Dr Nicholas Dobson provides an update on local authority “wellbeing”
Back in 1903 a group of local authorities got together to form a company called Municipal Mutual Limited (MML) with a view to obtaining insurance on a mutual basis. In September 1992, however, MML ceased to write new business after making substantial losses.
A similar endeavour some 104 years after MML’s birth was to have a much shorter life.
For on 1 April 2007 it might have looked like the spirit of MML was rising from the grave when a company formed by various London boroughs to provide insurance for their corporate property, terrorism, and liability risks commenced operations. But these were to come to an abrupt halt on 9 June 2009 when the Court of Appeal decided that local authorities could not lawfully participate in a mutual insurance company.
At the same time the court found that there had been a breach of procurement rules (the Public Contracts Regulations 2006 implementing Directive 2004/18/EC) when London Borough of Brent (Brent) awarded contracts of insurance to that company.
The body in question was London Authorities
