The Lancashire County Council's Company Member Cabinet Committee convened on 26 June 2025, and addressed several key issues related to the council's oversight of its owned companies. The committee approved a new conflict of interest protocol for directors, endorsed officer appointments to these companies, and agreed to resign from Growth Lancashire Limited. They also reviewed best practice guidance for local authority companies and approved the updated work programme for 2025/26.

Conflict of Interest Protocol and Director Appointments

The committee approved a new Conflicts of Interest for Council Owned Companies Protocol and endorsed a list of officer appointments as company directors. A further report will be submitted to a future committee meeting clarifying directors' duties in company articles.

The report presented to the committee highlighted the need for enhanced governance arrangements to manage conflicts of interest within council-owned companies. It was noted that legislation and requirements placed on council-owned companies have changed over time, necessitating a review of monitoring arrangements. The new protocol aims to ensure that potential conflicts are appropriately managed, reducing the risk to elected members.

The protocol states that:

Being a director of a local authority-controlled company requires officers and elected members appointed to those roles to operate in a completely different legal and philosophical framework to that they are used to inside their local authority. It can lead to real conflicts between the duty owed to the company and the interests of your council.

The key change within the new protocol is to ensure that conflicts of interest are appropriately managed and that the risk of a county council appointed director being placed in a position where their role as a county council member or officer conflicts with their role as a company director. The new protocol dictates that officers, and where appropriate, independently recruited non-executive directors, will be appointed as directors on all companies.

Appendix B to the Lancashire County Council Owned Companies - Conflict of Interests Protocol and Director Appointments report listed the following appointments:

• Lancashire County Developments Limited (LCDL): Laurence Ainsworth (Director of Strategy and Transformation) and Sarah Robinson (Head of Property)
• Active Lancashire Limited: Alex Downard (Head of Population, Health and Strategic Operations) and Georgina Roby (Head of Cultural Services)
• Lancashire Urban Development Fund Limited: Phil Green (Executive Director of Growth, Environment, Transport and Health)
• Lancashire Renewables Limited: Debbie King (Head of Environment and Climate Change)
• Local Pension Partnership Limited: Simon Lawrence (Director of Growth and Regeneration) - Temporary appointment
• Lancashire Environmental Fund Limited: Debbie King (Head of Environment and Climate Change)
• The Lancashire Partnership Against Crime Limited: Paula Hawley Evans (Consultant in Public Health)
• Growth Lancashire Limited: TBC

Local Authority Companies - Best Practice Guidance

The committee agreed to continue to adopt the best practice approach and guidance in respect of all county council owned companies as set out in the Local Authority Companies - Best Practice Guidance report.

The report provided an overview of best practice in managing the shareholder relationship with county council-owned companies. It referenced guidance from the Chartered Institute of Public Finance and Accountancy (CIFPA) and Local Partnerships, emphasising the importance of a clear vision, robust governance, and effective performance monitoring.

Key elements of the CIFPA guidance include:

• Vision: Ensuring a clear, agreed statement conveying the company's purpose aligned with the council plan.
• Values: Mirroring the values of the county council.
• Governance: Ensuring a robust governance framework, considering the Seven Principles of Public Life (the Nolan Principles¹).
• Business Plan Approval: Ensuring each company has a business plan with objectives, strategies, and financial forecasts.
• Engagement: Developing and maintaining relationships between the authority and each company.
• Understanding: Robust due diligence and appreciation of each company's role and remit.
• Review Efficiency and Effectiveness: Deciding how to best use existing assets and partnerships.
• Performance Monitoring: Regular monitoring and review of performance against the business plan and KPIs².

Growth Lancashire Limited - Lancashire County Council's Membership

The Company Member Cabinet Committee approved the county council's resignation from Growth Lancashire as a company member and company secretary, with immediate effect.

Company Member Cabinet Committee - Work Programme 2025/26

The committee approved the updated work programme for 2025/26, as detailed in the Company Member Cabinet Committee - Work Programme 202526 report. The work programme is intended to be a working document that is updated on a meeting-by-meeting basis to enable the Committee to add / remove future agenda items as necessary.

The committee noted the schedule for upcoming reports from various companies:

• June 2025 Meeting:
  • Lancashire Urban Development Fund (UDF) and its subsidiary Lancashire UDF SPV2 Limited (25% ownership)
  • Lancashire Environmental Fund Limited (25% ownership)
  • The Lancashire Partnership Against Crime Limited and its subsidiary LANPAC Limited (25% ownership)
• September 2025 Meeting:
  • Lancashire County Developments Limited and its subsidiary company Lancashire County Developments (Property) Limited (100% ownership)
  • Active Lancashire Limited (100% ownership)
  • Lancashire Renewables Limited (87.5% ownership)
  • Growth Lancashire Limited (25% ownership)

Lancashire Environmental Fund – Service Performance Review, Annual Report Year end 2024 and Corporate Governance Checklist 2025

The Company Member Cabinet Committee reviewed and received the Lancashire Environmental Fund Annual Report for year end 2024, approved the Corporate Governance Checklist, requested the draft accounts for year end December 2024 be circulated to the committee, and agreed to write to government regarding landfill tax funding distribution.

The Lancashire Partnership Against Crime Limited - Service Performance Review, Annual Report 2024/25 and Corporate Governance Checklist 2025

The Company Member Cabinet Committee noted the Lancashire Partnership Against Crime Annual Report for 2024-25, noted the Lancashire Partnership Against Crime Ltd and LANPAC Ltd Annual Reports and Accounts for year ending 31 March 2025 and approved the Corporate Governance checklist 2025.