General Power of Competence
General Power of Competence
The General Power of Competence was brought into force by SI. 961, The Localism Act 2011 (Consequential Amendments) Order 2012 on 28th March 2012.
What does the power allow councils to do?
The General Power of Competence gives local authorities, including eligible local councils, “the power to do anything that individuals generally may do” as long as they don’t break other laws. It is a ‘power of first resort’; this means that when searching for a power to act, the first question you ask is whether you can use GPC.
The council has to ask itself if an individual is allowed to do it, if the answer is yes then a council is normally permitted to act in the same way.
A council could:
• lend or invest money
• it could set up a company or co-operative society to trade and engage in commercial activity
• it could run a community shop or post office
• the power is not restricted to use within the parish it can be used anywhere.
Eligibility conditions
The eligibility conditions are set out in the Parish Councils (General Power of Competence) (Prescribed Conditions) Order 2012.
A parish council is eligible if it meets two conditions at the time it passes a resolution to exercise the power:
Condition 1 — Elected councillors. At least two-thirds of the council's seats must be filled by councillors who were declared elected (i.e., stood in an election and were returned). Co-opted councillors do not count toward the threshold. If the council has nine seats and three are currently co-opted, it needs six elected councillors out of nine total — it has exactly two-thirds, which qualifies.
Condition 2 — Clerk qualification. The clerk must hold one of the following qualifications:
• Certificate in Local Council Administration (CiLCA)
• Certificate of Higher Education in Local Policy
• Certificate of Higher Education in Local Council Administration
• Foundation Degree in Community Engagement and Governance (University of Gloucestershire or a successor awarding body)
Resolution
The council must resolve at a meeting that it meets the criteria for eligibility relating to the electoral mandate and relevant training of the clerk. The resolution can be passed at any meeting of the council but a further resolution must be passed at every subsequent “relevant annual meeting” (Annual Parish Council Meeting) for the council to be able to continue to exercise the power. A “relevant annual meeting” is the annual meeting that takes place in a year.
Risks and Restrictions
There are some risks associated with using GPC. Inadequate community support or insufficient funding are significant risks while there are several statutory or legal restrictions that a local council should consider before using the power. Clerks and councillors should be aware of the following restrictions that potentially could limit the use of GPC.
• If a council is already subject to a statutory duty, then that duty remains in place. So, for example, a local council that is eligible to use the GPC must continue to abide by its duties. For example:
– The council has a duty to act with regard to the likely effect on crime and disorder and to do all it
can to prevent crime and disorder in its area (Crime and Disorder Act 2006 s17).
– The Natural Environment and Communities Act 2006 s40 imposes a duty on local councils to
consider conserving biodiversity in exercising its functions.
• There are also many procedural and financial duties that remain in place for regulating the governance of a local council.
• Furthermore, the council must comply with employment law, Health and Safety legislation, equality legislation and duties related to data protection and freedom of information for example.
• The council must set up a company or co-operative society of it wishes to trade. If the council sets up a company or co-operative society it must abide by company law. The council can charge for services provided under GPC .
• Remember, if another authority has a statutory duty, then it remains their duty to provide that service (eg education). If you are worried that you might be encroaching on another authority’s duty, then ask whether an individual, a private company or a community trust might be able to step in and help. If they can, then so can the local council (although it might need to set up an appropriate delivery body first).
• If the action the council wishes to take is also covered by a specific power then any restrictions that apply to the overlapping power are still in force. So if existing legislation requires the council to ask permission before acting, then it must do so. For example, the council asks permission from the Highways Authority before doing work on roadside verges.
Section 137
The money that can be spent under the Local Government Act 1972 s137 is limited while the power is restricted by regulations for use and scope; for example, councils must keep specific accounts for s137, they cannot use the power to give money to individuals and spending must be commensurate with the benefit gained. In addition a council can’t use s137 if another specific power exists. A council that is eligible to use GPC can no longer use s137 as a power for taking action for the benefit of the area or its community (Sch 1(1)).
Conclusion
Audlem Parish Council satisfies all the conditions as:
1. It has 8 councillors out of 12 seats have been elected.
2. The Clerk of the Council has passed the CiLCA qualification.
The Parish Council resolved from the 15th October 2026 until the next relevant Annual Meeting of the Council, having met the conditions of eligibility as defined in the Localism Act 2011 s.1, to adopt the General Power of Competence.