The Cabinet of the North East Mayoral Strategic Authority met on Tuesday 9 June 2026. The meeting involved noting appointments to its Cabinet and committees, agreeing the allocation of Cabinet portfolios, and agreeing the schedule of meetings for the municipal year 2026/27. The Cabinet also noted annual reports from the Overview and Scrutiny Committee and the Audit and Standards Committee, approved a new Risk Management Framework, and reviewed strategic risks. Discussions also covered support for residents and businesses facing cost of living and doing business challenges, with a call for continued government support.

Appointments to Cabinet, Committees and Other Bodies

The Cabinet noted the appointment of members and substitute members to its own structure, committees, and other regional bodies by the constituent councils. Mayor Karen Clark was noted as appointed Deputy Mayor by the Mayor. The allocation of Cabinet portfolios was agreed, with authority delegated to the Chief Executive, in consultation with the Mayor and relevant Portfolio Holder, to finalise the membership of each Portfolio Advisory Board. The schedule of meetings for the municipal year 2026/27 was also agreed.

Further appointments agreed included the membership of the Overview and Scrutiny Committee and the Audit and Standards Committee. Councillor John Cook was agreed as the Chair of the Overview and Scrutiny 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 agreed to be extended by two years. Appointments to the Transport for the North's Board and associated boards and committees were also agreed. The Chief Executive was authorised, in consultation with the Mayor and the Chair of the Business Advisory Council, to undertake a recruitment exercise to appoint new members to the Business Advisory Council.

Overview and Scrutiny Committee Annual Report 2025/26

The Cabinet noted the Overview and Scrutiny Committee Annual Report for 2025/26. This report documented the committee's role in reviewing and scrutinising decisions taken by the North East Mayor and Cabinet, monitoring programme delivery, and contributing to policy and strategy development. Councillor Colin Ferguson, Chair of the committee, highlighted the breadth of activity scrutinised, including Metro performance, the visitor economy, and carbon emission reduction plans. The report also noted the establishment of task and finish groups to examine the North East Child Poverty Action Plan and contribute to the Spatial Development Strategy.

Audit and Standards Committee Annual Report 2025/26

The Cabinet also noted the Audit and Standards Committee Annual Report for 2025/26. This report detailed the committee's work in scrutinising the Authority's financial affairs, risk management, internal control, and corporate governance arrangements, as well as promoting high standards of conduct. Dave Willis OBE, the independent Chair, presented the report, highlighting successes such as a clean audit opinion on the first set of financial accounts and the development of the risk management strategy. Challenges were noted regarding meeting quoracy and attendance, with requests made to council leaders to encourage member participation.

Governance Update

A governance update was presented, which included the approval of recommendations from the Independent Remuneration Panel (IRP). These recommendations concerned the payment of allowances to members of the Overview and Scrutiny Committee and the Audit and Standards Committee. The Cabinet agreed that these allowances should be paid, following the IRP's report which set out recommended annual allowances for chairs, vice-chairs, committee members, and substitute members for both committees. The estimated annual cost of these allowances was approximately £70,000.

Delivering for the North East - Annual Performance Report

The Cabinet noted the progress made since May 2024 as outlined in the Annual Performance Report, Delivering for the North East. The report highlighted significant achievements, including the creation of approximately 1,900 new jobs and the safeguarding of 600 more. Over 3,000 households were supported with energy saving advice, and £70 million was saved by the public through the Mayor's Fares initiative, which facilitated over 100 million bus journeys. The report also detailed investments in the creative industries, the launch of a Northern Music Export Office, and the first reduction in Metro fares through capping. Looking ahead, the report outlined the next phase of activity focused on delivering short-term pledges within the 2026-30 Corporate Plan.

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

The Cabinet agreed the current strategic risks, scoring, and proposed management actions as presented in the North East MSA's Strategic Risk Register. The review, conducted by the Senior Leadership Team, resulted in updates to existing strategic risks. The risk score for Organisational Capacity & Sustainability was updated, and the emphasis for the Delivery of Integrated Settlement risk was shifted from readiness towards delivery. The risk relating to Securing Powers and Funding to Deliver Objectives was extended to encompass powers as well as funding. The Cabinet was also asked to consider any potential new and emerging risks.

The North East MSA Risk Management Framework

The Cabinet approved the North East MSA's Risk Management Framework. This framework outlines the processes for identifying, assessing, and managing risks. Key updates to the framework include the adoption of a new 5x5 risk scoring scale for likelihood and impact, a standardised taxonomy of 13 risk categories aligned with HM Treasury's Orange Book, and a five-level risk appetite scale. These changes aim to improve clarity, consistency, and the effectiveness of risk management across the organisation.

Support with the Cost of Living and Doing Business

The 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 energy costs, exacerbated by the conflict in the Middle East. It was noted that the MSA would continue to work with partners to understand the ongoing impacts of the conflict. The 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 its Warm Homes Plan. The report highlighted existing interventions such as the Mayor's Fares, the Warm Homes Advice Service, the Child Poverty Action Plan, and the Mayor's Opportunity Fund, while also calling for greater national government support.

Key Decisions Made:

• Appointments to Cabinet, Committees and Other Bodies: Noted appointments by constituent councils, noted the appointment of Deputy Mayor, agreed Cabinet portfolio allocations, and agreed the schedule of meetings. Agreed appointments to committees and authorised the Chief Executive to recruit for the Business Advisory Council.
• Overview and Scrutiny Committee Annual Report 2025/26: Noted the report.
• Audit and Standards Committee Annual Report 2025/26: Noted the report.
• Governance Update: Approved recommendations for member allowances and agreed that these allowances be paid. Agreed to extend the terms of the independent chair and independent person for the Audit and Standards Committee.
• Delivering for the North East - Annual Performance Report: Noted the progress made and the next phase of activity.
• The North East MSA Quarter 3 2025/26 Strategic Risk Review: Agreed the current strategic risks, scoring, and proposed management actions.
• The North East MSA Risk Management Framework: Approved the framework.
• Support with the Cost of Living and Doing Business: Noted current actions and agreed priorities for future mitigation, including advocating for continued government support on bus fares and the Warm Homes Plan.