Local Authorities (Goods and Services) Act 1970
1970 CHAPTER 39 cross-notesI1
An Act to make further provision with respect to the supply of goods and services by local authorities to certain public bodies, and for purposes connected therewith.
[29th May 1970][29th May 1970][29th May 1970][29th May 1970]
1 Supply of goods and services by local authorities. cross-notes
(1) Subject to the provisions of this section, a local authority and any public body within the meaning of this section may enter into an agreement for all or any of the following purposes, that is to say—
(a) the supply by the authority to the body of any goods or materials;
(b) the provision by the authority for the body of any administrative, professional or technical services;
(c) the use by the body of any vehicle, plant or apparatus belonging to the authority and, without prejudice to paragraph (b) above, the placing at the disposal of the body of the services of any person employed in connection with the vehicle or other property in question;
(d) the carrying out by the authority of works of maintenance in connection with land or buildings for the maintenance of which the body is responsible;
and a local authority may purchase and store any goods or materials which in their opinion they may require for the purposes of paragraph ( a ) of this subsection.
(2) Nothing in paragraphs (a) to (c) of the preceding subsection authorises a local authority—
(a) to construct any buildings or works; or
(b) to be supplied with any property or provided with any service except for the purposes of functions conferred on the authority otherwise than by this Act;
(3) Any agreement made in pursuance of subsection (1) of this section may contain such terms as to payment or otherwise as the parties consider appropriate.
(4) In this Act—
F2,F5 “ Local authority ”, in relation to England and Wales, means the council of [F1 any county, county borough F1] , ..., county district or London borough [F3 the Greater London Authority F3][F4 the Broads Authority F4] , ..., the Common Council of the City of London, the Council of the Isles of Scilly and any joint board, joint committee and combined authority [F6 ... F7 and any joint authority established by Part IV of the Local Government Act 1985, [F8 any corporate joint committee established by regulations made under Part 5 of the Local Government and Elections (Wales) Act 2021, F8][F9 any economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009, any combined authority established under section 103 of that Act, F9][F10 any combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023, F10][F11 any fire and rescue authority created by an order under section 4A of the Fire and Rescue Services Act 2004, F11]F12 ... [F13 , a Mayoral development corporation F13][F14 and [F15 the London Fire Commissioner F15][F16 and Transport for London F16,F14,F6]]] and, in relation to Scotland, [F17 means a [F18 council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 F18] or any joint board or combination of those councils F17] ;
[F19 “ public body ” means any local authority[F20 , any [F21 police and crime commissioner F21] , F22 ..., any F20][F23 housing action trust established under Part III of the Housing Act 1988F23][F24 , any probation trust F24] , F25 ... any person who is a public body by virtue of subsection (5) of this section and, in relation to England and Wales, any parish council, F2 ... and representative body of a rural parish; and F19]
[F19 “ works of maintenance ” include minor renewals, minor improvements and minor extensions. F19]
(5) The following Ministers, that is to say—
(a) in relation to England and Wales, the Minister of Housing and Local Government and the Secretary of State acting jointly; and
(b) in relation to Scotland, the Secretary of State,
may by order made by statutory instrument provide that any person who is specified in the order or is of a description so specified, being a person or description of persons appearing to those Ministers or the Secretary of State to be exercising functions of a public nature, shall be a public body for the purposes of this Act in its application to England and Wales or Scotland, as the case may be; and any statutory instrument made by virtue of this subsection shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(6) An order under the preceding subsection may contain such provisions as the person making it considers appropriate—
(a) for restricting the agreements which may by virtue of the order be entered into by a public body;
(b) without prejudice to the preceding paragraph, for securing the inclusion in any agreement made by virtue of the order of terms imposing restrictions.
[F26 (7) The Great Yarmouth Port and Haven Commissioners shall be treated as a public body for the purposes of paragraphs (a) and (b) of subsection (1) above as those paragraphs apply in relation to agreements entered into by the Broads Authority. F26]
1 Supply of goods and services by local authorities. cross-notes
(1) Subject to the provisions of this section, a local authority and any [F29 person F29] may [F30 , in relation to any relevant trading operation carried on by the authority, F30] enter into an agreement for all or any of the following purposes, that is to say—
(a) the supply by the authority to the [F29 person F29] of any goods or materials;
(b) F31 the provision by the authority for the [F29 person F29] of any ... services;
(c) the use by the [F29 person F29] of any [F32property belonging to or facilities under the control of F32] the authority and, without prejudice to paragraph (b) above, the placing at the disposal of the [F29 person F29] of the services of any person employed in connection with the [F32property or facility F32] in question;
F33 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F34 (1A) A local authority shall not, in relation to any trading operation carried on by them, enter into an agreement under subsection (1) above if the likely result of doing so would be that the commercial services income accruing to the authority in any financial year under that and all other such agreements already entered into by the authority with such persons in relation to that operation would exceed the statutory limit.
(1B) Subsection (1A) above does not apply in respect of an agreement entered into by a local authority with—
(a) another local authority;
(b) a public authority or body; or
(c) a person who, in the circumstances set out in subsection (1L) below, enters into the contract in order to provide the local authority with goods or services,
or with a person who, not being a public body, has functions of a public nature or engages in activities of that nature and the purpose or effect of the agreement is to facilitate discharge by that person of those functions or that person’s engagement in those activities.
(1C) The restriction in subsection (1A) does not prevent a local authority from entering into an agreement where the likely result of doing so would be that the income referred to in that subsection will exceed the limit there referred to if the Scottish Ministers give prior consent to the authority doing so.
(1D) In subsection (1A) above—
(a) the “ commercial services ” income of a local authority is that part of their income which—
(i) is derived from agreements entered into for all or any of the purposes set out in subsection (1) above and is, in accordance with proper accounting practices, credited to a trading account kept by the authority for a trading operation;
(ii) is derived from relevant dividends; or
(iii) is derived from relevant profit sharing agreements; and
(b) the “ statutory limit ” for a trading operation is such amount as the Scottish Ministers may, by order, fix.
(1E) For the purposes of subsection (1D) above—
“ relevant dividend ” means a dividend paid by a body corporate which carries on operations which, if they were carried on by the authority to which the dividend is paid, would be relevant trading operations;
“ relevant profit sharing agreement ” means an agreement between a local authority and a body corporate which carries on such operations in terms of which the body corporate undertakes to pay to the authority a proportion of any income which it derives from carrying out those operations.
(1F) An amount so fixed may be expressed as a fraction of any other amount specified or referred to in the order.
(1G) Different amounts may be so fixed for different trading operations or classes of trading operation, and an amount may be so fixed for all trading operations.
(1H) Where, for any trading operation, no amount has been so fixed, the prohibition in subsection (1A) above applies, the condition of its application set out in that subsection being ignored.
(1I) If, however, in the case of a trading operation for which no amount has been fixed, the Scottish Ministers give prior consent to a local authority entering into an agreement under subsection (1) above in relation to that trading operation, that prohibition does not apply.
(1J) An order under subsection (1D)(b) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the Scottish Parliament.
(1K) Before making such an order, the Scottish Ministers shall consult such persons as they think fit.
(1L) The circumstances referred to in paragraph (c) of subsection (1B) above are that the local authority considers that the provision of the goods or services under the contract mentioned in that paragraph will be facilitated if the person who has entered into the contract is within that paragraph.
(1M) A local authority shall, before entering any such agreement as is referred to in subsection (1) above, have regard to whether doing so will be likely to promote or improve the well-being of—
(a) their area and persons within that area;
(b) either of those.
(1N) For the purposes of subsection (1M) above, “ well-being ” is to be construed in the same way as it is construed for the purposes of section 20 of the Local Government in Scotland Act 2003 (asp 1).
(1O) References in this section to a trading operation are, in relation to a local authority, references to a trading operation for which, in accordance with proper accounting practices (within the meaning of section 12 of the Local Government in Scotland Act 2003 (asp 1)) the authority keep trading accounts.
(1P) The reference in subsection (1) above to a relevant trading operation is a reference to a trading operation which is carried on for the purpose of enabling a local authority to raise money, by borrowing or otherwise. F34]
(2) Nothing in paragraphs (a) to (c) of the [F35 subsection (1) above F35] authorises a local authority—
(a) to construct any buildings or works; or
(b) to be supplied with any property[F36 , goods or materials F36] or provided with any service except
[F37 (i) F37] for the purposes of functions conferred on the authority otherwise than by this Act;
[F38 (ii) for the purpose of enabling the authority to supply the property, goods or materials or, as the case may be, provide the service to another authority;
(iii) in the case of the supply of goods or materials, where that supply is for the purpose of, or is incidental to the purpose of, enabling the authority to supply property or, as the case may be, provide a service; or
(iv) in any other case, where the Scottish Ministers have consented to the supply or provision. F38]
(3) Any agreement made in pursuance of subsection (1) of this section may contain such terms as to payment or otherwise as the parties consider appropriate.
(4) In this Act—
F40,F43 “ Local authority ”, in relation to England and Wales, means the council of [F39 any county, county borough F39] , ..., county district or London borough [F41 the Greater London Authority F41][F42 the Broads Authority F42] , ..., the Common Council of the City of London, the Council of the Isles of Scilly and any joint board, joint committee and combined authority [F44 ... F45 and any joint authority established by Part IV of the Local Government Act 1985, [F46 any corporate joint committee established by regulations made under Part 5 of the Local Government and Elections (Wales) Act 2021, F46][F47 any economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009, any combined authority established under section 103 of that Act, F47][F48 any fire and rescue authority created by an order under section 4A of the Fire and Rescue Services Act 2004, F48]F49 ... [F50 , a Mayoral development corporation F50][F51 and [F52 the London Fire Commissioner F52][F53 and Transport for London F53,F51,F44]]] and, in relation to Scotland, [F54 means a [F55 council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 F55] or any joint board or combination of those councils F54] ;
[F56 “ public body ” means any local authority[F57 , any [F58 police and crime commissioner F58] , F59 ..., any F57][F60 housing action trust established under Part III of the Housing Act 1988F60][F61 , any probation trust F61] , F62 ... any person who is a public body by virtue of subsection (5) of this section and, in relation to England and Wales, any parish council, F40 ... and representative body of a rural parish; and F56]
[F63 “ property ” includes land, accommodation, vehicles, plant and apparatus; and F63]
[F56 “ works of maintenance ” include minor renewals, minor improvements and minor extensions. F56]
F64 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F64 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Supplemental. cross-notes
(1) Nothing in section 1 of this Act shall be construed as derogating from any powers exercisable by any public body apart from that section.
(2) M1,F28 The accounts of a local authority by whom agreements in pursuance of the said section 1 are entered into under which the authority are to provide any such property or service or do such work as is mentioned in subsection (1) of that section shall include a separate account in respect of the agreements; and subsections (4), (6) and (7) of section 283 of the Local Government Act 1933 and sections [F27 101 and 105 of the M2 Local Government (Scotland) Act 1973 F27] (which relate to the inspection and taking of copies of the abstract of accounts of authorities) shall have effect as if any reference to an abstract of the accounts of an authority included a reference to such a separate account as aforesaid ... .
(3) M3,M4 Subsections (1), (2), (4) and (5) of section 82 of the Public Health Act 1961 (which provide among other things, in relation to England and Wales, for the amendment or repeal, on the application of or after consultation with the authorities concerned, of local enactments which are inconsistent with that Act or unnecessary in consequence of it) shall have effect as if references to that Act included references to this Act and references to a local Act included references to the provisions of sections 5(3) and 72 of the London Government Act 1963 and as if, in relation to those provisions, the application mentioned in subsection (2) were an application by the Greater London Council.
(4) M5Section 14 of the Local Government (Development and Finance) (Scotland) Act 1964 (which contains similar provisions for the amendment or repeal of local enactments in Scotland) shall have effect as if references therein to that Act included references to this Act.
(5) An order under section 1(5) of this Act may be revoked or varied by a subsequent order thereunder, and the subsequent order may contain such transitional provisions as the person making it considers appropriate.
2 Supplemental. cross-notes
(1) Nothing in section 1 of this Act shall be construed as derogating from any powers exercisable by any [F65 person F65] apart from that section.
(2) M6,F67 The accounts of a local authority by whom agreements in pursuance of the said section 1 are entered into under which the authority are to provide any such property or service or do such work as is mentioned in subsection (1) of that section shall include a separate account in respect of the agreements; and subsections (4), (6) and (7) of section 283 of the Local Government Act 1933 and sections [F66 101 and 105 of the M7 Local Government (Scotland) Act 1973 F66] (which relate to the inspection and taking of copies of the abstract of accounts of authorities) shall have effect as if any reference to an abstract of the accounts of an authority included a reference to such a separate account as aforesaid . . . .
(3) M8,M9 Subsections (1), (2), (4) and (5) of section 82 of the Public Health Act 1961 (which provide among other things, in relation to England and Wales, for the amendment or repeal, on the application of or after consultation with the authorities concerned, of local enactments which are inconsistent with that Act or unnecessary in consequence of it) shall have effect as if references to that Act included references to this Act and references to a local Act included references to the provisions of sections 5(3) and 72 of the London Government Act 1963 and as if, in relation to those provisions, the application mentioned in subsection (2) were an application by the Greater London Council.
F68 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F68 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Short title and extent.
(1) This Act may be cited as the Local Authorities (Goods and Services) Act 1970.
(2) This Act does not extend to Northern Ireland.