URGENT UPDATE: Campaigners are sounding alarm bells as churches across England and Wales could face a devastating decline if Chancellor Rachel Reeves implements a proposed ‘stealth tax’ on historic buildings starting in April 2025. This alarming policy change has already drawn ire from various sectors, but now it threatens to crumble the very foundations of community heritage.
In a shocking reversal of previous policies, Ms. Reeves will eliminate the longstanding VAT exemption on church repairs, a move that advocates say will jeopardize nearly 1,000 churches, chapels, and cathedrals in urgent need of repair. According to the National Churches Trust, these religious institutions contribute an astonishing £55 billion annually in social benefits to the UK.
The stakes couldn’t be higher. Chair of the Trust, Sir Philip Rutnam, warns, “These statistics should be an alarm bell for the Government – now is the moment to act to save these important buildings before they fall even more into disrepair. Once these buildings are gone, they are gone forever.”
Among those at risk is St Mary’s Church in Totnes, Devon, a 500-year-old landmark facing slow decay. Locals have raised £1.4 million over 15 years for urgent repairs but now face a £130,000 funding shortfall due to the tax changes. “This was a big knock for us,” said Father Jim Barlow, Rector at St Mary’s. “It has been a struggle to find these extra funds.”
Similarly, St Illtud’s Church in Glamorgan, one of the oldest churches in Wales dating back to 500 AD, is also in dire need of repairs. Water damage has created significant damp issues, and the church requires approximately £500,000 for restoration. Without the government support previously available, they may need to find an additional £100,000, leaving the community “in limbo.”
Opposition MPs are rallying against this proposed tax. Saqib Bhatti, a Conservative MP, emphasized the importance of churches as “custodians of our heritage” and called for the Prime Minister to reverse what he termed a “despicable church tax.” He added, “The Christmas period is an important reminder of the role churches play in our communities.”
In a stark contrast, St Mary’s Church in the Prime Minister’s constituency recently received £639,000 in public funds for repairs, highlighting a growing disparity in support for religious institutions across the nation.
As the situation develops, advocates urge immediate action to prevent these vital community hubs from crumbling into disrepair. The National Churches Trust continues to campaign for the preservation of these historic sites, emphasizing their role as integral parts of the UK’s cultural fabric.
What’s Next: The government’s decision on this proposed tax will be closely watched. Communities and religious leaders are mobilizing to pressure policymakers to reconsider, making this an urgent issue for citizens across the UK. The future of numerous cherished buildings hangs in the balance, and the time to act is now.
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