The Church of England has said the government slashing funding available for listed places of worship repairs will only provide “temporary relief” and is concerned about a cap affecting larger projects.
Heritage minister Sir Chris Bryant, a former Anglican priest, announced the Listed Places of Worship Grant Scheme will receive £23m for 2025/26 compared with £42m available this year.
A cap of £25,000 per building each year will also be introduced for the first time in 24 years “in order to meet the budget”.
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The scheme provides grants to cover the 20% VAT paid on repairs and renovations over £1,000 to thousands of listed sites of worship, including churches, synagogues, mosques and temples.
It was introduced by Gordon Brown in 2001 and has been renewed by every government since then, with funding often guaranteed for several years.
Nearly £350m has been awarded since then to ensure the buildings, which often host community activities and are of historical and cultural significance, do not fall into disrepair.
There was concern the Labour government was not going to renew the scheme when the current commitment ends in March, but Sir Chris confirmed it will continue.
However, he did not confirm if the scheme will continue beyond March 2026, which churches have said will make it difficult to plan for repairs.
‘Temporary relief’ and ‘challenges’
The Church of England welcomed the renewal but raised concerns larger projects would be affected by the cap and funding is only guaranteed for another year.
The Heritage Alliance, which represents heritage organisations such as English Heritage and the National Trust, raised the same concerns.
The Bishop of Bristol, Viv Faull, and the Bishop of Ramsbury, Andrew Rumsey, the Church of England’s lead bishops on church buildings, said they welcomed “the 12-month extension” but said it would only bring “temporary relief to many small scale projects already under way or anticipated in the near future”.
“The capping of the scheme will pose challenges to larger projects,” they said.
They said they were grateful for the government’s work on the scheme and added: “The scheme has been a lifeline for our buildings since it was first introduced in 2001.”
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Labour MP Marsha de Cordova, the Second Church Estates Commissioner, added: “Going forward, it is vital that a long-term solution is reached for some of the country’s most important community buildings and that this scheme is made permanent.”
Carole Souter, chair of The Heritage Alliance, welcomed the announcement and said the scheme “has provided a lifeline for thousands of historic religious buildings”.
She added: “We are concerned that the future of larger projects may now be more challenging, given the cap on funding, and the uncertainty beyond March 2026.”
She said the group looks forward to working with the government to secure “a sustainable and effective scheme beyond 2026”.
Most projects are below £5,000
Sir Chris told MPs while £42m was available for the scheme last year, only £29m was claimed.
He said 94% of applications since the scheme was introduced have been below £25,000, and more than 70% below £5,000.
In the months leading up to the announcement, churches told Sky News they had been holding back money normally used to support the community in case the scheme was not renewed and they had to pay VAT on often much-needed repairs.
MPs had been pressuring ministers to continue the scheme and church-goers had been writing to their MPs explaining why churches, which account for nearly half of the UK’s listed buildings, were integral to their communities.
This is not perfection
Sir Chris told MPs: “We made this difficult decision against a tough financial background and bearing in mind a wide range of compelling priorities of expenditure within the department.”
He admitted: “It’s a smaller amount of money, I’ll be straight.
“By tradition, a cathedral is not symmetrical because only God is perfect.
“I’m sure this is not perfection for what everybody would want but I hope it is at least acceptable.”
Funding for repairs also comes from the National Lottery Heritage Fund, which has a £15m pot to help support places of worship, including repairs, while the Churches Conservation Trust helps fund repairs and maintenance of more than 350 churches.
Historic England’s Heritage At Risk also supports certain religious buildings in desperate need of repair.