UK church heritage at risk as VAT relief scheme ends

Heritage experts are expressing concern over the UK government's recent choice to terminate the Listed Places of Worship Grant Scheme, which has left invaluable church artworks at risk. For 25 years, this initiative enabled listed worship sites to reclaim VAT on repairs, eliminating a 20% surcharge. With the scheme's conclusion, churches will now face these costs, often amounting to tens of thousands of pounds. Planned projects relying on VAT relief are being postponed, reassessed, or scrapped. Claire Walker, CEO of the National Churches Trust, highlights that 21,000 churches are suddenly liable for VAT expenses. The £95,000 repointing project at St Cuthbert's Church in Cumbria may be delayed due to an additional £19,000 VAT. Similarly, urgent restoration of Phoebe Anna Traquair's 1905 murals at St Peter's Church in Retford, Nottinghamshire, will require an extra £50,000. The government has introduced a new Places of Worship Renewal Fund, allocating £23 million annually for four years, a decrease from £42 million in 2024/25, and applicable only in England. Historic England will manage the program, although detailed guidance is still awaited. Heritage organizations contend that the policy is inconsistent, as museums with free entry can reclaim VAT, while churches are excluded.