Churches warn repairs are at risk after tax change

14 hours ago

Crispin Rolfe

News image — The Rev Sue Pulko says the loss of VAT relief has made life more difficult

BBC A woman wearing a clerical collar sits in a wooden church pew, looking towards the camera. The Reverend Sue Pulko is wearing a patterned scarf and a dark jacket. Behind her is the interior of a historic church, with carved wooden pews, stone walls and an altar. — The Rev Sue Pulko says the loss of VAT relief has made life more difficult

Parish churches may struggle to afford essential repair work, following the closure of a government grant scheme, church leaders have warned.

The Listed Places of Worship Grant Scheme, which allowed VAT to be recovered on repairs, closed at the end of March, meaning churches now have to pay the standard 20% tax.

The government said funding is due to be available through its newly announced £92 million Places of Worship Renewal Fund.

But the Reverend Sue Pulko, vicar of the 12th Century St Augustine's Parish Church in Hedon, East Yorkshire, said: "There's likely to be less money, and we feel we'll probably be in competition with other churches, which is going to make life much more difficult."

An aerial view shows a large historic stone church with a tall central tower, set within a graveyard and surrounded by residential streets. Rows of houses and tree‑lined roads extend around St Augustine's church. — St Augustine's, in Hedon, requires more than £3m of repairs, according to officials

Known locally as the "King of Holderness", the Grade I listed church requires urgent repairs, including to the roof.

"St Augustine's is a church the size of a cathedral, in a town the size of a village," Pulko said.

"That means our maintenance is extremely expensive, and over the years we've developed a need for a vast amount of repair work.

"To do what is reasonably considered urgent is going to be over £3m, and under the Listed Places of Worship scheme we could have reclaimed some of that money."

A woman stands inside a church, facing the camera, wearing glasses and a padded purple jacket. Behind her are helpers and prduce for St Augustine's food bank. There are stained‑glass windows, stone columns and wooden pews visible in the background. — Susan Overvoorde helps run St Augustine's weekly food bank

Church leaders say moving to alternative funding routes can be complicated and time‑consuming, particularly for volunteer‑run parishes managing historic buildings.

They argue the issue is not just about preserving historic buildings, but about protecting the wider role churches play in their communities.

Susan Overvoorde helps run a food bank at St Augustine's.

"I'm very concerned about the extra cost when churches already struggle to raise the money to repair their buildings," she said.

"Now, with all the extra VAT, it's just going to make it impossible."

Parishioner Antony Wilkinson added: "When you're dealing with a building of this size, you never get small change.

"It's not like a house – you can't do something for £100. Everything runs into the thousands.

He said many people were unaware that churches were not funded by the government.

"There's a small group of people who turn up week after week holding places like this together," he said.

A man wearing black clerical clothing with red buttons stands inside a historic church, facing the camera. The Rev Canon Stuart Craddock is wearing round glasses and a clerical collar. Behind him are stone walls, wooden furnishings and stained‑glass windows, with daylight filtering through and illuminating the inside of St Wulfram's Church. — The Reverend Canon Stuart Craddock says churches rely on volunteers

In Grantham, St Wulfram's Church – whose spire dominates the townscape – is facing major repair costs of its own.

The Reverend Canon Stuart Craddock said three historic, stained‑glass windows in the lady chapel were in urgent need of restoration, at an estimated cost of around £250,000.

"With the reclamation scheme now stopped, it means that for this single project we've got to raise an additional £50,000," he said.

He warned that rural communities in particular could struggle to absorb the extra cost.

"Churches across the country depend on volunteer time," Craddock added.

"Here, we're fortunate to have a strong network, but I worry about rural communities caring for medieval and Victorian buildings and whether they have the resources to raise that extra money."

A large historic stone church with a tall spire stands behind a graveyard, viewed through an open gate. The church is framed by leafy trees under a clear blue sky, with gravestones and a paved path visible in the foreground leading towards the building. — St Wulfram's Church is a major landmark in Grantham.

Church bodies have previously warned that the end of the VAT refund scheme would make repairs significantly more expensive, while its replacement – the Places of Worship Renewal Fund – does not offer the same level of certainty for long‑term planning.

Emily Gee, the Church of England's director for cathedral and church buildings, said the end of the VAT scheme had increased pressure on local fundraisers.

"We have been continuing to work with the wider sector and the government to see how that burden can be alleviated," she said.

Grants for minor repairs and improvements were available from national church funds such as the Buildings for Mission programme.

"We look forward to hearing the details of the Government's new £92m Places of Worship Renewal Fund, which will be open to the Church of England's 12,500 listed church buildings," she added.

"We encourage churches that might seek to make an application to be prepared for the opening of the grant scheme and keep an eye on website, which is administered by Historic England."

The Department for Culture, Media and Sport said it supported listed places of worship through its heritage funding schemes.

The department added that the National Lottery is expected to have invested around £100m in places of worship between 2024-27.

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