‘Of course we understand the need to bring the public finances back under control and were- like everyone else- fully prepared for a tough budget. The new rates of corporate tax and small profits tax is welcome. So many small businesses in the construction industry are vital to the local economy: they also have the knowledge and skills to maintain and repair the historic buildings that contribute so much to our quality of life.
Sadly increasing VAT to 20% further aggravates the difference between looking after our historic environment and the zero rate of VAT on new construction. This new rate of VAT is a colossal and damaging as well as an irrational tax on our heritage. And remember that our heritage supports social and economic regeneration as well as a recession-busting tourism industry. The coalition government retains some VAT exemptions and we will redouble our already considerable efforts to explain why 20% VAT on maintenance and repair will not contribute to a balanced and sustainable recovery.
The new higher rate of VAT also means that the Listed Places of Worship Grant Scheme is now more valuable than ever. Communities up and down the country have benefited from the schemes help in keeping beautiful and historic places of worship open and in public use. The Heritage Alliance will continue to campaign for the extension of the scheme beyond March 2011. In the meantime communities should act fast in order to take advantage of the compensation which is currently available.
Finally, the DCMS as a non exempt department is likely to experience a 25% cut in funding over the next four years and this is bound to mean a reduction in frontline activity undertaken by a great number of arms length bodies. This is especially bad news for our heritage as we have lived with frozen grants for the last eight years. However we intend to work closely with DCMS to get the best deal for our national heritage and we are determined to play a prominent role in rebuilding the economy and contributing our future national prosperity.’
