The Cabinet of the North East Mayoral Strategic Authority met on Tuesday 22 September 2026, approving significant investment in business growth, post-16 education, and the development of a regional spatial strategy. Key decisions included endorsing the North East Rail Vision, allocating £25.8 million to the Business North East Framework, and approving the commencement of the North East Spatial Development Strategy.

The North East Rail Vision

Cabinet endorsed the North East Rail Vision, a comprehensive plan aiming to transform the region's rail network by 2040. The vision, developed in partnership with the rail industry and regional stakeholders, outlines aspirations for a safer, more reliable, accessible, and affordable rail service. Key priorities include integrating local rail into the 'Angel Network'¹, rolling out affordable fares, improving station accessibility, and increasing service frequency. The vision also highlights the importance of progressing the Leamside Programme, which aims to reintroduce passenger services along the former Leamside Line, and entering into a Memorandum of Understanding (MoU) with industry partners to drive forward these ambitions. Authority was delegated to the Director of Transport to finalise the terms of the MoU and to the Chief Executive to make minor amendments and publish the vision documents.

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

An investment of £25,887,466 was approved to establish and deliver the Business North East Framework between January 2027 and March 2029. This framework aims to create a simplified, accessible, and business-focused support system across the region, moving away from fragmented provision towards a coordinated regional approach. The delivery model will comprise a regional Hub function, led by the Mayoral Strategic Authority, and seven local authority 'Spokes' to ensure strong local relationships and intelligence. The framework will support businesses through five integrated work packages: 'Inspire' (increasing entrepreneurial aspiration), 'Explore' (improving enterprise readiness), 'Start' (increasing business creation), 'Succeed' (improving productivity and innovation), and 'Grow' (supporting business scale-up). Authority was delegated to the Chief Executive to manage the procurement processes for this initiative.

North East Spatial Development Strategy

Cabinet approved the commencement of the formal preparation of the North East Spatial Development Strategy (SDS), a plan that will set out a broad vision for growth and investment across the region for up to 30 years. The SDS will cover the period up to 2055 and will be developed in alignment with national planning reforms. The proposed timetable for the SDS development was approved, and authority was delegated to the Chief Executive, in consultation with the Mayor, to submit this timetable to the Secretary of State. Authority was also delegated to the Assistant Director of Place to manage the preparation, consultation, and engagement processes for the SDS, with substantive policy choices remaining subject to future Cabinet consideration. An online engagement portal for the SDS will be launched following the publication of necessary secondary legislation.

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 projected 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 other barriers to participation, can access suitable post-16 provision. The funding will be awarded through 14 Grant Funding Agreements with 13 statutory providers of 16-18 education, supporting the expansion and modernisation of teaching facilities.

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 first phase of the AI Growth Zone programme to proceed without delay, complementing the development of core data centre infrastructure. The programme aims to address challenges such as low regional AI adoption, build AI skills and awareness, support innovative AI businesses, and enhance the visibility and accessibility of the AI Growth Zone. Cabinet also approved the overall programme approach and the progression of procurement activities. Furthermore, approval was given for the development of a North East Data Centre Strategy to ensure a strategic approach to managing future data centre investments in the region, considering wider benefits and potential opportunity costs.

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 expenditure for service delivery programmes is £558.1 million against a budget of £565.4 million, indicating a net forecast variance of £7.3 million. This variance is largely attributed to the timing of expenditure across major grant-funded programmes. The corporate overheads forecast shows a net position of £21.7 million below budget, primarily due to higher-than-anticipated interest income, which will be transferred to an earmarked reserve. The Treasury Management update confirmed that the Authority's treasury position 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. Additionally, 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 commented upon the current strategic risks, their scoring, and proposed management actions as presented in Annexes 1 and 2 of the report. The Senior Leadership Team 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 these 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.