b. Powers

Councils have a range of discretionary powers which enable it to act or spend money in different ways to benefit their area, for example the provision of recreational or sports facilities, entertainment, allotments and cemeteries.

Many of the powers are specified in legislation, such as the Local Government Act 1972, and the Local Government (Miscellaneous Provisions) Act 1976. A list of the main statutory powers is available here - SALC Powers Reference Guide.pdf

Section 137 

S.137, Local Government Act 1972, allows councils to spend on things that are not covered by a statutory power. To do so, a council must consider the expenditure will directly benefit the area, or a section of its inhabitants, and that benefit must be ‘commensurate’ (in proportion) to the expenditure.  

As an example, many councils donate to local societies and charities using s.137. It must not be used when a statutory power exists, or to benefit an individual.

The total spend under this section in each financial year is limited.  This is calculated by multiplying the ‘appropriate amount’ (announced by Government early each year) by the number of electors for the parish as of 1^st April. Expenditure under s.137 must be clearly distinguished in the council's accounts.

See NALC advice note on their website - Local councils general powers (England).  
[To access the NALC website you will need to set up an individual account (SALC members only).  Video guidance on how to do this is available here - https://www.youtube.com/watch?v=zapNDmP8jjY]

General Power of Competence

Section 1, Localism Act 2011 allows councils meeting the prescribed conditions to do anything that individuals generally may do, unless there are legal restrictions preventing councils from doing so. 

There are of course numerous activities that an individual person would not be permitted to do, meaning a council could only undertake this if a statutory power exists. Nevertheless, the GPOC does widen the scope for eligible councils to take on a wider range of activities. 

To qualify, a council must resolve in a meeting that it has two-thirds of its seats filled by elected members, and a qualified Clerk. The qualification lasts until the annual meeting following the next ordinary election (potentially four years), regardless of whether they subsequently fall below the criteria.

Factsheet on GPOC available to download here - General Power of Competence fact sheet.pdf

See NALC advice note on their website - Local councils general powers (England).  
[To access the NALC website you will need to set up an individual account (SALC members only).  Video guidance on how to do this is available here - https://www.youtube.com/watch?v=zapNDmP8jjY]