Section 4 Limits on doing things for commercial purpose in exercise of general powerI1

England and Wales

(1)

The general power confers power on a local authority F1, combined authority, CCA F2, or English National Park authority, or the Broads Authority, to do things for a commercial purpose only if they are things which the authority may, in exercise of the general power, do otherwise than for a commercial purpose.

(2)

Where, in exercise of the general power, a local authority F3, combined authority, CCA F4, or English National Park authority, or the Broads Authority, does things for a commercial purpose, the authority must do them through a company.

(3)

A local authority F5, combined authority, CCA F6, or English National Park authority, or the Broads Authority, may not, in exercise of the general power, do things for a commercial purpose in relation to a person if a statutory provision requires the authority to do those things in relation to the person.

(4)

In this section “company” means—

(a)

a company within the meaning given by section 1(1) of the Companies Act 2006, or

(b)

F7a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 or a society registered or deemed to be registered under the Industrial and Provident Societies Act (Northern Ireland) 1969.

Annotations

Textual amendments

F1: Words in s. 4(1) inserted (29.4.2026 for specified purposes, 29.6.2026 in so far as not already in force) by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(1)(3)(5), Sch. 6 para. 5(2) (with s. 102)
F2: Words in s. 4(1) inserted (29.6.2026) by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(5), Sch. 33 para. 5(2)
F3: Words in s. 4(2) inserted (29.4.2026 for specified purposes, 29.6.2026 in so far as not already in force) by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(1)(3)(5), Sch. 6 para. 5(2) (with s. 102)
F4: Words in s. 4(2) inserted (29.6.2026) by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(5), Sch. 33 para. 5(2)
F5: Words in s. 4(3) inserted (29.4.2026 for specified purposes, 29.6.2026 in so far as not already in force) by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(1)(3)(5), Sch. 6 para. 5(2) (with s. 102)
F6: Words in s. 4(3) inserted (29.6.2026) by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(5), Sch. 33 para. 5(2)
F7: Words in s. 4(4)(b) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 175 (with Sch. 5)

Commencement

I1: S. 4 in force at 18.2.2012 by S.I. 2012/411, art. 2(b)

Notes on Chapter 1

Modifications

C1: Pt. 1 Ch. 1: power to modify conferred by Local Democracy, Economic Development and Construction Act 2009 (c. 20), s. 113D(1) (as inserted (28.1.2016 for specified purposes, 28.3.2016 in so far as not already in force) by Cities and Local Government Devolution Act 2016 (c. 1), ss. 10, 25(2))
C2: Pt. 1 Ch. 1 modified (9.2.2017) by The West of England Combined Authority Order 2017 (S.I. 2017/126), arts. 1(3), 24
C3: Pt. 1 Ch. 1 modified (3.3.2017) by The Cambridgeshire and Peterborough Combined Authority Order 2017 (S.I. 2017/251), arts. 1(2)(b), 11
C4: Pt. 1 Ch. 1 modified (5.10.2026) by The Surrey (Structural Changes) (Pensions etc.) Order 2026 (S.I. 2026/1011), art. 1(2), Sch. para. 9(b) (with Sch. para. 10)