- Stuart Anderson MP has welcomed restored funding for church conservation projects.
- It comes after the government slashed funding in January 2025.
- However, full details have not yet been published.
Stuart Anderson MP has welcomed restored funding for church conservation projects, after the government slashed funding for a key support scheme in January 2025.
Under the last government, the annual budget was maintained at £43 million. In January 2025, the government slashed the scheme's annual budget to £23 million.
At the same time, a cap of £25,000 was imposed on how much could be claimed. Stuart said that this imposed an effective ‘Worship Tax’ on local communities, which undermined confidence in the scheme.
The Government has now confirmed a new £92 million Places of Worship Renewal Fund. This will have an annual budget of £23 million, starting in 2026/27. It will run until 2029/30, targeted at places of most need.
The funding is part of a £230 million investment to protect and preserve heritage buildings. However, full details including specific requirements and application guidance have not yet been published.
Moreover, Labour has still not changed their choice to end VAT relief on Listed Places of Worship. Combined with last year’s decision to extend the scheme for only twelve months, Stuart said the cap and funding cut stalled progress on projects that could have significantly improved access and facilities.
Over the last fifteen years, the Listed Places of Worship Scheme (LPWS) invested over £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 handled around seven thousand claims a year for projects that repair the roofs, masonry, and monuments that are integral to these buildings.
While seven in ten pounds spent on conservation efforts comes from local fundraising, Stuart said that the scheme has been a "vital lifeline" for many churches where work is mostly organised by teams of volunteers.
Ahead of the Autumn Budget, Stuart had urged the Chancellor Rachel Reeves to scrap the cap and restore the full annual budget. Stuart has said that the failure to do so has needlessly inflicted uncertainty on communities.
In December, Shadow Culture Secretary Nigel Huddleston announced that the next Conservative Government would fully restore funding for the scheme and abolish the cap on claims.
Stuart has said he is glad the government has changed course. However, he has added that the government should place the grant scheme on a permanent footing.
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. In Shropshire, tourism has raised over £200 million since 2021.
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.
Stuart Anderson MP said:
"As a Christian, I know only too well the vital role that places of worship play in providing spiritual leadership. Last year, the government tragically cut the budget for church conservation projects in half. At the same time, it imposed a cap on how much could be claimed. Combined with last year’s decision to extend the scheme for only twelve months, this stalled progress on projects that could have significantly improved access and facilities. It was heartbreaking to see churches consider their future when they play such a pivotal role in supporting our rural communities. I am glad that the government has now confirmed a new £92 million Places of Worship Renewal Fund. However, full details including specific requirements and application guidance have not yet been published. Churches require the confidence of ongoing financial support to underpin their long-term sustainability. So, the government should make the scheme permanent."
