We, the undersigned, call upon the Government to urgently reconsider the proposed changes to VAT arrangements for religious and heritage buildings, and to reinstate sustainable funding mechanisms that protect our historic places of worship.
Background
For the past twenty years, the Listed Places of Worship Scheme has played a vital role in safeguarding the United Kingdom’s religious and historic buildings. By allowing listed churches, chapels and other sacred sites to reclaim VAT on essential repairs, the scheme has enabled communities to preserve buildings of immense architectural, cultural, and spiritual significance.
This scheme is now due to end on 31 March, with no continuation of the previous grant structure. Its replacement—a £92 million fund spread over four years—falls dramatically short of what is required. Current estimates place repair needs for parish churches alone at approximately £150 million, with expected VAT liabilities of at least £120 million over the same period. The proposed funding therefore creates an immediate shortfall.
Reasons for Opposition
1. Closures of Places of Worship
The National Churches Trust has cautioned that the new VAT burden risks accelerating closures nationwide. Over the past decade, more than 3,500 religious sites have already closed, with an estimated 2,000 more expected to shut within the next five years. The additional financial pressure may push many irreplaceable buildings beyond rescue.
2. Threat to National Heritage
Heritage groups have warned that ending VAT relief will place some of the nation’s oldest and most precious buildings at serious risk of decline. Many religious sites date back centuries and require continuous, specialist maintenance far beyond the financial capacity of local congregations.
3. Unsustainable Financial Burden on Communities
Religious buildings serve as vital community hubs—hosting food banks, warm spaces, youth programmes, local events, and pastoral support. Shifting VAT obligations onto congregations and volunteers, many of whom already shoulder significant fundraising responsibilities, is neither fair nor viable.
4. Inadequacy of the Replacement Fund
The proposed £92 million over four years does not match the real cost of the VAT now imposed. Rather than bridging the gap, it leaves communities facing substantial deficits and forces difficult decisions about repair delays, reduced services, or permanent closure.
Our Request
We respectfully urge the Government to:
- Reinstate full VAT relief on repairs and maintenance for listed places of worship.
- Restore or replace the Listed Places of Worship Grant Scheme with a programme that accurately reflects the true cost of preserving historic religious buildings.
- Engage with heritage organisations, faith groups, and local communities to design a long‑term, sustainable approach to funding conservation and upkeep.
- Recognise the cultural, historical, and community value of these buildings and take urgent action to prevent avoidable loss.
Conclusion
The United Kingdom’s places of worship are not only centres of faith—they are cornerstones of national heritage, guardians of community life, and symbols of shared history. Allowing them to fall into disrepair would be a profound loss for generations to come.
We therefore call upon the Government to reconsider the proposed VAT changes and to protect these irreplaceable buildings before it is too late.