Research and analysis

Liverpool City Region Combined Authority readiness check: summary

Updated 23 April 2026

Applies to England

1. Summary of findings

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Liverpool City Region Combined Authority (LCRCA) has a clear, long-term strategic framework, mature core governance, and well-designed arrangements for risk, finance, and central government engagement, with enhancements required to comprehensively embed these processes. LCRCA was assessed as broadly Embedded at a whole-system level, with some elements still ‘Building to Embedded’ that will need work before and during 2026/27. A real passion and energy at all levels for the outcomes that LCRCA is trying to achieve was identified. This has helped to embed a clear golden thread between strategy and delivery. There was an open and balanced discussion of both strengths and areas for improvement, which was reflected in the report.

1.1 Strategy, planning and governance – Embedded

The organisation has a coherent long‑term strategic framework with a clear golden thread from corporate priorities to local outcomes, supported by embedded planning. Governance arrangements are clear and consistently applied, with defined escalation routes and accountability enabling effective strategic oversight. Risk management, delegations and assurance are well designed but could be further optimised, and risk appetite and skills mapping are not yet embedded in day‑to‑day decision‑making.

1.2 People and capability – Embedded

There is clear senior sponsorship, accountability and leadership alignment for Integrated Settlement delivery. Roles, responsibilities and enabling functions are well defined and embedded, providing a solid platform for programme and portfolio delivery. Workforce planning and capability are developing in a more strategic direction but remain partially reactive, with some reliance on key individuals.

1.3 Financial and performance management – Embedded

LCRCA adopts centrally owned budgeting, forecasting and in‑year reporting processes which are aligned to strategic objectives. Financial management is supported by monthly reporting, medium‑term financial planning, a Performance Management Framework and Green Book aligned business cases, providing clear visibility of performance, risks and variances. KPIs are in place and actively used.

1.4 Reporting and evaluation – Building to Embedded

LCRCA has regular, structured reporting to governance and leadership supported by defined templates, dashboards and clear narrative on progress, risks and finance. Outcomes, benefits tracking and evaluation are well developed in design and intent, with evaluation embedded across the project lifecycle, but application remains inconsistent and reliant on manual processes. Data quality, system integration and lessons‑learned processes are improving but not yet fully embedded.

2. Recommendations

2.1 Strategy, planning and governance

• Recommendation 2: Local outcomes. LCRCA should develop the Integrated Settlement Outcome Delivery Plan which highlights the necessary steps and resources required to achieve the Integrated Settlement outcomes. (Priority 2)
• Recommendation 4: Local assurance framework sign off. In line with existing plans, LCRCA should finalise and launch the updated local assurance framework by the end of September 2026. Ministry of Housing, Communities and Local Government (MHCLG) approval should be sought ahead of launching the framework. (Priority 2)
• Recommendation 6: Risk documentation. LCRCA needs to demonstrate measurable impact from mitigation actions, strengthen real-time monitoring and move toward Orange Book aligned, tool supported risk management. (Priority 3)
• Recommendation 7: Risk management training. Training does not appear to be supported by a formal timetable, active monitoring of completion, or structured feedback loops to drive continual improvement. LCRCA should introduce a role specific training programme with clear scheduling and oversight to strengthen and embed its risk management practices. (Priority 3)
• Recommendation 8: Risk reporting. Risk reporting is consistent and transparent, meeting the embedded criteria, but deep dives, escalation triggers and risk indicators are still being embedded. To achieve leading practice, LCRCA should introduce more regular deep dives, develop rapid escalation thresholds and implement robust key risk indicators that directly influence leadership decisions. (Priority 3)
• Recommendation 12: Delegation framework. To achieve leading, LCRCA should develop a mandatory, formalised training module for budget holders on the delegation framework, so that officers are clear on the outputs and outcomes they are responsible for. (Priority 4)
• Recommendation 13: Longer term strategy. To fulfil the leading criteria, LCRCA should consider active maintenance and regular checkpoints of their longer term strategic framework to account for major changes in finances, delivery requirements and the wider national and local context. (Priority 4)
• Recommendation 14: Controls testing. Control testing is strong at the third line through Internal Audit’s documented methodology, but there is limited evidence of structured, risk-based controls testing at the second line. To reach leading, LCRCA needs a consistent testing methodology across all lines, with documented outcomes, feedback loops and mechanisms for continuous improvement. (Priority 4)
• Recommendation 15: Risk appetite and linkages. There are clear linkages between service, project, programme and corporate risks, though risk appetite has only recently been defined and is not yet informing prioritisation of risk or assurance activity. To reach leading, the organisation will need to embed appetite into decision making, business cases, audit planning and portfolio oversight so that appetite actively shapes prioritisation and risk treatment. (Priority 4)
• Recommendation 16: Skills mapping. There are clear governance structures, defined escalation processes and strong accountability mechanisms in place. To fully satisfy the leading criteria, LCRCA should consider undergoing a formalised skills mapping exercise, covering key governance forums to include both members and officers as appropriate. (Priority 4)
• Recommendation 17: Assurance framework. LCRCA’s assurance activity spans all three lines in practice, but the assurance framework does not formally articulate the Three Lines of Defence model or explain how the lines interact. To reach leading, the organisation should capture this in the assurance framework, link it to risk appetite and demonstrate coordinated, integrated assurance across all three lines. (Priority 4)

2.2 People and capability

• Recommendation 9: Key individuals. LCRCA should implement cross training, knowledge sharing and documented processes so critical responsibilities are not concentrated in a small number of individuals. (Priority 3)
• Recommendation 18: Accountability. LCRCA could document the Integrated Settlement accountability lines of accountability, delegation and reporting to MHCLG to demonstrate system level readiness and provide greater transparency over decision making arrangements. (Priority 4)
• Recommendation 19: Strategic resource plan. LCRCA should prioritise formalising its workforce planning methodology across the organisation so that it aligns available and planned resources to deliver at the thematic and functional level. (Priority 4)
• Recommendation 20: Roles and responsibilities. Although roles and responsibilities are clearly assigned and documented, LCRCA could embed skills and capability based expectations into role definitions and regularly refresh documentation as responsibilities shift. (Priority 4)
• Recommendation 21: Contingent resources. Contingent resourcing should be fully embedded within the strategic resource plan, supported by a complete contractor database and forward looking forecasting rather than predominantly reactive deployment. (Priority 4)
• Recommendation 22: Workforce planning methodology. LCRCA should formalise a consistent organisation wide workforce planning methodology aligned to delivery priorities. (Priority 4)
• Recommendation 31: Business unit alignment. Corporate functions should proactively partner with business units as strategic advisors, aligning their expertise with organisational goals to support decision making and outcomes. (Priority 4)

2.3 Financial and performance management

• Recommendation 1: Forecast ownership. LCRCA should make budget holders solely responsible for owning forecasts in their areas once the new financial system is in place. (Priority 1)
• Recommendation 3: Funding flexibilities. LCRCA should embed its documented process for managing funding flexibilities, aligning decisions to Integrated Settlement outcomes and prioritising the establishment of a Strategic Finance Function to assume ownership of fund reallocation, with appropriate cross functional scrutiny arrangements. (Priority 2)
• Recommendation 5: Performance management framework. LCRCA should complete and formalise a refreshed Performance Management Framework embedding organisation wide, outcome based key performance indicators with defined baselines, timeframes and measures aligned to Integrated Settlement outcomes. (Priority 2)
• Recommendation 23: Integrated financial and performance reporting. LCRCA should create an integrated monthly performance and finance cycle linking delivery, operational drivers, financial risks and outcomes, supported by a clear challenge framework and the Project Information Management System. (Priority 4)
• Recommendation 24: Business case training. LCRCA should consider expanding business case training for all authors and reviewers to maintain consistent appraisal standards across the organisation. (Priority 4)
• Recommendation 25: Budget templates and forecasting inputs. LCRCA should enhance its systems and data capabilities to implement system-based forecasting capturing whole life programme costs, reducing reliance on manual inputs and strengthening links between finance and performance. (Priority 4)
• Recommendation 26: Programme phasing. LCRCA should adopt a standard model for breaking down its wider portfolio into manageable phases with regular reviews informed by performance data. (Priority 4)
• Recommendation 27: System integration and dashboards. LCRCA should integrate data platforms and corporate systems so key datasets feed automatically into reporting, agree a single design and governance model for dashboards and standardise a small set of dashboards for delivery, finance and risk. (Priority 4)
• Recommendation 28: Grant ownership and commercial rationale. LCRCA should embed commercial rationale into approval processes so grant and contract owners can clearly articulate why the chosen delivery route has been selected. (Priority 4)
• Recommendation 29: System embedded data validation. LCRCA should embed system-based data validation processes within budget setting and forecasting. (Priority 4)
• Recommendation 30: Performance deep dives. LCRCA should formalise a performance review rhythm combining routine monitoring with scheduled deep dives into priority areas, with clear actions, owners and follow through. (Priority 4)

2.4 Reporting and evaluation

• Recommendation 10: Data foundations and quality. LCRCA should consolidate core data sources into the Smart Cloud Data Hub, agree common data standards, set clear ownership for key datasets and complete the Data Strategy, ICT Strategy and Technology Roadmap, using MIS and PIMS as systems of record. (Priority 3)
• Recommendation 11: Management reporting and insight. LCRCA should standardise management reporting across programmes, including common measures, consistent cadence, decision focused narrative and training for report authors and users. (Priority 3)
• Recommendation 32: Senior decision view and escalation. LCRCA should define a single senior level view bringing together delivery, finance, performance and risk, with clear escalation triggers to support earlier intervention and decision making. (Priority 4)
• Recommendation 33: Benefits and outcomes tracking. LCRCA should configure and use PIMS for consistent benefits and outcomes tracking, with standard baselines, targets, ownership and audit trails, aligned to the Outcomes Framework. (Priority 4)
• Recommendation 34: Lessons learned. LCRCA should establish a formal, centralised process for capturing and sharing lessons learned across the organisation to inform future planning and delivery. (Priority 4)

1. This summary of findings has been extracted from the Integrated Settlement readiness check report prepared by an independent advisor. The report has been prepared only for Ministry of Housing, Communities and Local Government (MHCLG) and solely for the purpose, and on the terms agreed with MHCLG. The independent advisor accepts no liability (including for negligence) to anyone else in connection with this summary of findings or the report. ↩