Purpose

This report follows the government's 'minded-to' decision on Local Government Reorganisation (LGR) in Lancashire and subsequent correspondence from the Ministry of Housing, Communities and Local Government (MHCLG) seeking a response from Lancashire councils on matters relating to the Structural Changes Order.

This report seeks approval for a proposed joint response to MHCLG from all 15 Lancashire councils, for the £3.6m agreed by the Secretary of State to assist with transition costs to be paid to the county council as the accountable body for the local Lancashire LGR Implementation Reserve, and agreement to enter into a contract for a strategic partner to support all 15 Lancashire councils in the LGR implementation programme.

Decision

Resolved: That, the Leader of the County Council:

i.  Approved the proposed joint response to the Ministry of Housing, Communities and Local Government, as set out at Appendix 'A', and the Chief Executive be authorised to finalise and submit the response, in consultation with the Leader of the Council;

ii.  Approved that the £3.6m funding agreed by the Secretary of State to assist with transition costs be paid to the county council as the accountable body for the local Lancashire LGR transition fund, with £900,000 earmarked and ringfenced within that fund for each new unitary area;

iii.  Approved the appointment of Ernst & Young as LGR strategic partner, on behalf of and to support all 15 Lancashire councils in the LGR implementation programme, as set out in the report and via a third-party procurement framework which provides a neutral vendor arrangement, with approval delegated to the LGR Programme Director in consultation with the Corporate Director of Finance and the Director of Law and Governance to agree and enter into the terms of the contract;

iv.  Approved the use of up to £10m of the LGR Implementation Reserve for the appointment of Ernst & Young, with up to £3.36m approved for core services and £6.64m ringfenced for optional services;

v.  The LGR Programme Director be authorised, in consultation with the Corporate Director of Finance, to approve the use of ringfenced funding for optional services; and

vi.  The decision should be implemented immediately for the purposes of Standing Order C28(3) as any delay could adversely affect the execution of the county council's responsibilities. The reason for this was due to the joint response to MHCLG from all 15 Lancashire councils must be returned by 17 August 2026, and the contract for a strategic partner must be entered into immediately to ensure there is no delay to the LGR implementation programme following the government's 'minded-to' decision.