Debate on the role of neighbourhood plans in planning decisions

Debate on the role of neighbourhood plans in planning decisions What are neighbourhood plans?

Neighbourhood plans were introduced through the Localism Act 2011 and formally established as neighbourhood development plans in the Planning and Compulsory Purchase Act 2004. They are defined as:

A plan prepared by a parish council or neighbourhood forum for a designated neighbourhood area. [1]

National planning policy for England (set out in the National Planning Policy Framework) says:

Neighbourhood planning gives communities the power to develop a shared vision for their area. Neighbourhood plans can shape, direct and help to deliver sustainable development, by influencing local planning decisions as part of the statutory development plan.[2]

Once adopted, a neighbourhood plan sits alongside the local plan[3] forming part of the development plan for a local planning authority (LPA) area. This means it becomes a statutory planning document, and its policies must be considered in planning decisions.[4]

Neighbourhood plans set out non-strategic policies for an area agreed with the LPA. Richmond council explains:

In general terms, any area can have a neighbourhood plan. They can cross local authority boundaries but they cannot overlap with adjoining neighbourhoods, who also wish to prepare a plan for their area. The boundaries of the area will need to be agreed with and approved by the Council.[5]

Non-strategic policies can include allocating sites, designation of Local Green Space, the provision of local infrastructure and community, establishing design principles, conserving and enhancing the natural and historic environment, and setting out other planning policies to manage development.[6]

The NPPF makes it clear that neighbourhood plans should not be a way to block necessary development, set out in local plans.[7]

The Library briefing, Neighbourhood Planning, explains neighbourhood plans and their impacts.

How are neighbourhood plans prepared and adopted?

Neighbourhood forums comprising of parish councils and / or groups of people from the community can prepare a neighbourhood plan.

Draft neighbourhood plans must pass an independent examination. Once this is approved, they progress to a local referendum which is held by the local planning authority (LPA). If the referendum results in a majority vote in favour the LPA must adopt the plan, and it becomes part of the development plan.[8]

In response to a parliamentary question in June 2025 on the assessment of funding for aspects of neighbourhood plans, Matthew Pennycook (Minister for Housing and Planning) said the government would ensure LPAs were “appropriately funded” including for neighbourhood plan examinations and referenda.[9]

What is their relationship with local plans?

Neighbourhood plans must be in conformity with the local plan for their respective local authority area. The NPPF sets out government’s planning policies for England and how these should be applied. The NPPF includes policies on neighbourhood plans. Paragraph 13 says:

Neighbourhood plans should support the delivery of strategic policies contained in local plans or spatial development strategies; and should shape and direct development that is outside of these strategic policies.[10]

NPPF paragraph 30 says:

Neighbourhood plans should not promote less development than set out in the strategic policies for the area or undermine those strategic policies.[11]

How are neighbourhood plans used in planning decisions?

As explained above, once adopted a neighbourhood plan forms part of an LPA’s development plan. Its policies should be used to inform decision making on planning applications. The NPPF states that where a planning application conflicts with an up-to-date development plan (including neighbourhood plans which form part of the development plan), permission should not usually be granted.[12]

Where a neighbourhood plan has been adopted after a local plan, and non-strategic policies are in conflict with each other, the NPPF explains the neighbourhood plan policies have greater weight in decision-making:

Once a neighbourhood plan has been brought into force, the policies it contains take precedence over existing non-strategic policies in a local plan covering the neighbourhood area, where they are in conflict; unless they are superseded by strategic or non-strategic policies that are adopted subsequently [in a local plan].[13]

In terms of decision-making, planning applications are decided in accordance with the development plan, unless material considerations indicate otherwise.[14] Therefore, a draft neighbourhood plan could still have a degree of influence in decision-making. Government guidance on neighbourhood planning explains:

An emerging neighbourhood plan is likely to be a material consideration in many cases. Factors to consider include the stage of preparation of the plan and the extent to which there are unresolved objections to relevant policies. [15]

Neighbourhood plans and planning for housing

Neighbourhood plans may also influence decision-making where an LPA cannot demonstrate a five-year housing land supply. For a neighbourhood plan which is drafted but not adopted, government guidance says:

Where the local planning authority cannot demonstrate a 5-year supply of deliverable housing sites, decision makers may be able to give weight to relevant policies in the emerging neighbourhood plan.[16]

Once a neighbourhood plan is adopted, it holds greater weight in decision-making when taking account of an LPA’s housing supply position. The NPPF explains that where an LPA cannot demonstrate a 5 year supply of deliverable housing sites, and the presumption in favour of sustainable development applies, a neighbourhood plan may offer some protections.

NPPF paragraph 14 says:

the adverse impact of allowing development that conflicts with the neighbourhood plan is likely to significantly and demonstrably outweigh the benefits, provided the following apply:

a) the neighbourhood plan became part of the development plan five years or less before the date on which the decision is made; and

b) the neighbourhood plan contains policies and allocations to meet its identified housing requirement (see [NPPF] paragraphs 69-70).[17]

Adopted neighbourhood plans

Locality, a national network supporting local community organisations to prepare neighbourhood plans lists around 1,200 neighbourhood plans that have been ‘made’ (meaning they have been adopted as part of a local authority’s development plan). This uses March 2024 data from the Ministry of Housing, Communities and Local Government (MHCLG) records which is based on research of local authority websites.

In response to recent parliamentary question in June 2025 the government said they were aware of over 1,800 neighbourhood plans in March 2025.

The future of neighbourhood plans

MHCLG has been funding Locality to provide support services to neighbourhood forums in the preparation of neighbourhood plans. Following the 2025 Spring Statement, MHCLG confirmed to Locality that funding would be discontinued after March 2025. As a result, support could only be provided for another year (until March 2026). The Locality website has a statement reacting to the withdrawal of funding.

Questions to government have clarified the future position regarding the funding of support services for the preparation of neighbourhood plans.

A Parliamentary question was asked on 25 June 2025 about what assessment had been made of the impact of removing neighbourhood planning support services. Matthew Pennycook, Minister for Housing and Planning, responded as follows:

Following the Spending Review, my Department announced that it is unable to commission new neighbourhood planning support services for 2025 onwards.

Technical support which has already been awarded will continue to be provided but must be completed before the end of March 2026.

The government remains of the view that neighbourhood plans can play an important role in the planning system. Communities can continue to prepare neighbourhood plans where they consider that doing so is in their best interests.

[…]

As of the end of March 2025, the government was aware of over 1,800 neighbourhood plans being in place.[18]

The Minister also confirmed in response to a written question that “the government has no target for neighbourhood plan take up.”[19]

In response to a question about impacts on parish councils in relation to removing funding for the development of neighbourhood plans, Alex Norris, Parliamentary Under-Secretary of State for Housing, Communities and Local Government, said:

As part of the Spending Review we’ve looked at all the services and programmes the government supports to identify those that should now be in a position to support themselves without ongoing funding.

After more than a decade of taxpayer support, we believe that support for neighbourhood planning groups should be possible without further government funding. Parish and Town Councils have access to their own resources which they can choose to use for neighbourhood planning if they wish. With the end to the national structure for support, planning consultants should be able to innovate and offer groups lower cost support more targeted at their particular ambitions and needs.[20]

In June 2025, the government was asked “what assessment [it had] made of the merits of continuing to fund (a) Strategic Environment Assessments, (b) Habitat Regulations Assessment screening, (c) the costs of Independent Examination and (d) Neighbourhood Plan Referendums”. Matthew Pennycook answered:

We will ensure that local planning authorities continue to be appropriately funded for their neighbourhood planning function, including funding for neighbourhood planning examinations and conducting referenda.

Local planning authorities can continue to provide other forms of support to neighbourhood planning groups, including in relation to carrying out strategic environment assessments and habitats regulation assessments where they are needed.[21]

Response to loss of funding support for neighbourhood plans

The National Association of Local Councils expressed its disappointment in response to the withdrawal of funding from Locality. The regional branch of countryside charity the Campaign for the Protection of Rural England (CPRE) offered its assessment on the potential impacts for neighbourhood plans in localities within Bedfordshire.

Future investment in neighbourhoods

While funding for neighbourhood planning support services has been discontinued, neighbourhood plans continue to sit alongside local plans to form development plans for local authorities. National policies for neighbourhood planning are also set out in the NPPF.

The emphasis on funding for neighbourhoods has shifted from planning support to investment which focuses on achieving benefits through regeneration. On 11 June 2025 the government announced a package of direct funding for 25 trailblazer neighbourhoods. The government also published the Plan for Neighbourhoods in June 2025, setting out guidance on regeneration plans.

[1] MHCLG, National Planning Policy Framework (NPPF, updated February 2025), glossary

[2] MHCLG, National Planning Policy Framework (NPPF, updated February 2025), paragraph 30

[3] Defined in the NPPF glossary as: A plan for the future development of a local area, drawn up by the local planning authority in consultation with the community, under the Town and Country Planning (Local Planning) (England) Regulations 2012. A local plan can consist of either strategic or nonstrategic policies, or a combination of the two.

[4] MHCLG, Government guidance: Neighbourhood planning (updated September 2020)

[5] Richmond council, Neighbourhood plans – FAQs (accessed July 2025)

[6] MHCLG, National Planning Policy Framework (NPPF, updated February 2025), paragraph 29

[7] MHCLG, National Planning Policy Framework (NPPF, updated February 2025), paragraph 30

[8] HOC Library, Neighbourhood Planning (October 2018)

[9] HC Deb 02 July 2025 | PQ 61818

[10] MHCLG, National Planning Policy Framework (NPPF, updated February 2025), paragraph 13

[11] MHCLG, National Planning Policy Framework (NPPF, updated February 2025), paragraph 30

[12] MHCLG< National Planning Policy Framework (NPPF, updated February 2025), paragraph 12

[13] MHCLG< National Planning Policy Framework (NPPF, updated February 2025), paragraph 31

[14] Planning and Compulsory Purchase Act 2004, section 38

[15] MHCLG, Government guidance: Neighbourhood planning (updated September 2020)

[16] MHCLG, Government guidance: Neighbourhood planning (updated September 2020)

[17] MHCLG, National Planning Policy Framework (NPPF, updated February 2025), paragraph 14

[18] HC Deb 25 June 2025 | PQ 61431

[19] HC Deb 30 June 2025 | PQ 61147

[20] HC Deb 30 June 2025 |PQ 62866

[21] HC Deb 02 July 2025 | PQ 61818