A fund which offered grants for listed buildings such as churches is to be axed in March. Nearly half of Grade I listed buildings in the country belong to the Church of England
Rachel Reeves is risking a holy war – by taxing churches. The cash-hungry Chancellor has decreed the religious hubs will be forced to cover the VAT bills for their upkeep for the first time in 20 years.
A fund which offered grants for listed buildings is to be scrapped in March – leaving worshippers to foot the bill. Heritage groups described the move as an ‘outrage’ which could put some of the country’s most ancient sites at risk of ruin and prompt sweeping closures.
Nearly half of Grade I listed buildings in the country belong to the Church of England. Their upkeep is paid for almost entirely by individual congregations.
For two decades the listed places of worship scheme had offered grants allowing churches and other holy venues with such status to claim back VAT on repairs. Labour has said a £92m pot will be introduced for a four-year period which will replace the previous funding support when it closes on March 31.
But campaigners have warned it is nowhere near enough with repair costs totalling about £150m for parish churches. With VAT at 20% the tax bill over four years will likely be at least £120m.
Sir Philip Rutnam, chairman of the National Churches Trust (NCT), said he was ‘very concerned’ about the scrapping of the old grant scheme.
“Museums and galleries offering free admission don’t have to pay VAT on repairs, but in future churches will,” he said.
“We call on the Government to end this unfairness and not to expect local volunteers to pay these extra taxes.”
Sir Michael Fabricant, ex-Tory MP for Lichfield, Staffs, wrote on X: “This will be a real burden on our ancient monuments where stonework is constantly having to be repaired like Lichfield Cathedral.”
Brit historian Robert Lyman said a ‘small group of parishioners’ was responsible for looking after his local 1,000-year-old church. But he fears if they raise the £70,000 needed to refurbish it this year they will have to find an extra £14,000 for the taxman.
“This is, frankly, an outrage,” he said on X.
The NCT has warned the stealth tax could ‘accelerate’ church closures nationwide. In the past decade 3,500 sites have shut with 2,000 more set to go within the next five years.
The Department for Culture, Media and Sport said its ‘new capital scheme better supports churches by offering upfront funding for the vital repairs they need to keep serving their communities’.
For the latest breaking news and stories from across the globe from the Daily Star, sign up for our newsletters.