In a sequal to Bromley the GLC submitted for a declaration of legality a plan to reduce fairs by 25% and increase in London Transport’s deficit of 17% to be mde good by a grant from the GLC. CA granted the declaration that the plan was lawful provided the G.L.C. had not acted arbitrarily and had considered both its duty to the ratepayers and the statutory duties imposed by the Act.
Kerr LJ: He distinguished Bromley since the plan concerned there was not intendd to further any statutory duty. Under the act the GLC is allowed to make grants “for any purpose”. This is confined to purposes which are consistent with the G.L.C.'s functions under the Act as a whole and may not infringe the Wednesbury principle.