Ministers face a growing backlash over the loss of VAT relief on church repairs, with campaigners warning that crumbling roofs, mounting costs and cash-strapped congregations could threaten the future of treasured historic buildings and the community services they provide.
Labour has been accused of making Britain’s historic churches pay for the Government’s financial pressures, as the withdrawal of a VAT relief scheme threatens to saddle some places of worship with repair bills running into tens of thousands of pounds.
The controversy centres on the closure of the Listed Places of Worship Grant Scheme, which allowed eligible churches to reclaim VAT on maintenance and repair work. Its replacement, the Places of Worship Renewal Fund, has been welcomed by some church representatives — but critics argue that the new arrangements leave a dangerous gap in support.
The Liberal Democrats have branded the change a “shameless stealth tax”, warning that the 51 places of worship receiving assistance from the new fund could face an average VAT bill of nearly £59,000.
The figures have intensified concerns that historic buildings already struggling to meet the costs of their upkeep could be forced to postpone essential repairs, placing their long-term survival — and the services they host — at risk.
Anna Sabine, the Liberal Democrats’ culture spokesperson, accused the Government of making churches shoulder the burden of its Budget pressures.
“The Government has chosen our churches to foot the bill for its Budget black hole,” she said, describing the replacement fund as a measure that saddles local communities with thousands of pounds in additional VAT.
Her warning went beyond the preservation of historic architecture. Churches, she argued, are often central to community life, providing venues for food banks, lunch clubs and parent-and-toddler groups.
Under the new arrangements, she warned, delayed roof repairs and deteriorating buildings could leave those services without a home. The party has pledged to fight the change and restore VAT relief for listed places of worship.
The Church of England has also signalled that the issue remains unresolved. Andrew Rumsey, the Bishop of St Albans, has pledged to press for churches to gain better access to funding beyond the new renewal fund, including the restoration of VAT relief for repairs.
Sir Philip Rutnam, chair of the National Churches Trust, welcomed the Government’s new funding but warned that it would not, by itself, address the scale of the challenge facing congregations across the country.
“Everywhere churches now face paying 20% extra for repairs with the change to VAT,” he said.
The financial pressure is particularly acute for rural churches with small congregations, where the costs of maintaining historic structures can be difficult to spread across a limited number of donors. A leaking roof or unstable tower is not merely a conservation problem: it can threaten the practical use of the building for the community groups that depend on it.
“You cannot run a parent and toddler group or a food bank in a church with a leaking roof or a crumbling tower,” Rutnam said, calling for a comprehensive approach that combines a stronger grant scheme with VAT relief, as available to museums.
The Government, however, insists that its replacement fund will provide meaningful help where it is needed most.
A spokesperson for the Department for Digital, Culture, Media and Sport said more than £18 million was being distributed through the Places of Worship Renewal Fund to 51 places of worship. The projects, the department said, were in areas where raising the money needed to begin repairs could be “almost impossible”.
The upfront grants would allow urgent work to start sooner, including repairs to roofs and the restoration of deteriorating stonework, the spokesperson added.
There is also support for the new scheme among some church leaders. A spokesperson for the Roman Catholic bishops described the closure of the previous VAT-reclaim arrangement as regrettable but welcomed the return of a straightforward grant scheme focused on repairs. The nine Catholic churches set to benefit, the spokesperson said, were in areas of significant deprivation where securing alternative funding could be particularly difficult.
That support highlights the central dispute; whether targeted grants can adequately replace a scheme that helped eligible churches recover VAT on repairs, or whether the loss of relief will leave many buildings exposed to costs they cannot afford.
For historic churches, the consequences may extend well beyond stonework and stained glass. They are often among the oldest surviving buildings in their communities, while continuing to serve people who may have little access to alternative venues for support and social activities.
Labour’s new fund may help selected projects get under way. But with church leaders calling for further assistance and political opponents demanding the restoration of VAT relief, ministers face a difficult question: whether the money announced will be enough to keep Britain’s historic churches standing — and their doors open.
Leave a Comment