Churches across England and Wales will crumble into disrepair if Chancellor Rachel Reeves introduces a planned ‘stealth tax’ on the historic buildings, campaigners have said.
Ms Reeves – who has already infuriated farmers, pub landlords and most of the business community with her policies – has now angered vicars by declaring that from April, churches will no longer be exempt from paying VAT on repairs.
When she became Chancellor in 2024, Ms Reeves reversed Tory policy which allowed churches to offset all VAT payable on repair bills by capping the allowance at £25,000 a year. Now she is removing the tax break in its entirety.
According to the National Churches Trust, which is leading the campaign to save the almost 1000 churches, chapels and cathedrals in England and Wales in urgent need of repairs, churches provided £55 billion worth of ‘social benefit’ to the UK annually.
It says that the Treasury’s own calculations say that for every £1 invested in churches, over £16 is returned to local communities.
Sir Philip Rutnam, Chair of the Trust said: ‘These statistics should be an alarm bell for the Government – now is the moment to act to save these important buildings before they fall even more into disrepair.
‘Once these buildings are gone, they are gone forever. There is no second chance to rescue them.’
Meanwhile, the Prime Minister’s local church has been quietly rescued with hundreds of thousands of pounds of public money. St Mary’s Somers Town, which is in Starmer’s constiuency, received £639,000 from the Government for its repairs.
The 500-year-old St Mary’s church in Totnes, Devon, is one church which is facing slow decay and at risk of collapse
Ms Reeves – who has already infuriated farmers, pub landlords and most of the business community with her policies – has now angered vicars by declaring that from April, churches will no longer be exempt from paying VATon repairs. Pictured: St Illtud’s Church, Llantwit Major
According to the National Churches Trust, which is leading the campaign to save the almost 1000 churches, chapels and cathedrals in England and Wales in urgent need of repairs, churches provided £55 billion worth of ‘social benefit’ to the UK annually. Pictured: St Illtud’s Church, Llantwit Major
Calling for him to reverse the ‘church tax’, Tory MP Saqib Bhatti said: ‘The Christmas period is an important reminder of the role churches play in our communities.
‘They are custodians of our heritage and are important places of sanctuary for people of all faiths and none.
‘That’s why Labour’s cut to the Listed Places of Worship Grant Scheme is so damaging.
‘I once more call on the Prime Minister to do the right thing and reverse this despicable church tax and restore the Listed Places of Worship Grant Scheme.
‘We must save our churches.’
The 500-year-old St Mary’s church in Totnes, Devon, is one church which is facing slow decay and at risk of collapse. It has an ancient stained-glass window and 19th century organ.
Over decades, locals raised the £1.4 million required to pay for urgent repairs. But changes to the scheme made last year leave them with a £130,000 shortfall.
‘This was a big knock for us. The project has been over 15 years in the planning and has already been through major restructuring’, explains Father Jim Barlow, Rector at St Mary’s.
Over decades, locals raised the £1.4 million required to pay for urgent repairs of the 500-year-old St Mary’s church in Totnes, Devon
‘Given that we have already been supported by nearly all the major funders for church heritage projects, it has been a real struggle to find these extra funds.
‘ This is really disheartening for those who have worked so hard and for the local community.’
One of the oldest churches in Wales, St Illtud in Glamorgan, is also in urgent need of repair. It dates back to 500AD, with bits of the current building hailing back to the 11th century.
However, water is now coming in through the roof and walls, creating significant damp issues and damaging the ancient structure and interior.
The church stands on the site of a Celtic monastery founded by St Illtud about 500 AD, the old-est centre of learning in Britain.
Buckets are having to be placed in the aisles to collect the wa-ter dripping in.
Its repairs will cost around £500,000, but the church may need to find an extra £100,000 with-out the government’s scheme in place – leaving the church ‘in limbo’.
A DCMS spokesperson said: ‘Listed places of worship serve as vital community hubs for faith communities whilst providing valuable services to the wider public.
‘Many are buildings of exceptional architectural and historical significance that form an integral part of our national heritage.’
