With the UK Government making it clear that public finances are extremely tight, there are growing fears that the Treasury may be tempted not to renew The Listed Places of Worship Grant Scheme, possibly as part of the Autumn Budget. This would be a devastating blow for churches, many of which are already struggling with the high cost of keeping their buildings open and in good repair.
What is the scheme?
The Listed Places of Worship Grants Scheme allows listed buildings that are used as places of worship to recover the full rate of VAT – 20 per cent – from church repairs projects.
This has been possible since 2004 when the current scheme was introduced by the Chancellor of the Exchequer, Gordon Brown. Since then, it has been renewed on a regular basis but is currently only in place until March 2025.
Already, uncertainty about its future means that forward planning of repair projects and estimating costs by churches is becoming increasingly difficult.
The Listed Places of Worship Grants Scheme is used by thousands of churches across the UK to help make repair costs to their historical buildings and it is the only consistent financial support that the UK Government offers to places of worship.
In 2023, 326 listed churches applied for grants from us that were eligible to receive this vital refund of VAT to help towards projects ranging from restoring crumbling towers to fixing a leaking roof.
Since it was first introduced, thanks to the Listed Places of Worship Grants scheme, more than 13,000 places of worship have been supported in keeping their buildings windproof and watertight, safeguarding the future of some of our most important local heritage.
Hear from concerned churches
“Horrified” that the scheme could be stopped
By St Aeddan church, in Bettws Newydd, Monmouthshire, Wales/Cymru
We were horrified to hear that the Government is considering stopping the Listed Places of Worship scheme for reclaiming VAT on our treasured church buildings.
St Aeddan’s Church, Bettws Newydd, Nr Usk, Monmouthshire was in dire need of a new roof, it is a listed building and has a valued rood screen which attracts much attention from walkers and visitors to the area. The re-roofing project had the original costing of circa £221,000 which, as ever with investigating old buildings, has increased due to rotting wall plates.
It has taken a great deal of work by local people over the last three years to raise the funds needed and to seek income from various grants and funds. We have so far claimed £26,800 from the Listed Places of Worship scheme and still have over another £10,000 to claim before the project comes to an end later this month.
Our Treasurer, Kay Spencer, said that “knowing there would be some income to be claimed each month has helped keep the bottom line on the accounts in surplus and has enabled us to pay the next set of bills as they come in. Crucially, without the Listed Places of Worship Grant Scheme, it is very likely we would not have been able to have undertaken the vital works this year.”
About the church
St Aeddan is Grade I Listed 15th century medieval parish church, with 12th century foundations. The church was forced to temporarily close after destruction from Storm Dennis led to severe water damage inside the building. The new roof is key to the long-term sustainability of the church and will ensure it can carry on serving the community for generations to come.
The scheme has been a “lifesaver”
by Strabane Church of the Immaculate Conception, County Tyrone, Northern Ireland
On our current project, we will recoup £28,468 in total from the Listed Places of Worship grant – we have reclaimed £19,342 already on this project, and we recouped £129,196 on our previous project.
As you can imagine the rebates for our church have been a real life saver. We would not have been able to fund our projects without them.
It would take us almost nine years to raise this amount of money through our monthly restoration appeals, money which should be going to the day-to-day maintenance of the church. Not having it would mean that the church would fall into further disrepair. We were also able to show the rebate as match funding to The National Lottery Heritage Fund, making our application more favourable for funding.
Not having the grant would be a major setback for the future of church restoration, which after all is our nation's heritage.
About the church
Strabane Church of the Immaculate Conception was completed in 1895 to the designs of architect, William Hague. It was designed in the 13th century French Gothic style. As part of urgent repair works to the building, a museum was added to the church. This has had widespread community support, has led to an accredited scheme for volunteers to be trained as church tour guides and has significantly boosted local tourism.
Could this lead to more churches closing?
The closure of church buildings is our biggest heritage challenge. Repairs are largely funded by local congregations, and it can take years to secure the money required. Many churches are facing closure, owing in part to the high costs of repairs.
In England, there are now 900 places of worship on Historic England's Heritage at Risk Register – with 53 more added to the list in 2023. In Wales, 25 per cent of historic churches and chapels have closed in the last decade and the Church of Scotland is actively planning to close as many as 30-40 per cent of its churches.
Our The House of Good research shows that churches are not just important for worship and their beautiful heritage, but they contribute £55 billion a year to social and economic good through the vital community support they offer. From food banks to dementia support groups, parent and toddler groups to mental health support, many of which are concentrated in some of the most deprived areas of the UK. All is at risk of being lost, if we cannot keep our church buildings open and in good repair.
If the UK Government decides not to renew The Listed Places of Worship Grant Scheme, there is much to lose.
What can you do to help?
Church buildings need our support like never before. Please consider contacting your local MP to share with them the importance of renewing The Listed Places of Worship Grant Scheme.
You can find details on how to find out who your local MP is and how to contact them here.
Please share any replies you get with us at Eddie@nationalchurchestrust.org as this will help us in our efforts to raise awareness of this important issue.
