Rural Affairs

Funding sources: local and regional funding sources

1. Funding from Principal Local Authorities

Local authorities can fund village halls from revenues or reserves in various ways such as:

  • Direct contributions to capital expenditure, either building halls owned by the council or pay grants to others;
  • Contribute towards the running costs, either directly (if managed by the council) or indirectly by paying grants to a body that runs the village hall in its area.
  • Reducing or cancelling the non-domestic rates bills payable for village halls in certain circumstances. For example, if a charity is the rateable occupier, it is automatically entitled to 80% rate relief, and the billing authority can choose to top that up to 100%. Similarly, a billing authority can choose to reduce or cancel the non-domestic rates bill for a village hall occupied by a non-profit making body that is not a charity.

Local authorities do not receive any specific grant from Central Government for village halls. Therefore grants from Local authority is entirely at their discretion, and each authority would have its own criteria, terms and conditions for funding.

Contact your local authority to find out what funding is available for community buildings, including village halls.

2. Regional Development Agencies

Regional Developent Agencies (RDAs) were set up by the Department of Trade and Industry to encourage and promote economic development throughout England, with the aim of reducing social and economic disparities within and between regions.

RDAs have funds to assist in economic development and regeneration of the region; promote business efficiency, investment and competitiveness, and to contribute to sustainable development.

Each RDA has its own programmes and funding sources. Village halls managers who want to become social enterprises can contact their Regional Development Agency for further details, help or advice. The England Regional Development Agencies website address is: www.englandsrdas.com/home.aspx

DTI has devolved responsibility for Business Link services to the RDAs. Business Link offers a whole range on advice and support to business, from setting up your business to dealing with unexpected problems. For more information in available on the website at www.businesslink.gov.uk

3. Parish Plans

Parish Plans involve the whole community in identifying the community's needs. They include an action plan that prioritises the issues raised, and sets out how they might be tackled. This is exactly how government envisaged strategic, community-led planning that brings real benefits to a locality. Parish planning has led to direct action by communities that has improved the way their local area and service are managed.

Parish Plans provide valuable evidence of local priorities for decision-makers, strengthening local democracy e.g. some Parish Plans have been adopted as Supplementary Planning Documents. To make the most of this potential parish planners should work closely with the local authority, as this is a tangible expression of the local voice which can usefully be recognised and built upon, from district councils to central government.

The Rural Community Councils or www.countryside.gov.uk/VitalVillages/social_capital/rcc_contacts.asp can inform interested parishes of their funding application procedures and eligibility criteria. They may also use the funds for activities such as training, or support to increase the influence of Parish Plans within the statutory planning system.

Defra has made available £1M for Parish Plans in 2005-06, delivered through the network of 38 Rural Community Councils. From 2006 Parish Plans are expected to be part of the Rural Social and Community programme.

Branxton in Northumberland has just 130 residents, and although this small village has no post office nor shop, like 3,000 rural communities across England, Branxton set out their priorities in a Parish Plan. The main things villagers wanted to improve were the village hall, the children's play park and access to the site of the Battle of Flodden Field.

The Parish Plan has enabled Branxton to access £92,000 for renovation and extension of the village hall. It is now an example to surrounding villages, having a new kitchen with an industrial strength dishwasher, a fully equipped computer room and office, a storeroom, and six and a half kilowatt generator. The project received £69,000 from Defra, £12,700 from Northern Rock and £5,000 from Lloyds TSB Trust for the building work. The Community Council of Northumberland helped secure a £2,000 grant for the computers, while the county council provided £1500 for a projector. Kitchen equipment was bought with a grant from Berwick Borough Council. The village raised £20,000 match funding. The hall can also double up as an emergency centre in the event of severe weather or prolonged power cuts.

Further outcomes for Branxton include a revitalised parish council with newly elected members, £30,000 lottery funding to promote tourism to the historic Flodden battlefield, and grants to reconstruct the play area. The parish is now advising others how to replicate their achievements.

4. Greenham Common Community Trust Ltd (Newbury, Berkshire, W. Berkshire and N. Hampshire)

Greenham Common Trust is a local charitable trust, set up in 1997. The Trust is focused on the long-term goal of social progress and is committed to making a real difference to the fortunes and lives of the whole community. It has become an important source of funding for good causes in West Berkshire and North Hampshire.  Greenham Common Trust works in close partnership with the local community to provide benefits for local people by providing financial support for charities and social projects.

Grant type: Local funding source for Newbury and the surrounding areas such as North Hampshire and West Berkshire.  The Trust has three main streams of grant funding – standard grants, major grants and Greenham Gift.
Grant size: 
Standard Grants: Up to £9,999.  Currently the Trust is distributing around £100,000 per year for standard applications.
Major Grants:  Grants of £10,000 and over. The Trust is distributing around £80,000 per year for these major grants.
Greenham Gift – a scheme where £50,000 is awarded to one local organisation providing a benefit to the community.  There are four runners up awards of £8,000.
Criteria: The Trust has a widely drawn set of policies about what it will and will not fund.  In general, grants are available for charitable purposes that will be of significant benefit to the community. 
Application window: In the case of both standard and major grants the distributions take place once a year.  Application forms become available in September of each year.  The application forms need to be returned by December for standard grants and January for major grants.  The precise dates are set out on the application forms.  A decision is made by the end of February.

For m ore information on the various grants, criteria and the application process visit the Greenham Common Community Trust website or telephone 01635 817444.

5. Parish Councils and Precepts

Parish councils play a key role in the community and are in a good position to help support the village hall. They are concerned with representing and meeting the needs of local people. They have the power to "precept" from local residents (i.e. raise their own money through an element of your local authority's council tax system). This can be used to help pay for improvements in local facilities and services within the community. Parish councils can also take out loans from the Public Works Loan Board, (see their website at www.pwlb.gov.uk/pwlbpclending.htm) to help improve facilities and assets, such as halls, that are owned and used by the community.

Parish councils can work with halls in a number of ways:

  • Regularly providing funding for hall maintenance from the precept so the management committee plan more effectively for both regular and intermittent expenditure
  • Providing capital funding towards repairs or extensions
  • Helping the governance of the hall by appointing a parish councillor onto the management committee
  • Using the hall for committee or public meetings
  • Helping to identify local needs through village appraisals or parish plans
  • Helping to develop new activities by arranging joint meetings or providing small pump priming grants to those who want to take ideas forward

6.  Building Communities Fund

A £3million Building Communities Fund has been made available as part of The East of England Development Agency (EEDA) Investing in Communities programme to help communities and organisations purchase buildings and land. 

Grant type: Organisations operating in rural or urban Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk could apply for funding. 

Grant size: Bursary awards up to £15,000 to help an organisation carry out feasibility study, develop their application and put together a solid business plan in advance of applying for a capital grant.  Capital grants between £250,000 and £750,000 are available to help an organisation or community to purchase assets.

Criteria: An organisation or community will need to show that asset/s purchased can transform the community, achieve financial sustainability, and make a real social and economic impact.

Application window:  Application may be made at any time up to two years from April 2007.  Applications are reviewed monthly.

For further information, visit the Quality Parish Scheme website at www.defra.gov.uk/rural/quality_parishes/default.htm.

 

Page last modified: 4 June, 2008
Page published: XX November, 2005

Department for Environment, Food and Rural Affairs