NALC calls for stronger parish and town council role in devolution funding and accountability

We have called for parish and town councils to be recognised as key partners in devolution, arguing that their involvement can improve accountability, value for money and outcomes for local communities.

In our response to the Public Accounts Committee inquiry on devolving power in England, we said parish and town councils should have meaningful representation in strategic decision-making, local growth plans, investment programmes, partnership boards, scrutiny arrangements and neighbourhood governance.

We also called for the creation of new parish and town councils to be supported in currently unparished areas, giving more communities access to democratic representation and decision-making at the most local level.

A central theme of our response is that devolution must ensure resources follow responsibilities. Where services and functions are transferred between different tiers of local government, sufficient funding must accompany them. We warned that failing to do so risks duplication, cost-shunting, declining services and ultimately poorer value for money for residents.

We also reiterated the need for parish and town councils to have fairer access to national and devolved funding, greater fiscal flexibility and action to tackle issues such as double taxation. Sustainable funding arrangements are essential if councils are to take on additional responsibilities and deliver services effectively.

Our response highlighted concerns about the involvement of parish and town councils in the development of new devolved governance arrangements. Our survey of county associations found widespread concerns about engagement during devolution and local government reorganisation, reinforcing the need for formal mechanisms that embed parish and town councils within the design, implementation and scrutiny of devolved structures.

We stressed that effective engagement with parish and town councils should be viewed as a value-for-money issue rather than simply a consultation exercise. Drawing on councils' detailed knowledge of their communities can improve decision-making, identify local priorities, reduce implementation risks and help ensure public investment delivers measurable benefits.

Our response also called for communities to have greater influence over how public money is spent. We highlighted approaches such as participatory budgeting, direct funding opportunities and greater involvement of parish and town councils in local service delivery as ways to strengthen community influence and improve long-term value for money.

We argued that investment at the community level can also help prevent more costly problems developing later, particularly through initiatives relating to community safety, youth provision, public spaces, community assets and tackling social isolation.

Our response concludes that a stronger first tier of local government should be an integral part of devolution. Giving parish and town councils the resources, representation and opportunities they need to contribute would strengthen accountability and help ensure devolved public spending delivers better outcomes for communities.