Urgent – VAT relief scheme for church conservation projects may be at risk

A 25-year VAT relief scheme to help churches fund repairs and conservation work is under threat, it has emerged.

The LPWGS (Listed Places of Worship Grant Scheme) enables the VAT on conservation work to be reclaimed, which has been invaluable in recent years.
Ironically, the scheme, which was the brainchild of former Labour Prime Minister Gordon Brown as Chancellor in 2001, could now end from March 2025 if the new Government scraps it.
A very tight deadline for comments has been set – by noon on Friday, September 13. Comments may be sent to at enquiries@dcms.gov.uk. It is suggested that it is marked for the attention of the Secretary of State (re LPWGS). It may make sense to write to your local MP especially if you know of a church, which is planning repair/ conservation projects next year.
The Society, which highlighted its concern when the last Government was considering ending the relief three years ago, was delighted to hear that the concession had been extended to March 2025.

However, as raising funds and then carrying out significant repair work to listed churches can take several years, the conservation sector needs to have certainty to undertake large projects.
In a letter to the Secretary of State, Lisa Nandy MP, it has been pointed out that one very major project at Forncett St Peter in south Norfolk could be potentially at risk It has taken 11 years for a hard-working group to raise funds locally, secure grants from charities and then finally, a major investment from the Heritage Lottery Fund to deliver this ambitious £600,000 project.

The plans would transform the church into a major community asset. But the churchwardens could face a potential extra (unfunded) bill for more than £93,000 in VAT if the scheme ends next March.
The church of St Nicholas, South Ockendon – one of seven round tower churches in Essex – is hopeful of securing almost £300,000 from the Heritage Lottery Fund for urgent repairs. Again, if the LPWGS ends, that would increase costs by a massive amount and put further pressure on a friendly community church. The Society made its largest single grant in October last year of £7,500 to help secure the tower, which was at risk of collapse.
Only last weekend, when almost a tenth of the Society’s 500-strong membership visited St Lawrence, Ingworth, near Aylsham, the visitors were briefed about the plans to re-thatch the nave, chancel, tower and porch. As members could see, the state of the thatch on the tower and porch was very poor. It is hoped that this thatch could be replaced before winter to protect the church from the elements.
It has taken many years to raise funds to pay for the £40,000 cost of re-thatching Ingworth’s nave and chancel – also in pressing need of replacement. The thatcher could begin work next spring or early summer but if the VAT-relief scheme is scrapped, then a further £8,000 could be needed. For a small community, this is a large amount of extra funding to be found. Incidentally, the Society awarded £5,000 towards the repairs and the Norfolk Churches Trust £10,000.
To date, the Society has pledged £51,000 in grants to 14 churches for future repairs. In the past three months alone, it has paid £12,000 to five churches, which have completed repairs. Incidentally, the Norfolk Churches Trust at March 31 had £289,000 in outstanding grants to 32 churches for planned, future repairs and conservation work. Again, obviously, loss of VAT relief would be a serious blow and likely jeopardise vital conservation work.
The LPWGS represents remarkably good value as been proved over the past quarter of a century. Let’s hope that the new Labour Government will honour that original decision announced by Chancellor Gordon Brown in the 2001 Budget.
The Department of Culture, Media and Sport, headed by Secretary of State, the Rt Hon Lisa Nandy MP, is based at 100, Parliament Street, London SW1A 2BG. Email – enquiries@dcms.gov.uk