Crosthwaite and Lyth Parish Council submitted an application to designate Crosthwaite and Lyth Civil Parish as a neighbourhood area for the purposes of developing a neighbourhood development plan on 20 July 2018. A formal consultation ran for a period of five weeks, from Monday 30 July to 4pm Monday 03 September 2018. The proposed neighbourhood plan area was formally approved by the Lake District National Park Authority on 19 September 2018. A working group has been established to prepare a neighbourhood plan.
