Church could be eyesore after VAT change - priest

The project in York includes stonework repairs and replacing the roof of the church

A priest has called on the government to rethink a change to tax laws which he fears could mean the multimillion-pound repair project on his church is left as an "eyesore".

The Rev Andy Baker, interim priest at St Michael Le Belfrey, said he feared the £8.5m project to restore the York church to former glory could end up unfinished.

A government grant scheme which would have meant they could have recouped £1.4m in VAT was changed to mean places of worship can only claim up to £25,000 annually.

A Department for Culture, Media and Sport (DCMS) spokesperson said in January the government had extended the amended grant scheme until 31 March 2026.

Project manager Gillian Shepherd says the VAT cap could mean scaling back the refurbishment at St Michael Le Belfrey

Mr Baker said city MP Rachael Maskell had put forward a Parliamentary proposal to halt the changes relating to works which were already taking place.

"So far DCMS has shown no sign in reversing their decision that could potentially leave an unfinished building eyesore in the historic heart of York," he added.

Project manager for the works, Gillian Shepherd, said the renovations had been under way since 2024.

"We want it to be wind and watertight," she said.

The renovation includes stonework repairs and cleaning, replacing the roof and adding insulation.

So far, money from donations and a small number of grants have funded the project.

"The worst case scenario, you could end up with an unfinished building site in York but that's not what anybody wants," Ms Shepherd said.

Renovation works started on St Michael Le Belfrey in 2024

"We might end up having to make significant reductions to the project and the hope of welcoming people in to talk about the Christian faith and doing the social transformation programme could be scaled right down.

"We hoped to reclaim £1.4m, so that leaves us with an enormous hole and a very short notice period to find the money," she added.

The church has offered a template for people to write to their local MP.

A spokesperson from the DCMS said the changes took place against a "tough financial background" and "competing priorities" within the department.

Ninety-four percent of claims were expected to be unaffected by the change, they added.

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