Welcoming the announcement by the Department for Culture Media and Sport that the Listed Places of Worship Grants Scheme, which reimburses VAT on repairs to listed places of worship, will continue, the Rt Revd Richard Chartres, Bishop of London and Chair of the Church Heritage Forum, said:

"I am very glad that the Department for Culture Media and Sport has announced that the Listed Places of Worship Grants Scheme will continue. Abandoning the scheme, which affects every part of the United Kingdom, would have been tantamount to a tax on fundraising; a great disincentive to the hundreds of thousands of volunteers who care for our churches and a blow to the credibility of the concept of the Big Society.

"While I regret that the additional concessions on professional fees, organs and bells, secured in 2006 and already withdrawn, will not be reinstated, I very much welcome the Government's recognition that church buildings make a large contribution to the community as a whole.

"We owe a debt of gratitude to those who have campaigned tirelessly within the Church of England for the scheme to be maintained and also to the Heritage Minister for his informed concern and determination to find a solution which balances economic necessity with a recognition of the role and potential of our church buildings."

Notes

Under LPWGS, a grant scheme introduced in April 2001 by the then Chancellor of the Exchequer and due to continue until March 2011, up to 100% of the VAT charged on eligible works is returned directly to the church councils which have undertaken the repairs.

The Church of England has responsibility for over 16,200 churches of which over 12,500 are listed: c.4,200 grade I, 4,200 grade II* and 3,000 grade II. 85% of listed places of worship in England are Church of England churches.

Between April 2001 and end of September 2010, LPWGS has reimbursed over £111 million across the UK. It currently refunds around £12million (or £1million a month) a year in England alone - c.93% which goes to Church of England churches and cathedrals. A further £3million a year goes, in total, to Wales, Scotland and Northern Ireland. Since it was introduced in 2001, it has enabled those who look after these valuable heritage and community buildings to maintain them for future generations and to ensure they remain available for use by the whole community.

In 2006, research undertaken by English Heritage and the Church of England, estimated that necessary repairs to all listed places of worship would cost £925m over the next 5 years or £185m a year (2006). Currently, the Church of England is spending about £110m per annum on repairs and maintenance to its parish churches. Before the introduction of the LPWGS, churches were paying 17.5% on all repairs works to their building, while any alterations, which do not directly preserve the fabric of the building, were zero-rated.