This week in North East Mayoral Combined Authority:

Strategic Risks Under the Microscope: Cybersecurity and Mayoral Safety Exceed Appetite

The Audit and Standards Committee met on Tuesday, September 15th, 2026, to review the North East MSA's strategic risks. A key focus was the introduction of three new risks: Cybersecurity, Mayoral Safety, and Delivery of Priority Programmes and Missions. Notably, Cybersecurity and Mayoral Safety risks are currently exceeding the MSA's risk appetite, prompting urgent attention and remedial actions.

The committee received updates on both internal and external audit progress. The internal audit plan for 2026/27 is on track, with most engagements underway. However, some recommendations from the previous year are still awaiting full implementation. External auditors Forvis Mazars confirmed that their audit for the year ending March 2026 is progressing as planned, with a target completion date before Christmas.

A significant portion of the meeting was dedicated to a deep dive into the strategic risk of Delivery of Priority Programmes and Missions. This risk, which has replaced the legacy Delivery of Integrated Settlement risk, aims to capture a broader range of delivery challenges. The committee reviewed the risk description, scoring, and proposed management actions, which include implementing a comprehensive programme plan and embedding the MSA's Performance Management Framework.

The review of strategic risks also highlighted updates to Organisational Capacity & Sustainability and Policy and Partnerships. The committee was asked to comment on these risks, with their feedback to be shared with Cabinet.

• Why it matters: Identifying and managing strategic risks is fundamental to the MSA's ability to deliver its objectives and protect public services. For residents, particularly vulnerable groups, risks like cybersecurity breaches could compromise sensitive data, while concerns about mayoral safety could impact public confidence. Effective management of programme delivery is crucial for ensuring that promised improvements and services are realised.
• What's next: The committee's feedback on the strategic risks will be presented to Cabinet. The MSA will continue to implement remedial actions for risks exceeding its appetite.

You can find more details in the Audit and Standards Committee meeting agenda.

Other Matters

Internal Audit Plan Progresses

The Chief Internal Auditor provided an update on the 2026/27 Internal Audit Plan. While progress is being made, some high and medium-priority recommendations from 2025/26 are still being implemented, with revised target dates agreed for six of them.

External Audit on Track

Forvis Mazars, the external auditors, confirmed that their audit for the year ending 31 March 2026 is on schedule. They have reviewed the published accounts and have not identified any issues that would necessitate a change to their planned audit approach. The audit is expected to be completed before Christmas.

Strategic Risk Review Incorporates New Threats

The committee reviewed the MSA's strategic risks and opportunities. In addition to the previously mentioned new risks, updates were provided on Organisational Capacity & Sustainability and Policy and Partnerships. The committee's comments will inform the upcoming Cabinet discussion.

This week in North East Mayoral Combined Authority:

Rail Vision Faces Scrutiny: Residents Demand Clarity on Timelines and Integrated Ticketing

The North East Mayoral Strategic Authority's (MSA) Overview and Scrutiny Committee met on Tuesday, September 8th, 2026, to discuss the ambitious North East Rail Vision. While the vision aims to create a modern, accessible, and affordable rail network by 2040, councillors raised significant concerns about the lack of concrete objectives and timelines, particularly regarding integrated ticketing.

Tobin Hughes, Director of Transport, presented the vision, which is structured around six key principles: affordability, opportunity enablement, people focus, integration, inclusivity, and environmental sustainability. The vision aims to leverage the government's rail reform programme and the establishment of Great British Railways (GBR) to shape the future of rail services in the region.

However, Councillor Jamie Driscoll voiced frustration over the vagueness of the proposals. It's very easy to say, for example, we want to increase modal travel, he stated. How will we know if we've done it? It's the need for some smart goals, specific, measurable, attainable, relevant, and time-bound. He proposed a recommendation to Cabinet that the vision should include concrete objectives and timelines for key elements, such as integrated ticketing, to provide clarity for the public. This recommendation was agreed upon by the committee.

Concerns were also raised about the long-standing Leamside line proposal. Councillor Stephen Boran questioned whether plans were premature given the government's lack of funding commitment. Hughes explained the phased approach to rail project development, emphasizing that the current focus is on developing a strategic outline business case to present to central government. He acknowledged public scepticism due to the project's history but highlighted that the Metro to Washington extension, a part of the Leamside line project, has secured funding.

Councillor Craig Heathcote sought clarification on the £400 million figure associated with the Metro to Washington extension, noting a conflation of terminology. Hughes clarified that the £400 million is an allocation from the region's integrated settlement that could contribute to construction costs, which are expected to exceed this amount.

Councillor Dawn Welsh proposed the creation of a dashboard to track projects, their stages, committed funding, and timelines, a suggestion supported by Councillor Heathcote and agreed to by Hughes. This move aims to improve transparency and enable more effective scrutiny.

• Why it matters: A clear and actionable rail vision is crucial for the region's economic growth and for providing accessible transport options. For residents, especially those in rural areas or with limited mobility, integrated ticketing and reliable services are not just conveniences but necessities for accessing jobs, education, and essential services. The lack of clear timelines can lead to public distrust and hinder progress.
• What's next: The committee has recommended that Cabinet include concrete objectives and timelines in the North East Rail Vision. The MSA will also work on providing a consolidated list of projects with requested information to the committee.

You can find more details in the Overview and Scrutiny Committee meeting agenda.

Excellence in Education Programme Shows Promise, But Gaps Remain in Reaching Most Vulnerable

The Overview and Scrutiny Committee also reviewed the progress of the Excellence in Education (EiE) programme, a £4.9 million initiative funded by the MSA's investment fund. The programme aims to tackle regional educational challenges, including attainment gaps, high absence and exclusion rates, and child poverty.

The programme focuses on three priority areas: Inclusion (improving attendance, addressing mental health needs, and supporting transitions), Realising Potential (developing literacy, oracy, and maths skills), and Teacher Wellbeing, Development, and Retention. The programme has engaged 90% of eligible schools across the region, with early evidence of positive impact.

However, questions were raised about whether the programme is effectively reaching children in greatest need. Councillor Dawn Welsh asked how the programme's effectiveness is being measured in this regard and how it works in tandem with other MSA programmes. Adrian Doherty, Assistant Director of Inclusive Futures, explained that a logic model and evaluation framework are in place, and the programme is designed to be iterative.

Councillor Craig Heathcote inquired about the lower engagement numbers in Gateshead and Durham. Andrew Garrod, Senior Programme Manager for Education Improvement, attributed this to existing local authority capacity, priorities, and established school improvement services. Sarah Blakeman, Senior Professional Development Advisor from Education Durham, added that Durham's extensive local offer and multi-academy trusts' in-house professional development contribute to these statistics.

Councillor Jamie Driscoll highlighted concerns about teacher pressure, lack of informal interaction time, and off-rolling of pupils. He questioned what powers and resources the MSA would need to effectively close the attainment gap. Alan Reiss, Director of Operations, acknowledged that the MSA does not yet have all desired powers but is engaging with the government on devolution proposals.

A key recommendation emerged from this discussion: Councillor Stephen Boran proposed that children in severe poverty should receive free Wi-Fi access, a recommendation that the committee agreed to consider for Cabinet.

• Why it matters: Educational attainment is a cornerstone of opportunity. For children from disadvantaged backgrounds, programmes like EiE are vital for closing the attainment gap and preventing them from falling behind. Ensuring these programmes reach those most in need, and are integrated with broader child poverty initiatives, is critical for creating a more equitable future.
• What's next: The committee agreed to a recommendation that Cabinet consider providing free internet access for children in severe poverty. The EiE programme will continue its iterative evaluation process to refine its impact.

You can find more details in the Overview and Scrutiny Committee meeting agenda.

Work Programme Refreshed: Focus on Energy, Spatial Development, and Child Poverty

The Overview and Scrutiny Committee also reviewed and revised its work programme for 2026/27. The committee agreed to refresh the membership of the Child Poverty Scrutiny Working Group, appointing Councillor Steve Cox as its lead member.

Discussions also touched upon the potential for new working groups on energy, the spatial development strategy, and economic inactivity. The committee agreed to explore the formation of an energy working group and to draw up terms of reference, with Councillor Louise Penders and Councillor Dawn Welsh expressing interest in serving on such a group.

Councillor Greg Stone raised concerns about the pace of progress in closing the attainment gap and suggested adopting proven strategies from other regions. Councillor Stephen Boran suggested more time for discussion and less for presentations during meetings.

• Why it matters: A well-defined work programme ensures that the scrutiny committee can effectively hold the MSA to account on the issues that matter most to residents. Focusing on areas like energy and spatial development is crucial for the region's future sustainability and growth, while continued scrutiny of child poverty is essential for supporting the most vulnerable.
• What's next: The committee will explore the formation of an energy working group and draw up terms of reference. The Child Poverty Scrutiny Working Group will refresh its objectives and report back by March 2027.

You can find more details in the Overview and Scrutiny Committee meeting agenda.

This week in North East Mayoral Combined Authority:

£18.58 Million Boost for Transport: Safer Journeys and Greener Travel on the Horizon

The North East Mayoral Combined Authority's Cabinet has approved a significant investment of £18.58 million for transport capital projects. This funding is a cornerstone of the Mayor's Local Transport Plan, aiming to make walking, cycling, and public transport safer and more accessible for everyone in the region. The investment will directly fund schemes across Northumberland, Sunderland, Gateshead, Newcastle, and South Tyneside.

Key projects receiving funding include:

• A193 Seafront Cycle Route (Blyth to St Mary's): £11.729 million will go towards improving this vital coastal cycling route in Northumberland, making it a safer option for residents and visitors.
• St Peters Active Travel Links: £4.498 million is allocated to Sunderland City Council to enhance walking and cycling routes connecting St Peter's Metro Station, the city centre, and the Stadium of Light. This aims to improve safety and accessibility for active travel.
• Bowes Railway Path Maintenance: £0.103 million will support Gateshead Council in reopening and improving a section of this popular path.
• Safer School Neighbourhoods: A total of £2.25 million is being distributed to Newcastle City Council (£0.750 million), North Tyneside Council (£0.750 million), and South Tyneside Council (£0.750 million) for measures designed to improve safety for children and families travelling to and from school.

This investment is particularly crucial for vulnerable groups, including children, the elderly, and those with disabilities, who often rely on public transport and active travel options. By improving infrastructure and safety, the MSA is working to ensure that everyone can access opportunities and services across the region.

You can find more details in the Cabinet meeting agenda.

£143 Million National Housing Delivery Fund to Unlock New Homes and Tackle Homelessness

The North East Mayoral Combined Authority (MSA) is set to accelerate the delivery of new homes and strengthen its approach to homelessness prevention with the approval of a framework for the £143 million National Housing Delivery Fund. This initiative aims to unlock housing and regeneration opportunities across the region, addressing a critical shortage of affordable and high-quality homes.

The MSA's Mayor's Plan for Homes, which sets out the vision and priorities for housing, has also been approved for stakeholder engagement. This plan is a commitment to increasing the supply of social and affordable homes, a vital step in ensuring that everyone in the North East has access to a safe and secure place to live.

The National Housing Delivery Fund will specifically target sites where development has been hindered by viability challenges, the need for remediation work, or infrastructure requirements. By providing crucial funding, the MSA aims to unblock stalled sites and speed up the construction of much-needed homes.

Furthermore, authority has been delegated to the Chief Executive to develop and implement a regional homelessness prevention programme. This programme will ensure the timely allocation of £5.3 million in grant funding to support those at risk of homelessness.

This comprehensive approach to housing is vital for the region's most vulnerable residents. By increasing the supply of affordable homes and bolstering homelessness prevention efforts, the MSA is directly addressing the affordability pressures and housing insecurity that many individuals and families face.

You can find more details in the Cabinet meeting agenda.

Council Reports Strong Financial Performance with £20.3 Million Surplus

The North East Mayoral Combined Authority (MSA) has reported a robust financial position, with a provisional surplus of £20.3 million for the 2025/26 financial year. This significantly exceeds the budgeted surplus of £1.4 million, demonstrating the authority's sound financial management. The improved outcome is largely attributed to higher-than-budgeted interest income, totalling £22 million.

Cabinet has agreed to strategically manage this surplus by transferring £19.4 million to a newly created Interest Reserve and £1 million to the existing Pension Reserve. The Interest Reserve will provide a flexible funding source for future investment priorities and help mitigate financial risks, while the Pension Reserve will support employer pension contributions and ensure stability.

Total expenditure across all programmes in 2025-26 was £524 million against a budget of £532 million, a variance of approximately 1.4%. This variance is primarily due to the timing of expenditure rather than a loss of funding.

This strong financial performance is essential for the MSA's ability to deliver its ambitious plans for the region. It provides a solid foundation for investing in vital services and infrastructure, ensuring that the authority can continue to support residents, particularly those most in need, through challenging economic times.

You can find more details in the Cabinet meeting agenda.

Other Matters

New Code of Corporate Governance Adopted

The Cabinet adopted the North East MSA Code of Corporate Governance. This code, prepared in line with guidance from Solace and CIPFA, sets out the arrangements for ensuring good governance and robust decision-making within the authority. This adoption reinforces the MSA's commitment to transparency, accountability, and ethical values.

You can find more details in the Cabinet meeting agenda.

Appointments to Transport for the North Confirmed

The Cabinet agreed to a number of appointments to Transport for North (TfN). These appointments include Councillor Stephen Bowron (Durham County Council) to TfN's Scrutiny Committee, Councillor Steve Cox (North Tyneside Council) as substitute, and Councillor Mark Swinburne (Northumberland County Council) to TfN's Audit and Governance Committee. Kevin Bell has also been appointed as the authority's business representative for TfN.

You can find more details in the Cabinet meeting agenda.

This week in North East Mayoral Combined Authority:

Integrated Settlement: A £1.8 Billion Boost for the North East, But What Does it Mean for You?

The North East Mayoral Combined Authority (MSA) is set to receive a significant £1.8 billion funding boost through the new Integrated Settlement. This funding model consolidates multiple government grants into a single, flexible pot, aiming to give the region greater control over how money is spent to achieve better outcomes for residents. The MSA has been recognised as an 'Established Mayoral Strategic Authority', a testament to its track record of delivery and good governance.

This settlement is structured around six key themes: Transport and local infrastructure, Adult skills and employment support, Housing and strategic planning, Economic development and regeneration, Environment and climate change, and Health, wellbeing and public service reform. While the majority of the funding, £1.3 billion, is allocated to transport and local infrastructure, the flexibility within the settlement allows for funds to be moved between programmes and even pillars, with certain conditions.

The success of this settlement will be measured against an Integrated Settlement Outcomes Framework (ISOF), which sets high-level targets. Progress will be reviewed every six months. For residents, this could mean faster progress on key projects like the Leamside line, improved bus services, and more accessible adult skills programmes. However, the framework also means increased accountability for the MSA to demonstrate tangible results.

The Audit and Standards Committee reviewed the draft Statement of Accounts for the 2025/26 financial year, revealing a strong financial position with a revenue budget surplus of £20.3 million, significantly exceeding the budgeted £1.4 million. This surplus is largely due to higher-than-expected treasury management income from increased interest rates. The committee also reviewed the draft Annual Governance Statement, which confirmed adequate compliance with good governance principles, though areas for continued development were noted, including formalising performance management and improving corporate forecasting.

• Why it matters: This Integrated Settlement represents a major shift in how the North East is funded. It promises greater local control and flexibility, which could lead to more targeted and effective services. For vulnerable groups, this means the potential for better access to skills training, improved transport links to jobs, and support for housing needs. The focus on outcomes means the MSA will be held accountable for delivering real-world improvements.
• What's next: The MSA will be working closely with government to track progress against the ISOF. The Audit and Standards Committee will continue to scrutinise financial performance and governance arrangements.

You can find more details in the Audit and Standards Committee meeting agenda.

Draft Statement of Accounts Reveals Strong Financial Position, But Questions Remain on Reserves

The North East Mayoral Combined Authority (MSA) has reported a robust financial position in its draft Statement of Accounts for the year ending 31 March 2026. The authority achieved a revenue budget surplus of £20.3 million, far exceeding the budgeted £1.4 million. This surplus is primarily attributed to higher-than-anticipated treasury management income, driven by increased interest rates and cash balances.

The accounts show total income of over £650 million, with government grants and contributions making up 72%. Expenditure totalled £627 million, with significant spending on adult skills funds (£90 million), bus services (£50 million), and transport delivery grants to Nexus, Durham, and Northumberland (£87 million).

Usable reserves stand at just over £501 million, though a substantial portion is earmarked for future capital projects. The net assets and total reserves are reported at £643 million. The committee engaged in detailed discussions about the reserves, expenditure breakdown by pillar, and the distinction between integrated settlement spending and day-to-day operational costs.

• Why it matters: A strong financial position is crucial for the MSA's ability to deliver on its promises. The surplus provides a buffer and potential for future investment. However, understanding how reserves are managed and ensuring that spending aligns with strategic goals is vital for public trust and effective service delivery, especially for those who rely on these services.
• What's next: The draft accounts are now open for public inspection until 11 August 2026. The external audit is scheduled to begin in September, with the final audited accounts expected in January 2027.

You can find more details in the Audit and Standards Committee meeting agenda.

Annual Governance Statement Confirms Adequate Controls, But Focus on Future Improvements

The North East Mayoral Combined Authority's (MSA) draft Annual Governance Statement for 2025/26 has confirmed that the authority's governance arrangements are adequate and operating effectively. The statement outlines improvements made during the year and identifies areas for future development.

Key areas for continued development include formalising performance management arrangements, enhancing the corporate forecasting process, and addressing quoracy issues that have affected both the Audit and Standards Committee and the Overview and Scrutiny Committee. Significant progress has been made in strengthening the risk management programme, with a refresh of the Risk Management Framework and the implementation of new IT risk software planned.

• Why it matters: Strong governance is the bedrock of effective local government. It ensures that decisions are made transparently, resources are used wisely, and that the authority is accountable to its residents. For vulnerable groups, good governance means that services are delivered fairly and efficiently, and that their needs are considered in all decision-making processes.
• What's next: The MSA will continue to embed its enhanced risk management programme and address the identified areas for development.

You can find more details in the Audit and Standards Committee meeting agenda.

Other Matters

External Audit Strategy Outlined

The external auditors, Forvis Mazars LLP, presented their Audit Strategy Memorandum for the year ending 31 March 2026. The audit will focus on significant risks including management override of controls, revenue recognition (specifically grant income), and the valuation of the net defined benefit pension liability. Materiality for the group consolidated financial statements has been set at 2% of Gross Revenue Expenditure. The Value for Money (VFM) work will assess the Authority's arrangements for economy, efficiency, and effectiveness.

• Why it matters: The external audit provides an independent check on the MSA's financial reporting and governance. This ensures that public money is being managed responsibly and that the authority is operating efficiently.
• What's next: The external audit fieldwork will commence in August.

You can find more details in the Audit and Standards Committee meeting agenda.

Internal Audit Plan Confirmed

An update on the 2025/26 Internal Audit Plan confirmed that all planned activity is complete, with only a few final reports awaiting management responses. The Chief Internal Auditor provided a Reasonable Assurance opinion for 2025/26, indicating that the MSA's governance, risk management, and control frameworks are generally sound and operating effectively, despite the organisation still embedding new arrangements. The proposed three-year Strategic Internal Audit Plan for 2026/27 to 2028/29 was also reviewed and approved, focusing on areas that mitigate strategic risks and core organisational functions.

• Why it matters: Internal audit plays a critical role in providing assurance on the effectiveness of internal controls and risk management. This helps to prevent fraud, error, and inefficiency, ensuring that public funds are protected.
• What's next: The internal audit team will continue to implement the approved three-year plan.

You can find more details in the Audit and Standards Committee meeting agenda.

Overview and Scrutiny Committee's Annual Report Reviewed

The Overview and Scrutiny Committee's Annual Report for 2025/26 was presented, detailing the committee's work in scrutinising decisions, monitoring programmes, and contributing to policy development. Key areas of scrutiny included the North East Mayor's priorities, inward investment, and carbon reduction targets. The report noted that no decisions were called in during the year, but quoracy issues were encountered.

• Why it matters: The Overview and Scrutiny Committee acts as a vital check and balance within local government, ensuring that the executive decisions are well-considered and in the public interest. This scrutiny is essential for holding the MSA accountable and ensuring services meet the needs of all residents.
• What's next: The Audit and Standards Committee will consider opportunities for collaborative working with the Overview and Scrutiny Committee.

You can find more details in the Audit and Standards Committee meeting agenda.

Work Programme for 2026/27 Agreed

The proposed work programme for the Audit and Standards Committee for the 2026/27 municipal year was agreed. The programme includes core business items such as updates on the Integrated Settlement, draft statements of accounts, annual governance statements, and external and internal audit reports.

• Why it matters: A clear work programme ensures that the committee focuses its attention on the most important issues, providing effective oversight and assurance.
• What's next: The committee will follow its agreed work programme throughout the year.

You can find more details in the Audit and Standards Committee meeting agenda.