End of Locality Grant Funding for Neighbourhood Planning – What Next for Local Communities?

On 12th June 2025, Locality confirmed via their website that the Ministry of Housing, Communities and Local Government (MHCLG), formerly the Department for Levelling Up, Housing and Communities (DLUHC), will not commission new neighbourhood planning support services from 2025 onwards. This means the long-standing grant and technical support programme, which has underpinned neighbourhood planning efforts across England for more than a decade, is coming to an end.

(Source: Locality)

“MHCLG has informed us that, as a result of the spending review, they cannot proceed with commissioning new neighbourhood planning support services for 2025 onwards. Unfortunately, this means that we cannot open to applications for new grants or technical support”.

A Vital Programme Draws to a Close

The recent announcement regarding the end of Locality’s neighbourhood planning grant funding has come as a significant blow and a surprise to many local and district councils, as well as to us at Bluestone Planning. As a consultancy that has supported over 50 neighbourhood plans, we understand the vital role this funding has played in enabling communities to shape their future.

Since its inception, the neighbourhood planning grant programme has been instrumental in supporting community-led planning, particularly in areas without up-to-date Local Plans. For many bodies, especially Neighbourhood Forums and smaller Parish Councils, the availability of grant funding and free technical support was essential to progressing their plans.

Neighbourhood plans have empowered communities to:

• Influence the location, type, and design of development in their area.

• Designate and protect valued green spaces.

• Preserve and enhance local biodiversity and wildlife habitats.

• Safeguard the heritage and character of their neighbourhoods.

• Promote sustainable transport and infrastructure improvements.

• Support local economic development and community facilities.

These powers have given communities a real say in shaping the future of their areas, ensuring development reflects local priorities and values.

The withdrawal of these resources will have significant implications. Without financial support, only those communities with access to a reasonable precept or Community Infrastructure Levy (CIL) funds are likely to be in a position to start or review a neighbourhood plan.

For communities already receiving technical support, Locality has confirmed that existing packages will continue:

“We are able to complete all technical support packages agreed by MHCLG by the end of March 2025 and we have until the end of March 2026 to do so depending on the timetable for each package”.

Looking Ahead – New Routes to Community Planning

Neighbourhood planning has been a powerful, plan-led tool, giving local people a genuine say in shaping their area. More than 2,400 communities have engaged with the process and over 1,000 plans have passed referendum - a testament to the appetite and ability of communities to lead local change.

While the withdrawal of grant support is disappointing, neighbourhood planning remains very much a viable option, and we’re here to help guide you through this new chapter. Alternative funding may be available through the National Lottery Community Fund, although eligibility criteria do apply. You can explore available programmes here: National Lottery Community Fund 

At Bluestone Planning, we remain fully committed to empowering local communities. We also recognise that, in light of tighter budgets, many groups may no longer be in a position to commission full consultancy support. That is why we have developed a new, more affordable approach to neighbourhood planning, focused on practical, step-by-step support.

We are introducing a suite of customisable templates designed to guide groups through key stages of the process - from building a robust evidence base through community consultation to assessing Local Green Spaces, identifying non-designated heritage assets and drafting planning policies. These will be supported by targeted advice and review sessions to help ensure compliance with the relevant regulations and basic conditions.

If you are continuing your neighbourhood planning journey without grant support or are just starting out and looking for cost-effective guidance, we are here to support you every step of the way.

Need Advice?

If your neighbourhood planning project has been affected by the funding changes, or you are uncertain about what steps to take, we would be happy to help.

📩 Contact us today to explore how we can support your ambitions and help shape the future of your place, with or without grant support.

Call +44 1235 766825 or email us at admin@bluestoneplanning.co.uk