In late June 2008, Smith signed a contract with Leicestershire – who were in the second division of the County Championship – to play on loan from Lancashire for a month.

Lancashire had a full strength bowling attack – including Andrew Flintoff and James Anderson who had returned from England duty – and Smith was unable to break into the side.

[6] On his return to Lancashire from Leicestershire, manager Mike Watkinson was impressed by Smith's performances with the bat and ball.

Smith's contract with the club was renewed, along with nine other young players who were expected to form the basis of Lancashire's squad in the future.

Smith stated his intent to cement his place in the Lancashire side as an all-rounder, saying that "My batting has come on in leaps and I would like to think of myself as more of an allrounder.

I batted in the top six at Leicestershire in the limited-over games and at seven in the four-dayers, and I got 50-plus a couple of times and had a run average of about 40.

[13] During a Roses Match in late July, Smith took career best figures of 6/46, his maiden first-class five-wicket haul.

[14] Smith and Paul Horton then proceeded to share in their highest opening partnership in the County Championship.

[18] This coincided with injuries to Glen Chapple, Steven Cheetham, and Sajid Mahmood and with Andrew Flintoff and James Anderson on England duty, Lancashire's bowling attack was severely depleted.

As a stop-gap measure, Tom Lungley was loaned by Lancashire from Derbyshire County Cricket Club.

[24] In June 2010, Smith reached the landmark of 100 first-class wickets when he dismissed Jonny Bairstow in a drawn Roses match.

[26] Lancashire failed to progress beyond the group stages of the 2011 CB40 but in their final match of the competition Smith scored his maiden one-day century (117).

[28] With the English cricket season concluded, in November Smith travelled to Zimbabwe to play for the Matabeleland Tuskers in the country's domestic twenty20 competition, the Stanbic Bank 20 Series.