The company was founded in 1905 as Lancashire United Tramways Ltd to assume operation of the South Lancashire Tramways tram system, which had run into financial difficulties. The tram system was centred on the towns of Leigh and Atherton in South Lancashire, with lines running towards St Helens, Wigan, Bolton and Salford. The company continued to operated routes in South Lancashire until purchased by Greater Manchester PTE in 1976. LUT remained as an independent subsidiary until 1981 when the company was officially wound up and its assets transferred to Greater Manchester Transport.