The Lancashire Combined County Authority (LCCA) Overview and Scrutiny Committee met on Monday 8 December 2025 to discuss the progress of the authority's work programmes, particularly focusing on transport and skills development. Key decisions included noting the progress on the Local Transport Plan and the 'Get Lancashire Working' programme, and agreeing to further scrutiny of the devolved Adult Skills Fund.

Chief Operating Officer Update

Matthew Sidgreaves, Chief Operating Officer of the Lancashire Combined County Authority (LCCA), provided an update on the authority's progress. He highlighted that the LCCA had marked its first anniversary and that leaders of the constituent councils were scheduled to meet with the Minister for Devolution, Faith, and Communities to discuss future devolution arrangements. The Devolution Bill was progressing through the House of Lords, and capacity funding for the LCCA for 2026/27 had been confirmed at £250,000.

The committee discussed ongoing consultations, including a national consultation on an overnight visitor levy, to which the constituent councils had submitted a joint response supporting its extension to foundation strategic authorities. The committee also discussed the consultation on Local Government Reorganisation (LGR), expressing concerns about the lack of clarity regarding the future relationship between the LCCA and any new unitary authorities. Members noted that the proposals did not detail how responsibilities would align, how duplication and governance risks would be mitigated, or how strategic functions like skills, transport, and growth would operate under new structures. These uncertainties were seen as potential causes of operational friction, unclear accountability, and delays in programme delivery.

Concerns were also raised about fragmented arrangements in areas such as taxi and private hire licensing, with differing local policies and out-of-area licensing practices posing challenges. Further detailed work was deemed necessary before any future approach could be agreed. The committee discussed the need for clearer pre-scrutiny mechanisms, as several consultations and strategic items had arrived late. It was agreed that the forthcoming work programme should include structured opportunities for early scrutiny, and that Advisory Board Chairs should attend relevant meetings to strengthen alignment across committees. Wider governance sequencing and the alignment of Scrutiny and Audit Committee work on shared governance themes were also discussed.

Updates were provided on progress in economy, transport, and skills, including preparations for assuming Local Transport Authority functions from 1 April and the recruitment of a Director of Transport. Members requested further clarification on leadership structures and capacity at a future meeting.

Get Lancashire Working

Michele Lawty Jones, Director of the Lancashire Skills and Employment Hub, and Dan Dixon, Programme Manager for the Skills and Employment Partnership, presented an update on the 'Get Lancashire Working' programme. The programme aims to boost employment rates and reverse the growth in economic inactivity across Lancashire. The strategy sets out actions to achieve an 80% employment rate, requiring approximately 43,000 additional residents to enter work, with a focus on priority groups including young people, residents with health conditions, carers, and individuals with hidden disabilities.

The Connect to Work programme, a five-year Department for Work and Pensions (DWP) funded supported-employment model, was highlighted as a key initiative to help residents with disabilities and long-term health conditions into sustainable employment. Lancashire was noted as one of the first areas nationally to mobilise this programme.

Members raised several points, including the need for wider councillor engagement and bite-size briefings, support for older workers, and opportunities for career progression in health and social care. They also called for scrutiny of the Adult Skills Fund prioritisation and provider performance, and emphasised the importance of lived-experience insight. Concerns were raised about sector pressures in hospitality, retail, and care, and the need for permanent, sustainable employment. Members requested that future presentations be circulated in advance to allow for more focused scrutiny.

The committee resolved to consider the publication of 'Get Lancashire Working', its outcomes framework, and the mobilisation of the 'Connect to Work' programme. They also requested a future report focusing on the devolved Adult Skills Fund and the arrangement of bite-size briefings for members.

Budget 2026/27 and Medium-Term Financial Strategy 2027/28

Susan Guinness, Principal Accountant for Public Health and the Lancashire County Combined Authority, presented the LCCA's Budget for 2026/27 and the Medium-Term Financial Strategy (MTFS) for 2027/28. Both financial years were reported as currently balanced. The 2026/27 budget included a £145,000 contribution from reserves, resulting in a forecast reserve balance of £1.389 million at year-end. Total expenditure was approximately £53 million and income £52.859 million. The committee also noted the four-year capital programme, totalling £571 million.

Members raised questions regarding the future use of reserves and strategies for minimising reliance on them. It was agreed that further detail on projected reserve use would be provided in future reporting cycles. The committee resolved to consider the LCCA Budget Report for 2026/27 and MTFS for 2027/28.

Overview and Scrutiny Committee Work Programme 2025/26

The committee considered its work programme for 2025/26 and the recommendations and actions tracker. As this was the last meeting of the municipal year, a new work programme for 2026/27 would be required. The committee discussed strengthening governance arrangements and improving alignment between the Overview and Scrutiny Committee, Advisory Boards, Audit arrangements, and the CCA.

Key points for the forthcoming work programme included clearer arrangements for liaison between Scrutiny and Audit, training needs for members, improved sequencing of items for effective pre-scrutiny, consideration of future governance configurations, and opportunities to examine proposals relating to licensing and taxi regulation. Regular updates aligned to the CCA's core themes of growth, transport, and skills were also agreed.

The committee resolved to receive the work programme for 2025/26, consider the recommendations and actions tracker, and requested a report for the next meeting detailing the terms of reference for the points discussed.

Local Transport Plan Progress

Matt Townsend, Director of Highways and Transport, presented an update on the transition of transport functions to the LCCA. He outlined the strategic ambition for transport in Lancashire, focusing on connectivity, sustainable travel, tackling social challenges, and investing in innovation. The LCCA will assume full responsibility for managing and funding local passenger transport services, including bus services and concessionary travel schemes, from April 2026.

The transition plan includes the development of the Local Transport Plan (LTP) implementation plan, the Bus Service Improvement Plan (BSIP), and enhanced partnership arrangements. The committee discussed the representation of Blackpool's voice within the LCCA and the proposed commissioning and assurance model for transport delivery, where the LCCA would take strategic decisions and constituent councils would handle day-to-day delivery.

Concerns were raised about the integration of transport systems, the timeline for developing strategies for specific areas like the Conon Skipton line, and the impact of potential Local Government Reorganisation (LGR). Mr. Townsend confirmed that the LCCA would remain the local transport authority regardless of LGR outcomes, though its governance and constitution might need to change. The development of a late rental scheme was also discussed, with a commitment to explore its feasibility and bring it back for consideration.

The committee also discussed the data sources used for decision-making, the importance of integrated transport information, and the transition timeline. Reassurances were given regarding the progress of the transition plan and the mitigation of risks, with a focus on ensuring no loss of service for the people of Lancashire. The committee noted that the skills focus would be next on the work programme, and discussed the potential for Advisory Board Chairs to attend scrutiny meetings.

The Chair thanked the officers for their contributions and summarised the key points discussed, including integration, stakeholder voice, prioritisation, and delivery. The committee was assured that the process was iterative and that details would become clearer over time.