Chancellor Rachel Reeves has been accused of “cultural vandalism” following the Government’s decision to abolish VAT relief for church repairs.Since April, listed places of worship have been required to pay the full 20 per cent VAT rate on all upkeep.The change follows the Government’s decision to terminate the listed places of worship grant scheme, which had operated for a quarter of a century.Under the previous arrangement, churches and other listed religious buildings could claim grants of up to £25,000 to offset VAT expenses incurred during restoration projects.
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Ministers have introduced a £92million replacement renewal fund spanning four years for places of worship, though it applies solely to sites in England.Crucially, the new fund does not cover VAT costs, meaning every listed religious building undertaking repairs must now absorb the full tax burden.The National Churches Trust estimates that 21,000 historic places of worship, predominantly churches, will be left without financial assistance as a result of the policy shift.Sir Philip Rutnam, who chairs the organisation, argued that the time has arrived to eliminate VAT charges on repairs to historic religious buildings altogether.”Their care depends on local volunteers who are demoralised by seeing 20 per cent of the funds they raise go to the Treasury as VAT,” Sir Philip said.He warned that one in 20 churches already report uncertainty about whether they will survive the next five years, adding that the additional 20 per cent tax obligation “is likely to accelerate closures”.Railing against the changes, Robert Jenrick branded the Chancellor a “cultural vandal”.His remarks came as Reform UK committed to immediately restoring the tax exemption and making it permanent should they win power.LATEST DEVELOPMENTS:Hundreds of balaclava-clad youths descend on Milton Keynes in echo of Clapham chaosShoplifting crime wave to hit shops as ‘tax the rich’ activists plan ‘blatant and despicable’ theftsWaitrose worker of 17 years sacked after stopping shoplifter from stealing Easter eggsMr Jenrick described the situation as particularly “tragic” given that parish churches are falling into disrepair.He contrasted this to the Church of England’s plans to distribute £100million in “reparations” connected to historical involvement in slavery.”Parish churches are one of the pillars of our architectural heritage,” Mr Jenrick wrote in The Telegraph. “They provide a golden thread, running through the history of our communities, connecting the past to the present.”Mr Jenrick highlighted what he called “careless mismanagement” of the nation’s heritage.He noted the perverse situation where demolishing a listed church incurs no cost, whilst maintaining one attracts a 20 per cent levy.Sir Philip welcomed Reform UK’s pledge to restore VAT relief, stating it would help keep churches operational and in active use.Earlier this year, GB News uncovered that the devastating stealth tax could “accelerate” the rate at which British churches crumble into disrepair.A Department for Digital, Culture, Media and Sport spokesman told GB News at the time: “Listed places of worship are important to faith communities and provide a range of hugely valuable services to the wider public.”Many of them are also architecturally and historically significant.”In recognition of this, last year the Government extended the Listed places of worship grant scheme until March 31, 2026.”
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