising opportunities regionwide. And bosses have spotted an opportunity to impact positively on communities struggling to unlock the power of mobile data.
“We’ve always supported landlords during vacancy periods by installing free Wi-Fi with advertising in empty units,” said Fuse Media founder and director Jamie Mableson. “This helps to save on business rates but the knock-on effect is that the Wi-Fi is freely available to the public and local businesses.
“At a time when the cost of living continues to stretch families across the country, we’re able to make a real difference to data poverty.”
Remembering Paul Collard
People gathered at Hexham Abbey on Wednesday for the funeral of Paul Collard, visual arts champion and ‘visionary’, whose recent death shocked and saddened a lot of people.
David Whetstone has written a lovely piece in Cultured. North East. “Plenty of people will have fond memories of Paul while many others who never knew him personally benefited from the work he did as a champion of creativity in education.”
Paul first came to the North East in 1993 to head Visual Arts UK and put together a year-long programme in 1996 that would make the region a national showcase for the visual arts.
“Then a youthful 41, he was a bundle of energy and ideas, inspirational, irrepressible and with a ready laugh that frequently gave way to giggles,” writes David. “He was fun to be around, never short of a good story for a journalist and wired to bring out the best in people.”
Business bites
The North East Combined Authority continues to sign up talented people from across the region - and beyond. Charlotte Carpenter, Director of Skills, Inclusion and Public Service Reform, announced several promotions and appointments this week including Tim Pain joining as assistant director of skills from Sunderland University, Reshma Begun leaving the Federation of Small Businesses to become head of skills policy and insight, and Dan Jackson joining the public service reform team as assistant director on a 50% secondment from his NHS role. Gateshead-based Northern Gas and Power is looking to continue its expansion by opening an office in the UAE. It was launched as a one-man company in 2013 by founder Fokhrul Islam. Today it employs more than 630 people at its HQ in Baltic Place. Estate agency group My Property Box has taken over Ashington-based Clarke Holland - its 16th acquisition in seven years. A new low-cost rail service has launched linking Glasgow with Newcastle and London. Newcastle-headquartered Lumo is offering fares from £33.10 between London and Glasgow and £10.90 between Newcastle and Glasgow. “We’re growing, we’re investing and we’re building a business with strong foundations for the future, said chief executive Kevin Brown after the latest set of figures from appliance repair and warranty services company Pacifica Group were announced. Newcastle-based data and technology business Serios Group is forecasting record growth of around 35% in 2025-26, marking its sixth consecutive year of expansion.
1972 ad break
Not a TV advert, as such, for you this week but a three-minute spoof of TV commercials, satirised by comic genius Stanley Baxter who died in a London care home last week aged 99.
The Stanley Baxter Picture Show was a series of extravagant one-off specials on ITV where Baxter used split-screen and painstaking editing to appear as multiple characters in the same scene.
His perfectionism meant hours in costume and makeup between lines. The image-mixing technology would seem primitive today, but it was ground-breaking at the time and required careful staging to make it all look convincing.
Look out for the ‘Queen and Prince Philip’ in a parody of the Leonard Rossiter and Joan Collins Cinzano ad.
THE WIDER VIEW
Alarming story
“I’m one of the meanest people I know,” Jonathan Ruffer tells The Telegraph. His alarm clock broke recently, and he rejoiced in having bought a new one for £3.40. “I gave myself a high five.”
For those who don’t know, the gentleman in question is an investment manager. A very good one. He made a fortune when he predicted the financial crash of 2008 and by 2015 he was earning the equivalent of the average annual wage every six hours.
Today he is the owner of Auckland Castle and its world-famous set of Zurbaran paintings. He only intended to buy, to save, the paintings but was persuaded to take on the 900-year-old castle as well - once the palace of the Prince Bishops of Durham.
That £11m investment in 2012 has grown into The Auckland Project, a charitable trust dedicated to restoring the castle and re-energising Bishop Auckland. Last year, just over 150,000 people visited the estate – the palace, the gardens, galleries, the Faith Museum, and Kynren, an open-air spectacular staged against the castle backdrop, telling 2,000 years of British history with hundreds of local volunteers.
The interview gives some wonderful insights about his upbringing, his faith, and his return from a silent retreat where he had a revelation: he would give his money away and work with the poor.
I think he’s got a fair way to go yet, mind.
Winter wonderland
I’ve already brought you a brilliant Substack article by Emma Monk (Eyes & Ears 28.11.25) on how certain sections of the media seem determined to create a false narrative that brands are avoiding the word Christmas in order to be more ‘inclusive’.
She has now written a second Monk Debunks column - this time jumping to the defence of the wonderful Bowes Museum at Barnard Castle after Bargain Hunt star David Harper (no, me neither) urged people to avoid their winter market.
She points out that Barnard Castle has already had a Christmas lights switch-on with Father Christmas, Carol singers and Christmas trees. The Bowes Museum market was also called a winter market last year but no one was outraged by it then.
“This kind of Christmas rage bait has existed in right-wing online spaces for several years now, but it hasn’t bled into our newspapers like we’re seeing this year,” she said.
Maybe it’s because like-minded newspapers are feeding off each other. I clicked on the link in Monk Debunks and it took me to a Daily Mail article - which makes it clear that Mr Harper was originally quoted in an article for the Express.
Roots postscript
Great post from fund manager Debbie Zima on LinkedIn who has been reflecting on the Community Foundation’s North East Roots Homecoming events, as featured in Eyes & Ears 14.12.25.
“I spent my first 28 years here, and although life and work have taken me elsewhere over the past 35, this region has never really left me - seems the North East has a way of doing that,” she wrote.
“What struck me most across the events was the shared belief in what already exists here - quite simply, the people. The humour (unique), the straight talking (always), and the instinctive sense of looking out for one another (rooted).
“Hearing from expert panels from across economic growth, creativity and community was personally inspiring, and the awards were a powerful reminder of the North East’s reach - celebrating figures such as Tim Healy, George Clarke, Thom Lewis and Ann Cleeves OBE, alongside brilliant regional organisations like Ringtons and Greggs, and creatives including Tom Ford and Malcolm Gerrie.
“Through the North East Roots Homecoming initiative, it was clear how strongly people continue to carry this region with them, wherever they are. Geography may change, but belonging doesn’t.
“I left feeling grateful, inspired, and convinced there’s a real swell building. The North East continues to show up for itself - and that feels quietly powerful.
Great — if long — read, Brian