Listed Places of Worship Grant Scheme: VAT
The question
To ask the Secretary of State for Culture, Media and Sport, what estimate she has made of the potential impact of the VAT implications of the Places of Worship Grant Scheme on historic churches, particularly those providing warm community spaces.
Answered by Ian Murray
The Places of Worship Renewal fund will have a budget of £23 million per year, continuing the 2025/26 funding levels of the previous scheme. The new fund will award grants for total project capital works rather than being restricted solely to the VAT element. By shifting the focus to overall project costs, the scheme ensures that in many instances, the financial support granted to preserve these historic community spaces could exceed the amount currently provided under the VAT-only model.
While an official estimate of the specific impact of VAT implications on those churches that provide warm community spaces has not been calculated, the design of the new Places of Worship Renewal Fund is intended to offer broader support for historic churches than simply rebating VAT, including those churches serving as vital community hubs.
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