Thanks Dan,
I did find a work-around just now using the following sequence:
1) Use the Overlay (Intersect) of the landscape character shapefile and the land cover shapefile ->creates a new shapefile of the intersect.
2) calculate the geometry of the land cover in attributes of the intersect shapefile.
3) extract attributes table and use Pivot tool pivot land cover classes as new attribute fields.
4) join the new pivot table back to the intersect shapefile using Joins.
5) extract the joined intersect shapefile as a new feature (joins do not perform well for subsequent analyses).
6) use Dissolve tool to reduce the number of attributes back to the number of landscape character features.
This is quite a process, so will try Zonal Statistics as you suggested to speed up the analysis.
All the best,
Julien