판결 이유
Local authorities had no power to enter into mutual insurance arrangements before the Localism Act 2011 general power of competence. The incidental powers under s.111 Local Government Act 1972 did not extend to establishing a mutual insurance company.
사실관계
London councils proposed to establish a mutual insurance company. The arrangement was challenged as ultra vires.
판결 요약
The Supreme Court held the arrangement was ultra vires under pre-Localism Act powers. Section 111 LGA 1972 only permitted actions incidental to existing statutory functions, not entirely new ventures.
주요 인용문
"The power under section 111 is a power to do things incidental to existing functions, not to assume entirely new functions."
— Lord Hope
후속 처리
The Localism Act 2011 general power of competence now permits such arrangements.