Burmah Oil Company v Lord Advocate [1965] AC 75 .. . 69, 95, 159,

Two cases illustrate this rule. In R v Richmond upon Thames Council ex parte McCarthy and Stone Ltd (1992), the local planning authority implemented a scheme of charging £25.00 for informal consultation between corporation officers and property developers. The House of Lords held that the imposition of the charge was unlawful. Such a charge was neither incidental to the planning function of the local authority, nor could a charge be levied on the public without statutory authority. The council had misconstrued its powers and, accordingly, acted ultra vires. Further, in Hazell v Hammersmith and Fulham Council (1992), the council attempted to increase its revenue through financial investments which, for success, were dependent upon the fluctuation in interest rates. The House of Lords ruled that the council had no power to enter into ‘interest rate swaps’ which were purely speculative in nature. Such speculation was inconsistent with the statutory borrowing powers conferred on local authorities and neither conducive to nor incidental to the exercise of those powers.3