The Liverpool City Region Combined Authority meeting, held on Friday 17 July 2026, saw a significant commitment to improving public transport with the decision to bring Merseyrail into public ownership from 2028 and the approval of variations to the bus franchising scheme. The Authority also approved the adoption of the Local Area Retrofit Accelerator (LARA) Strategy to improve housing energy efficiency and designated the region as a Marmot City Region to embed health equity across its work.

Tributes and Announcements

The meeting began with a minute's silence in memory of Sir George Howarth, former MP for Knowsley, with tributes paid by Mayor Steve Rotheram and Councillor Graham Morgan, Leader of Knowsley Council. Mayor Rotheram also congratulated Andy Burnham on his appointment as Prime Minister, noting the significance of a metro mayor reaching such a high office and the progress of devolution. He also paid tribute to Councillor Mike Wharton on his stepping down as Leader of Halton Council and Deputy Mayor. The upcoming Open Golf Championship at Royal Liverpool Golf Club was highlighted as a major event for the region, despite concerns about potential disruption from strike action on the rail network.

Public Question Time

Mr Woods submitted two questions regarding fair employment in the construction sector and mental wellbeing support within the industry. Mayor Rotheram responded by outlining the Combined Authority's Fair Employment Charter, which promotes fair pay, inclusive workplaces, and staff voice, and has been signed by over 180 employers. He acknowledged concerns about bogus self-employment in construction and the misuse of the Construction Industry Scheme (CIS), noting that the Combined Authority does not discourage legitimate self-employment. Regarding mental wellbeing in construction, Mayor Rotheram highlighted the industry's workforce challenges, including stress and suicide risk, and explained how the Combined Authority uses its devolved skills and employment programmes, alongside the Fair Employment Charter and initiatives like the Zero Suicide Alliance, to promote mental wellbeing and support workforce retention. A formal written response would be provided to Mr Woods.

Nominations and Appointments

Following changes in representation from Halton Borough Council, Councillor Angela Ball was appointed as a Member of the Combined Authority, with Councillor Eddie Dourley as her substitute. Councillor Ball was also appointed to the Appointments and Disciplinary Committee and the Stakeholder Sub-Committee. Councillor Paula Basnett was appointed as a substitute member to the Audit and Governance Committee. Councillor Ball was designated the Cabinet portfolio for Energy and Environment, and Councillor Paula Basnett took on the portfolio for Economic Growth and Regeneration. Councillor Graham Morgan was appointed as Deputy Mayor for the municipal year.

Financial Performance and Budget Revisions

The Combined Authority reviewed its financial outturn for the year ending 31 March 2026, reporting a favourable variance of £8.5 million against the budget. This was attributed to various factors including additional income from tunnel tolls and rail activities, a one-off government grant, and savings from vacancies, partially offset by costs incurred in maintaining affordable bus fares. Budget revisions for the 2026/27 financial year were approved, including financial support for the Tour de France 2027, which the region will host, with a maximum budget of £4.5 million delegated for hosting activities. The Treasury Management report and prudential indicators were also approved.

Audit and Governance Committee Effectiveness Review

The Audit and Governance Committee's effectiveness review for 2025/26 was presented, indicating that the committee was discharging its responsibilities effectively. An action plan was noted to address minor areas for improvement.

Homelessness Commissioning Update

The Combined Authority approved the formation and governance arrangements for a new Liverpool City Region Homelessness Task Force, aimed at developing a region-wide approach to combatting rough sleeping and homelessness. The Authority noted the receipt of £8,355,208 from the government's Integrated Settlement for homelessness, rough sleeping, and domestic abuse support over three years. Delegated authority was granted to commission services and deliver priorities identified by the Task Force, utilising up to £1.9 million for this purpose, with the remaining £6,455,208 to fund resources and enter into agreements with delivery partners.

Bus Franchising Programme Update

The Combined Authority noted a proposal to vary The Liverpool City Region Franchising Scheme for Buses 2023 to provide greater flexibility and simplify operational changes. Delegated authority was granted to Merseytravel to approve changes to franchised bus contracts during the franchise period, ensuring efficient, effective, reliable, and affordable local bus services, subject to specific conditions.

Local Area Retrofit Accelerator (LARA) Strategy

The adoption of the Local Area Retrofit Accelerator (LARA) Strategy was approved, aiming to increase the uptake of energy efficiency measures across the region's housing stock. This strategy, developed collaboratively with over 40 organisations, seeks to reduce fuel poverty, create green jobs, and contribute to net zero ambitions. Delegated authority was granted to the Executive Director of Investment and Delivery to implement the strategy's actions.

Liverpool City Region Designation as Marmot City Region

The Combined Authority approved the proposal for the Liverpool City Region to seek designation as a Marmot City Region. This designation will embed the Marmot Principles and health equity as a core consideration in the exercise of the Combined Authority's devolved competencies, supporting its statutory duty to improve population health and reduce health inequalities. A Health Impact Assessment (HIA) approach will be formally adopted to ensure potential impacts on population health and inequalities are considered in decision-making processes.

Metro Network Improvements Phase 1 - Lime Street to Low Hill Construction Contract Award

Approval was granted for the use of £11.98 million from Combined Authority reserves to accelerate transport infrastructure improvements between Liverpool Lime Street and Low Hill, pending assurance processes. The receipt of £3.4 million from Liverpool City Council for public realm regeneration works at Monument Place was also approved. Delegated authority was granted to the Executive Director – Place to enter into associated agreements.

Office for Public Service Innovation: Progress to Date and Proposed Next Steps

The Combined Authority noted the progress of the Office for Public Service Innovation (OPSI) and endorsed plans for its next stage of delivery. A budget allocation of £2,000,000 from reserves was approved for OPSI to progress this next stage. Delegated authority was granted to the Executive Director – Public Sector Innovation to procure, award, and modify contracts and grant agreements to utilise this allocation.

Transport for City Regions Programme Update

The Combined Authority received an update on the Transport for City Regions (TCR) Programme, which will deliver a £1.6 billion integrated transport network. Approval was granted for the use of up to 10% of TCR capital funding for scheme development to accelerate project delivery. Delegated authority was granted for the disbursement of TCR capital development funding and the management of funding agreements. The provision of £308 million for Highways Maintenance, £25 million for Mersey Tunnels maintenance, and £5 million for bus stop infrastructure upgrades was approved. Additionally, £26 million was allocated for integrated estate improvements across the Metro network, with delegated authority for implementation. In principle approval was also given for £11 million of TCR funding to Liverpool City Council for Active Travel schemes, pending a full business case.

Adult Skills Fund Commissioning Approach 2027-2032

The Liverpool City Region Combined Authority Adult Skills Fund Commissioning Plan for 2027-2032 was agreed. This plan aligns adult skills investment with key regional strategies, including the Local Growth Plan and the Local Skills Improvement Plan. The approach to supporting adult skills delivery partners through grant funding arrangements was noted, and the commencement of a procurement exercise for contracted adult skills provision for the period 2027-32 was approved.

Metro Network Update

A significant decision was made to approve the transfer of rail services currently delivered under the Merseyrail concession to public ownership from the end of the contract in July 2028. Merseytravel was approved to continue the detailed development of an in-house public ownership model. Delegated authority was granted to Merseytravel, in consultation with the Mayor, to progress the initial stages of mobilisation for this transition.

Changes to Previously Agreed SIF Projects

Approval was given for the formal write-off of two defaulted Flexible Growth Fund loans totalling £456,923.47. Changes to Knowsley Metropolitan Borough Council's Huyton Active Travel Corridor project were also agreed, including an increase in funding of £5,521,306 and adjustments to outputs and completion dates. Immaterial changes to other Strategic Investment Fund projects were noted.