The Government has rejected a call by Labour MPs for a statutory inquiry into a controversial Teesside redevelopment.

Tory MPs voted down the Labour demand in the House of Commons after local government secretary Michael Gove announced the members of a three-person panel to inspect the Teesworks project on the former Redcar steelworks site.

Instead of commissioning the National Audit Office to look at Teesworks, Mr Gove brought together an 'independent assurance review'.

The panel will be made up of chief executive of Lancashire CC Angie Ridgwell, director of law and governance at Hertfordshire CC Quentin Baker and Richard Paver, who was the first treasurer of the Greater Manchester Combined Authority.

Middlesbrough MP Andy McDonald previously raised concerns about the Teesworks scheme, alleging 'truly shocking, industrial-scale corruption'.

Conservative mayor of the Tees Valley, Ben Houchen, has insisted he has nothing to hide.

He has come under scrutiny as leader of the Tees Valley Combined Authority and chair of the firm developing the site, the South Tees Development Company, which is 90% privately-held.