Q&As

What powers does a local authority have to lend money to a college? Can a local authority rely on general powers under the Localism Act and/or Education Act 1996 duties?

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Published on LexisPSL on 14/08/2019

The following Local Government Q&A provides comprehensive and up to date legal information covering:

  • What powers does a local authority have to lend money to a college? Can a local authority rely on general powers under the Localism Act and/or Education Act 1996 duties?
  • Powers under the Localism Act 2011
  • Power of competence
  • Limitations
  • Power under part VI of the Local Government Act 1972
  • Powers under the Education Act 1996

Powers under the Localism Act 2011

Power of competence

The competence power gives specified English local authorities the power to do anything that individuals generally of full capacity may do.

Note that the general power in section 1 of the Localism Act 2011 (LA 2011) is not limited by ‘the existence of any other power of the authority which (to any extent) overlaps the general power’.

For more information on the scope of the power of competence, see Practice Note: General power of competence.

Limitations

There are various limitations on a local authority’s power of competence. For information on these limitations, see Practice Note: General power of competence at main section ‘Nature and scope of the competence power’ and the subsection ‘Restrictions’, and Commentary: Boundaries of the general power of competence of a local authority in England: Halsbury’s Laws of England [508].

We refer you to Practice Note: Dealing with local authorities in a finance transaction—investigating capacity and authority when lending to a local authority as, while thi

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