Autumn Budget misses opportunity to support parish and town councils, says NALC

We have called on the government to ensure parish and town councils are recognised in its plans for devolution and local growth, following the Chancellor's Autumn Budget.

The Budget sets out plans to give mayors and strategic authorities greater financial powers, including a share of income tax from 2028, increased business rates retention from 2027 and the power for strategic authorities to introduce an Overnight Visitor Levy. The government also intends for local and regional government to retain all business rates income before the end of the decade.

While these measures could give areas greater control over the resources they raise, we believe it is important that England's 10,000 parish and town councils are included in decisions about how funding is allocated and how local communities benefit from investment.

Parish and town councils play a vital role in delivering local services, managing community assets and responding to residents' priorities. As the government develops new devolution arrangements, Good Growth Funds and fiscal devolution proposals, they must be recognised as key partners in delivering local growth and improving community outcomes, with a meaningful voice in decision-making and access to appropriate funding, particularly where responsibilities are transferred from principal authorities.

We are calling on the government to ensure funding follows responsibilities, parish and town councils have a fair opportunity to benefit from new funding arrangements, and additional responsibilities are not passed down without the resources needed to deliver them.

The Budget also includes measures to support high streets, with business rates bills for qualifying retail, hospitality and leisure properties in England to be frozen in real terms for two years, alongside changes to small business rates relief. These measures could benefit local economies and businesses, including those operating in parish and town council areas. We have called for councils to receive a direct share of the business rates collected in their areas. Our survey on the Overnight Visitor Levy also found 91% of respondents said parish and town councils should be allowed to retain a portion of the funding raised to support the services they provide.

The government has confirmed it will seek views from local government on plans to increase business rates retention, with a call for evidence expected later this year. We will continue to engage with the government to ensure the interests of parish and town councils are considered as it develops its devolution, funding and planning policies.

We believe that effective devolution must recognise the contribution of every tier of local government and ensure communities have the resources and local leadership needed to thrive.

The government rightly talks about growth in every postcode, but that ambition cannot be achieved without the parish and town councils that represent millions of people across England. If devolution is to succeed, it must reach neighbourhoods as well as regions. Parish and town councils need a seat at the table and access to the funding needed to deliver for their communities.

Cllr Iain Hamilton
NALC chair