Income Generation & Local Authority Companies

The requirement for local authorities to explore and implement income generation and commercialisation opportunities is increasing, especially with continuing financial austerity. We frequently provide advice and training on income generation and commercialisation and are experienced in a wide range of business models and the complex legislation. We understand that the legal framework is only one of the challenges that local authorities face.

We regularly advise on the following options for income generation and commercialisation together with the vires, governance, subsidy and procurement implications of such arrangements:

• Establishing corporate vehicles
• Local authority companies including requirements of the Local Authorities (Companies) Order 1995 for controlled and influenced companies
• Asset backed vehicles
• Disposal of assets
• Maximise income generation from property portfolios
• Commercial trading
• Charging for discretionary services

We support local authorities and work alongside business, finance and tax advisors to develop income generation strategy, options appraisal and business case/plans. This helps the local authority to assess the potential return from particular activities together with the potential risks and strategies for mitigation.

The team has a specific interest in energy and is currently advising a local authority on its ambitious objectives to cut carbon, supply and sell clean electricity, as well as generate power for itself. Our ongoing support in this ground-breaking scheme means that the local authority will be able to achieve their goals and generate millions of pounds. This will enable them to provide the ongoing high standard of council services they are renowned for.

We are currently developing an Income Generation Toolkit to support local authorities as they consider undertaking such activities. This will include “At-a-glance” legal guides; guidance on Directors’ responsibilities and managing conflicts of interest; options appraisal template; business plan templates and critical review support and mentoring support.