PRIVATE care home bosses today revealed they had pulled out of a judicial review opposing plans to shake up Lancashire County Council's OAP provision.

The Lancashire Care Association had teamed up with Chorley Council and individual residents in council care homes due to shut to fight the proposals.

The LCA's opposition was on the grounds that the number of admissions to private homes would drop under the new care arrangements, where more people would be looked after in their own homes.

They also claimed that the fees paid were too low and launched the legal action when the council refused to back down on their plans.

In a joint statement today, the county council and the LCA confirmed an agreement to settle their long-running dispute over fees and placements in residential homes.

The LCA has agreed to withdraw from the judicial review that was set for March.

Both parties have negotiated an agreement that will help stabilise the independent care home sector and provide mechanisms for developing longer term agreements which will benefit older people in the county, said the statement.

Coun Chris Cheetham, portfolio holder for social services, said: "I hope that the LCA and County Council can draw a line under the recent past and work jointly to develop the best possible services for the people of Lancashire."

Frank Hessey, chairman of the Lancashire Care Association, said: " It has been a difficult 12 months and hopefully both sides will have learnt from this. It is clear that the County Council recognises the importance of stabilising the care home sector in Lancashire.

The legal challenge will still take place next month in the high court, focusing on alleged human rights violations connected with shutting 32 council-run homes.