The LCR Overview and Scrutiny Committee met on Wednesday 25 March 2026 to review the Combined Authority's financial performance, discuss updates on the Integrated Settlement and Housing Strategy, and consider the refreshed Investment Strategy and the mid-term review of the Five-Year Climate Action Plan. The committee also received feedback on the Local Transport Plan consultation and reviewed its work programme.

Financial Performance Report – Quarter 3, 2025/26

Claire Hall, Director of Finance, and Veronica Wilson, Strategic Finance Manager, presented the financial performance report for the nine-month period from April to December 2025. The Combined Authority is forecasting a projected under-spend of approximately £4.6 million for the year. This positive position has been influenced by several factors, including an overspend related to the £2 bus fare cap, which was offset by favourable variances in treasury management income, tunnel tolls, and employee costs. The report also detailed a projected capital under-spend of around £140 million, largely due to the slippage of externally and internally delivered programmes into the new financial year. Unused funds will be transferred to the next financial year for continued delivery. The committee noted the report and the capital budget adjustments.

Integrated Settlement Update

Emma Pridgen, from the Integrated Settlement core team, provided an update on the progress of the Integrated Settlement, which is set to go live the following week. The Integrated Settlement consolidates previous funding into a single arrangement across six functional responsibility areas, offering revenue for three years and capital for four. A key advantage highlighted was the certainty provided by the longer time period, removing the need for bidding for individual grants and allowing for a forward-looking approach with financial flexibilities. A readiness check conducted by PwC assessed the Combined Authority across 21 sub-criteria, with positive results in 16 areas. The Outcomes Framework, negotiated with central government, was finalised, and the settlement represents a £1.5 billion arrangement. Councillor Paul Jobson from Wirral raised a question about the flexibility of moving funds, which was clarified as 10% within any one year. Councillor Paula Murphy from Sefton inquired about the policy for moving funds, and it was confirmed that governance for this is being established and will come to scrutiny.

LCRCA Housing Strategy

Steve Skelton, Associate Director, and Tim Jago, Senior Policy Lead, presented the draft LCRCA Housing Strategy 2026-2031. The strategy aims to address significant housing pressures across the Liverpool City Region by setting out a clearer, stronger, and more proactive approach. It outlines three strategic shifts for the Combined Authority: from funder to investor, from focusing on individual sites to whole places, and from system convener to system leader. Four key priorities were detailed: accelerating the delivery of high-quality homes, ensuring the right skills for delivery, improving housing quality, and tackling homelessness and rough sleeping. Councillor Joe Hanson raised concerns about the rollout of retrofit schemes to private housing and the unlocking of derelict sites. Councillor Bisi Osundeko inquired about plans for wheelchair-accessible homes and making existing housing stock accessible. Councillor Pat Moloney echoed concerns about disabled access in new builds. The committee noted the report and the proposed further work.

LCRCA Investment Strategy

Ben Stewart, Investment and Devolution Policy Lead, and Adam Adam Price, lead officer for development, presented the LCRCA Investment Strategy. The strategy aims to 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, establishing a single coherent pipeline and a £2 billion LCR Investment Fund to leverage private and institutional capital. Funding priorities include growing the economy, nurturing core economic sectors, improving productivity, strengthening communities, and ensuring shared prosperity. Councillor Chris Cooke raised the point about community investment bonds, which was noted for further consideration. The committee agreed the recommendations tabled on page 143.

Five Year Climate Action Plan Mid-Term Review

Rachel Waggett and Tim Jago presented the mid-term review of the Five-Year Climate Action Plan. The review highlights progress made since 2023, including 10,000 homes retrofitted, significant investment in solar panels and battery storage, and £36 million secured for public sector decarbonisation projects. The plan has been updated to reflect the accelerated net zero target of 2035 and the changing devolution agenda, with a greater role for strategic authorities in tackling climate change. Key actions for the future include adopting a new strategy to boost housing retrofit participation, continuing government-funded programmes, and developing new funding models for building decarbonisation. Councillor Mike Kearns raised questions about unusual alternative ways of cleaning the environment, such as oyster beds and Christmas trees for coastal erosion. Councillor Chris Cooke commented on the visual presentation of progress charts and questioned the slow progress on clean energy. The committee welcomed the report and requested greater clarity on progress information in the future.

Finalising the Local Transport Plan - Feedback from Final Round of Public Consultation

Huw Jenkins, lead for transport policy, presented the feedback from the final round of public consultation on the draft Local Transport Plan (LTP). The consultation focused on the draft Delivery Plan, which links to the Integrated Settlements and the £1.6 billion Transport for City Regions funding allocation. While the consultation was not an open call for schemes, it aimed to gather insights to inform future project development. Key themes from the 264 public responses included a desire for more ambitious rail services, including extensions to Liverpool John Lennon Airport, and concerns about the reliability and connectivity of bus services. Feedback from Equality Panels reiterated the importance of personal safety, road safety, and simpler ticketing systems. Councillor Mike Kearns raised concerns about response rates and digital exclusion. The committee noted the report and the proposed next steps, including further analysis of detailed comments and the finalisation of the LTP for Combined Authority approval.

Work Programme 2025-26

Trudy Bedford, Statutory Scrutiny Officer, presented the work programme for 2025-26. The committee reviewed the programme, noting the Forward Plan of Key Decisions. Expressions of interest for scrutiny visits to Daresbury and the Knowledge Quarter were requested. A member inquired about the key decision threshold amendment, and attention was directed to the Combined Authority report for 23rd January 2026 for comparators. The committee approved the work programme and authorised the Statutory Scrutiny Officer to make amendments as required.

The meeting also included personal announcements, thanking Councillor Paul Murphy for her service and noting Chris Collins' move to an independent member role on Halton. The committee also welcomed students from Broughton Hall.