VAT raid is putting historic church art in danger

The government’s controversial decision to switch the Listed Places of Worship Grant Scheme (LPWGS) with the Places of Worship Renewal Fund (PWRF) places not only historic buildings in danger, but the valuable and infrequently irreplaceable artworks contained inside them, the top of the National Churches Trust (NCT) has warned.

The LPWGS was first instituted by Gordon Brown during his time as Chancellor. Under the scheme historic churches were exempt from paying VAT on repair work. The Starmer government decided to just about halve its budget before replacing it entirely with the PWRF.

While historic churches are in a position to apply for grants under the PWRF, the entire funding available stays on the reduced budget introduced by the present government, and only applies to places of worship in England.

Crucially, it does away with the VAT exemption that historic churches used to enjoy on the fee of repairs, considerably increasing costs, some to the purpose where the repairs are not any longer inexpensive.

Speaking to The Art Newspaper, Claire Walker, CEO of the NCT, said the policy change could have devastating effects on the maintenance of churches and the preservation of art inside them.

“Priceless wall paintings, stained glass, monuments, woodwork and carvings – centuries of history and unique craftsmanship – might be damaged beyond repair and lost eternally, all for this reason latest tax,” she said. 

“The Government Review of the Listed Places of Worship Grant Scheme found that repairs were carried out two years faster and to the next standard when churches could claim back all their VAT costs.” 

She added, “In ending the scheme, we now face the danger of delayed repairs, substandard materials or repairs not going ahead in any respect. This puts the buildings in danger – but additionally the essential heritage inside.”

Indeed, some churches are already suffering the results. One such is St Cuthbert’s Church in Cumbria, which recently launched into a £95,000 project to revive the Peel Tower. By imposing VAT, the viability of the project is now unsure, because the church needs to lift a further £19,000.

According to The Art Newspaper, St Cuthbert’s is a rural parish church with a daily congregation of just 15 people. It is very likely that the work won’t proceed.

The Conservatives, Reform UK and the Liberal Democrats have all said that the LPWGS must be reinstated.

Meanwhile, Restore Britain has called for a “National Churches & Christian Heritage Restoration Fund”, that “would preserve historic church buildings, protect architectural landmarks, and support rural and concrete communities that depend on them as cultural anchors”.