Ratio Decidendi
Local authorities' powers to enter into insurance arrangements are limited by statute. The general power of competence must be exercised within statutory constraints, including procurement rules.
Facts
Brent Council participated in a mutual insurance scheme without a competitive procurement process. A rival insurer challenged the arrangement.
Judgment Summary
The Supreme Court held that the council had acted ultra vires in entering the arrangement without statutory authority. Public procurement rules must be followed for contracts above the threshold.
Key Quotes
"The council had no power to enter into this arrangement without complying with procurement obligations."
— Lord Hope
Subsequent Treatment
Applied
Applied in subsequent public procurement challenges.