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To ask Her Majesty's Government what requirements they place on local councils setting up companies to take on the role of particular local services.
The general power of competence provisions set out in the Localism Act 2011 build on existing powers to charge and to trade. If a local authority wishes to trade for a commercial purpose, this must be carried out through a company to ensure that it does not have an unfair tax advantage over business. Local authorities can choose to deliver local services through companies provided that they assure themselves that doing so delivers best value to local residents. Local authorities, like other bodies, are subject to and must abide by competition law and it is their responsibility to ensure they comply with the requirements of state aid, competition and procurement law.