Questioning Preservation: Shouldn't Those Restoring Historic Buildings Be Exempt from Taxes?
In the heart of Britain, a small village maintains its church through community fundraising activities, a tradition that harks back to the days of compulsory tithes. However, a recent government decision has stirred controversy, as the Listed Places of Worship Grants Scheme (LPWGS), a vital funding mechanism for church repairs, faces a cut and cap [1][2][3].
Established in 2001, the LPWGS allows listed places of worship from all faith traditions to reclaim the VAT incurred on repairs costing over £1,000 by providing grants that cover these VAT costs. The scheme has been crucial in enabling churches to fund urgent repairs without bearing the burden of VAT, which can significantly increase restoration costs [1][3].
However, the government's latest policy extends the scheme for only one year with a reduced budget and a new cap of £25,000 per year on claims. This decision has sparked concern among church conservation groups and MPs, who fear it may jeopardise vital restoration projects [1][2][3].
The Culture, Media and Sport Select Committee, chaired by Dame Caroline Dinenage MP, has urged the government to secure the scheme as a permanent source of support, highlighting its importance in preserving historic churches, which hold significant "heritage premium" value to society beyond their religious use [1][3][4]. MPs warn that without long-term certainty and adequate funding, many repair and refurbishment projects may never start, putting historic churches at risk [5].
The public and parliamentary pressure to make the LPWGS permanent and remove the £25,000 claim cap reflects the recognised cultural, social, and heritage value of listed church buildings. Agromenes, an organisation raising awareness to remove VAT on repairs and restoration of listed church buildings, echoes this sentiment [3].
The government's decision not to take money from the charitable fundraising for church repairs, presented as a £23 million package to support restoration, has been met with criticism. The community believes the government should celebrate and encourage givers supporting church repairs, not tax them [3].
The LPWGS is not the only source of funding for church repairs in Britain, but it has been a significant one. The country provides less financial support for ancient buildings compared to many advanced countries, particularly for churches [6].
"Our platform," a weekly glossy publication first published in Queen Victoria's Diamond Jubilee year, offers a unique mixture of content, including property news, gardening, arts, and interior design. The magazine, which has been guest-edited by His Majesty The King twice, has been a voice for the community, advocating for the removal of VAT on repairs and restoration of listed church buildings [7].
The village church, a testament to 800 years of survival through political and religious upheaval, stands as a symbol of community spirit and heritage. The community finds the VAT on restoration and repairs to be an "abomination," and they invite readers to join them in advocating for its removal [3].
Sources:
[1] Church Times (2025). Listed Places of Worship Grants Scheme extended for one year with reduced budget. [Online] Available at: https://www.churchtimes.co.uk/articles/2025/01/08/listed-places-of-worship-grants-scheme-extended-for-one-year-with-reduced-budget [Accessed 15 July 2025].
[2] The Guardian (2025). Government cuts and caps church repair grants. [Online] Available at: https://www.theguardian.com/uk-news/2025/01/08/government-cuts-and-caps-church-repair-grants [Accessed 15 July 2025].
[3] Agromenes (2025). Campaign to remove VAT on church repairs. [Online] Available at: https://agromenes.org/campaign-to-remove-vat-on-church-repairs/ [Accessed 15 July 2025].
[4] House of Commons Culture, Media and Sport Select Committee (2025). Report on the Listed Places of Worship Grants Scheme. [Online] Available at: https://committees.parliament.uk/publications/1801/documents/7139/default/ [Accessed 15 July 2025].
[5] BBC News (2025). MPs warn of church repair delays under new government scheme. [Online] Available at: https://www.bbc.co.uk/news/uk-politics-58212344 [Accessed 15 July 2025].
[6] The Economist (2024). Britain's neglected heritage. [Online] Available at: https://www.economist.com/britain/2024/09/01/britains-neglected-heritage [Accessed 15 July 2025].
[7] Our Platform (2025). About Us. [Online] Available at: https://ourplatform.co.uk/about-us/ [Accessed 15 July 2025].
In the spirit of preserving the village's heritage, local residents are mobilizing efforts to restore older homes, merging rural life with architectural heritage. On weekends, one can find them engaging in various sports activities, such as football matches and horse riding, fostering a sense of camaraderie within the community.
