The Cabinet of the North East Mayoral Strategic Authority met on Tuesday 9 June 2026 to discuss a range of important issues, including appointments to committees, annual reports from scrutiny and audit committees, and the ongoing cost of living crisis. Key decisions included the approval of allowances for members of the Overview and Scrutiny and Audit and Standards Committees, and the agreement to prioritise pushing for continued government funding for the national bus fare cap and accelerating the Warm Homes Plan.

Appointments to Cabinet, Committees and Other Bodies

The Cabinet noted the appointment of members and substitute members to the North East Mayoral Strategic Authority's Cabinet by the constituent councils. Mayor Karen Clark was appointed as Deputy Mayor. The Cabinet agreed the allocation of portfolios, with authority delegated to the Chief Executive to finalise the membership of each Portfolio Advisory Board. The schedule of meetings for the municipal year 2026/27 was also agreed, along with the membership of the Overview and Scrutiny Committee and the Audit and Standards Committee. The terms of Dave Willis OBE as independent chair of the Audit and Standards Committee and Eric Richards as independent person for the standards regime were extended by two years. Appointments to Transport for the North's Board and associated bodies were also agreed, and the Chief Executive was authorised to recruit new members to the Business Advisory Council.

Overview and Scrutiny Committee Annual Report 2025/26

Cabinet noted the Overview and Scrutiny Committee Annual Report for 2025/26. The report detailed the committee's work in reviewing and scrutinising decisions made by the Mayor and Cabinet, monitoring programme delivery, and contributing to policy and strategy development. Councillor Colin Ferguson, Chair of the Overview and Scrutiny Committee, highlighted the committee's engagement with key areas such as Metro performance and regional carbon reduction plans. The report noted that no decisions had been called in during the year.

Audit and Standards Committee Annual Report 2025/26

Cabinet noted the Audit and Standards Committee Annual Report for 2025/26. The report, presented by independent Chair Dave Willis OBE, highlighted the committee's work in reviewing the authority's financial affairs, risk management, internal control, and corporate governance. Key achievements included receiving a 'reasonable assurance' opinion from Internal Audit and an unqualified opinion from External Audit with no significant weaknesses identified. The committee also reviewed the risk management strategy and conducted strategic risk 'deep dives'. Two areas for improvement were identified: quoracy of meetings and the response rate to a skills survey for new members.

Governance Update

Cabinet approved the recommendations of the Independent Remuneration Panel (IRP) and agreed that allowances should be paid to members of the Overview and Scrutiny Committee and the Audit and Standards Committee. This decision follows government guidance that such allowances should be paid to ensure members commit the necessary time to their roles. The proposed allowances, which are within the maximum recommended by the IRP, are estimated to cost approximately £70,000 per annum and will be funded from the corporate overhead budget contingency.

Delivering for the North East - Annual Performance Report

Cabinet noted the progress made by the North East Mayoral Strategic Authority (MSA) since May 2024 and the next phase of activity focused on delivering the 'short-term pledges' in the 2026–30 North East MSA Corporate Plan. The report highlighted significant achievements, including the creation of approximately 1,900 new jobs and safeguarding of 600 jobs, unlocking over 4,000 new homes through brownfield programmes, and supporting over 3,000 households with energy-saving advice. The 'Mayor's Fares' initiative has saved customers an estimated £70 million. The report also detailed progress on major Mayoral Development Zones, investment in the creative industries, and the launch of the North East Fund.

The North East MSA Quarter 3 2025/26 Strategic Risk Review

Cabinet reviewed the current strategic risks, scoring, and proposed management actions as presented in the North East MSA's Strategic Risk Register. The Senior Leadership Team's review in January 2026 resulted in an updated risk score for Organisational Capacity & Sustainability Risk, reflecting the increased breadth and ambition of delivery programmes. The emphasis for the Delivery of Integrated Settlement risk was shifted from readiness to delivery, and the risk relating to Securing Powers and Funding was extended to include the potential risk of not securing necessary powers. Cabinet was asked to consider any potential new and emerging risks for inclusion.

The North East MSA Risk Management Framework

Cabinet reviewed and approved the North East MSA's Risk Management Framework. The updated framework includes a move to a 5x5 risk scoring scale for likelihood and impact, the adoption of 13 risk categories aligned with HM Treasury's Orange Book, and a 5-level risk appetite scale. These changes aim to improve clarity, consistency, and the ability to benchmark risks, supporting more informed decision-making and a clearer understanding of the organisation's risk tolerance.

Support with the Cost of Living and Doing Business

Cabinet noted the actions already being taken by the North East MSA to alleviate the impacts of the cost-of-living crisis on residents and to support businesses with their energy costs. It was noted that the MSA will continue to work with partners to understand the impact of the ongoing conflict in the Middle East. Cabinet agreed that the MSA's priorities for further mitigation should be to advocate for HM Government to continue funding the national bus fare cap and to accelerate the delivery of the Warm Homes Plan. The report highlighted the disproportionate impact of the crisis on the North East due to factors such as higher levels of deprivation and lower car ownership, and detailed interventions in transport, energy efficiency, child poverty, community support, and job creation.