b'Research by the Local Government Association (LGA) in November 2004, Loosening the Reins, found: low level of use of the power with only 2% of councils using their new powers to trade; a further 18% intending to use the powers; 64% of authorities using, or planning to use, the power identified raising revenue as a key objective. Research undertaken by the Institute of Local Government Studies (INLOGOV) for DCLG in November 2007, Local Authority Trading: Research Report, also found little evidence of authorities using or planning to use their increased power to trade, though upper-tier authorities were more likely than districts to indicate a plan for marginal increases in trading activity. The Report found: 72% of local authorities surveyed were trading with an annual average income of 3m (this figure includes trading under other powers); 29% of authorities trade using 2003 Act powers; overall, 25% of local authorities aim to make surpluses; local authorities which did not trade cited the following as the main barriers to trading: (i)cultural barriers; (ii)European procurement rules restricting local authority trading. Only now, several years after the introduction of the 2003 powers, are there signs of local authorities exploring the use of commercial trading powers through the formation of companies. Examples of commercial trading 4.5 Some authorities are reportedly using the commercial trading powers to establish trading ventures via companies. For example, Essex County Council (in 2009) set up Essex Cares Limited, (now ECL Ltd) a company limited by shares, wholly owned by the Council to run all the Councils adult social care services. This is a substantial undertaking with over 850 Council staff are said to have been transferred to the company. Civic Enterprise Leeds Ltd is a local authority trading company whereby facilities management, commercial services and business support centre have been moved into a trading company. The type of trading activity in the examples above (ie trading with the public) is the sort of undertaking the 2003 Act powers were designed to encourage.There is evidence of a growing market of local authority owned or related trading enterprises. In 2015, a report by Localis (Commercial Councilsthe rise of entrepreneurialism by local authorities) stated that:53'