The Lancashire Combined County Authority met on Tuesday 17 February 2026 to discuss a range of important issues, including significant new transport funding, the future of bus services, and the relaunch of an investment fund. Key decisions made included the approval of a new Bus Service Improvement Plan and Enhanced Partnership arrangements, and the adoption of a new Procurement Framework and Social Value Policy.

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 review was complete and acknowledging a willingness to explore mayoral devolution for Lancashire. This exploration is subject to confirmation of investment levels, timescales, and consultation with residents and stakeholders, with any proposal requiring approval from each constituent council. A meeting with the Minister has been requested, and the LCCA is awaiting a response. 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, to be paid directly to the LCCA, which becomes the local transport authority from April 2026. The settlement is valued at £640 million over the next four years, comprising an integrated transport fund and a bus services fund. Funding for 2026/27 is broadly 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 to the Department for Transport by 20 March 2026.

Bus Service Improvement Plan and Enhanced Partnership Arrangements

The LCCA considered a report on the draft Bus Service Improvement Plan (BSIP) and Enhanced Partnership (EP) documents. The BSIP sets out a vision for bus services across Lancashire, structured around ten principles: frequent, accessible, affordable, flexible, reliable, comprehensive, green, attractive, safe, and informative services. The EP is a legal document that establishes standards and commitments for both the LCCA and bus operators. The plan aims to unify bus strategy across Lancashire, developing a modern, safe, reliable, and passenger-focused network. The draft BSIP and EP were approved, with delegated authority granted for their publication following stakeholder consultation.

Lancashire Investment Fund

The LCCA approved the relaunch of the former £19.4 million Growing Places Fund as the Lancashire Investment Fund. This fund will continue to operate as a revolving loan fund to support new and improved infrastructure and commercial premises. The strategy aims to drive greater alignment with the priority sectors outlined in the Lancashire 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 drawn from the Lancashire Business Board. Promotional activity will be undertaken to increase awareness and returns, with a portion of accrued interest potentially used to support this. Discussions will also explore how the fund could be used to leverage additional investment, including potential engagement with the Lancashire Pension Fund.

Lancashire Skills Bootcamp Programme

The LCCA noted a report detailing a reduction in government funding for the Skills Bootcamp programme for 2026/27, from £7 million to £3.2 million. This reduction is attributed to a shift in government funding methodology from a demand-led to a budget-led approach. The Skills Advisory Board recommended allocating a proportion of the reduced funds (£3.2 million) 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 at the beginning of the financial year.

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 and legislation. It is harmonised with the approaches used by the three constituent councils and based on industry good practice. A key aspect of the policy is the emphasis on local suppliers, including the potential to reserve below-threshold competitions for Lancashire-based providers. The Social Value Policy mandates a 10% weighting for social value in above-threshold procurement exercises, focusing on delivering social and economic benefits at no additional contract cost.

LCCA Budget Monitoring 2025/26 Quarter 3 December 2025

The LCCA noted the Quarter 3 monitoring position against the 2025/26 Revenue Budget and Capital Programme. The report indicated no changes to the forecast provided in December, with an anticipated net positive position of £782,046 to be added to reserves, an increase of £56,497 from the original budget. Capital grants are being passported to the Upper Tier Local Authorities, resulting in no variance to the capital programme.

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 and Capital Programme. The apportionment of £969,125 costs between the upper tier authorities was agreed: Lancashire County Council (69.6%), Blackburn with Darwen (13.5%), and Blackpool (16.9%).

Business Board Update

Mark Rawstron provided a verbal update on the Business Board's recent activities. The Board expressed strong support for Get Lancashire Working and the Local Innovation Partnership Fund Bid. Concerns were raised regarding the speed of public relations and communications material, with a call for greater urgency. Discussions also covered a potential Lancashire Investment Summit, with a preference for exploring more cost-effective alternatives, such as piggybacking on existing national events. The Board emphasised the need for a unified Brand Lancashire narrative.

Advisory Boards Update

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

The Transport Advisory Board highlighted the transition to the new Local Transport Authority arrangements and the development of the Local Transport Plan, which received approximately 1,700 consultation 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 trends and concerns regarding the hospitality sector and potential accommodation levies were noted. 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 on track for August 2026. Updates from the Skills Hub included the Lancashire Skills Pledge celebration, progress on the STEM and Digital Bursary Programme, and the rollout of the Connect to Work 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.

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