The LCR Overview and Scrutiny Committee met on Wednesday 25 March 2026 to discuss the Combined Authority's financial performance, the integrated settlement, housing strategy, investment strategy, climate action plan, and the local transport plan. Key decisions included noting the financial performance report and approving capital budget adjustments, and agreeing to proceed with the LCRCA Investment Strategy.

Financial Performance Report

Claire Hall, Director of Finance, and Veronica Wilson, Strategic Finance Manager, presented the Combined Authority's financial position for the nine months to December 2025. The report indicated a projected revenue under-spend of approximately £4.6 million, attributed to factors including the £2 bus fare cap extension, favourable treasury management income, and income from tunnel tolls, offset by employee costs. A larger capital under-spend of around £140 million was forecast, with £91 million of this activity expected to slip into the new financial year. This slippage was attributed to the complexity of externally delivered programmes and was approved for budget adjustment by the Combined Authority. The committee noted the report and the capital budget adjustments detailed in Appendix 3 - Proposed 2025-26 Capital Budget Revisions.

Councillor Mike Desmond raised concerns about slippage on externally delivered projects, questioning whether funding for project management was included. It was confirmed that funding is provided to local authorities for project management, and a working group is being established to improve collaboration and resourcing for local authority and Combined Authority delivery. Councillor Pat Maloney extended this concern, highlighting the historical reduction in clerks of work ¹ due to budget cuts and advocating for their reinstatement to ensure project delivery as specified. Councillor Mary Rasmussen inquired about the trend of slippage over the past five years, and it was noted that while slippage has been significant, it is not unusual for complex public sector capital schemes, especially with increased funding levels leading to larger and more complex projects.

Integrated Settlement Update

Emma Pridgen, from the integrated settlement core team, provided an update on the upcoming launch of the integrated settlement, which consolidates previous funding into a single arrangement across six functional responsibility areas. This arrangement covers revenue for three years and capital for four years, offering greater certainty, removing the need for individual grant bids, and enabling a longer-term outlook and decision-making aligned with devolution. The settlement, valued at approximately £1.5 billion, includes flexibilities to move funds between pillars and between revenue and capital, provided outcome targets are met. A readiness check, conducted with PwC, assessed the Combined Authority's preparedness across 21 sub-criteria, with 16 out of 21 achieving at least a level three rating. The outcomes framework, negotiated with central government, outlines the accountability measures for the settlement.

Councillor Paul Jones asked for clarification on the 10% flexibility for moving funds, and it was explained that this is 10% within any one financial year. Councillor Paula Murphy inquired about the availability of a policy for how these flexibilities can be used and if it would come to the committee for scrutiny, which was confirmed.

LCR Housing Strategy

Steve Skelton, Associate Director, and Tim, supported the presentation of the LCR Housing Strategy. The strategy aims to refresh the Combined Authority's approach to housing, taking into account changes in powers, funding, the housing market, and resident challenges. It outlines a shift from being a grant funder to a strategic investor, focusing on place-based regeneration and acting as a system leader. The strategy's four priorities are to improve housing delivery, ensure skills and employment routes into the construction sector, enhance housing quality through retrofit schemes, and tackle homelessness.

Councillor Joe Hanson raised concerns about the rollout of retrofit schemes, noting that they often favour large corporate registered social landlords (RSLs) rather than private homeowners in older terraced properties who may have the greatest need. He also questioned the process for identifying and unlocking derelict sites for development. Councillor Mike Desmond requested more detail on brownfield site development and long-term vacant houses, suggesting future briefings on these topics. Councillor Bissi asked about the number of wheelchair-accessible homes needed and plans for making existing housing stock accessible, while Councillor Paul Murphy echoed concerns about homeowners accessing retrofit support. Councillor Pat Maloney advocated for new homes to be built to a higher standard of accessibility, questioning why basic disabled facilities cannot be incorporated as standard.

In response, it was explained that retrofit programmes have historically been funded by various government programmes with specific criteria. Going forward, housing retrofit will be part of the integrated settlement, potentially allowing the Combined Authority to set its own criteria. The Warm Homes Plan has been published by the government, which may include cheap finance loans for owner-occupiers for retrofit. The issue of ageing housing stock and the lack of resources to address declining housing standards on a large scale was acknowledged. Regarding land ownership, an urban land supply study is underway as part of the spatial development strategy, and work on the housing pipeline will provide more detail on ownership and development status. Adam Price, lead officer for development, mentioned the use of Homes England's land registry database and collaboration with city councillors piloting an approach to empty homes.

LCR Investment Strategy

Claire Blot, Assistant Director for Policy and Strategy, supported by Ben Stewart, Investment and Devolution Policy Lead, and Jo Leek, presented the refreshed Investment Strategy. The strategy aims to target and deploy Combined Authority funding over the next decade to maximise outcomes and support shared ambitions. It marks a shift from a grant culture to a strategic system-wide investment model, utilising tools such as equity investments, loans, and co-investment. The strategy will establish a single coherent pipeline for transport, housing, skills, innovation, business support, and culture, and will launch a new £2 billion LCR Investment Fund to leverage private and institutional capital. Funding priorities include growing the economy, improving productivity, strengthening communities, and ensuring shared prosperity, with inclusive growth and social value as non-negotiable elements.

Councillor Chris Cook raised the issue of community investment bonds and community municipal investments, suggesting they could be a valuable lever for raising capital from individuals within the community. It was acknowledged that this is an important point and will be considered further, with a note that financial arrangements must balance risk against opportunity. The committee agreed to the recommendations tabled on page 143 of the Public reports pack 25th-Mar-2026 14.00 LCR Overview and Scrutiny Committee.

Five Year Climate Action Plan Mid-Term Review

Tim and Rachel presented the mid-term review of the Combined Authority's Five Year Climate Action Plan. The review updates the plan to align with the revised net zero target date of 2035, embedded in the corporate plan and other key strategies. It also reflects the increasing role of strategic authorities and mayors in addressing climate change and nature emergencies through devolution. The review, supported by constituent local authorities, highlights progress made and actions still to be completed by 2028.

Councillor Mike Desmond inquired about the use of oyster beds for coastal cleaning and Christmas trees for sand dune retention, suggesting these as natural solutions for coastal erosion. Councillor Michael Eccleston raised a concern regarding the Local Nature Recovery Strategy, where a site identified as important for pink-footed geese has been allocated for development in the St. John's local plan, questioning the alignment of these strategies. Councillor Chris Cook felt the report lacked concrete evidence of progress, particularly regarding the concentric circles chart used to illustrate progress, and suggested a bar chart format would be more visually effective. He also questioned the low achievement rate for clean energy.

In response, it was noted that natural environment solutions are a key part of the climate action plan and will be further explored for climate adaptation. Regarding the pink-footed geese, it was explained that the Local Nature Recovery Strategy maps are modelled interpretations and not yet ground-truthed, and developers are being encouraged to support priority species. The presentation of the climate action plan will be reviewed, and the progress elements will be clarified. The lower achievement in clean energy was attributed to the Combined Authority's limited powers in this area, with expectations of greater control through devolution. The committee agreed to welcome the report and request greater clarity on progress in the future.

Local Transport Plan

Hugh Jenkins, Lead for Transport Policy, presented the final report on the development of the Local Transport Plan, including feedback from the final round of public consultation. The consultation focused on the draft delivery plan, which links to the integrated settlement and the £1.6 billion Transport for City Region funding allocation. The consultation aimed to gather insights to inform schemes and delivery, rather than being an open call for schemes. Feedback indicated a desire for more rail schemes, direct rail links to Liverpool, and improved bus network rationalisation and personal safety on public transport.

Concerns were raised about the response rates to the consultation, particularly from those without digital access, and the clarity of the documentation. Councillor Mary Rasmussen questioned the logic of the survey questions regarding public transport usage. Councillor Paul Murphy highlighted the length and complexity of the transport plan document, suggesting shorter, easier-to-understand documents with hyperlinks for deeper dives. He also stressed the importance of considering the needs of those reliant on public transport for commuting to work and education.

In response, it was acknowledged that the transport plan is a statutory document with a technical focus, but efforts are being made to communicate schemes and projects in more accessible ways, including YouTube videos and graphics. Funding has been received to conduct detailed work on why people are not using sustainable transport, exploring issues of perception, design, cost, and safety. The committee agreed with the recommendations and expressed a desire for greater clarity on progress.

The committee also discussed the possibility of cancelling the next meeting after the local elections, as the election results could affect the formula for the opposition for the Overview and Scrutiny Committee. This decision was left to officers to agree and convene with members.

Finally, a short video was shown about a visit to the Albury Innovation Centre, highlighting life science technology and its impact on growth. The visit provided a practical understanding of the work being done and its importance. Thanks were extended to the staff who facilitated the visit.