The government’s controversial decision to replace the Listed Places of Worship Grant Scheme (LPWGS) with the Places of Worship Renewal Fund (PWRF) places not only historic buildings at risk, but the precious and often irreplaceable artworks contained within them, the head 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 nearly halve its budget before replacing it entirely with the PWRF.
While historic churches are able to apply for grants under the PWRF, the total funding available remains at the reduced budget introduced by the current 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 cost of repairs, considerably increasing costs, some to the point where the repairs are no longer affordable.
Speaking to The Art Newspaper, Claire Walker, CEO of the NCT, said the policy change could have devastating effects on the upkeep of churches and the preservation of art within them.
“Priceless wall paintings, stained glass, monuments, woodwork and carvings - centuries of history and unique craftsmanship - could be damaged beyond repair and lost forever, all because of this new 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 a higher standard when churches could claim back all their VAT costs."
She added, "In ending the scheme, we now face the risk of delayed repairs, substandard materials or repairs not going ahead at all. This puts the buildings at risk - but also the important heritage inside.”
Indeed, some churches are already suffering the consequences. One such is St Cuthbert’s Church in Cumbria, which recently embarked on a £95,000 project to restore the Peel Tower. By imposing VAT, the viability of the project is now in doubt, as the church needs to raise an additional £19,000.
According to The Art Newspaper, St Cuthbert’s is a rural parish church with a regular congregation of just 15 people. It is highly likely that the work will not proceed.
The Conservatives, Reform UK and the Liberal Democrats have all said that the LPWGS should 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 urban communities that rely on them as cultural anchors”.
