Government to axe funding
for neighbourhood planning

You may have noticed from the NALC CEO bulletin dated 19th June that the Ministry of Housing, Communities and Local Government (MHCLG) have decided to stop funding for the neighbourhood planning support programme. 

NALC have published a news item which can be found here on their website.

Members will also be aware we are part of a county association network and materials have been supplied to us that we can share developed by my colleagues to help us support calls for this to be reinstated.     Your council may wish to consider supporting lobbying activities currently underway in view of these changes - especially if you were considering developing a neighbourhood plan or currently have one and had plans to review.

To help your council consider engaging in this please see a briefing note below and links to a draft resolution and template letters to avoid reinventing the wheel.

BRIEFING - future of neighbourhood planning support services

Purpose:
To provide an update on the future of neighbourhood planning support services in light of recent communication from the Ministry of Housing, Communities and Local Government (MHCLG), and to reaffirm the importance of neighbourhood planning in shaping local development.


Background

Neighbourhood planning has been a cornerstone of localism, empowering communities to shape the development and growth of their areas. Since its inception, over 2,400 communities have initiated neighbourhood plans, with more than 1,000 plans successfully passing referendums. Many of these have been in our area.  These plans have played a vital role in ensuring that development reflects local priorities and character.

The success of neighbourhood planning has been underpinned by a robust support system, including grants and technical assistance, which has enabled communities—often with limited resources—to engage meaningfully in the planning process.


Current Situation

MHCLG has informed us that, due to the outcomes of the recent Spending Review, they are unable to proceed with commissioning new neighbourhood planning support services for the period beyond March 2025. As a result:

  • No new applications for grants or technical support will be accepted.

  • Existing technical support packages will be completed by March 2025, with flexibility to extend delivery until March 2026 depending on individual timetables.

  • Support for the Champions Network and learning opportunities will cease with immediate effect.


Implications

The withdrawal of funding and support services presents significant challenges for communities currently developing or considering neighbourhood plans. Without access to grants and expert guidance, many groups may struggle to progress or initiate plans, potentially undermining the momentum built over the past decade.

This change also impacts the broader ecosystem of neighbourhood planning, including the Champions Network, which has played a critical role in mentoring and inspiring new groups.


The Importance of Continued Support

Neighbourhood planning remains a vital tool for community empowerment and democratic engagement in planning. It contributes to:

  • Local ownership of development decisions

  • Better quality and more sustainable outcomes

  • Stronger community cohesion and resilience

Ensuring continued support—whether through alternative funding mechanisms, local authority engagement, or third-sector partnerships—is essential to maintain the integrity and accessibility of the neighbourhood planning process and an essential tool to give local communities more of a say in how development affects its area.


Conclusion and Next Steps

The development and adoption of Neighbourhood Plans are still important, and the sector needs to champion their value. Funding to enable new NP’s to be developed is still critical and we need to persuade MHCLG to continue with financial support to encourage other communities to adopt a similar approach.


Link - resource pack

NALC have also shared with us the following:

38Degrees petition, initiated by Dr James Derounian, Community Governance Model Tutor and National Teaching Fellow, to reinstate support funding for community-led neighbourhood plans, led by the organisation, "Locality".

Link to petition on the 38Degrees website.


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