image for illustration: Peter Badcock
The National Churches Trust (NCT) is campaigning to highlight threats – and prospective campaign solutions, centred on a letter to your MP – to the Listed Places of Worship tax relief that allows VAT reclaims on repair projects.
NCT writes:
In her Autumn Budget, the Chancellor Rachel Reeves made no announcement about the extension of the Listed Places of Worship Grants Scheme. This is concerning – and why we need your help.
Introduced in its current form by Gordon Brown in 2004, the scheme makes it possible for Listed Places of Worship, the vast majority of which are churches, to claim back the VAT on repair projects. It applies to churches of any denomination, and throughout the UK.
But the scheme is currently due to expire in March 2025.
We understand that a decision about the future of the scheme will be made by the Department of Culture, Media and Sport (DCMS) in the next few months. The spending settlement that the DCMS received from the Chancellor in the Budget is less generous than that for many other Government departments. There therefore remains a fear that the scheme may not be renewed, or that it may be scaled back in some way.
You can help us make the case for the future of the scheme by writing about it to your MP. Some of you have already done so, and if you have many thanks.
If not, a letter could include some of the following but do please personalise it as far as possible and do mention your local church.
A letter template about the Listed Places of Worship Grants Scheme that you can send to your MP:
Dear [Name of your MP],
I am writing to you about the future of the Listed Places of Worship Grant Scheme (LPWGS) – a scheme which allows listed places of worship (of all faiths) across the UK to reclaim the VAT that they pay on repairs.
This scheme was introduced in its current form by Gordon Brown in 2004 because he was concerned about the impact of changes to VAT on the future of these buildings and what happens inside them.
Since then, it has been renewed by every government in power – but now a new decision needs to be made because the current commitment ends in March 2025. The cost of the scheme is typically £25-40 million a year, which forms part of DCMS’s budget, but this is money that helps keep places of worship open, in use and helping local communities.
[Insert mention of your local church here and why it is an important local building ]
I very much hope that as my MP you can raise this issue with Lisa Nandy, the Secretary of State for Culture, Media and Sport. Already uncertainty about the future of the Listed Places of Worship Grants Scheme is making it difficult to plan and budget for future repairs.
? The scale of the buildings maintained in this way is astonishing. There are about 38,500 Christian places of worship in the UK – and of course many more from other faiths. These buildings represent an extraordinary resource that reaches every community. By comparison the UK has just 3600 public libraries and 7900 GP surgeries.
? These buildings form by far the biggest base for voluntary activity in the UK. There is voluntary activity of just about every kind: youth groups, groups for mums and toddlers, for the elderly, and for the lonely or vulnerable. The sheer scale of this activity, and its local nature, means it is regularly taken for granted, but there are many examples in your constituency.
? At the same time, these buildings account for nearly half of Britain’s most important historic buildings (Grade I or equivalent), as well as by far the nation’s largest art collections (sculpture, stained glass, wall paintings, vernacular art etc). Around 20,000 places of worship are listed, and church buildings form a vital part of the identity of Britain’s landscape and townscape for tens of thousands of communities.
If the Government were not to renew the Listed Places of Worship Grants Scheme that task would be made much harder – 20% harder in fact! – wherever a listed building needs to be maintained or repaired. Quite simply, local funds would now need to be raised to pay VAT to the Government, on top of the costs of skilled labour, materials etc.
There is no doubt that this would tip many buildings and community activities that would otherwise continue into closure. Evidence of this can be seen in the financial crisis that is already affecting church buildings: the Church of England alone has a backlog of repairs to parish churches estimated at over £1 billion, and large-scale closures are sweeping churches in Scotland and Wales.
I hope very much that you can find out for me whether the Listed Places of Worship Grant Scheme will be extended and make the case for the scheme with the Government.
Yours Sincerely,
[Your name]
Urgent action needs to be taken to help churches
The UK has some of the most historic and beautiful churches, chapels and meeting houses to be found anywhere in the world. But many are already at risk of closing for good if urgent action is not taken.
- In England, there are now 900 places of worship on Historic England’s Heritage at Risk Register – with 53 more added in 2023.
- In Wales, 25 per cent of historic churches and chapels have closed in the last decade.
- The Church of Scotland is actively planning to close as many as 30-40 per cent of its churches.
Making Listed Places of Worship pay the VAT on repairs would undoubtedly mean even more churches having to close or unable to pay for repairs, putting priceless heritage at risk.
‘Our The House of Good research shows that the UK’s 38,500 churches contribute over £50 billion of economic and social good every year,’ says Eddie Tulasiewicz, our Head of Policy and Public Affairs.
‘Around half of these churches are not listed buildings, with many serving very deprived communities. As well as extending the Listed Places of Worship Grants scheme, the Government could also provide funding to support unlisted church buildings, many of which are struggling to pay repair bills and stay open.’
At the National Churches Trust, we are doing everything that we can to support church buildings in need. Your support will help churches and the people and communities who rely on them.
