Agenda item

Report attached.

Members considered a report of Councillor Munsif Dad BEM JP, Leader of the Council, seeking Cabinet’s agreement to the winding-up of Growth Lancashire Limited and to the transfer of its services to Blackburn with Darwen Council.

Councillor Dad provided a brief introduction to the report, which included the background to the establishment of the company, its current governance arrangements, its area of work and the reasons for the proposed changes,  He noted the intention was for the services to continue under transitional arrangements administered by Blackburn with Darwen Borough Council prior to those services being transferred to the Lancashire Combined County Authority (LCCA).

Councillor Addison commented that heritage advice was sometimes provided by Growth Lancashire Limited (GLL) at this Council’s Planning Committee meetings.  Jane Ellis, Executive Director (Legal and Democratic Services) confirmed that this would have been carried out under a contract for heritage advice.  Councillor Khan enquired if Hyndburn Borough Council would be entitled to a share of the £387k reserves if the company was would up.  The Leader responded that it was likely that any balance of reserves would ultimately transfer to LCCA.

Approval of the report was not deemed a key decision.

Reasons for Decision

Growth Lancashire Limited (GLL) was a company established jointly by Blackburn with Darwen, Burnley, Hyndburn, Pendle, Rossendale Councils and Lancashire County Council.  Blackburn with Darwen Council had been accountable body for GLL’s external funding for 21 years.

The Board comprised of local authority and private sector directors, operating under Articles of Association that defined governance, ownership and operational arrangements.  The Council Leader was the Council’s nominated representative on GLL’s board of directors.

GLL provided a range of contracted business support and specialist planning services to partners and customers.  The councils from across Lancashire financially contributed on a subscription basis and / or purchased GL services.  Hyndburn’s recent annual contribution had been £15,000.  GLL was the only pan-Lancashire body that was financially supported and / or delivered paid for services in all Lancashire local authority areas.

In agreeing Lancashire’s devolution arrangements with Government, it had always been intended to integrate GLL within the Lancashire Combined County Authority (LCCA), once established.  With the development of the LCCA and with the prospect of Local Government Reorganisation (LGR), it was now considered the right time to reset and adapt the current arrangements for the provision of GLL’s services.  To this end, on 18^th March 2026, the board of GLL had agreed to wind-up the company and transfer the staff and financial reserves to Blackburn with Darwen Council as the accountable body.  The financial reserves would then be split between Blacburn with Darwen Council and the LCCA, at a later date.

The report, therefore, sought Cabinet’s formal agreement to the winding-up of the company.  Subject to all five founding members confirming their agreement to wind-up GLL, Blackburn with Darwen Council would manage its administrative closure.

Subject to the winding up of the company, Blackburn with Darwen Council would take temporary responsibility for GLL’s 7 business support staff, while the transfer arrangements to the LCCA were finalised.  The 5-specialist planning related staff would be transferred to Blackburn with Darwen Council in anticipation of LGR changes.  The company reserves, which currently stood at £378,000, (some of which were currently being used to cover operating costs) would provide for all staff related costs and risks.

Alternative Options considered and Reasons for Rejection

None had been proposed.  The report followed a decision by the board of GLL to wind-up the company.  This decision was made given Lancashire’s devolution agreement with Government, which included the transfer of GLL’s business support services to the LCCA, and the imminent prospect of LGR.

Resolved                                    -    That Cabinet:

(1)   Agrees to the winding up of Growth Lancashire Limited, further to the decision of Growth Lancashire Limited’s board of directors at its meeting on 18^th March 2026.

(2)   Agrees in principle to the company’s functions and services being transferred to Blackburn with Darwen Council.

(3)   Notes that Councillor Munsif Dad BEM JP will resign as a director of Growth Lancashire Limited in the event of the Cabinet agreeing to the company being wound up.