Last updated at 16:37, Wednesday, 18 April 2012

Plans announced in the Budget last month would add 20 per cent to the cost of rebuilding and alterations on listed buildings and have sparked a wave of outrage among clergy up and down the country.

Carlisle cathedral

Opponents argue that the Church of England – which has 12,500 listed buildings – could end up paying £20million a year unless changes are agreed.

The proposals, unveiled by chancellor George Osborne last month, would see the VAT exemption for improvement, alteration and restoration works to Grade One and Grade Two listed buildings removed.

The buildings currently incur VAT only on routine repair work, for example to a damaged roof, but not on restoration works.

By removing the exemption – which would take effect in October – the Government says it could raise more than £450 million over the next five years.

But church leaders – who own nearly half the listed buildings in the UK – warn the so-called ‘heritage tax’ would cost tens of millions and could threaten the repairs of church buildings, many of which are often used as community hubs.

And it could prove a costly problem in Cumbria, with more than 250 listed buildings falling under the church’s control.

The Venerable Richard Pratt, Archdeacon of West Cumbria, brands the proposals “massively unfair.”

“We are really alarmed about this,” he says. “We realise this is a time of austerity but we have to do all repairs ourselves.

“A very substantial proportion [of listed buildings] are in the care of the church and all of their maintenance is therefore done by volunteers.

“The Church of England doesn’t get any extra money at all, not for anything.

“What it means is that many of the repairs won’t be done because we won’t be able to afford it.”

The archdeacon, who is in charge of church buildings, adds: “We couldn’t be taking much more of the burden with buildings.

“We think it is really unfair.

“The listed buildings are community assets.”

According to the Churches Trust for Cumbria (CTfC), just over 40 per cent of churches in the county are listed, with 44 being Grade 1 listed, 72 Grade 2* and 138 Grade 2 listed.

Gemma Metcalfe-Gibson, the church buildings support officer for CTfC, believes the proposed VAT charge would have a huge impact on whether churches could afford to make alterations to ensure they remain community centres.

“We are obviously very worried because what we are all about is that Cumbrian churches have a sustainable future – things like putting in a loo or kitchen and making them more community friendly.”

Carlisle Cathedral will be one place of worship which will have to raise thousands of pounds more to complete alterations to the building.

The Canon Treasurer Dr Philip Herrick views the VAT change with concern.

“It is likely to make a significant increase in the costs of some work we do on our buildings,” he says.

“A particular concern is our proposed works on the Fratry for which we are currently drawing up detailed plans.

“The cost of this project could well increase by several tens of thousands of pounds as a result”.

The Country Land and Business Association (CLA) is backing the Church of England’s decision to campaign against increased VAT.

The Association, whose 34,000 members own approximately half the rural land in England and Wales, praised the Anglican bishops’ opposition to the tax hike which is set to hit privately owned heritage buildings even more than churches.

Of the 360,000 listed buildings in England, designated as being of "special architectural or historical interest", Cumbria is home to more than 7,500 of them.

CLA North Regional Director Dorothy Fairburn says: “The Government’s shocking new raid on owners of listed buildings will take an extra £125million in tax from Britain’s heritage.

“By scrapping the zero rate of VAT on alterations to listed buildings, the chancellor has removed the only remaining advantage of having a building listed.”

Mrs Fairburn explains that the majority of buildings affected are in the hands of private owners who would not benefit from the Department of Culture, Media and Sport grant scheme which will aim to replace the Church’s losses from the increase in VAT up to a figure of £5million.

She says: “The impact of privately owning a listed building in future will be almost entirely negative, further jeopardising owner support for the listing system and reducing the stock of rural housing created by altering the use of redundant buildings.”

“When George Osborne imposed the VAT increase on alterations to listed buildings, which will take effect from October 1, he may have been targeting work on private homes with historical value – such as millionaires installing swimming pools – but 45 per cent of Britain’s Grade 1 listed buildings are churches.”

Bishops in the House of Lords will lead the campaign to stop the plans which they say fly in the face of David Cameron’s “big society” government which placed so much stock in the voluntary and charitable sectors.

In an open letter to the chancellor in The Sunday Times, the deans of 23 cathedrals in England warned George Osborne that the imposition of VAT “seriously jeopardises the sustainability of many of our great buildings”.

In the letter they said that because of the listed status of many of the churches they have to use more expensive materials and craftsmen.

They said: “Raising a further 20 per cent on top these already elevated costs is likely to prove unmanageable.

“And it will not do for the Treasury to refer us to the listed places of worship grant scheme, since it has already cut funding to this, as well as the scope of works it covers.”

The Listed Places of Worship Grant Scheme, which awards grants towards the VAT incurred in making repairs to listed buildings mainly used for public worship, recently had its budget for its scheme for repairs cut from £23 million to £7 million, after the Government cut funding to the body.

Anne Sloman, chairwoman of the Church Buildings Council, says: “The state gets an enormous bargain from the Church of England in the care of our 12,500 listed buildings.

“It is difficult to understand why we are being punished for it.”

First published at 11:27, Wednesday, 18 April 2012
Published by http://www.newsandstar.co.uk