1. PricewaterhouseCoopers Document number 1 Location of the Economic Development Team Economic Development Manager reports to the Chief Executive AdvantagesDisadvantages Direct access to the Chief Executive, providing good visibility for economic development activity. This may extend the Chief Executive’s reach too far. This would demonstrate a commitment to economic development that may be particularly valuable at this time. As a relatively minor service (in budgetary terms) such a commitment may be over-stated. The Chief Executive’s focus on policy and matters of relevance to the work of all the Council’s service departments may be lost. The service expertise and understanding required in over- seeing the management of the economic development service is unlikely to align with the skills and experience of the Chief Executive. Chief Executive Economic Development Manager Head of Policy Unit Head of Legal Services Director of Social Services Director of Education & Cultural Services Director of Environment Deputy Chief Executive & Director of Resources Office of the Chief Executive Head of Corporate Communications Head of Democratic Services Head of Human Resources

2. PricewaterhouseCoopers Document number 2 AdvantagesDisadvantages There may be some synergy with the other elements of the Deputy Chief Executive’s role. The Deputy Chief Executive’s role currently includes responsibility as the Section 151 Officer for the authority, which precludes such a line management role. The transfer of the Section 151 Officer role to another officer would have wide implications for the structure of the senior officer team of the Council. This demonstrates a valuable commitment to economic development. Economic development is a service that cuts across many other services provided by the authority; this reporting line will facilitate cross-cutting without obscuring the other functions of the Policy Unit. The role of the Deputy Chief Executive is evolving, and may be susceptible to development in this direction. Chief Executive Economic Development Manager Director of Environment Director of Social Services Deputy Chief Executive & Director of Resources Economic Development Manager reports to the Deputy Chief Executive Location of the Economic Development Team Head of Finance Operations and Performance Manager (Youth Offending) Head of Information Services Head of Property Corporate E.Govt Manager

3. PricewaterhouseCoopers Document number 3 Location of the Economic Development Team Economic Development Manager reports to the Head of Policy AdvantagesDisadvantages There is a clear relationship between the overall policy direction of the Council and the operational economic development team. The Policy Unit’s focus on policy and matters of relevance to the work of all the Council’s service departments may be lost. The service is placed within the Office of the Chief Executive without reporting directly to that post. Economic development will not achieve the prominence it could. The service expertise and understanding required in over- seeing the management of the economic development service is unlikely to align with the skills and experience of the Head of Policy. In taking on the economic development role, as well as other elements of the new role identified for the Council, the Policy Unit’s managerial resources may become over-stretched. Office of the Chief Executive Economic Development Manager Head of Policy Head of Legal Services Head of Human Resources Performance ManagementCorporate Policy (*) Community EngagementCorporate Support (*) * The constituents of the ‘Corporate Support’ function, and its relationship to the other teams within the Policy Unit have not yet been determined. It could potentially form a part of the Corporate Policy team as it would provide corporate policy and support to all County Council functions, not just economic development.

4. PricewaterhouseCoopers Document number 4 Structure and location of LCDL Option 1: Focus on LCDL’s core business Features: Arrangements are formalised between LCDL and the LCC Cabinet, and regularised to ensure appropriate democratic input including input from opposition members. An alternative means to engage with external parties may be created (for example through the Lancashire Strategic Partnership Economic Forum, with a mirrored consultative structure focussed on the Council’s own work). The Company is operated as part of the Economic Development Team. The Company remains responsible for regeneration including property management and engages in business finance to support businesses in Lancashire otherwise unable to gain access to financing facilities; its current core business. A decision is available to be made whether to employ staff engaged on property management and business finance within the Council or the Company. AdvantagesDisadvantages The Cabinet structure and Board membership are aligned and the relationship between the Council and Company formalised. The Company’s remit may be unclear both to external parties and to the Economic Development Team itself. Representatives of external bodies and the Opposition are given the vehicle through which they may influence the whole of the Council’s economic development agenda.

5. PricewaterhouseCoopers Document number 5 Structure and location of LCDL Option 2: Expand the Company’s remit Features: Arrangements are formalised between LCDL and the LCC Cabinet, and regularised to ensure appropriate democratic input including input from opposition members. The Company expands its remit to encompass all the work of the Economic Development Team. A decision is available to be made whether to employ the staff of the Economic Development Team within the Council or the Company. An alternative means to engage with external parties may be created (for example through the Lancashire Strategic Partnership Economic Forum, with a mirrored consultative structure focussed on the Council’s own work). AdvantagesDisadvantages There is clarity both within LCC and LCDL, and with external organisations regarding LCDL’s role in the economic development of the County. The use of a company to undertake the economic development role of the County Council may be seen to replicate previous arrangements. This is likely to be perceived as running contrary to the messages the Council has given to its stakeholders around the County both about its renewed involvement in economic development, and its direct engagement with its stakeholders. LCDL’s location within the Council’s structure is clear and simple. The Cabinet structure and Board membership are aligned and the relationship between the Council and Company formalised. The additional obligations entailed in operating a company are clearly visible to the Economic Development Manager, thereby reducing the risk that they are overlooked.