At a meeting of the Northumberland County Council cabinet, several key decisions were made, including approving an amended constitution for the Standing Advisory Council for Religious Education (SACRE), increasing the budget for the Northumberland Line project by £28.77 million, and endorsing the Outline Business Case for the Portland Park Cinema and Restaurants project as part of the Ashington Regeneration Programme. The cabinet also discussed and approved updates on the financial restructuring of Advance Northumberland (AN Ltd) and the financial performance of the council for 2025-26.

Northumberland Line Budget Increase

The cabinet approved a request to the full council for an additional £28.77 million to complete the Northumberland Line project, bringing the total project budget to £336.4 million. The increase will be funded through a combination of sources: £10 million from Northumberland County Council, £7.87 million from the Department for Transport (DfT), and £10.9 million from the North East Combined Authority (NECA). The DfT have also provided a further allocation of £9.13m directly to Network Rail making a total project wide increase of £37.9m.

To contribute the £10 million, the council will use virement¹ from other capital projects, including:

• £884,226 from capital contract inflation
• £4.1 million from the Fleet Replacement Programme
• £750,000 from the Mitford Road Landslip Scheme
• £3 million from the Refurbishment of County Hall (Block 2)
• £1,265,774 from the Ashington Town Centre Infrastructure project

The report noted that the Fleet Replacement Programme, Mitford Road Landslip Scheme, and Refurbishment of County Hall (Block 2) will need to have their funding added back into the 2026-27 Capital Programme to enable those schemes to complete.

The report indicated that by August 2025, passenger journeys had exceeded 500,000 since the line opened.

Ashington Regeneration Programme

The cabinet approved several recommendations related to the Ashington Regeneration Programme, including the Portland Park Cinema and Restaurants project and the redevelopment of Wansbeck Square.

Portland Park Cinema and Restaurants

The cabinet approved the Outline Business Case (OBC) for the Portland Park Cinema and Restaurants project and delegated authority to the Executive Director of Place and Regeneration to approve the Full Business Case. The project will construct a new five-screen cinema, family-orientated competitive socialising space, and two restaurant units at the Portland Park development site. The project is expected to create 34 full-time equivalent (FTE) jobs and generate over £15.9 million in net GVA².

To support the project, the cabinet approved an amendment to the Capital Programme by reallocating £400,000 in 2025-26 and £1,100,000 in 2027-28 from the Strategic Regeneration Projects budget to the Ashington Town Centre Renewal of Strategic Sites Programme budget. The cabinet also delegated authority to the Executive Director of Transformation and Resources to enter into a Grant Funding Agreement between Northumberland County Council and Advance Northumberland Commercial Ltd, as well as to determine the loan value and process the loan application submitted by Advance Northumberland (Commercial) Ltd.

Wansbeck Square Redevelopment

The cabinet noted the progress made on the redevelopment of Wansbeck Square and authorised the Executive Director for Place and Regeneration to enter into contracts up to the value of £2.429 million, an increase of £829,000 from the previous approval in June 2023. The funding will contribute to site development, further design work, and targeted acquisitions.

Ashington Town Centre Highway Infrastructure

The cabinet agreed to establish the Ashington Town Centre Highways Infrastructure project, with funding from the council's capital.

Advance Northumberland (Ltd) Financial Restructuring

The cabinet discussed the financial restructuring of AN Ltd, noting the progress made to date, including the incorporation of new subsidiary companies Advance Manor Walks Ltd and Advance Green Futures Ltd. The cabinet also acknowledged that further due diligence is required before implementing the recommendations, specifically regarding valuations of Manor Walks Shopping Centre and Westmorland Retail Park, updated loan agreements, and finalisation of tax advice.

The cabinet delegated authority to the Executive Director of Transformation and Resources and Executive Director of Place and Regeneration, following consultation with the Director of Law and Corporate Governance, to finalise the financial restructure package for the AN Ltd Group, subject to the Executive Director of Transformation and Resources being satisfied that the outstanding matters have been appropriately dealt with, and that there is no material departure from the underlying assumptions supporting the envisaged financial measures approved in principle by Council on 26 March 2025.

The proposed financial measures include:

• The conversion of £83.30 million of loans provided to Advance Northumberland (Commercial) Limited in respect of Manor Walks Shopping Centre into ordinary shares.
• The transfer of the Net Book Value of the Manor Walks Shopping Centre and Westmorland Retail Park assets (£74.38 million at 31 March 2025), and the residual loans in relation to Westmorland Retail Park of £38.00 million into Advance Manor Walks Limited subject to legal charge being entered into in favour of the Council.
• The conversion of those remaining maturity loans to an annuity basis.
• The establishment of a Revolving Credit Facility of up to £35 million for Advance Northumberland (Developments) Ltd, with associated security arrangements.

The cabinet also noted that the Executive Director of Transformation and Resources and the Director of Law and Corporate Governance will produce a report to a future council meeting setting out the proposed scheme of governance and reporting for oversight of the ongoing performance and financial management of AN Ltd.

Financial Performance 2025-26

The cabinet reviewed the council's financial performance for 2025-26, noting a projected overspend on services of £7.507 million. The cabinet approved the re-profiling of £70.073 million from 2025-26 to 2026-27 in the Capital Programme to reflect estimated expenditure levels in the current financial year. The report noted that services are taking action to bring the budget back into balance, and work is underway to ascertain if treasury management opportunities could improve the position further.

Extra Care Housing Procurement

The cabinet approved the commencement of a procurement exercise for care and support services to be delivered within Extra Care facilities in Northumberland. The procurement will establish an Open Framework, and the Executive Director of Adults, Aging and Wellbeing was delegated authority to award Open Framework places to successful bidders and to approve and award call-off contracts to individual suppliers under the Open Framework.

Blyth Extra Care Facility

The cabinet approved a capital budget of up to £10.83 million, funded from the Levelling Up Deep Dive Housing Renewal Fund, for the delivery of an Extra Care Facility at Delaval Terrace in Blyth. The Executive Director of Place and Regeneration was delegated authority to procure a Registered Provider to build and operate the facility through a Development Agreement, subject to evidence of a viability gap demonstrated through a Development Appraisal.

Food & Feed Safety & Standards Service Plan

The cabinet approved the Food and Feed: Safety and Standards Service Plan for 2025-26, as required by the Food Standards Agency. The plan outlines the council's regulatory activity to provide assurance on the safety and standards of food and animal feed in the area.

SACRE Constitution

The cabinet approved the amended SACRE constitution, which updates the council's approach to religious education. The substantive changes to the constitution are:

• SACRE operates on an academic year basis rather than a financial year.
• The Chair of the committee is appointed by vote of SACRE members
• Allow hybrid meetings to take place to increase quoracy and remove travel time for those committee members who are geographically remote.