Cabinet met on Tuesday 21 July 2026 to discuss a range of important issues, approving significant investments in transport and housing, and noting updates on the council's financial performance. Key decisions included the allocation of £18.58 million for transport capital investments, the approval of a framework for a £143 million National Housing Delivery Fund, and the adoption of a new Code of Corporate Governance.

Delivering the Mayor's Local Transport Plan

Cabinet approved £18.58 million in transport capital investments to support the ongoing delivery of the Mayor's Local Transport Plan. This funding will be used for projects aimed at making it easier and safer for people to travel by walking, cycling, and public transport. The investment will facilitate the payment of funding and the establishment of Grant Funding Agreements with scheme promoters.

The approved schemes include:

• A193 Seafront Cycle Route (Blyth to St Mary's): £11.729 million (CRSTS) for Northumberland County Council. This will improve the coastal cycling route, making it safer for all users.
• St Peters Active Travel Links: £4.498 million (£2.886m CRSTS, £1.1m CATF, £0.512m ATF5) for Sunderland City Council. This scheme will improve safety and accessibility for walking and cycling between St Peter's Metro Station, the city centre, and the Stadium of Light.
• Bowes Railway Path Maintenance: £0.103 million (CATF) for Gateshead Council to reopen and improve a section of the path.
• Safer School Neighbourhoods: £0.750 million (CATF) for Newcastle City Council, £0.750 million (CATF) for North Tyneside Council, and £0.750 million (CATF) for South Tyneside Council. These packages of measures will improve safety for children and families travelling to schools in these areas.

Accelerating the Delivery of New Homes in the North East

Cabinet agreed a coordinated regional approach to housing, approving the Mayor's Plan for Homes and the framework for the National Housing Delivery Fund. The Mayor's Plan for Homes sets out the vision and priorities for housing across the region, with a commitment to increasing the supply of high-quality social and affordable homes.

Key decisions included:

• Agreeing the Regional Housing Needs Assessment for publication.
• Approving the Mayor's Plan for Homes for stakeholder engagement.
• Approving the Housing Delivery Fund Framework, which will manage the allocation of £143 million from the National Housing Delivery Fund to unlock housing and regeneration opportunities. Authority was delegated to the Chief Executive, in consultation with the Mayor and relevant portfolio holders, to approve the Programme Business Case and associated funding awards.
• Delegating authority to the Chief Executive to develop and implement a regional homelessness prevention programme, ensuring the timely allocation of £5.3 million in grant funding.

The report highlighted that housing need in the North East continues to outstrip supply, with significant affordability pressures and constraints on housing delivery due to viability challenges and infrastructure requirements. The National Housing Delivery Fund will target sites where development is hindered by viability, remediation, or infrastructure issues, aiming to unlock stalled sites and accelerate delivery. The Homelessness Prevention Programme will strengthen the region's approach to preventing homelessness and supporting vulnerable residents.

2025/26 Outturn and 2026/27 Budget Reporting Update

Cabinet noted the provisional outturn for the 2025/26 financial year, which showed the North East Mayoral Strategic Authority (MSA) operating within its approved financial framework and ending the year in a strong financial position. A provisional surplus of £20.3 million was reported, significantly higher than the budgeted surplus of £1.4 million. This was primarily due to higher-than-budgeted interest income of £22 million.

Key decisions made regarding the financial outturn were:

• Agreeing the transfer of £1 million to the earmarked Pension Reserve and £19.4 million to a newly-created Interest Reserve. The Interest Reserve will act as a flexible funding source for future investment priorities and help manage financial risks.
• Noting the treasury management outturn for 2025/26, confirming compliance with all treasury management and prudential requirements.
• Noting updates relating to 2026/27 funding, including an increase in the final Integrated Settlement allocation to £419 million and additional funding for Mayoral Capacity and Retrofit Transition.
• Noting the planned budget reporting timetable for 2026/27.

The report indicated that total expenditure across all programmes in 2025-26 was £524 million against a budget of £532 million, representing a variance of around 1.4%. Variances were attributed to the timing of expenditure rather than savings or loss of funding.

Code of Corporate Governance and Transport for the North Appointments

Cabinet adopted the North East MSA Code of Corporate Governance and agreed to appointments to Transport for the North (TfN). The Code of Corporate Governance, prepared in accordance with guidance from Solace and CIPFA, sets out the arrangements for ensuring good governance and robust decision-making.

The appointments to TfN include:

• Councillor Stephen Bowron (Durham County Council) to TfN's Scrutiny Committee, with Councillor Steve Cox (North Tyneside Council) as substitute.
• Councillor Mark Swinburne (Northumberland County Council) to TfN's Audit and Governance Committee.
• Kevin Bell appointed as the authority's business representative for TfN.

The adoption of the Code of Corporate Governance aligns with the MSA's commitment to transparency, accountability, and ethical values, as outlined in its Seven Principles of Good Governance.