A Devon MP is calling on the government to scrap a new ‘church tax’ that he says could lead to a wave of closures across the county.
The government has recently axed a long-standing grant scheme which allowed listed places of worship to claim back VAT on essential upkeep and repairs.
In place of the scheme, which had already been reduced to just £23million a year nationwide, will be a new capital scheme that is subject to tax.
Newton Abbot’s Liberal Democrat MP Martin Wrigley said the cuts and the imposition of VAT would mean a significant drop in funding for historic buildings. In Devon, he said, local landmarks could face mounting bills for basic maintenance.
“Our historic places of worship are a vital glue that binds our communities in Devon together,” he said. “Churches are more than places of worship – they are hubs for food banks, youth groups and local support.”
The National Churches Trust recently warned that the new grant money is insufficient, estimating that one in 20 churches in the UK require a new roof or gutter this year alone. Without action, the estimated tax bill for places of worship over the next four years is expected to exceed £120million.
Liberal Democrat MPs say the government must restore the full VAT exemption for listed places of worship and reinstate the Listed Places of Worship Grant Scheme without a cap on individual claims.
In addition, they want the government to increase funding for the scheme to £42million per year, equivalent to previous levels before government cuts.
Mr Wrigley went on: “We won’t stand by while our heritage is taxed into dereliction.
“The government must reimburse churches for all VAT on repairs. We are calling for an immediate reinstatement of the grant scheme to protect these iconic buildings for future generations.”
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