3.11 So far as local authorities are concerned the activities which the JV entity intends to undertake will determine what powers the local authority would need to rely upon in setting it up. There is a general power contained in Chapter 2 of the Local Government Act 2000 which a local authority may often rely upon. This allows a local authority to do anything which it considers likely to promote the social, economic or environmental wellbeing of its area. Local authorities should also consider any limitations on this power, in particular the prohibition on using this power to "raise money".21 Local authorities also have a power to trade in function-related activities, although any such trading premised on that power must be through a company rather than, e.g., a LP or LLP partnership.22
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21 See Section 3 of the Local Government Act 2000.
22 See Section 95 of the Local Government Act 2003.