The Cabinet of the North East Mayoral Combined Authority met on Tuesday, 17 March 2026, to discuss a range of significant issues including the future of bus services in the region, plans for transforming the transport network, and strategies for boosting green jobs and the visitor economy. The meeting also covered proposals for the region's culture, creative industries, and sport sectors, as well as budget monitoring and the development of innovation districts.

Bus Reform: Approval to Progress the Franchising Scheme Assessment

A key item on the agenda was the proposed reform of bus services, with a report presented on the development of a draft franchising scheme assessment. The report aimed to update the Cabinet on the progress made and seek authority to undertake the next mandatory steps: an independent audit and public consultation. The assessment compared the introduction of franchising with the continuation of the current Enhanced Partnership (EP) model. The draft assessment concluded that franchising is considered affordable, feasible, and deliverable, and that it would better support the region's strategic objectives for an integrated transport system. The report recommended seeking authority to obtain an independent auditor's report and, subject to a positive outcome, to proceed with a public consultation.

Delivering the Mayor's Local Transport Plan

The Cabinet was scheduled to receive an update on plans to transform the North East's transport network. A report outlined the next stages of these plans, seeking approval for £23.4 million in travel improvements and targeted support for developing transport investment proposals. This included significant investment in upgrading the Regent Centre Metro and Bus Interchange and addressing Durham's transport priorities. Additionally, approval was sought for plans to continue discounted travel passes for young people in the care system, alongside over £22 million in highways maintenance funding for the upcoming financial year.

Mayor's Plan for Green Jobs

A significant portion of the meeting was dedicated to the Mayor's Plan for Green Jobs. The report aimed to endorse and adopt this plan, and to agree budget allocations for the delivery of the North East Offshore Wind Infrastructure Programme and other related projects. The plan outlines the ambition to double the number of green jobs in the region to 50,000 by 2035, building on the existing 25,000 green jobs. The report highlighted the North East's strong position in the green energy revolution, supported by its infrastructure, innovation assets, and skilled workforce. Specific recommendations included agreeing a budget allocation of £19.5 million from the Integrated Settlement for the North East Offshore Wind Infrastructure Programme and approving project change requests for the Energy Central Institute and Newcastle College Energy Academy Expansion.

Delivering the Mayor's Culture, Creative Industries and Sport Strategic Framework

The Cabinet was asked to approve new resources totalling £38 million to support the North East's culture, creative industries, and sport sectors. A draft strategic framework, developed with input from regional stakeholders, was presented for further consultation. This framework aims to position these sectors as central to inclusive economic growth, opportunity, and regional pride. The report proposed two high-level Investment Plans: a £29 million Creative Industries Sector Investment Plan and a £13 million Events and Participation Investment Plan.

Business North East: Transitioning to a New Era of Regional Business Support

A report was presented outlining a proposal for closer working to deliver a regional business support model, integrating the best aspects of regional and local authority working. This aimed to simplify the business support ecosystem, making it easier for businesses to access the help they need. The report proposed a nine-month transition period before the introduction of a new regional approach from January 2027, with an allocation of £7,112,534 from the Integrated Settlement to fund this transition period.

North East Visitor Economy Update and Next Steps

The Cabinet was provided with an update on the North East visitor economy and the proposed approach to establishing 'Experience North East England', a new regional body to drive sector growth. This organisation, evolved from NewcastleGateshead Initiative (NGI), aims to enhance the region's visitor offer, create jobs, and support business growth. An in-principle funding allocation of up to £7 million was proposed to support these regional activities over three financial years.

Mayoral Development Zone - Gateshead Quays

This report focused on the Gateshead Quays development, a significant opportunity within the Newcastle-Gateshead Mayoral Development Zone. The Cabinet was asked to agree in principle an allocation of up to £24 million to Gateshead Council to commence development, including infrastructure works, public realm improvements, and the design of an arena investor/operator procurement process. This investment aims to accelerate the site's development and de-risk future market investment for a new regional arena.

Riverside Sunderland Creative Mayoral Development Zone – Crown Works Phase 1

The Cabinet was asked to consider regional investment for Phase 1 of the Crown Works project, a flagship development within the Riverside Sunderland Creative Mayoral Development Zone. This project aims to transform the region's creative sector offer and catalyse regeneration. The report sought 'in principle' approval for an £11 million allocation of repayable funding from the North East CA Investment Fund, alongside provisional operational revenue support. This investment is intended to create flexible studio space for film and high-end TV production.

Durham Mayoral Development Zone - Durham Innovation District

Plans for a new Mayoral Development Zone focused on the Aykley Heads Innovation District in Durham were presented. The report sought endorsement for this initiative, including development funding of up to £300,000, a £12 million capital allocation for site-wide infrastructure costs, and an indicative £15 million capital allocation for the first phase of the Durham Innovation District. The aim is to foster innovation-led growth and inclusive economic development.

North of Tyne Local Nature Recovery Strategy

The Cabinet was asked to approve the publication of the North of Tyne Local Nature Recovery Strategy. This statutory document outlines priorities for restoring and enhancing natural landscapes and habitats across Northumberland, Newcastle upon Tyne, and North Tyneside. Publication of the strategy is linked to securing further nature recovery delivery funding from the Department for Environment, Food & Rural Affairs.

Budget Monitoring Update 2025-26 Quarter 3

A review of the financial performance against the budget as at the end of the third quarter (31 December 2025) was presented. The report indicated that expenditure for organisational running costs was forecast to be in line with the budget, with a projected surplus primarily due to higher interest on investments. The report also provided an update on Treasury Management activities, including borrowing and investment positions.

The North East CA Adult Skills Programme

This report detailed the North East CA's recommended approach to utilising skills revenue funds (£244.8 million over three years) and capital funds (£7.9 million) from the Integrated Settlement. The programme aims to support residents in developing skills for employment and progression, aligning with the 'Home of Real Opportunity' mission and the 'New Deal for North East Workers' strategy. The report proposed a delivery structure under three strands: Foundation Skills, Skills Activation, and Skills for Work.