The Lancashire Combined County Authority met on Tuesday 17 February 2026 to discuss a range of important issues, including new local transport funding, bus service improvements, and the Lancashire Investment Fund. Key decisions made included the approval of the draft Bus Service Improvement Plan and Enhanced Partnership arrangements, and the adoption of the Lancashire Investment Fund Investment Strategy for 2026/27.

Governance Review

Matthew Sidgreaves, Interim Chief Operating Officer for the Lancashire Combined County Authority (LCCA), provided an update on the governance review. He confirmed that the leaders of the three constituent councils had written to the Minister for Devolution, stating that the governance review had been completed in line with the autumn 2025 timescales. The letter acknowledged differing views but expressed a willingness to explore mayoral devolution for Lancashire, subject to assumptions on investment, timescales, and consultation. A meeting with the minister has been requested, and a response is awaited. The recent government announcement regarding a new wave of foundation strategic authorities was also noted, highlighting the importance of Lancashire positioning itself as an established strategic authority.

Local Transport Consolidated Funding Settlement

The LCCA received an update on the new local transport funding system for Local Transport Authorities, confirmed by the Department for Transport in December 2025. This new system consolidates several existing grants into an integrated transport settlement, paid directly to the LCCA. Foundation strategic authorities like Lancashire will receive an integrated transport fund and a bus services fund, totalling £640 million over four years. The funding for 2026/27 is similar to the current year, with increases of around 12% in 2027/28 and 20% in 2028/29 compared to 2026/27. The LCCA is required to produce a Local Transport Delivery Plan, with a draft to be submitted by 18 March 2026.

Bus Service Improvement Plan and Enhanced Partnership Arrangements

The LCCA approved the draft Bus Service Improvement Plan (BSIP) and Enhanced Partnership (EP) documents. The EP is a legal document setting standards and commitments for both the LCCA and bus operators, including maintaining baseline bus investment and promoting a passenger charter. The BSIP outlines a long-term vision for the bus network across Lancashire, focusing on principles such as frequency, accessibility, affordability, and reliability. Both the draft EP and BSIP will undergo stakeholder consultation before going live from April 2026.

Lancashire Investment Fund

The LCCA considered a report on the transfer of the former £19.4 million Growing Places Fund to the LCCA, which will now be known as the Lancashire Investment Fund. The fund will continue to operate as a revolving loan fund to support infrastructure and commercial premises. The strategy aims to align with priority sectors in the Growth Plan and increase the number and diversity of applications. A minimum of £13.4 million is available for investment. Decision-making on future investments will reside with LCCA members, with commercial scrutiny provided by a new advisory group from the Business Board. The fund will be relaunched with promotional activity to increase awareness and returns.

Lancashire Skills Bootcamp Programme

A report detailed a reduction in government funding for the Skills Bootcamp programme in Lancashire, dropping from £7 million in Wave 6 to £3.2 million for 26/27. This reduction is attributed to a change in funding methodology from demand-led to budget-led. The LCCA's Skills Advisory Board recommended allocating a proportion of the reduced funds via contract extensions to existing high-performing providers, based on performance, compliance, and alignment with local labour market intelligence. The remaining funds will be used to procure additional provision in line with local needs.

Lancashire Combined County Authority Procurement Framework

The LCCA approved its new Procurement Framework and Social Value Policy. The framework aims to ensure procurement activity is well-governed, consistent, delivers value for money, and complies with procurement rules. It places a strong emphasis on supporting local suppliers, including reserving below-threshold competitions for Lancashire-based providers where appropriate. The Social Value Policy will apply a 10% weighting to social value in procurement exercises over the statutory threshold, with the remaining 90% based on price and quality.

LCCA Budget Monitoring 2025/26 Quarter 3

The LCCA noted the Quarter 3 monitoring position against the 2025/26 Revenue Budget and Capital Programme. There were no changes to the forecast provided in December, with an anticipated addition of £56,497 to reserves, bringing the total reserves to over £1.7 million.

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

The LCCA approved a balanced budget for 2026/27, taking £144,638 from reserves, leaving £1.639 million in reserves at the end of March 2027. The overall budget is £53 million, split between £4 million for operating costs and £48 million for projects and grant funding. The report also sought endorsement of refreshed financial policies, including the Treasury Management Strategy. The constituent councils agreed to apportion £969,125 in costs between each upper-tier authority.

Business Board Update

Mark Rawstron provided an update on the Business Board's recent activity. Discussions included updates on Get Lancashire Working and the Local Innovation Partnership Fund bid, with strong support expressed for both. Concerns were raised about the speed of PR and communications material, and alternative, more cost-effective approaches to a Lancashire Investment Summit were discussed. The Board emphasised the need for a unified Brand Lancashire message.

Advisory Boards Update

Updates were provided from the Transport, Economy, and Skills Advisory Boards. The Transport Advisory Board noted progress on the transition to the new Local Transport Authority arrangements and concerns about Lancashire's visibility in national rail policy. The Economy Advisory Board discussed the relaunch of the Growing Places Fund as the Lancashire Investment Fund and noted tourism trends and concerns about an accommodation levy. The Skills Advisory Board received updates on the reduction in Skills Bootcamp funding, preparations for the devolution of the Adult Skills Fund, and a draft outcomes framework for Get Lancashire Working.

Date of next meeting

The next meeting of the Lancashire Combined County Authority was scheduled for Tuesday 14 April 2026.