Local Authority Trading Company (LATC) A local authority is able to establish an LATC through powers in section 95 of the Local Government Act 2003. A local authority is permitted to trade in anything that it is authorised to do under its ordinary functions. LATCs generate a vehicle into which large portions of the Local Authorities business can be moved. They can be set up without a tender process but thereafter, can tender for additional work in other councils.
It is suggested by LATC supporters that they are free from restrictions that face inhouse provision and with good business planning can generate surplus which can be re-invested into services, or the council, being the single shareholder.