Listed Places of Worship Grant Scheme

As I set out in Church Commissioner questions in January, the listed places of worship scheme is an effective way to deliver transformational benefits to local communities. The Government’s extension of the scheme is very welcome, but there are a number of unanswered questions about the impact of the changes to the scheme.

The extension of the scheme will be welcome news to those involved with churches such as St Botolph’s in Aspley Guise in Mid Bedfordshire. People there have told me of their concern about the lack of certainty for longer-term projects that may need support beyond 12 months. Will the Church Commissioner join me and other colleagues in pressing the Chancellor to provide longer-term funding certainty?

The hon. Member has raised this issue at Church Commissioner questions previously, and he is right to continue to do so. Although the scheme is being extended until March 2026, we do not have a long-term plan or solution. It is only right that the Government should set out their plans. We know that in larger-scale projects costing over £125,000, not all the VAT can be returned. It is important that the Department for Culture, Media and Sport comes up with a solution to ensure that the listed places of worship scheme can continue.

Holy Trinity church in Sunningdale has served the parish for 185 years. It wants to build on that legacy with a community hub, complete with new facilities, including a volunteer-run café for the wider community. The £25,000 cap on VAT relief may be enough to sustain smaller projects, but this one will cost well over £1 million; that means that another £250,000 in donations will be needed, which cannot stretch that far. I understand that the Government are encouraging churches to apply for lottery funding, but Rev. Jon Hutchinson has raised the fact that the scope of that funding is too narrow to cover the project. Will the Second Church Estates Commissioner meet me to discuss how we can get this project over the line?

The hon. Member makes an important point, and raises an issue that affects many churches. The £25,000 cap works for smaller projects, but it will not go far enough for larger projects, such as the one in his constituency. The church that I attend, Holy Trinity in Clapham, is experiencing similar challenges. I am happy to meet him.

The capping of the listed places of worship grant scheme has left many churches in physical ruin, such as the Belfrey in York, which will lose £1.5 million, even though it has done everything that was expected of it. Clearly, we need to find a solution, and the suggestions from Government have been insufficient. Will my hon. Friend ensure that the Church Commissioners co-ordinate a meeting of all churches that are mid-project, to ensure that they can complete the works that they have undertaken?

I will take my hon. Friend’s question back to see if we can set up a meeting. As she highlighted, many churches will be missing out on vital funds to carry out necessary repairs, particularly those that have already started work. If that work extends beyond the March 2026 deadline, they will not be able to reclaim any VAT. It is important that we find a long-term solution. I will be happy to take that forward.