Ingleby Manor free school received approval from the Department for Education last year - but it needs a purpose-built building, and planning permission for that has been rejected by councillors in Stockton.
You can watch the full report from Rachel Bullock below and see our guide to what free schools are and where else they are planned in the North East here.
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A report was launched at this year's Conservative conference and follows the 'devolution revolution' speech from the Chancellor.
The pair defrauded Durham County Council out of nearly £100,000 but were given suspended sentences.
Gascoigne is alleged to have sent abusive tweets, text messages and telephone calls to Amanda Thomas in March this year.