Stuart Anderson MP has said the Chancellor Rachel Reeves must use her Spring Statement to scrap the Worship Tax it has imposed on church congregations.
Stuart Anderson MP said:
"As a Christian, I know only too well the vital role that places of worship play in providing spiritual leadership. Churches require the confidence of ongoing financial support to underpin their long-term sustainability. After Labour slashed the budget for the Listed Places of Worship Grant Scheme in half, funding has dried up six weeks before it is due to end. The National Churches Trust has said that this leaves potentially hundreds of churches in the lurch until details of the new scheme are announced. Even then, I am worried that this will be the first time in more than decades that VAT will be imposed on church conservation projects, despite over one thousand places of worship being listed on the 'at risk' register. The Conservative Party would fully the restore funding to pre-Labour levels and abolish the cap on claims."
Over the last fifteen years, the Listed Places of Worship Scheme (LPWS) has invested more than £400 million to help hundreds of registered charities and faith groups with the cost of VAT on essential conservation projects. Applicable to all faiths and denominations, the scheme handles around seven thousand claims a year for projects that repair the roofs, masonry, and monuments that are integral to these buildings.
Under the last government, the annual budget was maintained at £43 million. In January 2025, however, the government slashed the scheme's annual budget from £42 million to £23 million. At the same time, a cap of £25,000 was imposed on how much could be claimed. The Department for Culture, Media and Sport has now said that the scheme has closed to new applicants after reaching its maximum budget of £23 million.
In January 2025, the government announced £92 million to invest in church conservation projects over the next four years. This represents £23 million a year, whereas the previous scheme had stood at £42 million under the Conservatives. The government has not yet published details of how the new scheme would work. However, campaigners worry that this will be the first time in more than decades that VAT will be imposed on church conservation projects. This will mean churches are forced to take on 20 per cent of repair costs, despite over one thousand places of worship being listed on the 'at risk' register.
The National Churches Conservation Fund has said that 2,000 churches could close in the next five years, after 500 closed last year alone. Stuart has added that this imposes an effective ‘Worship Tax.’ While seven in ten pounds spent on conservation efforts comes from local fundraising, Stuart has said that the scheme has been a "vital lifeline" for many churches where work is mostly organised by teams of volunteers.
In a move welcomed by Stuart, Shadow Culture Secretary Nigel Huddleston has announced that the next Conservative Government would fully restore funding for the scheme and abolish the cap on claims. Stuart has said that this would give places of worship the certainty they need to protect cultural heritage, support jobs in the rural economy, and continue serving their local communities.
It comes as Historic England’s latest Heritage at Risk Register reveals almost a thousand of them are at risk of being lost due to neglect or decay. In South Shropshire, this includes 20 historic chapels and churches. A survey from the National Churches Trust has found that two in five churches are at risk of closure – with one in three churches using their reserves to cover basic costs. The survey of more than 3,600 churches has found that those in rural areas – like South Shropshire – are most at risk of being lost. Often, rural churches double up as community support hubs, hosting tens of thousands of local projects including food banks, mental health support, and debt advice.
Activities delivered by them help to save the NHS £8.4 billion each year – the equivalent of employing an extra 230,000 nurses. For every £1 invested in a church building, £16 of social good is generated. These heritage sites also underpin rural tourism. They serve as major tourist attractions, contributing millions to the rural economy each year.
Stuart has said that these projects have great potential to boost heritage craft skills and the availability of apprenticeships in rural areas like South Shropshire. In doing so, they can help to close the rural productivity gap which recognises that productivity, earnings, and ease of access to skills and training are all lower in rural areas than urban ones. Stuart has added that closing these gaps would add billions of pounds to the economy each year, unleashing rural prosperity.
