Chancellor Rachel Reeves (Image: Getty)
Chancellor Rachel Reeves could deal “a devastating blow” to Britain’s historic churches by scrapping a £350 million scheme to subsidise repairs.
The Church of England is warning that food banks provided in church premises could also be under threat if the Government ends the Listed Places of Worship grant scheme introduced in 2001.
It is currently due to expire on March 31 and the Chancellor has refused to confirm whether it will be extended, saying only that a decision will be announced “soon”.
Bishop of Ramsbury Andrew Rumsey, who is the Church of England’s joint lead bishop for church buildings, said: “The Church of England looks after 45 per cent of the nation’s Grade I listed buildings. These buildings are of priceless historical and cultural significance as well as being centres of spiritual and social support to their communities.
“The Listed Places of Worship Grant Scheme is a lifeline, helping to keep churches maintained so that they remain at the heart of local and national life. Failing to renew the scheme would be a devastating blow.”
The Church of England points out that many church buildings are also used to provide space for vital charitable works including nearly 8,000 food banks.
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Introduced by former Labour Chancellor Gordon Brown, the Listed Places of Worship grant scheme allows VAT to be refunded on repairs of listed buildings used as places of worship. A total of £350 million has been paid and Buddhist, Jewish, Islamic, Hindu venues have benefitted as well as Christian churches.
Premises that have received funding include the Church of St Aeddan in Monmouthshire, Wales, originally built in the 15th century, which needed a new roof after due to water damage caused by Storm Dennis in 2020.
St Mary’s Church in Totnes, Devon, also built in the 15th century, required repairs because parts of the floor were sinking and other parts are raised up due to water underneath the building. It attracts 50,000 visitors a year.
Sir Philip Rutnam, Chair of the National Churches Trust, said: “Our churches include half of the country’s most important historic buildings, but are also vital hubs for the community. Thousands of food banks, warm spaces and youth groups are based in churches. All these buildings depend on local people to fund and run them.”
“The Listed Places of Worship Grants Scheme needs to be renewed urgently – otherwise local volunteers will have to pay VAT to the Government on top of everything else. That would inevitably mean more churches close, and more communities suffer.”
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Those calling for the scheme to be renewed include Labour MP Marsha de Cordova who holds the role of Second Church Estates Commissioner, which means she speaks on behalf of the Church of England in the Commons.
She said: “Since its introduction under the last Labour Government, the scheme has helped with the restoration of thousands of buildings across the country. It is vital that the scheme does not come to an end on 31 March, as it would make it near-impossible for many buildings and parishes to restore their spaces.”
And fellow Labour MP Chi Onwurah said: “Faith buildings often house vital community resources like foodbanks and community groups. Newcastle Cathedral, for example, has played a growing role in supporting people facing challenging circumstances such as prison leavers, asylum seekers, rough sleepers and those , struggling with drug and alcohol use, and poor mental or physical health.”