The Parish Council has the power to spend a prescribed amount of money on any purpose that can bejudged to be a benefit to the area or its inhabitants, commensurate with the expenditure.
The money it can hand out comes from the Section 137 Power all councils have. There is a limit and currently it is £5.98 per head of population on the electoral list, meaning that a total of £2679 could be spent under this heading in the 12 month period 2013-14.
Section 137 expenditure cannot be used if the money can be spent under an existing statute; an example of a permitted spending is, say, the organisation of a best kept garden competition within the parish. It could not, however, spend money on provision of allotments under this power as any expenditure on this could be met under the Small Holdings and Allotments Act of 1903.
Please get in touch if you require more information or would like to discuss a potential grant.