Local Authorities (Goods and Services) Act 1970

1970 CHAPTER 39

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]

Modifications etc. (not altering text)

C2Words of enactment omitted under authority of Statute Law Revision Act 1948 (c. 62), s. 3

C8Act amended (E.W.) by Water Act 1989 (c. 15, SIF 130), ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–10), 190, 193(1), Sch. 25 para. 40, Sch. 26 paras. 3(1)(2), 17, 40(4), 57(6), 58

C11Act extended (16.5.1992) by Further and Higher Education (Scotland) Act 1992 (c. 37), s. 12(10), Sch. 2 para. 21; S.I. 1992/817, art. 3(2), Sch. 1.

Act restricted (3.4.1995) by 1994 c. 19, s. 25(7) (with ss. 54(5)(7), 55(3), 66(7), Sch. 17 paras. 22(1), 23(2); S.I. 1995/852, art. 4(1), Sch. 2

Act extended (5.7.1994) by 1994 c. 19, ss. 39, 66(2)(a) (with ss. 54(5)(7), 55(3), 66(7), Sch. 17 paras. 22(1), 23(2)

Act applied (with modifications) (1.4.1994) by S.I. 1994/653, reg. 42(1), Sch. Pt. I

Act applied (with modifications) (9.5.1994) by S.I. 1994/1084, reg. 8(1), Sch. 2 Pt. I

Act extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 65(7), 125(2), Sch. 8 para. 5 (with ss. 7(6), 115, 117, Sch. 8 para. 7)

Act extended (1.2.1996) by 1995 c. 25, s. 120(1), Sch. 22 para. 13 (with ss. 7(6), 115, 117); S.I. 1996/186, art. 2

Act modified (E.W.) (1.4.1995) by S.I. 1995/401, art. 18, Sch. para. 4

Act applied (S.) (6.4.1995) (temp.) by S.I. 1995/789, art. 2, Sch. para. 2

Act amended (1.11.1996) by 1996 c. 56, ss. 582(1), 583(2), Sch. 37 Pt. I para. 17 (with ss. 1(4), 561, 562)

Act amended (1.10.1997) by 1997 c. 44, s. 57(1), Sch. 7 para. 2(1)(a)(2); S.I. 1997/1468, art. 2, Sch. 1 Pt. III

Act amended (1.3.1998) by 1997 c. 44, s. 57(1), Sch. 7 para. 2(1)(b); S.I. 1998/386, art. 2 Sch. 1 Pt. I

Act extended (1.10.1998) by 1998 c. 31, s. 140(1), Sch. 30 para. 2(1)(2) (with ss. 138(9), 144(6); S.I. 1998/2212, art. 2, Sch. 1

Act amended (25.11.1998 for specified purposes otherwise 3.7.2000) by 1998 c. 45, s. 32, Sch. 7 para. 3; S.I. 1998/2958, art. 2; S.I. 2000/1173, art. 2(2)(c)

Act amended (E.) (8.2.2000) by S.I. 2000/63, arts. 2, 3, Sch.

Act extended (8.9.2000) by 2000 asp 10, s. 9, Sch. 2 para. 11 (with s. 32); S.S.I. 2000/312, art. 2

C12Act: transfer of functions (1.7.1999) by S.I. 1999/672, art. 2, Sch. 1

Commencement Information

I1Act wholly in force at Royal Assent

1 Supply of goods and services by local authorities.E+W

(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—

(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.]

Textual Amendments

F1Words in s. 1 substituted (3.4.1995) by 1994 c. 19, s. 25(8) (with ss. 54(5)(7), 55(5), Sch. 17 paras. 22(1), 23(2)); S.I. 1995/852, art. 4(1), Sch.

F3Words in s. 1(4) inserted (8.5.2000) by 1999 c. 29, s. 388(a) (with Sch. 12 para. 9(1)); S.I. 1999/3434, art. 3

F11Words in s. 1(4) inserted (31.1.2017 for specified purposes, 3.4.2017 in so far as not already in force) by Policing and Crime Act 2017 (c. 3), s. 183(1)(5)(e), Sch. 1 para. 22; S.I. 2017/399, reg. 2, Sch. para. 38

F12Words in s. 1(4) omitted (26.5.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 13 para. 6(6); S.I. 2015/994, art. 6(g)

F13Words in s. 1(4) inserted (15.1.2012) by Localism Act 2011 (c. 20), s. 240(1)(l), Sch. 22 para. 2

F14Words in s. 1(4) inserted (3.7.2000) by 1999 c. 29, s. 388(b) (with Sch. 12 para. 9(1)); S.I. 1999/3434, art. 4

F15Words in s. 1(4) substituted (31.1.2017 for specified purposes, 1.4.2018 in so far as not already in force) by Policing and Crime Act 2017 (c. 3), s. 183(1)(5)(e), Sch. 2 para. 33; S.I. 2018/227, reg. 4(c)

F16Words in s. 1(4) substituted (31.3.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 20 para. 1; S.I. 2012/628, art. 4(c)

F19Words in s. 1(4) repealed (S.) (1.4.2003 for specified purposes) by Local Government in Scotland Act 2003 (asp 1), ss. 8(2)(d)(i), 62(2); S.S.I. 2003/134, art. 2(1), Sch.

F20S. 1(4): words in definition inserted (1.10.1994) by 1994 c. 29, s. 43, Sch. 4 para. 5; S.I. 1994/2025, art. 6(2)(e)

F22Words in the definition of "public body" in s. 1(4) repealed (1.4.2002) by 2001 c. 16, ss. 128, 137, Sch. 6 Pt. 3 para. 58, Sch. 7 Pt. 5(1); S.I. 2002/344, art. 3(j)(k)(m) (with transitional provisions in art. 4)

Modifications etc. (not altering text)

C20S. 1 extended (E.W.) by Water Act 1973 (c. 37), s. 7(1)

C21Functions of Minister of Housing and Local Government now exercisable by Secretary of State: S.I. 1970/1681

C25S. 1 extended (E.W.) (1.12.1991) by Water Consolidation (Consequential Provisions) Act 1991 (c. 60, SIF 130), ss. 2(1), 4(2), Sch. 1 para. 20

S. 1(1)-(3) applied (with modifications) (E.W.) (1.4.1995) by 1964 c. 48, s. 8A (as inserted by 1994 c. 29, s. 9; S.I. 1994/3262, art. 4, Sch.)

S. 1(1)-(3) applied (with modifications) (E.W.) (22.8.1996) by 1996 c. 16, s. 18 (as substituted (1.10.2002) by Police Reform Act 2002 (c. 30), s. 101; S.I. 2002/2306, art. 2(f)(x))

C27S. 1(1) applied (with modifications) (E.W.) (16.1.2012 for specified purposes, otherwise 22.11.2012) by Police Reform and Social Responsibility Act 2011 (c. 13), ss. 15(1), 157(1); S.I. 2011/3019, art. 3, Sch. 1; S.I. 2012/2892, art. 2(a)

C28S. 1(2) applied (with modifications) (E.W.) (16.1.2012 for specified purposes, otherwise 22.11.2012) by Police Reform and Social Responsibility Act 2011 (c. 13), ss. 15(1), 157(1); S.I. 2011/3019, art. 3, Sch. 1; S.I. 2012/2892, art. 2(a)

C29S. 1(3) applied (with modifications) (E.W.) (16.1.2012 for specified purposes, otherwise 22.11.2012) by Police Reform and Social Responsibility Act 2011 (c. 13), ss. 15(1), 157(1); S.I. 2011/3019, art. 3, Sch. 1; S.I. 2012/2892, art. 2(a)

C31S. 1(4) extended by S.I. 1985/1884, art. 10, Sch. 3 para. 4(h)

C32S. 1(4) extended by S.I. 1987/2110, art. 2(2), Sch. 1 para. 8(e)

C33S. 1(4) amended by S.I. 1989/1815, art. 2, Sch. 1 para. 6(a)

C36S. 1(4)(5) extended (E.W.) (1.3.2007) by National Health Service Act 2006 (c. 41), ss. 74, 277(1)

1 Supply of goods and services by local authorities.S

(1)Subject to the provisions of this section, a local authority and any [F29person] may [F30, in relation to any relevant trading operation carried on by the authority,] enter into an agreement for all or any of the following purposes, that is to say—

(a)the supply by the authority to the [F29person] of any goods or materials;

(b)the provision by the authority for the [F29person] of any F31... services;

(c)the use by the [F29person] of any [F32property belonging to or facilities under the control of] the authority and, without prejudice to paragraph (b) above, the placing at the disposal of the [F29person] of the services of any person employed in connection with the [F32property or facility] 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—

(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.]

(2)Nothing in paragraphs (a) to (c) of the [F35subsection (1) above] authorises a local authority—

(a)to construct any buildings or works; or

(b)to be supplied with any property [F36, goods or materials] or provided with any service except

[F37(i)]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.]

(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—

F64(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F64(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F33S. 1(1)(d) and words repealed (S.) (1.4.2003 for specified purposes) by Local Government in Scotland Act 2003 (asp 1), ss. 8(2)(a)(v), 62(2); S.S.I. 2003/134, art. 2(1), Sch.

F38S. 1(2)(b)(ii)-(iv) and semicolon inserted (S.) (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 8(2)(c)(iv), 62(2); S.S.I. 2003/134, art. 2(1), Sch.

F39Words in s. 1 substituted (3.4.1995) by 1994 c. 19, s. 25(8) (with ss. 54(5)(7), 55(5), Sch. 17 paras. 22(1), 23(2)); S.I. 1995/852, art. 4(1), Sch.

F41Words in s. 1(4) inserted (8.5.2000) by 1999 c. 29, s. 388(a) (with Sch. 12 para. 9(1)); S.I. 1999/3434, art. 3

F48Words in s. 1(4) inserted (31.1.2017 for specified purposes, 3.4.2017 in so far as not already in force) by Policing and Crime Act 2017 (c. 3), s. 183(1)(5)(e), Sch. 1 para. 22; S.I. 2017/399, reg. 2, Sch. para. 38

F49Words in s. 1(4) omitted (26.5.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 13 para. 6(6); S.I. 2015/994, art. 6(g)

F50Words in s. 1(4) inserted (15.1.2012) by Localism Act 2011 (c. 20), s. 240(1)(l), Sch. 22 para. 2

F51Words in s. 1(4) inserted (3.7.2000) by 1999 c. 29, s. 388(b) (with Sch. 12 para. 9(1)); S.I. 1999/3434, art. 4

F52Words in s. 1(4) substituted (31.1.2017 for specified purposes, 1.4.2018 in so far as not already in force) by Policing and Crime Act 2017 (c. 3), s. 183(1)(5)(e), Sch. 2 para. 33; S.I. 2018/227, reg. 4(c)

F53Words in s. 1(4) substituted (31.3.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 20 para. 1; S.I. 2012/628, art. 4(c)

F56Words in s. 1(4) repealed (S.) (1.4.2003 for specified purposes) by Local Government in Scotland Act 2003 (asp 1), ss. 8(2)(d)(i), 62(2); S.S.I. 2003/134, art. 2(1), Sch.

F57S. 1(4): words in definition inserted (1.10.1994) by 1994 c. 29, s. 43, Sch. 4 para. 5; S.I. 1994/2025, art. 6(2)(e)

F59Words in the definition of "public body" in s. 1(4) repealed (1.4.2002) by 2001 c. 16, ss. 128, 137, Sch. 6 Pt. 3 para. 58, Sch. 7 Pt. 5(1); S.I. 2002/344, art. 3(j)(k)(m) (with transitional provisions in art. 4)

Modifications etc. (not altering text)

C39Functions of Minister of Housing and Local Government now exercisable by Secretary of State: S.I. 1970/1681

C40S. 1 modified (S.) (17.7.1995) by 1994 c. 39, s. 122; S.I. 1995/1898, art. 2, Sch.

C41S. 1 applied (with modifications) (S.) (1.11.2001) by 2001 asp 10, s. 107; S.S.I. 2001/336, art. 2(3), Sch. Pt. II (subject to art. 3)

2 Supplemental.E+W

(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)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 M1Local Government Act 1933 and sections [F27101 and 105 of the M2Local Government (Scotland) Act 1973] (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 F28 ... .

(3)Subsections (1), (2), (4) and (5) of section 82 of the M3Public 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 M4London 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) Section 14 of the M5 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.

Textual Amendments

Modifications etc. (not altering text)

Marginal Citations

2 Supplemental.S

(1)Nothing in section 1 of this Act shall be construed as derogating from any powers exercisable by any [F65person] apart from that section.

(2)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 M6Local Government Act 1933 and sections [F66101 and 105 of the M7Local Government (Scotland) Act 1973] (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 . . . F67.

(3)Subsections (1), (2), (4) and (5) of section 82 of the M8Public 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 M9London 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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Modifications etc. (not altering text)

Marginal Citations

3 Short title and extent.E+W+S

(1)This Act may be cited as the Local Authorities (Goods and Services) Act 1970.

(2)This Act does not extend to Northern Ireland.