The Lancashire Combined County Authority (LCCA) met on Tuesday 16 December 2025 to discuss a range of important issues, including the transition of local transport authority powers, the allocation of adult skills funding, and the development of a new procurement framework. Key decisions were made regarding the approach to adult skills funding and the approval of the LCCA's procurement framework.

Governance Review Next Steps

The meeting approved the recommendations from the Governance Review, which included noting the intention to share the outcomes with the Government. The LCCA also sought clarification from the Government on the potential benefits of a Mayoral Combined County Authority and indicated that a future report would be brought forward to consider public consultation on this proposal if clear benefits were confirmed.

LCCA Local Transport Authority Powers/ Functions – Transition Update

The LCCA discussed the ongoing transition of Local Transport Authority powers and functions, which will be fully vested in the LCCA from April 2026. A key recommendation was to approve the creation of a Commissioning and Assurance model for 2026/27, which will ensure the effective delivery of these functions. Authority was delegated to the Chief Operating Officer to implement specific activities and develop the Commissioning and Assurance model. Legal advisors were also requested to commence drafting agreements between the LCCA and its constituent councils for the commissioning of functions. The report detailed the extensive powers and functions being transferred, including the development of a Local Transport Plan, the establishment of a pan-Lancashire Enhanced Partnership with bus operators, and the administration of concessionary travel schemes. The transition plan outlined a phased approach with key milestones leading up to April 2026. The recommended organisational model is Commissioning and Assurance, which aims to minimise disruption, retain local expertise, and allow the LCCA to build strategic capacity over time.

Adult Skills Fund Allocation of ASF Funding and Local Flexibilities

The LCCA approved a strategic approach for the full devolution of the Adult Skills Fund (ASF) from August 2026. This included approving the allocation of the indicative £40.8 million annual ASF budget and £2.9 million in ringfenced Free Courses for Jobs (FCFJ) funding, which is expected to support around 36,000 residents annually. The LCCA also approved a resident-led application process for out-of-area learning where no suitable local provision exists. Several strategic flexibilities to national funding rules were approved, including ringfencing 3% of each grant-funded provider's allocation for innovative activity, a £200 payment for learners referred to and starting Connect to Work or Skills Bootcamps, raising the Level 3 earnings threshold to £29,431, and extending fully funded provision to individuals under formal redundancy consultation regardless of income. Authority was delegated to the Head of Paid Service to approve grant investment plans. The report also provided an update on procurement activity for an Adult Skills and Training open framework, which is progressing towards contract awards in February 2026.

Lancashire Combined County Authority Procurement Framework

The LCCA approved its Procurement Framework, which includes a Procurement Strategy, Procurement Policy, Social Value Policy, and Standard LCCA Contractual Terms and Conditions. These documents are designed to ensure that all procurement activity is consistent, well-governed, and compliant with local and national legislation, supporting the LCCA's vision and objectives. The Procurement Strategy outlines a high-level direction for procurement, focusing on leadership, commercial behaviour, and community benefit. The Procurement Policy details the approach to conducting procurement, including competitive processes and alternatives to competition, with specific thresholds for goods, services, and works. The Social Value Policy sets out how social value will be embedded into commissioning and procurement practices, with a minimum 10% weighting for social value in tenders above the statutory threshold.

Quarter 2 September 2025 Budget Monitoring

The LCCA received an update on the Quarter 2 budget monitoring for the 2025/26 financial year. The revenue budget showed a net positive variance of £56,497, forecasting an increase in usable reserves. For the capital programme, grants such as the Bus Service Improvement Programme (BSIP) and Consolidated Active Travel funding have been passported to the Upper Tier Local Authorities (UTLAs). The UK Shared Prosperity Fund (UKSPF) and Rural England Prosperity Fund (REPF) grants have been received, with 50% paid to relevant councils, and the remaining 50% to be paid upon signing grant funding agreements. A detailed report on the performance of the UKSPF and REPF programmes was included in Appendix A.

Grant Apportionment Principles 2026/27

The LCCA was asked to approve the principles for apportioning grants received in 2026/27 to constituent councils. The proposed hierarchy for apportionment includes using the breakdown provided by the grant awarding body, recreating the grant body's allocation method at a local authority level, or using historical apportionment from 2025/26, or splitting by population basis or other relevant metrics. Authority was delegated to the Section 73 Officer to determine the appropriate method for each grant in consultation with the Head of Paid Service and Monitoring Officer.

Local Innovation Partnership Fund Bid

The LCCA was asked to endorse and support a single Lancashire bid to the £500 million national Local Innovation Partnership Fund (LIPF). The bid will focus on defence, security, and critical national infrastructure, with BAE Systems, the National Cyber Force HQ, and nuclear assets forming the primary cluster. The governance model will be anchored by the Lancashire Innovation Board, operating under a Triple Helix framework. The bid development timeline includes evidence gathering in January 2026 and an Expression of Interest submission in February 2026. There are no additional financial asks of the LCCA at this stage, but should the bid be successful, financial stewardship and robust internal controls will be required.

Business Board Update

A verbal update was provided on the activities of the Business Board.

Advisory Board Updates

Updates were received from the Chairs of the Transport Advisory Board, Economy Advisory Board, and Skills Advisory Board, covering their respective areas of work.

Report of the Lancashire Combined County Authority Committees

The LCCA received updates from its committees: the Audit and Governance Committee and the Overview and Scrutiny Committee. The Audit and Governance Committee noted the Interim Chief Operating Officer's update, the role of KPMG as external auditors, the internal audit progress report, the quarterly update on the Corporate Risk and Opportunity Register, and approved its work programme for 2025/26. The Overview and Scrutiny Committee noted the appointment of its Independent Chair, the definition and threshold for Key Decisions, key updates for October 2025, and approved its work programme for 2025-26. The committee also received an update on the Lancashire Growth Plan, highlighting investment opportunities and governance arrangements for monitoring progress.

Lancashire Combined County Authority Calendar of Meetings 2026/27

The LCCA was asked to note and approve the proposed calendar of meetings for the authority, its committees, and Advisory Boards for the 2026/27 municipal year. The calendar includes regular meetings of the LCCA, Overview and Scrutiny Committee, Audit and Governance Committee, Advisory Boards, and the Lancashire Business Board, with most meetings open to the public and webcast where possible.

Urgent Business

There were no items of urgent business raised.

Date of next meeting

The next meeting of the Lancashire Combined County Authority will be held on Tuesday 17 February 2026 at 4.00pm at County Hall, Preston.