The move is being backed by the Association of Direct Labour Organisations and comes despite a government U-turn in its interpretation on the existing law governing councils' powers to trade.
The Bill will not become law, but it will raise the profile of the issue among MPs.
Legal opinion issued by the DoE in December said councils could trade for profit with the private sector and other councils (LGC, 15 December).
'The legislation will aim to give local authority specific powers to trade for profit,' said ADLO director John Roberts.
He said the Bill would give councils the power to trade for profit with the private sector and make it easier for authorities to introduce schemes under the private finance initiative.