Table of Contents
Appendix – Parish Council Powers and Grants
In addition to having the power to levy a precept each year, the council has the power to incur expenditure. Legislation permits local councils to exercise a wide range of discretionary statutory powers to provide additional services and/or amenities in their area. These powers include a wide variety of things such as providing litter bins, lighting, transport, public toilets, and recreation facilities. However, the council must have the legal power to act and use a specific statutory power to undertake an activity and incur expenditure on specific activities or items. If there is no legal power to act then that decision and expenditure could be legally challenged as being ‘unlawful’. This includes the awarding of grants. Under the Local Government Act 1972, s111 the Parish Council is empowered to do anything (whether or not involving the expenditure, borrowing or lending of money or the acquisition or disposal of property or rights) which is calculated to facilitate, or is conducive or incidental to, the discharge of its functions. Therefore the council can lawfully issue grants pertaining to its statutory powers[1].
A local council may be eligible to use the ‘general power of competence’ (GPC) [2] if it can meet certain conditions, which gives it the power to do anything that an individual can do (unless specifically prohibited) and it then does not have to rely on specific powers.
If a council does not have the general power of competence then it either has to rely on a specific power or the power under s.137 of the Local Government Act 1972[3]. This refers to a section of the Local Government Act 1972, usually known simply as “Section 137”, which enables a local council to incur expenditure which is “in the interests of and will directly benefit its area or any part of it and some or all of its inhabitants”. Section 137 is used when there is no other specific power available and confers powers to make grants to voluntary bodies, fundraising events, organisations providing not for profit public services, and to contribute to charities and disaster appeals. The benefit accruing must be commensurate with the expenditure incurred, which is a decision for the council. Examples of s.137 expenditure include village histories, plaques, prizes, flood relief, landscaping and flower shows. Section 137 expenditure is limited to a specified amount each year, which is then multiplied by the number of electors in the parish. The set amount is updated annually.
Document History
March 2022: Appendix of parish council powers and grants moved to end of the document.