b'Charging and trading under the Localism Act 2011 6.19 Traditionally, one of the main obstacles to local authorities raising income through charging for services has been the effect of ultra vires doctrine. The Localism Act 2011 has reversed the basic premise that has traditionally impacted on local authorities (requiring local authorities to identify powers) by providing local authorities with a general competence power imbuing those local authorities defined under the Act as having the powers of an individual of full capacity. However, the general competence power contains some boundaries and limitations, particularly in the context of charging and trading. Post Localism Act, the following summary and flow chart are designed to help local authorities to pose the right questions when establishing powers to perform a proposed activity involving income generation through charging or trading. Summary 6.20 LegislationLocalism Act General CompetenceCharging Powers RequirementsDiscretionary services only; Person receiving services must agree to being charged. PermittedRecovery of costs. ProhibitedProfit margin. Charging for functions the authority has a duty to perform; Charging powers exist elsewhere in pre-commencement (over-lapping) legislation or post-commencement legislation which expressly imposes prohibitions, restrictions or limitations on use of the general power. UsersThe general public, anywhere in the UK or elsewhere. Wholly-ownedN/APrivate sectorN/A local authorityinvestment vehicles94'