The long-awaited government announcement on the future of the scheme was made last week.
The LPWGS, introduced by Gordon Brown in 2001, has hitherto allowed places of worship to reclaim all the VAT charged on building repairs. It was subject to review every three years in March.
In the run-up to the latest decision on renewal there was extensive lobbying of MPs and ministers by individuals and by organisations – including the Norfolk Churches Trust – making the case for the continuation of the scheme, and emphasising its importance to the protection of many of the most significant buildings in our architectural heritage.
There were over 300 letters to Department of Culture, Media and Sport and over 3,000 letters to MPs on this subject, which was the subject of a Westminster Hall debate.
The DCMS has, however, responded to Treasury pressure to reduce spending.
The scheme is to continue but can only be guaranteed for the coming financial year. Moreover, there is now a maximum amount that can be claimed by each place of worship – £25k. The total amount that will be distributed over the year to all applicants is now £23m, whereas last year the actual expenditure was £29m.
So, we have a decline in this form of government funding and less certainty about its future. Over the coming year we will need to keep up the pressure on the government to protect and extend the LWPGS.
The Minister for Creative Industries, Arts and Tourism has indicated that he wants to work with MPs on the challenge.
In particular, the Trust needs evidence of major schemes where either it is impossible to ensure completion by the end of March 2026 or where the VAT element will exceed £25K.
Dr John Maddison (Head of Grants Committee)
