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Neighbourhood Plans: The Good, The Bad and The Essentials

A Neighbourhood Plan is a community-led initiative that gives local residents the power to influence the development and growth of their area. Introduced by the Localism Act of 2011, it allows communities, through parish or town councils or neighbourhood forums, to develop statutory policies for the use and development of land within their area – in addition to aspirations for non-land use issues. The plans can cover a wide range of issues, including housing, employment, transport, heritage and environmental matters. Once approved by a community referendum, a neighbourhood plan becomes part of the legal framework for making decisions on planning applications.


(Source: Plan de Truchet et Hoyaux)


Advantages of Undertaking a Neighbourhood Plan


  1. Statutory Weight: One of the key advantages is the legal status a neighbourhood plan holds once approved. This is because a neighbourhood plan becomes part of the statutory development plan, meaning that local planning authorities and planning inspectors must take it into account when making decisions on planning applications​.

  2. Relevance to Local Needs: Since the plan is crafted by the community, it focuses specifically on local concerns and issues. As a result, it can address priorities that may not be adequately covered by the broader local plan, such as protecting green spaces, enhancing local biodiversity and ensuring new developments meet the needs of residents.

  3. Site Allocation: While housing requirement is determined by the Local Planning Authority (LPA), neighbourhood plans provide communities with the power to identify sites for development and include policies that support the provision of affordable housing. Neighbourhood planning therefore enables residents to play a stronger role in shaping and supporting the housing developments they want to see in their community.

  4. Community Infrastructure Levy (CIL): The Community Infrastructure Levy (CIL) is a charge that most developers must pay when creating a new dwelling, or building new developments which create net additional floor space of 100 square metres or more.  A portion of the CIL collected, known as the neighbourhood portion, is allocated directly to local communities. Typically, 15% of CIL funds are passed to town or parish councils for them to decide how to spend on local infrastructure projects. For areas with an adopted neighbourhood plan, the neighbourhood portion increases to 25%. This higher allocation helps communities fund infrastructure projects that directly address local needs identified in the neighbourhood plan.


Disadvantages of Undertaking a Neighbourhood Plan


  1. Resource Intensive: Preparing a neighbourhood plan requires significant time and effort. The process on average typically spans 18 to 24 months and involves extensive consultation, evidence gathering and plan writing. This can be burdensome for volunteer groups or smaller communities that may lack resources​. Because the engagement process can be lengthy, it requires continuous effort to maintain interest and involvement from a diverse group of stakeholders.

  2. Financial Costs: There are several costs involved such as community engagement activities, consultancy fees and materials. However, if you meet certain eligibility requirements then you can receive both financial support and expert advice and resources. Moreover, you can also apply for an additional grant if you need funding beyond the standard £10,000 basic grant.  

  3. Complex Legal Requirements: Neighbourhood plans must meet several legal requirements, including conforming to national policies and local planning strategies. They are also subject to an independent examination and need to be approved by a referendum, adding further layers of complexity and risk of delays​.

  4. Limited Scope: A neighbourhood plan cannot override the strategic policies of the local plan. It cannot, for example, promote less development than what is outlined in the local plan, which may limit the ability of communities to resist unwanted large-scale development.


A neighbourhood plan provides communities with a powerful opportunity to shape local development according to their unique needs and aspirations. While the process does require time, effort and resources, the benefits of having greater control over the future of your area can far outweigh the challenges. With the right support and guidance, navigating the legal process and associated costs can be managed effectively, making a neighbourhood plan an invaluable tool for achieving long-term positive outcomes for your community.


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At Bluestone Planning, we provide comprehensive support throughout the neighbourhood planning process. Whether you need guidance on ensuring policy and supporting text is compliant with planning regulations, or assistance with technical documents such as Design Codes, we are here to ensure your plan progresses smoothly and efficiently.


For more information on how we can assist with your neighbourhood planning efforts or provide consultancy advice, contact us at Bluestone Planning by calling +44 1235 766825 or emailing admin@bluestoneplanning.co.uk 

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