The government has introduced a new cap on the amount of VAT that listed cathedrals and other places of worship can claim, a move that has been described as transforming an "incredibly challenging" situation into an "almost unachievable" one, according to a cathedral official.
Under the revised scheme, listed places of worship will now be limited to claiming up to £25,000 in VAT per year on repairs, effective until the end of March 2026.
While government data suggests that 94% of claims will remain unaffected by the change, cathedral leaders argue that the cap will have significant financial repercussions for major restoration projects.
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 next decade.
The cathedral is preparing for a full-scale restoration of its century-old lead roofs, a project that Watts emphasised will require "a lot of money", the BBC reports.
Tessa Munt, MP for Wells and Mendip Hills, voiced her support for extending the scheme until March 2026 but expressed concern over the financial strain the VAT cap could impose on religious institutions.
She highlighted the high daily operational costs of cathedrals, describing them as "very beautiful places" that require substantial funding to maintain.
"Taking the VAT out of the bill by allowing people to claim it back would be very significant," Munt stated. "It’s going to mean a lot for some of our cathedrals across the country."
She has urged the government to show "leniency" at the end of March 2026, enabling those who have completed the works to claim the VAT beyond that date.
The future of the scheme beyond March 2026 remains uncertain, leaving many concerned about the financial feasibility of preserving these historic places of worship.
A spokesperson for the Department for Culture, Media, and Sport acknowledged the role of listed places of worship in providing a range of public services and welcoming people of all faiths and backgrounds.
"Many of them are architecturally and historically significant," the spokesperson said.
Watts echoed this sentiment, emphasising the importance of preserving historic buildings.
"Historic buildings like these and historic churches are very expensive to maintain and look after," she said.
“We don’t want to lose them. So not having to pay VAT and saving that 20% has been significant."
She added, "They [the buildings] have extensive repair needs, and they’re a key part of our nation’s heritage that we want to pass on to future generations."
