Parish councils are funded principally through an annual precept – an additional council tax levied on local taxpayers. Parish councils mainly use this to fund the administration of the council and to provide additional local services to enhance those already provided by the principal council. They have no power to raise money from business rates.
Funding can also be raised through income, for example from car parks or markets or rental of property owned by the parish council. Parish councils may also apply for grant funding and are eligible to receive a proportion of the Community Infrastructure Levy (CIL) collected in their area, secured from planning permissions granted after the date the parish council is established. This amount ranges from 15% up to 25% of CIL where there is an adopted neighbourhood plan in place.