Following the Court of Appeal decision in Brent London Borough Council v RMP, the Secretary of State for Communities and Local Government has moved an amendment in the House of Lords to the current Local Democracy (etc) Bill, to facilitate the creation of local authority Mutuals.  The text of the amendment can be seen below.  The progress of the Bill will be watched closely by all local authorities.

Mutual insurance
Secretary John Denham

To move the following Clause:—
(1) Subject as follows, a qualifying authority may —
(a) become a member of a body corporate—
(i) all of whose objects fall within the objects specified in
subsection (2), and
(ii) all of whose members are qualifying authorities, and
(b) do anything that is required by, or is conducive or incidental to,
membership of any such body.
(2) The objects referred to in subsection (1)(a)(i) are—
(a) to provide insurance, in relation to risks of any description, to—
(i) qualifying authorities who are members of the body corporate,
and
(ii) persons prescribed in regulations made by the appropriate
national authority,
(b) to enter into arrangements under which such insurance is provided to—
(i) qualifying authorities who are members of the body corporate,
and
(ii) persons prescribed in regulations made by the appropriate
national authority, and
(c) to do anything that is required by, or is conducive or incidental to, the
provision of any such insurance or entering into any such arrangements.
(3) The power of a qualifying authority under subsection (1)(b) includes in particular
power—
(a) to pay premiums and make other payments to the body corporate;
(b) to agree to make any such payments;
(c) to assume financial obligations in relation to persons prescribed for the
purposes of subsection (2)(a)(ii) or (b)(ii).
(4) The appropriate national authority may by regulations impose restrictions or
conditions on the exercise of any power conferred on a qualifying authority by
subsection (1).
(5) A qualifying authority must, in exercising the powers conferred by subsection (1),
have regard to—
(a) any guidance issued by the appropriate national authority, and
(b) any guidance or document specified in regulations made by the
appropriate national authority.
(6) The appropriate national authority may by regulations amend this Chapter for the
purposes of changing the authorities which are for the time being qualifying
authorities for the purposes of this section.