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Labour slammed for slapping stealth tax on church repairs | UK | News


Waltham St Lawrence church

Churches around the country could ‘crumble’ as a result of the move (Image: Andrew Smith/Creative Commons)

The Government’s plan to impose a stealth tax on repairs to England’s world-class portfolio of historic churches has been slammed as “completely ignorant”. Labour has said churches will have to pay VAT on repairs and maintenance work for the first time in 20 years after axing a grant scheme which was aimed at reducing the financial burden on congregations. The upkeep of the country’s historic religious buildings is paid for almost entirely by parish members, with many forced to generate tens of thousands of pounds through small-scale fundraising including organ concerts and village suppers.

Robert Lyman, 63, a historian and church warden for Waltham St Lawrence in Berkshire, warned that the move will force parishioners to abandon repair projects, causing grade-listed churches around the country to “crumble”. The existing Listed Places of Worship scheme, which the government had already slashed from £43million to £23million, will be replaced by a new £92million pot in the spring, but its crucial provision of 20% VAT relief won’t carry over, sparking fears of extortionate tax bills.

Robert Lyman

Robert Lyman accused the government of ‘ignorance’ about the country’s rural churches (Image: Robert Lyman)

Mr Lyman said: “This is going to leave everyone worse off. It’s the act of an ignorant government not understanding the value of our rural churches and how they’ve survived for so long.”

The Grade-I listed Norman church in his parish needs interior repairs totalling £70,000, and under the upcoming changes, he will have to find an extra £14,000 for the taxman.

“It means that we’re probably not going to go ahead with it, which will cause the church to crumble and the nation to lose out as a consequence,” he told The Express.

“It’s a ridiculous situation. Many church wardens are just getting by on their pensions so I don’t know where they think the money is coming from. The situation we’re in is evidence of twisted priorities from both the government and the Church of England. The focus should be on supporting the people who are keeping these buildings alive.”

Mr Lyman, who served for 20 years in the British Army and has worked in government, also said the bureaucracy of the new funding scheme will be a headache for non-tech literate wardens and heap extra pressure on volunteers committed to preserving their corner of the nation’s history.

“The obligations of looking after a listed building are already onerous,” he added. “We are held to very high standards, and now we are going to be taxed on meeting them. It is an utter absurdity.”

Sir Philip Rutman, chair of the National Churches Trust (NCT) said he was “very concerned” about the existing scheme being scrapped.

“Museums and galleries offering free admission don’t have to pay VAT on repairs, but in future churches will,” he said. “We call on the government to end this unfairness and not expect local volunteers to pay these extra taxes.”

Alison Milbank, a campaigner for grassroots organisation Save the Parish, suggested the government was “giving money with one hand while taking it away with the other”.

“It’s disgraceful to take VAT relief away,” she said. “I think they see us as a soft target. They’re searching around for little bits of money to save, and they think they can do this with impunity.”

Nigel Huddleston, shadow secretary for the Department of Culture, Media and Sport (DCMS), said the £92million fund was preferable to Labour withdrawing funding from churches entirely but questioned the lack of clarity around the new scheme.

“We still don’t know details including basic information such as eligibility criteria, and this continuing uncertainty is causing much-needed repairs and maintenance to be delayed or cancelled,” he added.

“The new scheme is still less generous that what we Conservatives have committed to, and we will continue to hold the government to account and push for more certainty around this vital funding.”

Sir Michael Fabrict, former Tory MP for Litchfield in Staffordshire, also criticised the move. He wrote on X: “This will be a real burden on our ancient monuments where stonework is constantly having to be repaired like Lichfield Cathedral.”

The DCMS has been approached for comment.

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