Neighbourhood Planning Grant Discontinued
- Neil Homer
- Jun 12
- 2 min read

An announcement was made via Locality's website on 12th June 2025 that: "MHCLG has informed us that, as a result of the spending review, they cannot proceed with commissioning new neighbourhood planning support services for 2025 onwards. Unfortunately, this means that we cannot open to applications for new grants or technical support."
The news that there will be no new neighbourhood plan programme is disappointing but not unexpected.
The programme has been invaluable in establishing neighbourhood planning over the last decade. Neighbourhood plans have been crucial in sustaining the plan-led system in many parts of the country in the absence of up-to-date Local Plans.
There is no doubt that Neighbourhood Forums and smaller Parish Councils depended on the programme’s grant, and almost all projects have benefited from its free technical support to meet their SEA and HRA obligations. The news will inevitably mean that only those local councils with a reasonable precept or access to CIL funds will be able to afford to make and review plans in the future.
For those with technical support products currently in process, Locality have confirmed that: "We are able to complete all technical support packages agreed by MHCLG by the end of March 2025 and we have until the end of March 2026 to do so depending on the timetable for each package."
For as long as neighbourhood planning continues to be an available tool for local communities to plan ahead we will support them. But we are now able to offer those communities other means of shaping their futures with our new Settlement Spatial Plan and other products. If your Neighbourhood Plan project has been impacted by the loss of the grant funding, please contact us to discuss your project options.
THE FOLLOWING WILL DIRECTLY INTEREST/ AFFECT PRINCIPAL AUTHORITIES PLUS PARISH/ TOWN COUNCILS IN ENGLAND -
Dear planning colleague,
My hometown - Winchcombe (Gloucestershire) - has in common with many communities across England - a Neighbourhood Plan in place (that I helped to formulate); and that its policies are a material consideration when determining planning applications.
I am therefore shocked and dismayed that the Government has made promising commitments, and then acted in a way that undermines these.
I have launched a 38 Degrees petition to reinstate/ continue support funding for community-led Neighbourhood Plans, led by the organisation, 'Locality'. The UK Government has decided to cut its funding from 2026. Neighbourhood Plans now cover over a 1,000…