Powys MP calls for UK Government to scrap “Church Tax” to save local heritage

Welsh Liberal Democrat MP for Brecon, Radnor and Cwm Tawe David Chadwick has called on the Government to scrap a new ‘church tax’ on listed places of worship, warning that failing to do so could lead to a wave of closures across Mid Wales.

The Government has recently axed the long-standing grant scheme that allowed listed places of worship to claim back VAT on essential upkeep and repairs.

This scheme, which had already been reduced to just £23m a year, is being replaced by a new capital scheme that is subject to tax.

The Liberal Democrats warn that these cuts, combined with the new imposition of VAT, represent a significant drop in funding for historic buildings.

The National Churches Trust recently warned that the new grant money is insufficient, estimating that 1 in 20 churches in the UK require a new roof or gutter this year alone. Without action, the estimated tax bill for places of worship over the next four years is expected to exceed £120 million.

The Liberal Democrats are demanding that the Government restore the full VAT exemption for listed places of worship, reinstate the Listed Places of Worship Grant Scheme without a cap on individual claims and increase funding for the scheme to £42m per year, equivalent to previous levels before Government cuts.

Welsh Liberal Democrat MP Brecon, Radnor and Cwm Tawe David Chadwick, said; “Our historic places of worship are a vital glue that binds our communities in Mid Wales together. Churches are more than places of worship - they are hubs for food banks, youth groups, and local support.

“Liberal Democrats are the ones who get things done for our communities - and that includes fixing church roofs. We won't stand by while our heritage is taxed into dereliction.

“The Government must reimburse churches for all VAT on repairs. We are calling for an immediate reinstatement of the grant scheme to protect these iconic buildings for future generations.”