[(1) A “neighbourhood area” means an area within the area of a local planning authority in England which has been designated by the authority as a neighbourhood area; but that power to designate is exercisable only where—
(a) a relevant body has applied to the authority for an area specified in the application to be designated by the authority as a neighbourhood area, and
(b) the authority are determining the application (but see subsection (5)).
(2) A “relevant body” means—
(a) a parish council, or
(b) an organisation or body which is, or is capable of being, designated as a neighbourhood forum (on the assumption that, for this purpose, the specified area is designated as a neighbourhood area).
(3) The specified area—
(a) in the case of an application by a parish council, must be one that consists of or includes the whole or any part of the area of the council, and
(b) in the case of an application by an organisation or body, must not be one that consists of or includes the whole or any part of the area of a parish council.
(4) In determining an application the authority must have regard to—
(a) the desirability of designating the whole of the area of a parish counci
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