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 the draft Bus Service Improvement Plan and Enhanced Partnership arrangements, and the approval of the Lancashire Investment Fund's 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 to confirm the completion of the review 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, with a response awaited. The recent government announcement regarding a new wave of foundation strategic authorities was also highlighted, emphasizing the importance of Lancashire positioning itself as an established 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. The total settlement over the next four years is valued at £640 million, comprising capital allocations for four years and revenue for three. 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 submission due to the Department for Transport by 20 March 2026. The plan will detail how funding priorities have been set and outline proposed schemes and interventions.

Bus Service Improvement Plan and Enhanced Partnership Arrangements

The authority considered a report on the draft Bus Service Improvement Plan (BSIP) and Enhanced Partnership documents. The BSIP sets out a long-term vision for the bus network across Lancashire, structured around ten principles: frequent, accessible, affordable, flexible, reliable, comprehensive, green, attractive, safe, and informative services. Practical improvements include better bus priority, upgraded bus stops, improved evening and weekend services, enhanced rural connectivity, county-wide multi-operator ticketing, and tap-on tap-off fare capping. Following stakeholder consultation, the draft BSIP and Enhanced Partnership Plan and Scheme were approved, with delegated authority to publish following consultation.

Lancashire Investment Fund

The LCCA considered a report on the conclusion of the transfer of the £19.4 million Growing Places Fund from Lancashire County Council to the LCCA. The fund will be renamed the Lancashire Investment Fund to better reflect its purpose. The proposed investment strategy for the year ahead includes relaunching the fund as a revolving loan fund to support new and improved infrastructure and commercial premises. The strategy aims to drive greater alignment with priority sectors outlined in the Growth Plan and increase the number and diversity of inquiries and applications. A minimum of £13.4 million is available for investment. Decision-making on future investments will reside with the LCCA members, with commercial scrutiny provided by a new advisory group drawn from the Business Board.

Lancashire Skills Bootcamp Programme

A report was presented on Lancashire's Skills Bootcamp provision and options for managing a reduction in funding for 2026/27. The government's approach to allocating funding has shifted from a demand-led to a budget-led model, resulting in a reduced budget for bootcamps. Lancashire's funding for 2026/27 will drop from £7 million to £3.2 million. The Skills Advisory Board recommended allocating a proportion of the £3.2 million Wave 7 funds via contract extensions to existing 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 considered a report outlining its strategic approach to commissioning and procurement. This approach is supported by a suite of documentation designed to ensure procurement activity contributes positively to the LCCA's vision and aims, with overarching principles consistently applied. The framework ensures procurement is well-governed and compliant with local and national rules and legislation. Key aspects include an emphasis on local suppliers, with explicit reference to government plans to permit authorities to reserve below-threshold competitions for local businesses. For procurement exercises above the statutory threshold, a 10% weighting will be applied to delivering social value.

LCCA Budget Monitoring 2025/26 Quarter 3

The authority noted the Quarter 3 budget monitoring position for 2025/26. The forecast expenditure outturn for the year is not explicitly stated, but a net positive position of £56,497 is expected to be added to reserves. This increases the forecast usable reserves at March 2026 to just over £1.7 million. No additional spend to note was reported.

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

The LCCA considered a report seeking approval for the budget for the 2026/27 financial year and the Medium-Term Financial Strategy for 2027/28. A balanced budget for 2026/27 was approved, which takes £144,638 from reserves, leaving £1.639 million at the end of March 2027. The overall budget is £53 million, split between operating costs and projects/grant funding, with a capital programme for 2026/27 of £121,560,415 funded by grants. Several financial policies, including the Treasury Management Strategy and Investment Strategy, were also approved. The apportionment of costs between upper-tier authorities was confirmed, with Lancashire County Council contributing 69.6%, Blackburn with Darwen 13.5%, and Blackpool 16.9%.

Business Board Update

Mark Rawstron, Deputy Chair of the Lancashire Business Board, provided a verbal update on the Board's recent activities. The Board expressed strong support for Get Lancashire Working and the Local Innovation Partnership Fund Bid. Challenges regarding the speed of public relations and communications material were discussed, with an acknowledgement that this may be partly due to the initial delivery arrangements of the LCCA. Proposals for a Lancashire Investment Summit were also discussed, with officers asked to explore alternative, more cost-effective approaches, such as strengthening Lancashire's presence at established national investment events. The Board concluded with a discussion on the need for a stronger and more consistent Brand Lancashire.

Advisory Boards Update

Updates were provided by the Chairs of the Transport, Economy, and Skills Advisory Boards. The Transport Advisory Board focused on the transition to new Local Transport Authority arrangements, with the consultation on the draft Local Transport Plan attracting approximately 1,700 responses. Concerns were raised about Lancashire's limited visibility within 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 and noted pressures facing the hospitality sector. The Skills Advisory Board reviewed options for managing a reduction in Skills Bootcamp funding and progress on the devolution of the Adult Skills Fund. Operational updates from the Skills Hub included the Lancashire Skills Pledge celebration and progress on the MOD funded STEM and Digital Bursary Programme.

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.