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Cabinet - Tuesday, 22nd September, 2026 2.00 pm
September 22, 2026 at 2:00 pm Cabinet View on council website Watch video of meeting Read transcript (Professional subscription required)Summary
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The Cabinet of the North East Mayoral Strategic Authority met on Tuesday, 22 September 2026, to discuss a range of significant regional initiatives. Key decisions included the noting and endorsement of the North East Rail Vision, the approval of a £25.8 million framework for business growth and productivity, and the approval of the proposed timetable for the North East Spatial Development Strategy.
The North East Rail Vision
Cabinet noted and endorsed the North East Rail Vision, a comprehensive plan aiming to improve the region's rail network by 2040. This vision, developed in partnership with the rail industry and regional stakeholders, outlines six key principles: affordability, people-focus, opportunity-enabling, integration, inclusivity, and environmental sustainability. The plan includes immediate priorities such as integrating local rail into the 'Angel Network' and developing the Leamside Line business case, medium-term goals like rolling out affordable fares across local rail services, and long-term ambitions including the full delivery of the Leamside Line and expansion of the rail network. Cabinet agreed to enter into a Memorandum of Understanding with industry partners to drive these ambitions forward and delegated authority to the Director of Transport to finalise its terms.
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 framework will create a simplified, accessible, and business-focused support system, operating on a no wrong door
principle. The delivery model will comprise a regional Hub function, seven local authority Spokes, and commissioned delivery providers. This initiative aims to inspire entrepreneurship, support business creation and growth, improve productivity and innovation, and help businesses scale up, ultimately creating jobs and fostering inclusive economic growth across the region.
North East Spatial Development Strategy
Cabinet approved the proposed timetable for the formal preparation of the North East Spatial Development Strategy (SDS), a statutory requirement under the government's planning reforms. The SDS will set out a broad vision for growth and investment across the region for a period up to 2055. This strategy will provide a shared framework for growth, coordinating decisions on housing, employment, and infrastructure across administrative boundaries, and ensuring local plans align with strategic regional objectives. An online engagement portal will be launched to facilitate public participation in the development of the SDS.
Post 16 Sufficiency – North East MSA Investment to Support Capacity in 16-18 Education and Training Facilities
An investment of £8.095 million was approved for a Post-16 Sufficiency Capital Programme. This funding will support 14 capital projects across 13 statutory providers of 16-18 education, creating at least 1,638 additional learning places by 2027/28 and 2028/29. The programme aims to address a forecast increase in the 16-18 population, ensuring young people, particularly those with special educational needs and disabilities (SEND) or other barriers, can access suitable post-16 provision. This investment is intended to improve employment outcomes, workforce productivity, and reduce the number of young people not in education, employment, or training (NEET).
AI Growth Zone Programme
Cabinet agreed to allocate £5 million of Integrated Settlement funding to underwrite a central government grant for the AI Growth Zone Local Benefits package. This funding will enable the progression of a programme of activities designed to ensure the AI Growth Zone delivers tangible benefits for the region. The programme includes initiatives focused on AI skills for primary school pupils, sector-specific AI adoption, an AI innovation and growth programme for digital and AI companies, and ecosystem coordination. Additionally, Cabinet approved the development of a North East Data Centre Strategy to strategically manage future AI infrastructure investments, ensuring they align with regional benefits, supply chain opportunities, and energy requirements.
Budget Monitoring Update 2026/27 Quarter 1
Cabinet noted the first budget monitoring update for the 2026/27 financial year. The overall forecast expenditure for the year was £558.1 million against a budget of £565.4 million, indicating a net forecast variance of £7.3 million. This variance was largely attributed to the timing of expenditure across major grant-funded programmes. The Treasury Management update confirmed that the Authority's position remained 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 Authority's Portfolio Advisory Boards. Authority was given to the Chief Executive, in consultation with the Mayor, to recruit a new Chair for the Business Advisory Council. Additionally, Pam Smith, Chief Executive of Newcastle City Council, was approved for appointment as a Non-Executive Director to the Nexus Executive Board.
Strategic Risk Review
Cabinet reviewed, commented upon, and agreed the current strategic risks, their scoring, and proposed management actions. The report highlighted an increasing risk status for organisational capacity and sustainability, with mitigation strategies including stronger workforce planning and efficiency improvements. New strategic risks related to cyber security and mayoral safety were also identified and discussed confidentially. The risk concerning the delivery of priority programmes and missions was broadened to encompass overall delivery rather than solely focusing on the Integrated Settlement.
Delegated decisions linked to this meeting
Decision summaries below are AI-generated from the council’s published record. Check the council source or the full decision page before relying on them.
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Post 16 Sufficiency – North East MSA investment to support capacity in 16-18 education and training facilities
Recommendations ApprovedThe Cabinet decided to approve the allocation of £8.095m for a Post-16 Sufficiency Capital Programme and the award of 14 Grant Funding Agreements with 13 statutory providers of 16-18 education. This decision was made on 22/09/2026. The approved funding will support the creation of at least 1,638 additional 16-18 learner places across the North East MSA.
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Budget Monitoring Update 2026/27 Quarter 1
Recommendations ApprovedThe Cabinet decided to note the updated forecast position for 2026/27 and the Treasury Management update as at 30 June 2026. This decision was made on 22 September 2026.
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Strategic Risk Review
Recommendations ApprovedThe Cabinet decided to approve the North East Rail Vision and enter into a Memorandum of Understanding with industry partners. They also delegated authority to the Director of Transport to finalise the MoU terms and to the Chief Executive to make minor changes and publish the Vision documents. The Cabinet also approved the strategic risks, scoring, and proposed management actions.
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AI Growth Zone programme
Recommendations ApprovedThe Cabinet of North East Mayoral Combined Authority approved recommendations on 22/09/2026. They agreed to allocate £5m of Integrated Settlement funding for the AI Growth Zone Local Benefits package, approved the programme approach and procurement activity, and approved the development of a North East Data Centre Strategy.
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Governance Update
Recommendations ApprovedThe Cabinet of North East Mayoral Combined Authority approved recommendations on 22/09/2026. They noted the terms of reference and membership of Portfolio Advisory Boards, authorised a recruitment process for the Chair of the Business Advisory Council, and approved the appointment of Pam Smith as a Non-Executive Director to the Nexus Executive Board.
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North East Spatial Development Strategy
Recommendations ApprovedThe Cabinet of North East Mayoral Combined Authority approved recommendations for the North East Spatial Development Strategy on 22/09/2026. The Cabinet approved the proposed SDS timetable, agreed the SDS will cover the period up to 2055, and noted progress on its development. Authority was delegated to the Assistant Director of Place to progress the SDS preparation, including consultation and engagement, and to publish evidence studies in consultation with the Cabinet Member for A North East We are Proud to Call Home Advisory Board. The Cabinet also approved the launch of an online engagement portal.
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Delivering Business North East: A New Regional Framework for Business Growth and Productivity
Recommendations ApprovedThe Cabinet of North East Mayoral Combined Authority approved investment of £25,887,466 to establish and deliver the Business North East Framework between January 2027 and March 2029. The Cabinet also approved the Business North East delivery model comprising a regional Hub function, seven local authority Spokes and commissioned delivery providers. Authority was delegated to the Chief Executive to authorise all stages of related procurement processes and awarding of contracts.
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The North East Rail Vision
For DeterminationThe Cabinet of North East Mayoral Combined Authority noted and endorsed the North East Rail Vision and its summary document on 22 September 2026. They agreed to enter into a Memorandum of Understanding with industry partners and delegated authority to the Director of Transport to finalise its terms. Authority was also delegated to the Chief Executive to make minor changes and publish the vision and associated documents.
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Strategic Risk Review
Recommendations ApprovedThe Cabinet decided to approve recommendations regarding the strategic risk review. This included reviewing, commenting upon, and agreeing the current strategic risks, scoring, and proposed management actions. The Cabinet also considered potential new and emerging risks for inclusion in the strategic risk register.
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