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

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 within the agreed timescales. The letter acknowledged differing views but expressed a willingness to explore mayoral devolution for Lancashire, subject to assumptions on investment levels, timescales, and consultation. A meeting with the Minister has been requested, and the Authority is awaiting a response. The recent government announcement inviting proposals for new foundation strategic authorities was also noted, highlighting the importance of Lancashire positioning itself as an established strategic authority.

Local Transport Consolidated Funding Settlement

The Authority received an update on the new local transport funding system for Local Transport Authorities, confirmed by the Department for Transport in December 2025. This system consolidates several existing grants into an integrated transport settlement, providing greater flexibility for local leaders and reducing the administrative burden. The LCCA, as a Foundation Strategic Authority, will receive an integrated transport fund and a bus services fund, totalling £640 million over four years. Funding for 2026/27 is similar to the current year, with increases of around 12% in 2027/28 and 20% in 2028/29. The LCCA is required to produce a Local Transport Delivery Plan, with a draft to be submitted to the Department for Transport by 18 March 2026. The Authority resolved to note the new funding system, the allocations, and the requirement to develop the delivery plan.

Bus Service Improvement Plan and Enhanced Partnership Arrangements

Andrew, representing the Authority, presented the draft Bus Service Improvement Plan (BSIP) and Enhanced Partnership (EP) documents. From 1 April 2026, the LCCA will become the single local transport authority for Lancashire. The EP is a legal document setting standards for both the LCCA and bus operators, including maintaining baseline bus investment and publishing performance data. The BSIP outlines a long-term vision for the bus network, focusing on principles such as frequency, accessibility, affordability, and reliability. Improvements include better bus priority, upgraded stops, improved evening and weekend services, and county-wide multi-operator ticketing. Both the draft EP and BSIP will undergo stakeholder consultation before going live in April 2026. The Authority approved the draft BSIP and EP, delegating authority for final approval and publication following consultation.

Lancashire Investment Fund

The Authority considered a report on the transfer of the former £19.4 million Growing Places Fund to the LCCA, which will be renamed the Lancashire Investment Fund. The fund will continue to operate as a revolving loan fund for infrastructure and commercial premises. The strategy aims to align with the Growth Plan's priority sectors and increase the diversity of inquiries. The minimum available investment is £13.4 million. Decision-making will reside with the LCCA members, with commercial scrutiny from a new advisory group drawn from the Business Board. The investment strategy will be reviewed regularly to ensure strategic operation and income generation. Discussions also touched upon engaging with the Lancashire Pension Fund to explore investment opportunities. The Authority approved the investment strategy, agreed to relaunch the fund under a new name, and noted the conclusion of the fund's transfer.

Lancashire Skills Bootcamp Programme

Michele Lawty-Jones provided an update on the Skills Bootcamp programme, noting a reduction in government funding for 2026/27 from £7 million to £3.2 million. This reduction is due to a shift in funding methodology from demand-led to budget-led. The Authority was asked to approve the Skills Advisory Board's recommendation to allocate a proportion of the reduced funding through contract extensions to high-performing providers, with the remainder to be procured based on local labour market intelligence. This approach aims to manage the funding reduction while maintaining provision aligned with local needs. The Authority approved the proposed way forward for allocating the reduced funding.

Lancashire Combined County Authority Procurement Framework

Matthew Sidgreaves presented a report on the LCCA's strategic approach to commissioning and procurement. The proposed framework aims to ensure procurement is well-governed, consistent, delivers value for money, and complies with legislation. It is harmonised with the approaches of the three constituent councils and based on industry good practice. A strong emphasis is placed on local suppliers, with provisions to reserve below-threshold competitions for Lancashire-based providers where appropriate. A Social Value Policy was also presented, which will apply a 10% weighting to social value in procurement exercises above the statutory threshold, with the remaining 90% based on price and quality. The policy clarifies that social value delivery should be at no additional contract cost. The Authority approved the Procurement Framework and the Social Value Policy.

LCCA Budget Monitoring 2025/26 Quarter 3 December 2025

Joanne Ainsworth presented the Quarter 3 budget monitoring report for 2025/26. There were no changes to the forecast provided in Quarter 2. The report indicated a net positive position of £782,046 for the year-end, with £56,497 to be added to reserves, bringing the total forecast reserves to over £1.7 million. No additional spend was noted. The Authority resolved to note the Quarter 3 monitoring position.

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

The Authority considered the budget for 2026/27 and the Medium-Term Financial Strategy for 2027/28. The budget provides a balanced budget, taking £144,000 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 approval for refreshed financial policies, including the Treasury Management Strategy. The Authority approved the balanced budget for 2026/27, noted the assumptions made, approved the Capital Strategy, Treasury Management Strategy, Investment Strategy, Minimum Revenue Provision Policy, Expenses Policy, and approved the Capital Programme for 2026/27.

Business Board Update

Mark Rawstron provided a verbal update on the Business Board's recent activities. Discussions included updates on Get Lancashire Working and the Local Innovation Partnership Fund bid, both of which received strong support. Concerns were raised about the speed of marketing initiatives and a lack of sign-off, leading to frustration over missed opportunities. The Board also discussed proposals for a Lancashire Investment Summit, considering more cost-effective alternatives such as piggybacking on existing events. A key theme was the need for a unified Brand Lancashire message. The Board expressed a desire for greater alignment and energy around this single message.

Advisory Boards Update

Updates were provided from the Transport, Economy, and Skills Advisory Boards.

The Transport Advisory Board focused on the transition to the new Local Transport Authority arrangements, including the development of the Local Transport Plan and the new funding framework. The consultation on the draft Local Transport Plan received approximately 1,700 responses. Concerns were raised about Lancashire's limited visibility in national rail policy, particularly in relation to the Northern Powerhouse Rail announcements.

The Economy Advisory Board discussed the relaunch of the Growing Places Fund as the Lancashire Investment Fund, expressing strong support for its alignment with the Growth Plan. Updates on tourism data showed increased day visitors but slightly lower employment levels, prompting discussion on pressures facing the hospitality sector and concerns about a potential accommodation levy. A Growth Plan dashboard is being developed for monitoring progress.

The Skills Advisory Board received an update on the reduction in Skills Bootcamp funding and considered options for managing this. Preparations for the devolution of the Adult Skills Fund were noted as on track. A draft outcomes framework for Get Lancashire Working was presented, highlighting a reduction in economic inactivity but a rise in health-related inactivity and youth unemployment. Updates from the Skills Hub included the Lancashire Skills Pledge celebration, progress on the STEM and Digital Bursary Programme, and the rollout of Connect to Work.

Urgent Business

There were no items of urgent business.

Date of next meeting

The next meeting of the Lancashire Combined County Authority was scheduled for Tuesday 14 April 2026 at 4.00 pm at County Hall, Preston.

Notice of intention to Conduct Business in Private

It was noted that the Part II item related to an appendix for a report already discussed in Part I. As no questions were raised on the appendix, the meeting remained in Part I.

Attendees:

• Councillor Phil Riley (Chair)
• County Councillor Simon Evans (Deputy Leader & Cabinet Member for Children and Families)
• County Councillor Mr Warren Goldsworthy (Cabinet Member for Highways and Transport)
• Councillor Lynn Williams
• Councillor Alistair Bradley
• Councillor Simon Hore
• Mark Rawstron

Apologies:

• County Councillor Stephen Atkinson
• Mo Isap
• Clive Grunshaw