Thousands back calls for rethink over neighbourhood plan funding cuts

Residents say the cuts could leave rural areas disproportionately disadvantaged

James Derounian who set up the petition
Author: Local Democracy Reporting Service: Carmelo GarciaPublished 12th Nov 2025

More than 3,400 people are calling on ministers to reverse cuts to funding aimed at helping communities have their say on local development.

Winchcombe resident James Derounian set up a petition calling on the Government to reconsider the cancellation of neighbourhood plan and technical support grants.

Parish and town councils developing a neighbourhood plan, which gives them more of a say on development in their area, could previously apply for financial support.

However, this was axed as part of the spending review conducted by the Government.

Mr Derounian fears that move will stop communities from having the ability to foster community empowerment and self-help.

This is a concern shared by his Liberal Democrat MP Cameron Thomas who has backed the petition.

Mr Derounian said it is a “fundamental shift” that risks shattering the core principles of Localism just as they have begun to bear fruit.

Town and parish councils, with limited budgets, will likely be unable to adequately fund and provide the technical knowledge needed to undertake a neighbourhood plan, Mr Derounian believes.

The petition also says communities in deprived or rural areas, most in need of shaping local growth, will be disproportionately disadvantaged.

While developers will gain disproportionate influence, with local policy-making weakened, at precisely the moment that central and regional planning is being streamlined.

He said: “Why kill the goose, neighbourhood plans, that lays the golden egg, that is to deliver housing, especially affordable homes, that central government says is a priority for them?”

Mr Thomas has labelled the move as a “false economy” and he believes “communities must not be left to fend for themselves against speculative development; they should be able to invest in their futures”.

“Restoration of this government support now would ensure that local people can contribute to their communities, plan for the infrastructure they need and preserve the things which matter to their areas,” the Tewkesbury MP said.

“Local governance should not be seen as a barrier to responsible development; neighbourhood planning funding also helps empower residents to unlock vital infrastructure through the increased community infrastructure Levy that neighbourhood plans unlock.

“Having engaged directly with the Ministry for Housing, Communities and Local Government on several occasions, I will continue to make the positive case for investment in infrastructure to enable development that is planned carefully and thoughtfully.

“I support this petition as a reasonable opportunity to encourage the government to reconsider this cut, so as to ensure Gloucestershire is developed responsibly, sustainably and in line with the character of our beautiful county.”

Tewkesbury Borough Council leader Richard Stanley (LD), who represents one of the fastest growing parts of the country, said it is disappointing to see the funding withdrawn.

“With the ambitious housing numbers set by Government for our area, it is crucial that we use all the tools available to plan properly for the long term needs of our residents – and the growth that we know is coming in the future,” he said.

He said the Borough Council is progressing its strategic plan with neighbours Cheltenham and Gloucester and he firmly believes this would be enhanced by having really good neighbourhood plans produced by town and parish councils.

“This is why it was disappointing to see Government withdraw their funding, and I hope the petition will encourage the Government to reconsider their decision to cut funding support for neighbourhood development plans,” he said.

The Ministry for Housing, Communities and Local Government says neighbourhood plans can make a valuable contribution and communities can continue to prepare them if they believe this is in their best interests.

However, they said no new central funding would be provided for the plans as a result of the Government’s spending review.

Ministers believe neighbourhood planning should be possible without further government funding. Technical support which has already been awarded will continue to be provided and must be completed before the end of March 2026.

A Ministry of Housing, Communities and Local Government spokesperson said: “Despite inheriting this housing crisis, the government is taking decisive action to get Britain building and deliver 1.5 million homes through our Plan for Change.

“Local say is critical about how, not whether, these homes are built and engaging with local communities remains a key cornerstone of the planning process.

“Around two-thirds of councils do not have a Local Plan – this is undemocratic – and we’re taking action to make sure councils adopt up-to-date plans or develop new plans that work for their communities.

“Neighbourhood plans can make a valuable contribution, and we believe the sector should now be able to sustain itself without further government funding.

“We continue to encourage communities to take advantage of preparing a neighbourhood plan where they consider that doing so is in their best interests.”

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