The Lancashire Combined County Authority (LCCA) Overview and Scrutiny Committee met on Monday 8 December 2025 to discuss progress on the authority's work programmes, the development of the 'Get Lancashire Working' initiative, and the LCCA's budget. Key decisions included noting the Chief Operating Officer's update, approving the 'Get Lancashire Working' programme's framework and mobilisation, and considering the LCCA's budget for 2026/27 and Medium-Term Financial Strategy for 2027/28.

Chief Operating Officer Update

Matthew Sidgreaves, Chief Operating Officer of the LCCA, provided an update on the authority's first year of operation. He highlighted that leaders of the constituent councils were due to meet with the Minister for Devolution, Faith, and Communities to discuss future devolution arrangements, following the government's invitation for new foundation and mayoral combined authority proposals. The Devolution Bill was progressing through the House of Lords, and capacity funding for the CCA for 2026/27 was confirmed at £250,000.

The committee also received an overview of relevant consultations, including a national consultation on an overnight visitor levy, to which the constituent councils submitted a joint response supporting its extension to foundation strategic authorities. The ongoing consultation on Local Government Reorganisation (LGR) was also discussed, with the CCA planning to submit a high-level acknowledgement while constituent councils would respond separately.

Members expressed significant concern regarding the lack of clarity surrounding the future relationship between the CCA and any new unitary authorities resulting from LGR. They noted that current 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. This uncertainty was seen as a potential cause 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.

The committee discussed the need for clearer pre-scrutiny mechanisms, acknowledging that several consultations and strategic items had been presented late in the process. 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 improve 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.

Resolved: That the information provided be noted.

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. They provided context on Lancashire's strategic approach to skills and employment, its partnerships with local authorities, employers, and the Integrated Care Board (ICB), and its alignment with the CCA.

The Skills and Employment Strategic Framework has been refreshed to address current labour market needs and future devolution opportunities, including the Adult Skills Fund. The presentation highlighted increasing economic inactivity, primarily due to health-related issues across all age groups, with youth unemployment and mental health concerns identified as particular challenges.

The committee received an overview of the government's 'Get Britain Working' White Paper and Lancashire's response, 'Get Lancashire Working', published in September. This strategy aims to achieve an 80% employment rate, requiring approximately 43,000 additional residents to enter work, with a targeted 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 DWP-funded supported-employment model, was outlined. This programme aims to help residents with disabilities and long-term health conditions into sustainable employment, with Lancashire being one of the first areas nationally to mobilise it. Progress includes significant partner engagement, procurement of service providers, increasing referral volumes, and early performance exceeding the job-start profile.

Members raised several points, including the need for wider councillor engagement and bite-size briefings across districts, support for older workers with transferable skills, and opportunities for career progression in health and social care. They also called for scrutiny of Adult Skills Fund prioritisation and provider performance, and emphasised the importance of lived-experience insight in both the design and evaluation of programmes. Sector pressures in hospitality, retail, and care, and opportunities with large employers were discussed, alongside the need for permanent, sustainable employment rather than short-term churn.

Members also commented on the presentation process, requesting that future presentations be circulated in advance to allow for more focused scrutiny.

Resolved:

• The publication of 'Get Lancashire Working', its ambitions to boost employment rates and reverse economic inactivity, and the process undertaken to develop the plan, be considered.
• The 'Get Lancashire Working' outcomes framework, which tracks progress in relation to employment rates and economic inactivity, and the priority groups identified in the plan, be considered.
• The mobilisation of the 'Connect to Work' supported employment programme, and the process for engaging partners and employers, and monitoring progress, be considered.
• A report be provided to a future meeting of the committee to focus on the mobilisation of the devolved Adult Skills Fund programme.
• Bite-size briefings for Members across partner authorities be arranged.

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

Susan Guinness, Principal Accountant for Public Health and the LCCA, and Matthew Sidgreaves discussed the LCCA's Budget for 2026/27 and the Medium-Term Financial Strategy (MTFS) for 2027/28. The committee received a report outlining the proposed budget for 2026/27 and an indicative budget for 2027/28, both of which were reported as 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 budget will be subject to revision as actual costs become known, and associated policies, including the Treasury Management Policy, will be updated accordingly.

The committee also noted the four-year capital programme, totalling £571 million. Members raised questions regarding the future profile of reserve usage, the strategy for minimising reliance on reserves, and the long-term implications for investment capacity. It was agreed to provide further detail on projected reserve use in future reporting cycles.

Resolved: That the LCCA Budget Report for 2026/27 and MTFS for 2027/28 be considered.

Overview and Scrutiny Committee Work Programme 2025/26

Members considered the work programme for 2025/26 and the recommendations and actions tracker. As this was the last meeting of the committee in the municipal year, a new work programme for 2026/27 would be required, and members were asked to consider future items for the committee's programme.

The committee discussed strengthening governance arrangements and improving alignment between the Overview and Scrutiny Committee, Advisory Boards, Audit arrangements, and the CCA. Members emphasised the need to refine the interface between scrutiny, Advisory Boards, and the CCA, ensuring the work of the Advisory Boards was clearly understood and reflected in scrutiny. It was suggested that officers should be more explicit in highlighting issues or concerns raised within Advisory Boards to enable focused scrutiny. Opportunities for Advisory Board Chairs to attend scrutiny meetings for relevant items were also discussed to foster stronger political connection and shared ownership.

The committee agreed that the forthcoming work programme should incorporate clearer liaison arrangements between Scrutiny and Audit, training needs identified by members, improved sequencing of items for effective pre-scrutiny, consideration of future governance configuration and longer-term planning for the CCA, opportunities to examine future proposals relating to licensing and taxi regulation, and regular updates aligned to the CCA's core themes of growth, transport, and skills, including the Adult Skills Fund.

Members requested that these points be collated into an overarching proposal for circulation. The Chair sought assurance that no significant concerns from respective authorities had been omitted, and none were raised.

Resolved:

• The work programme for 2025/26 be received.
• The recommendations and actions tracker be considered.
• A report be presented to the next meeting of the Committee including the terms of reference on the points set out above.