Loan Agreement Approved to Support Teesworks Regeneration
Posted on 31 July 2026
A new financial framework to support the ongoing successful regeneration of the Teesworks site has been approved by Tees Valley Combined Authority.
Tees Valley Combined Authority (TVCA) Cabinet today (July 31) approved proposals to formalise loan arrangements with South Tees Development Corporation (STDC).
The decision marks an important step in strengthening the financial governance arrangements underpinning one of the UK’s largest brownfield regeneration projects, while ensuring robust oversight of public investment.
Cabinet approved the formalisation of existing and future lending between TVCA and STDC and delegated authority for the final loan agreements to be completed.
An independent review separately confirmed that there is sufficient financial capability for all loans associated with site acquisition, site-enabling works and forward-funding activity to be repaid to TVCA.
The arrangements cover borrowing within the approved £350 million loan facility available to STDC and establish clear repayment principles, monitoring arrangements and financial controls for both existing advances and future borrowing.
Independent financial modelling and assurance undertaken by TVCA’s treasury advisers, Arlingclose, has supported the recommendations.
The new framework will replace historic informal arrangements with documented and enforceable agreements, ensuring lending between the organisations is subject to clear terms, regular monitoring and annual review.
Tees Valley Mayor Ben Houchen said: "The transformation of Teesworks is creating jobs, attracting investment and laying the foundations for long-term economic growth across Teesside, Darlington and Hartlepool. As the project continues to develop, this ensures financial arrangements supporting that regeneration are robust, transparent and provide value for taxpayers."
"These agreements give greater clarity over how loans are managed and repaid, while providing the confidence needed to continue investing in the infrastructure and development that is helping to bring this site back to life."
The proposed arrangements provide a transparent and structured framework for repayment of the STDC loan portfolio. Financial risks have been assessed and will be managed through formal loan term and annual reviews.
Independent advice from Arlingclose concluded that, based on current assumptions and the proposed repayment framework, loans associated with site acquisition, site-enabling works and forward-funding activity can be repaid within the remaining period of the business rates retention agreement, including under stressed financial scenarios.
Middlesbrough Mayor Chris Cooke, TVCA Cabinet Portfolio Holder for Finance, Organisational Improvement and Business Growth, said: “Teesworks is one of the most significant regeneration projects in the country, and it’s vital that the financial arrangements supporting its continued development are strong, transparent and accountable.
“By formalising these loan agreements, we are putting in place a clear framework that protects public investment, provides certainty for future decision-making and supports the long-term success of the site.
“Independent assurance has demonstrated the strength of these arrangements, giving us confidence that regeneration can continue while delivering value for taxpayers across Tees Valley.”
The approval forms part of TVCA’s commitment to maintaining strong governance, accountability and financial management as regeneration work across the Teesworks site continues to progress.
The loan agreements will be subject to a separate approval process by STDC Board.
