These plans are created by your parish council, town council, or neighbourhood forum. They contain more detailed priorities for development in your community, such as the provision of low-cost housing or the preservation of green space. While Local Plans lay out a vision of future development for a whole area, the needs of individual towns and villages within that area can vary. Neighbourhood Plans are optional documents that detail further development priorities for individual communities. They are community-led and can be written by town or parish councils, or where there is no town or parish council by a specially-created neighbourhood forum. Taking part in the writing of a Neighbourhood Plan helps you have a say in the future use of land and buildings in your neighbourhood.
Read more here: http://www.planninghelp.org.uk/improve-where-you-live/shape-your-local-area/neighbourhood-plans