The Ministry of Housing, Communities and Local Government (MHCLG) has confirmed the appropriate sum for the purposes of section 137(4)(a) of the Local Government Act 1972 for parish and town councils in England for the financial year 2026–27. The new limit is £11.60 per elector, up from £11.10 in 2025/26.
The increase reflects the percentage rise in the retail price index between September 2024 and September 2025, in accordance with Schedule 12B of the Local Government Act 1972. Section 137 of the Act allows parish and town councils to incur expenditures for purposes that benefit their communities when no specific statutory power is available.
The notification letter to the National Association of Local Councils (NALC) from MHCLG which confirms the new limit for 2026/27 can be read on the Society of Local Council Clerks’ website here.
Section 137 provides town and parish councils with the basic power to spend money subject to the statutory limit on purposes for the direct benefit of its area, or part of its area, or all or some of its inhabitants. Members and officers of BATPC member councils can find guidance on the use of Section 137 and the various limits on the use of the power in the NALC advice note on Local Council General Powers, here. (Member login required. See guidance on creating an account here.)