Labour’s sister party pointed out museums and galleries are eligible for a refund on VAT to reflect their public value, while vital community buildings were forced to shell out
Community centres and youth clubs across Britain are struggling to pay for repairs and upgrades due to excessive VAT costs, the Co-operative Party has claimed.
Labour’s sister party pointed out museums and galleries that offered free access are eligible for a refund on VAT to reflect their public value, while vital community buildings were forced to shell out.
This has left buildings struggling to afford vital works, or facing more expensive prices to do so.
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General Secretary of the Co-operative Party Joe Fortune has now written to the Treasury, urging them to extend the VAT Refund Scheme. In the letter, he said: “Community centres often operate on limited budgets, relying on volunteers to keep their doors open. The inability to recover VAT on necessary repairs places an additional financial burden on these organisations, often limiting their capacity to remain open, safe, and accessible to the public.
“The government has made important progress in strengthening community pride, not least through the Pride in Place programme and the measures in the English Devolution and Community Empowerment Bill boosting community ownership. But community buildings suffered under years of austerity as well as the impacts of the pandemic, and for many repairs have become unaffordable, risking their closure.”
Paul Taylor, Trustee and Chair at Burntwood Memorial Community Association, told this newspaper his community was struggling to afford a new boiler due to VAT. He said: “At Burntwood Memorial Hall, we need to replace our central heating boilers for about £10,000, including £1,667 VAT we cannot reclaim. For a volunteer-run charity, this is a big extra cost—money that could help maintain the building, improve facilities, and keep charges affordable for local groups.”
Alistair Willoughby, Trustee of the Baldock Community Hub, shared his own concerns about repairs. He said: “Buildings like this are vital for bringing our communities together. Across the country, village halls, town halls, and community‑run spaces host everything from warm hubs to youth groups, coffee mornings to public meetings. Support from government with these essential works would make a real difference and help us keep serving local people for years to come.”
The Treasury was approached for comment.