Councils get urgent new powers
Author: DCLG - Oct 12, 2009
Councils are to be given new legislative powers to establish mutual insurance companies in light of the recent London Authorities Mutual Limited (LAML) court judgement, Local Government Minister Rosie Winterton announced today.
Urgent new amendments have been laid on the Local Democracy, Economic Development and Construction Bill that will give 'best value' authorities legislative power to join together to set up and participate in mutual insurance companies. The amendments will be debated at the report stage of the Bill set for 13 October 2009.
These steps follow the recent court ruling that Brent council did not have the necessary powers to set up LAML. Member councils participating in LAML claimed to have saved 15 per cent on insurance premiums as a result.
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