Two Page Summary of Funding for Neighbourhood Planning from DCLG

Anton Rogers from the Decentralisation and Neighbourhood Planning Team, DCLG spoke to County Officers a week or so ago. He has since supplied a summary of the sources of funding that communities can access to help them with their plan.

Direct Support and Small Grants for Communities

The support provided by a Locality led consortium is available for the next two years. Details are available here

It will support groups developing neighbourhood plans in two ways:
•    direct support – advice and support, with an average value of equivalent to £9,500, tailored to meet the needs of supported neighbourhoods;
•    grant payments – up to £7,000 per neighbourhood area, to contribute to costs incurred by the group preparing a neighbourhood plan or order.

Communities can apply for either direct support, or a grant, or BOTH. 

There is an eligibility check. If these are met, you will receive application form within 24 hours. Town and parish councils, neighbourhood forums and emerging neighbourhood forums preparing a Neighbourhood Development Plan or Neighbourhood Development Order in England are able to apply.

The small grant is paid directly to communities. In parished areas this is paid directly to the parish. It is not paid via the local planning authority and there is no obligation to share it.

Local Authority Funding

Details were sent to all authorities in December and can be found here:

Local planning authorities can claim funding of up to £30,000 per scheme for neighbourhood planning in 2013/14. This money is to ensure LPAs receive sufficient funding to enable them to meet new legislative duties on neighbourhood planning. Specifically, it covers the duties in the Localism Act which are to provide advice and assistance; to hold an examination; and to make arrangements for a referendum.

For the avoidance of doubt: the local authority must pay for the examination and referendum not the town or parish council

Payments will be staged as follows: 

•    The first payment of £5,000 will be made following designation of a neighbourhood area recognising the officer time supporting and advising the community in taking forward a neighbourhood plan. For authorities designating several neighbourhood areas, each local planning authority can claim up to a maximum of £100,000 for area designations, in 2013/14. However, you should also bear in mind the overall cap of £5m.

•    The second payment of £5,000 will be made when the local planning authority publicises the neighbourhood plan prior to examination. This will contribute towards the costs of the examination as well as other staff costs incurred at this stage. There is no cap in 2013/14.

•    The third payment of £20,000 will be made on successful completion of the neighbourhood planning examination. This is to cover costs for that examination and any other further steps that may be needed for the neighbourhood plan to come into legal force, including referendum. However, the payment is not dependent on pursuing the referendum route if both parties agree on a different approach at that point (for example, if both parties agree, the neighbourhood plan could be taken forward as part of the local plan or as a supplementary planning document). There is no cap in 2013/14.