THE best-performing councils in Worcestershire have been awarded new powers to trade with private companies for profit.

Under legislation laid before Parliament yesterday, they will be free to enter into commercial ventures with the private sector in any of their existing service areas.

Services which they could offer to the private sector include sport and leisure facilities, rubbish collecting, cleaning, catering or IT services.

Local Government Minister Nick Raynsford said that the move would encourage local authorities to become entrepreneurial.

But only high-performing councils, who have scored either "excellent", "good" or "fair" in their Comprehensive Performance Assessments, will get the powers.

In Worcestershire, these are Worcestershire County Council and Wychavon District Council, which were both rated good.

Mr Raynsford said: "These powers should help create a dynamic and entrepreneurial public sector, which will increase diversity and choice in the delivery of public services.

"This shows the Government is serious about giving local authorities the tools they need in order to build thriving, inclusive and sustainable communities.

"Trading will encourage local authorities to extend and improve the range of services they offer and will also provide business opportunities for the private sector."

Any profits that the councils make as a result of trading with the private sector will go straight into their coffers.

The powers come into force on Thursday, July 29.