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Parish and Town Councils

Asked by Kevin HollinrakeConservativeMinistry of Housing, Communities and Local GovernmentTabled Answered 7 March 2025UIN 34862

The question

To ask the Secretary of State for Housing, Communities and Local Government, what processes and procedures apply to town and parish councils who are unable to set a balanced budget; and what guidance has been issued on town and parish council finances.

Answered by Jim McMahon

Town and parish councils are legally required to set a balanced budget each year. To do so, they charge a precept equalling the difference between their expected annual expenditure and income. All smaller authorities must undergo an annual external audit in the form of a limited assurance review to ensure transparency and compliance with the relevant procedures.

The National Association of Local Councils and its county associations support their members by publishing guidance and providing advice on effective financial management in town and parish councils.

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