Historic churches 'may close' if tax relief axed

The 150-year-old St James' Church in New Brighton remains on Historic England’s "at risk" register

Historic churches may have to close if a long-running tax relief scheme designed to bring down the costs of restoration work is scrapped, a vicar has warned.

Under the Listed Places of Worship Grant Scheme, many historic religious buildings have been given funding equivalent to the amount of Value Added Tax - currently 20% - charged on repairs.

While the scheme - which currently provides 20% tax relief - is in place until March, there are fears it could be scrapped in the Budget on 30 October. The government has not commented.

Reverend Heather Atkinson, from Wirral, said the 24-year-old arrangement had "saved thousands of churches" across the country.

Reverend Heather Atkinson says churches are "more than bricks and mortar"

The grant scheme is administered by the Department for Culture, Media and Sport which told the BBC it was a matter for the Treasury, which would not comment on Budget speculation.

Ms Atkinson, from the Grade II-listed St James' Church in New Brighton, said the scheme had been "hugely beneficial".

The 150-year-old building is one of 13,000 places of worship to have benefitted.

In 2016, the church’s spire was completely removed and rebuilt brick by brick in the first phase of extensive restoration work.

The second phase, costing a combined £1m, involved the repairing of stonework, gutters and part of the roof.

While most of the money came from parishioners and Heritage Lottery Fund grants, the work was boosted by the tax break scheme.

In the last decade, St James' Church recouped more than £150,000 in tax.

Fundraising is becoming increasingly difficult, says Rev Atkinson

Ms Atkinson said: “If we do any fundraising ourselves, we might raise £500 or £600 – we could never raise the tens of thousands of pounds of VAT we might be liable to pay on a restoration project of £2m."

Acknowledging that while some some people would not see heritage buildings as a priority for tax relief, said said her church was "priceless... vital community hub" and represented much "more than bricks and mortar".

The vicar said: "We help people in need, we have a foodbank, we are helping people who are struggling with everyday life.

"Part of a church's life is to serve the community.

"We are helping the government because we are helping to feed families."