The Cabinet of the North East Mayoral Strategic Authority met on Tuesday, 22 September 2026, to discuss and approve several key initiatives aimed at enhancing regional development, infrastructure, and education. Significant decisions were made regarding the North East Rail Vision, a new framework for business growth, the Spatial Development Strategy, and investment in post-16 education facilities.

The North East Rail Vision

Cabinet endorsed the North East Rail Vision, a comprehensive plan to improve the region's rail network by 2040. This vision aims to create a safe, reliable, accessible, and affordable railway that connects people to opportunities, supports economic growth, and integrates seamlessly with national services. Key aspirations include simpler and more affordable fares, more frequent and reliable services, and modern, accessible stations. The vision is structured around six principles: affordability, opportunity-enabling, people-focused, integrated, inclusive, and green. The plan includes a phased roadmap with immediate priorities (delivery by 2027), medium-term priorities (by 2032), and longer-term priorities (by 2040). Cabinet also agreed to enter into a Memorandum of Understanding (MoU) with industry partners to drive forward the ambitions set out in the vision. The Leamside Programme, a key element of the vision, which aims to re-establish the disused Leamside Line, was also noted, with work underway on its business case development.

Delivering Business North East: A New Regional Framework for Business Growth and Productivity

A significant investment of £25,887,466 was approved to establish and deliver the Business North East Framework between January 2027 and March 2029. This new framework aims to create a simplified, accessible, and business-focused support system across the region, addressing fragmentation and duplication identified by stakeholders. The delivery model will comprise a regional Hub function, led by the North East Mayoral Strategic Authority (MSA), and seven local authority Spokes to ensure strong local delivery and relationships. The framework is structured around five integrated work packages: Inspire (increasing entrepreneurial awareness), Explore (improving enterprise readiness), Start (increasing business creation), Succeed (improving productivity and innovation), and Grow (supporting business scale-up). The programme is forecast to support nearly 2,300 potential entrepreneurs and over 1,500 organisations, creating and safeguarding hundreds of jobs.

North East Spatial Development Strategy

Cabinet approved the commencement of the formal preparation of the North East Spatial Development Strategy (SDS), which will cover the period up to 2055. The SDS will set out a broad vision for growth and investment across the region for up to the next 30 years, along with the strategic infrastructure required to deliver it. This strategy is a statutory responsibility for the North East MSA and is a key element of national planning reforms aimed at accelerating housebuilding and fostering growth. The proposed timetable for the SDS development was approved, with a planned launch of an online engagement portal following the publication of necessary secondary legislation. The SDS will work in conjunction with Local Plans prepared by individual local authorities, forming a new planning hierarchy.

Post 16 Sufficiency – North East MSA investment to support capacity in 16-18 education and training facilities

An allocation of £8.095 million was approved for a Post-16 Sufficiency Capital Programme, designed to create at least 1,638 additional education and training places for 16–18-year-olds across the North East by 2027/28 and 2028/29. This investment responds to a forecast increase in the region's 16-18 population and aims to ensure that young people, particularly those with special educational needs and disabilities (SEND) or facing other barriers, can access suitable post-16 provision. The funding will be awarded through 14 Grant Funding Agreements with 13 statutory providers of 16-18 education, including colleges, sixth form colleges, and academies, to expand and modernise teaching facilities. The programme supports the Mayor's ambition to create a Home of Real Opportunity by strengthening the talent pipeline for priority sectors and contributing to inclusive economic growth.

AI Growth Zone Programme

Cabinet agreed to allocate £5 million of Integrated Settlement funding to underwrite the central government grant for the AI Growth Zone Local Benefits package. This funding will enable the progression of a programme of activities designed to complement the development of AI infrastructure in the region. The programme aims to address challenges such as low regional AI adoption, the need for early AI skills development, and support for innovative AI businesses. Four priority activities for the initial establish phase were identified: entry-level AI skills for primary school pupils, a sector-focused AI adoption programme, an AI innovation and growth programme for high-potential digital and AI companies, and ecosystem profiling and coordination. Additionally, Cabinet approved the development of a North East Data Centre Strategy to manage future data centre investments strategically, ensuring they deliver wider benefits for the region.

Budget Monitoring Update 2026/27 Quarter 1

Cabinet noted the updated forecast position for the 2026/27 financial year as at the end of the first quarter. The overall forecast spend for delivery programmes is £558.1 million against a budget of £565.4 million, indicating a net forecast underspend of £7.3 million. This variance is largely attributed to the timing and profiling of expenditure across major grant-funded programmes. Corporate overheads are forecast to be £21.7 million below budget, primarily due to higher-than-anticipated interest income, which will be transferred to an earmarked interest reserve. The Treasury Management update confirmed that the Authority remains compliant with approved indicators, with external borrowing unchanged and investment balances significantly increased due to the receipt of the Integrated Settlement grant.

Governance Update

Cabinet noted the terms of reference and membership of the Portfolio Advisory Boards. Authority was delegated to the Chief Executive, in consultation with the Mayor, to undertake a recruitment process for the Chair of the Business Advisory Council, who will also serve as the Business Board Member of Cabinet. Furthermore, Pam Smith, Chief Executive of Newcastle City Council, was approved for appointment as a Non-Executive Director to the Nexus Executive Board, replacing Dale Owens.

Strategic Risk Review

Cabinet reviewed and agreed the current strategic risks, their scoring, and proposed management actions. The Senior Leadership Team (SLT) had previously reviewed these risks, introducing three new strategic risks: Cyber Security, Mayoral Safety, and Delivery of Priority Programmes and Missions, while retiring the legacy 'Delivery of Integrated Settlement' risk. Two of the new risks, Cyber Security and Mayoral Safety, were identified as exceeding the MSA's risk appetite, with remedial actions underway. The risk scoring system has been updated to align with the new Risk Management Framework approved in June 2026.