Council lawyers have been told to change the way they work and become more entrepreneurial after research found many are not using a far-reaching legal power at their disposal.

A four-year investigation carried out by the University of Birmingham, the Cities Research Centre and the University of the West of England, found that only one authority in 12 has made use of the ‘well-being power’ introduced by the Local Government Act 2000.

The measure gives authorities power to act in a way that supports economic, social and environmental well-being, including investing in community hospitals and street lighting. Local government minister John Healey urged councils to use the power to support communities during the economic downturn.

The report, Well-Being Power: Practical Experience and Perspectives, warns: ‘Change is occurring in the environment in which lawyers work. Partnership activity will be the cornerstone of local authorities’ role and status in the coming years.

‘Cross-boundary working, once the cause of anxiety and subject to constraints, will become the norm.’

Guy Goodman, Solicitors in Local Government vice-chair, said the research demonstrates the influence solicitors have. ‘This requires a complete change of mindset,’ he said. ‘Local government lawyers must overcome any apprehension that they have and learn to become comfortable with this new way of working in order to give confidence to their authorities that they can place reliance on the power.’

However, Helen Randall, head of public sector commercial at City firm Trowers & Hamlins, said she has been involved in 60 initiatives over the past year. Solicitors are entrepreneurial, she said, but ‘some authorities are not using their lawyers as much as they should be.’