Uncertainty over a government grant scheme that has run for over twenty years and could end in weeks is threatening completion of more than £2m of repairs to a Hanley church.
The ‘Listed Places of Worship Grant Scheme’ (LPWGS) pays grants retrospectively, reimbursing the VAT element of materials, labour and professional fees of qualifying aspects of a repair project to a listed place of worship. Projects are able to claim back the VAT only when a bill is paid, unlike many schemes paying when a grant is awarded.
The scheme is confirmed only until 31 March 2025. Despite pleas from MPs, church leaders and others, the government has yet to announce its fate. For many years it has contributed to repairs to the country’s thousands of listed churches, temples, gurdwaras, mosques, synagogues and other places of worship. Recognising the extent of repairs needed, funding was increased in 2012.
For St Mark’s Church in Shelton, Stoke-on-Trent the VAT is expected to total roughly £362,803.01 on the £2.2million cost of the major repairs needed to make the church usable again for worship and community projects: regular services haven’t been held since the start of covid and community events have been constrained by changing health and safety situation. With the work due to be completed in March, church and contractors believed an ending to the scheme wouldn’t be an issue as contracts for the last phase will have been signed. But in doing the work, further issues have been discovered with the east end of St. Mark's.
“That will be another project of £300,000-500,000 plus fees plus VAT, as well as making good areas that we haven't been able to repair in the present phase because we have discovered more to do than we have grant funding for. The loss of the VAT reclaim would make that future project much more difficult.” Says the Rector of St Marks, Revd Phillip Jones.
“If they pulled the LPWGS we’d be in big trouble as finding further matched funding beyond that already raised is extremely difficult. Unless the government confirms that future funding, we could end tens of thousands of pounds short. That will have huge consequences for the planned church and community activity we want to run from the building.”
Nationally, a large proportion of funding for church repair and renovation needs comes from National Lottery Heritage Fund and Listed Places of Worship Grant Scheme. NHLF will contribute a maximum of 90% to a project, meaning local matched funding providers, scarce in regeneration zones like Stoke-on-Trent, are needed to fill the gap. With only 78% funding for St Marks and limited time from NHLF to find funders, this is a sizeable ask.
“Without LPWGS, churches would scale back projects maybe leaving essential works undone. With additional funding very difficult to find and often already committed many projects might not even start. All heritage buildings would suffer.” Says the Rt Revd Michael Ipgrave, Bishop of Lichfield.
The NHLF provides most heritage funding, but the relatively small sum (in government terms) of £42million each year from the government-funded LPWGS run by the Department of Culture, Media & Sport is spread between several thousand projects.
The Bishop of Lichfield added:
“The payback for each community where projects are completed in full is immense. I’ve worked with it as both an archdeacon and bishop, and it is relatively straightforward and efficient, but the most efficient thing for the Government to do would be simply to make works to listed places of worship VAT free.
the most efficient thing for the Government to do would be simply to make works to listed places of worship VAT free
“It will be incredibly frustrating if the St Mark’s project scrapes through before the possible 31 March end of the scheme, but the community don’t then get a fully usable space because the extra remedial works can’t be funded. Other projects across the diocese are also at serious risk if the LPWGS isn’t kept going.”
One of those is the small rural church of All Saints at Sandon, twelve miles south of St Marks. The PCC who look after the 12th century church have worked on essential repairs and conservation for 10 years. They first raised £100,000 to deal with basic issues with the roof, heating and toilet facilities and were successful in getting development funding from the National Lottery Heritage Fund for expert help to develop conservation and engagement plans and a website (https://www.sandonallsaints.com/ which explains the urgent conservation needs.
They have recently been awarded a further £558,000 for the delivery phase of the project and work should start in 2025. But even though they have secured National Lottery funding for the majority of the works and some matched funding, possibly losing the Listed Places of Worship scheme has caused them to have grave concerns.“Unless the Listed Places of Worship Grant Scheme remains available or we are able to find an additional £90,000 funding we are going to really struggle to start our project” said Janet Dawson, PCC Treasurer “It’s not practical to scale back the work as the funding in place is for the whole scheme and not intended to cover the VAT element.
“If we were unable to proceed, the historic set of linked artefacts would continue to deteriorate. We have a rare example of post-reformation family tree painted on the walls, and more records of the Erdswicke family in the forms of heraldic glass, monuments and tombs spanning five generations which are Grade I Listed, as well as a large 17th Century royal Coat of Arms and two significant Pugin-style stained glass windows.
The regular congregation of around forty, who also contribute to the ministry of a priest, have had to find a further funding for this project and have raised over £34,000 from fund raising events and other trusts and will be contributing the equivalent of £42,000 in volunteer effort once the work starts. Janet says “we hope our principal funder, the National Lottery Heritage Fund, will stand by us if the LPWGS is not continued but we can’t assume that to be the case and may have to look for other support which could substantially delay the start of the project which we have to complete within a three year window.
“To be caught by a change in legislation at this late stage would be tragic”.
Back at St Mark’s, Revd Phillip Jones isn’t complacent about the risk of losing the LPWGS scheme: “I’ve written to my MP about this vital support for communities around the UK and look forward to hearing his reply. My hope is that he will join others in pressing the DCMS and Chancellor to renew a successful initiative of a previous Labour government. I urge anyone who cares for faith congregations, local communities and heritage to also write to their MP.”