My Lords, this Measure rationalises the legal basis on which the Church Commissioners are obliged to provide funds to repair the chancels of certain parish churches. The existing law in this area has its origins in the time before the dissolution of the monasteries in the 16th century. The rule that applied generally in England was that the people of the parish were responsible for maintaining the nave of the parish church, the main part of the church where the people would generally stand or kneel during services, and the rector of the parish was responsible for the chancel, the eastern-most part of the church that contains the altar and seats the clergy.
Legislation over several centuries, beginning in the 1530s and concluding with the establishment of the Church Commissioners in 1947, has resulted in the commissioners inheriting some of the land that had once formed part of the endowment of a rectory. That ownership carries with it the rector’s liability to keep in repair the chancel of the relevant parish church.
The commissioners’ land carries liability for around 350 parish churches. In some cases, the commissioners have the whole liability. In other cases, they share it with other landowners. In 2023, they incurred net expenditure of around £354,000 on chancel repairs, which was considerably down on £608,000, which occurred in 2022. They expect expenditure for 2024 and 2025 to be in the region of £1.2 million for each year.
Cathedral chapters also carry liability for the chancels of around 200 parish churches. The Church Commissioners currently have a statutory power to make grants to chapters to cover these liabilities. In 2023, the commissioners made net grants of about £124,000 to chapters for this purpose, meeting the entirety of cathedral chapters’ liabilities in this regard.
When land that carries chancel repair liability is sold, the purchaser takes on that liability, provided that it is registered against the title of the land before the sale takes place. That has the potential to reduce the value of the land in question and result in lower sale proceeds than would otherwise be the case. If the liability is not registered against the title of the land, the purchaser takes the land free of the liability, in which case the parish loses out because the liability, in effect, disappears.
This Measure will cut through some of those complex issues. It will detach chancel liability from any land that currently belongs to the Church Commissioners and turn it into a free-standing statutory obligation on the commissioners to make the relevant payments. That will mean that parishes will no longer need to go to the trouble of registering chancel repair liability for which the commissioners are responsible. Those parishes will continue to be entitled to receive payments from the commissioners to maintain the chancels of their churches, and the commissioners will be able to sell land without having to reduce the sale price to take account of a liability having been registered against the title.
The Measure also helps cathedral chapters: instead of having to rely on grants from the commissioners to offset their liability to repair the chancels of various parish churches, chapters will no longer carry the liability at all. It will be transferred to the commissioners, who will become subject to a direct statutory obligation to meet the liabilities that, until now, have fallen on cathedrals. As noble Lords will be aware from its report, the Ecclesiastical Committee has considered the Measure and found it to be expedient. I beg to move.