A brand new inquiry into the Teesworks web site has been ordered by the federal government - however considerations are being raised concerning the powers the probe could have.

Levelling Up Secretary Michael Gove has written to the Conservative mayor of the Tees Valley, Ben Houchen, to say that he'll "appoint a panel, in line with established practice, to undertake an independent, external assurance review".

This comes following allegations of "corruption" - together with from Labour MPs - on the web site of the previous Redcar Steelworks, which is being redeveloped right into a freeport.

It had been anticipated {that a} statutory National Audit Office (NAO) inquiry could be instructed, however this has not materialised.

A spokesman for the NAO mentioned: "In discussions with authorities officers final week, the NAO indicated that it was keen and in a position to perform an examination of the South Tees Development Corporation and the redevelopment of Teesside Steelworks, if the required settlement was in place.

"The government has decided to make alternative arrangements for looking into these matters, as is its prerogative."

In his letter, Mr Gove mentioned: "I've thought of requires such an investigation to be led by the NAO.

"It is not, however, the NAO's role to audit or examine individual local government bodies and its powers would not normally be used for that purpose.

"I don't suppose it could be applicable to increase so considerably the position of the NAO by asking them to guide this inquiry. Nonetheless, I'd welcome the NAO updating its evaluation of presidency's funding preparations for STDC."

Mr Houchen mentioned: "I welcome the government agreeing to my request for an independent review into the Teesworks project, including the involvement of the NAO."

He added: "I feel that an independent review is necessary to show investors, businesses and local people that there is no corruption, wrongdoing or illegality in what has become and continues to be an incredible project for jobs and investment in our region."