b'As a result, he concluded that it was lawful for Haringey to use a LLP structure as the HDV in these circumstances.This is an important judgment. Given the advantages LLPs offer over companies where local authorities are seeking to enter into tax-efficient partnerships with potential investors and developers, what remains clear is that LLPs cannot be used for commercial trading purposes under powers contained in section 95 of the Local Government Act 2003 and in section 4 of the Localism Act 2011 (acting pursuant to a commercial purpose). The Haringey case does not alter this position and a companynot a LLPmust be used if the prime purpose for the venture is to trade and seek to make profits from the activity. Why trading companies? 4.3 A number of reasons were put forward by the then Labour Government as to why a local authority is required to trade only through a company: ensures a level playing field between local authorities and private sector companies; means that local authorities do not receive the tax advantages they would otherwise have had over private sector companies; results in greater transparency arising from the company law requirements. This is said to be useful for the purposes of compliance with state aid rules and competition law; greater protection for the council tax payer and the monies paid to the public purse as a result of limited liability. Some restrictions on which authorities could use the powers when first introduced have been removed (since 2009) so that the powers are available to all best value authorities which include single purpose fire and rescue authorities provided for by sections 2 and 4 of the Fire and Rescue Services Act 2004 (the 2004 Act). The secondary legislation setting out the current position is the Local Government (Best Value Authorities) (Power to Trade) (England) Order 2009 (SI 2009/2393). However, care needs to be exercised as some public bodies are not best value authorities for the purposes of the trading powers and so cannot utilise the powers to trade. What were commercial trading powers designed to encourage? 4.4 The context for the introduction of commercial trading powers was explained in the original guidance published by the DCLG in 2003. Trading was expected to create:a dynamic and entrepreneurial public sector that will increase diversity and choice in the delivery of public services. 52'