Overview
- The Listed Places of Worship grant, which reimbursed VAT on major repairs for two decades, will close in March and be replaced by a £92 million four-year capital fund starting in April.
- From April, repairs and maintenance to listed churches in England will incur the full 20% VAT, with applications required for any support from the new fund.
- The Department for Culture, Media and Sport says the new scheme was designed after consultations and will provide upfront funding that smaller churches struggled to secure under the rebate model.
- Heritage groups and campaigners argue the fund is less generous and may not meet costs, citing the Church of England’s estimated £120 million VAT liability over the period and warning of added bureaucracy for volunteers.
- Local cases highlight the impact, including a reported £600,000 increase on a Newark-on-Trent roof project and a parish expecting an extra £14,000 in VAT, while Conservatives pledge to restore funding to about £43 million per year and the National Churches Trust warns closures could accelerate.