Bishop Martin Gorick, Bishop of Dudley and Acting Bishop of Worcester, is calling for the Listed Places of Worship Grant Scheme to be extended past the current deadline of March 2025.

He has written to local MPs setting out the difference that the scheme makes to churches across Worcestershire and Dudley. 

Since 2001, the Scheme has meant that faith communities can reclaim the full amount of VAT spend on eligible repairs, alterations and additions to their listed places of worship. In our diocese, this scheme supports over 200 listed church buildings and has enabled additional vital repair work on roofs and stonework, improvements to facilities such as kitchens and toilets, and allowed churches to improve the thermal performance of buildings.

At present the scheme is due to close on 31 March, which would be devastating for the historic buildings, local communities and the heritage construction sector.

Bishop Martin said: “The heritage represented by church buildings is not just the Church of England’s, it is everybody’s.  

"Although the listed churches of the Church of England amount to around 4% of listed buildings generally, 45% of Grade I listed buildings in England are parish churches.

"These buildings are loved by their communities, but – in the most part – are cared for by volunteers, diligently raising funds for the repair of the church building that has shaped the life of the village for centuries.  

"The potential loss of the LPWS in these places – where they may claim only a few thousand pounds a year – will determine how much maintenance and repair can take place and, at worst, could be the difference between being solvent or not.

"The irony to this discussion is that new build works are exempt from VAT.”

Projects in the Diocese which have or will benefit from the LPWGS include:

• St John’s Church in Bromsgrove, where a £80,000 VAT bill could put a £430,000 project to make the spire safe in jeopardy.
• Top Church in Dudley, where reclaiming £132,498 of VAT meant that funding from the Heritage Fund and the Church of England could be as effective as possible and save this iconic church from closure.
• Grade II* listed St Anne’s Church in Bewdley, which is in the process of having its stonework cleaned with support from funding from the Shared Prosperity Fund after being subject to decades of soot and fumes. If the plug is pulled on the ability to reclaim VAT then this project will be in limbo.

Other major works of restoration and development planned at churches such as Alvechurch, Mamble, Stourbridge and Old Hill, plus a potential £6m restoration and redevelopment project at Great Malvern Priory.

Bishop Martin added: “It is not just heritage that is at risk if the Scheme lapses. Churches and other places of worship are home to so much social enterprise and action.

"The Church of England churches support over 35,000 social action projects such as foodbanks, community larders and debt, drug, alcohol advice and rehabilitation groups.

"In these recent years of energy price rises, churches have acted as warm spaces, and in times of weather events act as gathering points for safety and hospitality as communities seek refuge from flooding.  

"The National Churches Trust’s House of Good report (2021) states that every £1 invested in a church building brings £16 of benefit to communities: an investment in our churches is low spend yet high yield and benefitting to many communities across the nation.”