Another time I was cleared to line up at Goodwood with another aircraft on very short finals. The landing a/c was not on the radio (not the Goodwood frequency anyway ) , and the tower guy clearly wasn't looking out the window when he cleared me..
Not having a go at ATC here.
Macky42
Goodwood is a FIS, so I think the "tower guy" was correct. He issues instructions up to the hold, but information after that - so you're the one who should be looking out of the window for aircraft on short final (as you were), not him.
I suspect he said "report lining up". As a FISO he cannot clear you to line up, although he can tell you to hold, and "report lining up" is what they do when they know traffic is on final (otherwise it's "take off your discretion, surface wind is..." - I cannot remember ever being told to "report lining up" when there is no traffic on final). When they tell you to "report lining up" they are saying that it's your call - if the other traffic is on 8-mile final then feel free to go. If you're not happy, then say "Holding, G-CD".