Our governance and funding
Our legislative framework
We operate with integrity, transparency and accountability in everything we do, and that starts with how we’re governed.
We were established as one of seven Passenger Transport Executive (PTE) bodies in the 1968 Transport Act. This means we can provide and procure public transport services, and operate any related activities that would support the delivery of public transport
We’re a public sector body in our own right, and a separate legal entity. General legislation relating to the governance and conduct of public sector bodies applies to us.
We have our own set of accounts and our own financial regulations and standing orders.
An evolved organisation for a future-facing network
Over time we’ve been accorded further powers, duties and obligations, such as constructing and expanding the Metro system.
As an operator of a railway that runs on part of the National Rail Network, we’re bound by the Railways and Other Guided Transport Systems (Safety) Regulations 2006 (‘ROGS’), a statutory regime for rail safety.
We were designated a Travel Concessionary Authority by the Concessionary Bus Travel Act 2007, with a statutory duty to reimburse bus operators for concessionary travel.
From a funding perspective, we have a financial duty to operate with a balanced budget. The North East Mayoral Strategic Authority must have regard to this duty when formulating its policies and requiring us to implement them.
Roles and responsibilities
Our relationship with the North East Mayoral Strategic Authority
Tyne and Wear Integrated Transport Authority (TWITA) was abolished by the North East Mayoral Strategic Authority Order 2014, and its powers, duties and functions were passed to the North East Mayoral Strategic Authority.
Our general duties remain as defined by the 1968 Act—in short, to provide passenger transport services in accordance with the policies of the Authority.
However, while we remained as a separate ‘body corporate by statute’ it also became an executive body and an officer of the North East Mayoral Strategic Authority, overriding the previous statutory arrangements with TWITA.
Subsequent iterations in 2018 and again in 2024 preserved our position, with us remaining a separate legal entity with our own powers.
Approvals and autonomy
Some aspects of what we do require specific approvals from the North East Mayoral Strategic Authority. For example:
- Our annual revenue and capital budgets
- Major reorganisation of transport services
- Service developments or extensions that requires significant capital expenditure
- Changes to fares or charges for services
- Acquiring or disposing of land
Alongside this we must make numerous commercial and operational decisions on a regular basis in order to properly perform our duty under the Transport Act.
Internal governance
The Transport Act 1968 requires there to be a Director General and between two and eight other board members appointed by the Authority.
Our Managing Director, Cathy Massarella, is supported by a Senior Leadership Team of six non-statutory directors — leading Operations, Quality; Health; Safety, Security and Environment, Infrastructure, Commercial, Major Projects, and People and Culture plus a Director of Finance and Resources and Head of Legal Services.
The Director of Transport at the North East Mayoral Strategic Authority and a board of none executive directors oversee the Senior Leadership Team.
Our funding
The North East Mayoral Strategic Authority has the power to issue a levy under section 74 of the Local Government Finance Act 1988. This levy helps ensure that we can achieve a balanced budget, taking into account other grant income from central government and our fare and commercial revenue, in line with policy direction provided by the North East Mayoral Strategic Authority.
Before the Covid pandemic, the levy funded all of our services other than Metro, which was funded from a combination of government grant and fare/commercial revenues. Because of the reduction in people travelling by Metro during and after the pandemic, Metro services are now partially funded by the levy.
Our capital programme is largely funded by capital grant provided by central government. This is likely to be replaced by the government’s City Region Sustainable Transport Settlement Fund from 2027/28.
