b'Chapter 5 Inter-Authority Trading Introduction 5.1 Trading by and between local authorities and other public bodies is known by a variety of terms including municipal trading, shared services and public to public trading. In more recent times, the term shared services is probably the more commonly used term which signifies some sort of inter-authority relationship by or between two or more public bodies. However, in practice, there are many different types of shared services arrangements. Some involve the sharing of back-office functions such as payroll or revenues and benefits. Some are aimed at managing functions or assets undertaken by two or more authorities exercising similar functions such as leisure services or car parks. Other initiatives are designed to ring-fence an activity through a special purpose company established by the participating authorities in order to deliver a service back to those members. Often sharing services in this way is a means of pooling resources, making efficiencies, making better use of scarce resources, reducing costs, improving services for the benefit of the users or a combination of these objectives. The parties may plan for the joint enterprise to become financially self-sufficient or to break even by recovering costs but such enterprises are rarely (if at all) established for the purposes of making profit as a primary objective, although the parties may seek to produce a trading surplus from better use of applied resources which in turn would then be ploughed back into the business. In such arrangements, an additional complication can arise under EU procurement law where one authority is intending to supply a service to another for some form of consideration. Does that service supply need to be subjected to competitive tender under EU procurement law? The Supreme Court judgment in the Brent case is of great assistance with this issue. This case is outlined at 5.11 below. Given the result of Brexit (if and when that happens), the law in this area could, in due course, undergo significant changes. It is likely that procurement law will remain broadly similar to that which is currently in force. However, the rules on State aid could be significantly altered. Given the level of uncertainty in this area, it is difficult to clearly predict what changes are likely to be made. Until the UK leaves the EU, the law will remain as is. After that point however, substantial alterations could be made.Shared services v commercial trading 5.2 How do shared services initiatives compare and contrast to commercial trading activities? Is section 95 of the 2003 Act the right power to be utilising for shared services given the fact that if these powers are used the authority must establish a separate trading entity via a company 58'