b'Part A Chapter 1 Methodology for assessing potential for raising new income Authors note I am indebted to John Layton (of John Layton Associates, former Director with PwC) who kindly first penned the main content of this chapter for this Guides sister publication Local Authority Companies and Partnerships. For the 2021 edition of this Guide I decided this content fitted more appropriately here.Introduction 1.1 There were three main reasons for updating this Guide to charging and trading powers: Firstly, to provide local authorities with a better understanding of what income-generating opportunities already exist under statute in order to prompt ideas or assist with initiatives aimed at income generation at a time of economic hardship and financial cutbacks for the public sector. This new chapter will assist local authorities to develop a methodology to explore income generating activities. Division B of this work will help to save time researching this area. However, as is mentioned elsewhere, Division B must not be relied upon as an exclusive list of charging powers. Further detailed research on each specific charging or income-generating proposal will always be necessary to take account of changes in the law since this guide was updated or else to uncover as yet undiscovered charging powers which may exist. Secondly, to chart a path through the different and sometimes overlapping legislation which has been promulgated over many years to decide whether and, if so, how, an income-generating proposal can lawfully be pursued under existing legislation. The two basic choices boil down to cost recovery charging for the provision of discretionary services, or alternatively some form of commercial trading for profit) which generally will require the establishment or participation in a company (as defined by the relevant legislation). However, agreements or arrangements to perform activities by and between local authorities or by and between local authorities and other public bodies may fall between these two alternativesthrough the utilisation of existing statutory powers facilitating municipal trading in the Local Authorities (Goods and Services) Act 1970 (the 1970 Act). The following chapters in Part A of this Guide explains these distinctions and will also help to take account of potential procurement issues. Thirdly, to explain the general competence powers contained in the Localism Act 2011 (the 2011 Act) which provide local authorities (as defined under the Act) with all the powers of an individual of full capacity. These powers are subject to boundaries and limitations within the 2011 Act itself which must be heeded. Rather than abolishing the ultra vires doctrine, 11'