Having already managed to shut down at least 50 private schools via VAT, concerns are mounting that the same financial assault will take its toll on the nation’s churches.
Two many years ago Gordon Brown as chancellor introduced the Listed Places of Worship Grant Scheme, which allowed churches and other religious buildings to reclaim VAT on repair bills. Concerns are mounting that Brown’s successor, Rachel Reeves will put an end to the scheme in her upcoming Budget.
The scheme has already been scaled down, throwing many church repair plans into uncertainty. In January it was announced that the scheme could be renewed for an additional 12 months, but this got here with a budget reduction from £42m to £23m and a £25,000 cap on the worth of repairs eligible for the VAT reclaim.
Stephen Cottrell, the Archbishop of York, told The Telegraph that the scheme was a “relatively small investment” that gave significant social returns, beyond simply the restoration of old buildings.
As many as 260 Anglican churches and cathedrals may very well be in danger as a consequence of the uncertainty surrounding the scheme.
Cottrell said, “The overwhelming majority of fundraising for our churches is finished locally by heroic volunteers and we’re deeply grateful for all they do. For greater than 20 years, they’ve relied on the Listed Places of Worship Grant Scheme to present that crucial bit of additional help.
“This is a comparatively small investment by the Government in buildings which are estimated to have an enormous social value.
“We urge the Government to make the scheme everlasting and lift the cap on claims.”
The Rev Marcus Walker, who’s involved with the Save the Parish campaign, said that Reeves could find herself accountable for the collapse of “a whole bunch of listed buildings”.
He said, “Every time a church goes through the large effort of fundraising to repair the material of a listed constructing they’re saving a bit of Britain’s heritage without the Government having to lift a finger.
“The least the Government can do will not be charge us VAT on top.”
Earlier this 12 months, cathedrals raised concerns concerning the VAT cap.
Nerys Watts, chief operating officer of Wells Cathedral, warned that the restriction would have a “really big difference,” adding an estimated £8 million to planned repair costs over the subsequent decade.
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