The government confirmed on 15 October 2026 that a Best Value inspection would be undertaken at Tees Valley Combined Authority to determine whether it is complying with its Best Value Duty, citing remaining questions about financial sustainability and about management, leadership and governance. Inspectors were to be appointed under the Local Government Act 1999 and to report findings to Ministers by March 2027. Laura Shoaf CBE was appointed lead inspector, with three assistant inspectors to follow on her recommendation.

The decision followed the January 2024 independent Tees Valley Review Report, which made 26 formal recommendations, and an April 2025 non-statutory Best Value Notice setting expectations on governance, culture, partnerships and improvement. The department said sustained improvement efforts had been made but that Ministers retained concerns about risks from high debt and wanted assurance on the authority's capacity to deliver outstanding improvements with sufficient pace.

Local Government Minister Jim McMahon said stronger local leadership must be matched by strong local institutions. The inspection was to focus on governance and decision-making, use of resources and audit arrangements, leadership capacity, and delivery of the Organisational Excellence Strategy, among other areas. Ministers said they would consider the report before determining next steps.