Parish Council General Power of Competence: Eligibility, Benefits, and What Changes When You Have It

Most parish councils operate under a specific-powers model: before acting, the clerk checks whether there is a statutory power that allows it. The general power of competence, introduced by the Localism Act 2011, turns this around for eligible councils. Under section 1(1) of the Act, a local authority with the power "may do anything that individuals generally may do" — unless a specific restriction applies.

For parish councils that qualify, this removes a significant source of legal anxiety about novel activities. For those that don't, understanding the eligibility conditions helps the clerk plan for how to get there.

What the general power actually allows

Before the general power, parish councils operated under the "free resource" principle — if no statute gave you the power to do something, you could not do it, and if you did anyway the expenditure was unlawful (ultra vires).

Under section 1, eligible councils can:

• Charge for services where they could not previously charge
• Enter into commercial arrangements that would otherwise require specific statutory authority
• Run new community services (cafés, co-working spaces, digital connectivity projects) without needing a separate statutory hook
• Grant funding to third parties more freely than the limited grant-giving powers that previously applied
• Operate outside their geographic area where that serves a purpose connected to their functions

The Act in section 2–4 restricts the power in some ways — notably, the general power does not override statutory prohibitions that apply specifically to local authorities. A council still cannot do something that primary legislation expressly forbids. But the test shifts from "do we have a power?" to "is there a prohibition?"

Eligibility conditions

The eligibility conditions are set out in the Parish Councils (General Power of Competence) (Prescribed Conditions) Order 2012. A parish council is eligible if it meets two conditions at the time it passes a resolution to exercise the power:

Condition 1 — Elected councillors. At least two-thirds of the council's seats must be filled by councillors who were declared elected (i.e., stood in an election and were returned). Co-opted councillors do not count toward the threshold. If the council has nine seats and three are currently co-opted, it needs six elected councillors out of nine total — it has exactly two-thirds, which qualifies.

Condition 2 — Clerk qualification. The clerk must hold one of the following qualifications:

• Certificate in Local Council Administration (CiLCA)
• Certificate of Higher Education in Local Policy
• Certificate of Higher Education in Local Council Administration
• Foundation Degree in Community Engagement and Governance (University of Gloucestershire or a successor awarding body)

The clerk must also have completed relevant training in exercising the general power, unless that training was already a component of the qualifying qualification.

There is no minimum council size, no turnover threshold, and no requirement for external approval. Once the conditions are met, the council resolves to use the power.

How to exercise it: the resolution requirement

A council that meets the conditions may pass a resolution to exercise the general power. The resolution should:

• Be passed at a meeting of the full council
• Record that the council has satisfied itself that the eligibility conditions are met
• Specify the basis for the exercise (i.e., what the council is proposing to do under the general power)

It is good practice to record in the minutes: the number of elected versus co-opted councillors (confirming the two-thirds threshold), and the clerk's qualifying qualification. This provides an auditable trail if the council's authority to act is later questioned.

Renewal after elections

Eligibility depends on the council's composition at any given time. After ordinary elections — when new councillors take office — the council must reassess whether it still meets the two-thirds threshold. If a wave of co-options or election vacancies means the proportion of elected councillors drops below two-thirds, the council ceases to be eligible until the balance is restored.

The council should check its eligibility status at the annual meeting each May, particularly in the year following ordinary local elections.

What doesn't change

The general power does not:

• Remove the requirement to act reasonably and in the public interest
• Allow the council to override statutory restrictions specific to local authorities
• Substitute for budget authority — the council still needs a budget resolution and proper financial controls for any expenditure
• Allow commercial activities that are expressly prohibited

The general power also does not help a council that lacks the budget. A council with £40,000 in the bank and ambitions to run a community café still needs to budget for it, get the project authorised in minutes, and ensure the financial regulations and procurement rules are followed.

Connection to governance and AGAR

If a council exercises the general power for a significant project during the year, the activity should be reflected in the AGAR accounting statements — income and expenditure correctly categorised. The internal auditor may also check that the council had authority to act (i.e., that the eligibility conditions were met and the resolution was properly made).

Governing documents — standing orders and financial regulations — may need updating if the general power opens up new categories of activity the existing documents do not cover.

Use the compliance checklist tool to track governance obligations across the year.

Sources

• Localism Act 2011, section 1 — general power of competence
• Localism Act 2011, section 8 — eligibility for parish councils
• Parish Councils (General Power of Competence) (Prescribed Conditions) Order 2012
• National Association of Local Councils (NALC) — guidance on the general power of competence

This article is for general guidance only and does not constitute legal advice. Questions about whether a specific activity is lawful under the general power should be put to your county association of local councils or a solicitor with local government experience.