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 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, 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 confirmation of investment levels, timescales, and consultation with residents and stakeholders. A meeting with the minister has been requested, and a response is awaited. 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 LCCA received details from the Department for Transport confirming a new local transport funding system for Local Transport Authorities from 2026/27 onwards. This new system consolidates several existing grants into an integrated transport settlement, paid directly to the LCCA. Foundation strategic authorities, such as the LCCA, will receive an integrated transport fund and a bus services fund, with a total settlement valued at £640 million over four years. The funding for 2026/27 is broadly similar to the current year, with increases of around 12% in 2027/28 and 20% in 2028/29. Under these new arrangements, the LCCA must produce a Local Transport Delivery Plan, with a draft to be submitted to the Department for Transport by 18 March. The plan has been developed collaboratively across the three councils, with input from officers and advisory boards. The LCCA approved the new funding system, noted the allocations, and authorised the Section 73 officer to submit the draft Local Transport Delivery Plan.

Bus Service Improvement Plan and Enhanced Partnership Arrangements

The LCCA considered 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, structured around ten principles: frequent, accessible, affordable, flexible, reliable, comprehensive, green, attractive, safe, and informative services. Practical improvements include better bus priority, upgraded stops, improved evening and weekend services, and county-wide multi-operator ticketing. Both the draft EP and BSIP were approved, and the Head of Paid Service was authorised to finalise and publish them following stakeholder consultation.

Lancashire Investment Fund

The LCCA approved the transfer of the former £19.4 million Growing Places Fund from Lancashire County Council to the LCCA, renaming it the Lancashire Investment Fund. The report outlined a proposed investment strategy for the year ahead, including relaunching the fund 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 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 from the Business Board. The fund will be promoted at events like UKREiiF in May. Discussions were also initiated regarding potential engagement with the Lancashire Pension Fund.

Lancashire Skills Bootcamp Programme

The LCCA considered a report on Lancashire's Skills Bootcamp provision and options to manage a reduction in funding for 2026/27. The government's funding methodology is shifting from demand-led to budget-led, resulting in a reduction for Lancashire from £7 million to £3.2 million for 2026/27. The Skills Advisory Board recommended allocating a proportion of the 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. The programme has shown good impact in reskilling, supporting self-employed individuals, and moving people into employment, with outcomes monitored against key milestones.

Lancashire Combined County Authority Procurement Framework

The LCCA approved its new Procurement Strategic 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. The policy places a strong emphasis on local suppliers, including reserving below-threshold competitions for Lancashire-based providers where possible. 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. Social value delivery is expected to be achieved at no additional contract cost.

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 just over £1.7 million. No additional spend was noted.

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 budget was sense-checked with other combined authorities at a similar stage of development. The report also sought approval for the Medium-Term Financial Strategy for 2027/28 and endorsement of refreshed financial policies, including the Treasury Management Strategy. The apportionment of £969,125 costs between upper-tier authorities was agreed.

Business Board Update

Mark Rawstron provided an update on the Business Board's recent activity. The Board expressed support for Get Lancashire Working and the Local Innovation Partnership Fund bid. Concerns were raised about the speed of public relations and communications material, with a call for urgency. Discussions also covered a potential Lancashire Investment Summit, with a preference for exploring more cost-effective alternatives, such as piggybacking on existing events. The Board emphasised the need for alignment and a single voice around Brand Lancashire.

Advisory Boards Update

Updates were provided from the Transport, Economy, and Skills Advisory Boards. The Transport Advisory Board noted the transition to the LCCA as the Local Transport Authority and the positive response to the Local Transport Plan consultation. Concerns were raised about Lancashire's limited visibility in national rail policy, particularly the Northern Powerhouse Rail announcements. The Economy Advisory Board discussed the relaunch of the Growing Places Fund as the Lancashire Investment Fund and noted tourism trends and concerns about the hospitality sector. 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. Operational updates from the Skills Hub included the Lancashire Skills Pledge celebration and the launch of 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.