Section 137 expenditure limit for parish and town councils announced for 2025/26

The Ministry of Housing, Communities and Local Government has informed us of an increase in the Section 137 expenditure limit for parish and town councils in England for the 2025/26 financial year. The new limit is £11.10 per elector, up from £10.81 in 2024/25.

The increase reflects the percentage rise in the retail price index between September 2023 and September 2024, in accordance with Schedule 12B of the Local Government Act 1972. Section 137 of the Act allows parish and town councils to incur expenditures for purposes that benefit their communities when no specific statutory power is available.

Adjusting the expenditure limit will enable parish and town councils to allocate funds to projects that support local communities, ranging from small infrastructure improvements to community welfare initiatives.

This Section 137 expenditure limit increase is a welcome development for parish and town councils. It provides greater flexibility for councils to support their communities in meaningful ways. Ensuring funding keeps pace with inflation enables parish and town councils to continue making a real difference in residents’ lives.

Cllr Keith Stevens
NALC chair