04 Aug 2025

NALC demands fair funding access for parish and town councils

We have called on the government to give parish and town councils the right to apply directly for central government funding in our bold proposal to the government's fair funding review.

In our response to the government's consultation on the fair funding review, we argued that parish and town councils are held back by an outdated and unfair funding system. We urged the government to end double taxation, where residents in parish areas pay council tax but don't receive the same level of services as those in non-parish areas, and to ensure fair and consistent funding wherever local services are devolved to parish and town councils.

Our proposal also included statutory rate relief by introducing partial business rates relief on non-commercial properties owned by local authorities for community use, especially in rural, disadvantaged areas. A fairer tax redistribution allowing surpluses from council tax collection accounts to be proportionately returned to parish and town councils. Reforming the New Homes Bonus by making it mandatory for principal authorities to share a meaningful portion of the New Homes Bonus with communities impacted by housing development, at least until the scheme is phased out in 2025/26.

Our message is clear. Empowering parish and town councils with fair access to funding isn't just about budgets, it's about giving communities a stronger voice and a fairer share.

Members only

The Fair Funding Review 2.0

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