Local Democracy, Economic Development and Construction Bill [HL]

There is always a risk, particularly for local authorities that are trying to do innovative things. That is why we need to use the opportunity of the consultation fully to understand the types of arrangements and situations that local authorities are facing to make sure that they have the vires to undertake them. The noble Baroness makes a reasonable point. Everyone will have assumed that the powers that local authorities have would have been sufficient to undertake those mutual insurance arrangements but, at the very least in the timeframe available to us in the Bill, we can rectify that issue. The noble Baroness asked where this leaves the well-being power. In the Local Government Act 2000 the power of well-being was introduced which allows councils to do anything with the exception of raising money or things expressly prohibited by legislation that would have an impact on the social, economic and environmental well-being of their area. The breadth of this power is such that it can be regarded as a power of first resort when seeking to improve such outcomes for communities, but we recognise that many local authorities will be concerned about the implications of the LAML case. However, every court case on the well-being power has upheld the breadth of that power, and this one is no different. The court case ruled mutual insurance services out of scope of the well-being power and changing the well-being power or introducing another form of general power would not be certain to ensure that local authorities could engage in mutual insurance arrangements. I know that that debate will go on, but before us tonight are these amendments relating to mutual insurance. I am grateful to have the support of both noble Lords. Motion agreed. Motion on Amendments 4 to 6 Moved by