Parish Councils are a vital part of local government in England, especially in rural areas. They help manage local facilities, represent the voice of residents, and take action to improve community life. While their powers have grown over the years, they are still limited by certain rules and laws. Let’s take a closer look at what Parish Councils can and cannot do, how they get their funds, and the responsibilities they hold under the law.
Where Do Parish Councils Get Their Powers?
Most of the current powers of Parish Councils come from the Local Government Act 1972. However, their responsibilities are also shaped by other laws that have been added over time. For example, the Criminal Justice and Public Order Act 1994 gave them the authority to fund crime prevention activities in their villages — something that might not seem directly related to a Parish Council at first glance.
It’s important to know that Parish Councils can only spend public money if a specific law (called a Statutory Power) allows it. If they break this rule, their accounts may not be approved by the auditor, and individual Councillors could be asked to repay the money out of their own pockets.
Mandatory vs. Voluntary Powers
Parish Councils mainly have voluntary powers, which means they can choose to do certain things, but they don’t have to. In fact, most small councils don’t have enough money to do everything they are allowed to do.
There is only one mandatory duty they must consider: to provide allotments for the labouring poor, if local residents request them. This duty dates back to the original Local Government Act of 1894 and remains in force today.
How Do Parish Councils Get Their Money?
Parish Councils raise money by charging a small tax called a precept. This is added to your regular Council Tax and collected by the District Council. The total amount the Parish Council needs is divided among all households in the area and paid to the Council in two parts during the year.
Interestingly, two Parish Councils could need the same amount of money, but if one village has fewer homes, each home there will have to pay more. This is why you might see differences in the amount of Council Tax paid in similar houses across neighbouring villages.
Unlike bigger councils, Parish Councils are not legally limited in how much they can spend, but in reality, small councils are restricted by what residents are willing to pay — in simple terms, “what the market can stand.”
Working Together and Sharing Costs
To help with rising costs, smaller Parish Councils are encouraged to team up for bigger projects. By joining forces, they can share the costs and do more for their communities without overburdening individual households.
Can Parish Councils Borrow Money?
Yes, Parish Councils are allowed to borrow money, but only up to a set limit and with permission. However, this isn’t always helpful for small councils, because they still have to repay the loan with interest from their limited budgets.
Other Ways to Get Funds
Parish Councils can sometimes get grants from the District Council or other organisations, but these are usually meant for specific projects — not for regular running costs like staff wages or office expenses.
They can also raise money through fundraising, but this is heavily controlled and not very practical for small councils. On the other hand, some larger Parish Councils have found creative ways to earn money. For example, Swanley Council in Kent owns a seaside hotel, which brings in a good income!
Parish Councils are an important part of local life, handling everything from parks to planning and representing the voice of residents. While their powers are quite broad, their activities are limited by laws, budgets, and what residents are willing to support financially.
Still, with creativity and cooperation, many Parish Councils manage to make a big impact in their communities — especially when they work together or come up with smart ways to raise extra funds. Even small Parish Councils can bring real change, as long as they understand their powers and manage their responsibilities wisely.
