By Mike Thatcher
15 January 2010
The chief executive of the Audit Commission has denied that local authorities need a power of general competence.
The power, which has been proposed by Conservative Party leader David Cameron among others, would allow councils to do anything that they judged to be appropriate for their area, with no financial or other qualifications.
But Steve Bundred, the outgoing head of the commission, told Public Finance that councils already had the relevant powers.
‘I think much is made of the need for a power of general competence, but I am not sure what it is that local authorities want to do that they haven’t got the powers to do already,’ he said.
In a wide-ranging interview with PF, Bundred highlighted existing innovative practice, such as the bank established by Essex County Council.
‘Essex was able to establish that with powers that it has already got, so what is it that local government is being prevented from doing?’ he asked.
Supporters of a power of general competence argue that local government’s existing wellbeing powers are too restrictive. Their limitations were seen in the recent London Authorities Mutual Limited judgment, where a local government mutual insurance scheme was ruled unlawful.
The government has subsequently given councils powers – through the Local Democracy, Economic Development and Construction Act – to set up mutual insurance companies. But it has not gone as far as a power of general competence.
15 January 2010
The chief executive of the Audit Commission has denied that local authorities need a power of general competence.
The power, which has been proposed by Conservative Party leader David Cameron among others, would allow councils to do anything that they judged to be appropriate for their area, with no financial or other qualifications.
But Steve Bundred, the outgoing head of the commission, told Public Finance that councils already had the relevant powers.
‘I think much is made of the need for a power of general competence, but I am not sure what it is that local authorities want to do that they haven’t got the powers to do already,’ he said.
In a wide-ranging interview with PF, Bundred highlighted existing innovative practice, such as the bank established by Essex County Council.
‘Essex was able to establish that with powers that it has already got, so what is it that local government is being prevented from doing?’ he asked.
Supporters of a power of general competence argue that local government’s existing wellbeing powers are too restrictive. Their limitations were seen in the recent London Authorities Mutual Limited judgment, where a local government mutual insurance scheme was ruled unlawful.
The government has subsequently given councils powers – through the Local Democracy, Economic Development and Construction Act – to set up mutual insurance companies. But it has not gone as far as a power of general competence.
