Only a few days to go: We’re raising £25,000 to keep TheyWorkForYou running and make sure people across the UK can hold their elected representatives to account.

Donate to our crowdfunder

Local Government: Subsidiary Companies

Ministry of Housing, Communities and Local Government written question – answered on 26th June 2018.

Alert me about debates like this

Photo of Lord Storey Lord Storey Liberal Democrat Lords Spokesperson (Education)

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.

Photo of Lord Bourne of Aberystwyth Lord Bourne of Aberystwyth The Parliamentary Under-Secretary of State for Wales, Parliamentary Under-Secretary (Housing, Communities and Local Government)

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.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.