THE Bishop of Chelmsford says a possible tax on churches feels like “a kick in the teeth”.
The Rt Rev Stephen Cottrell has written to the Chancellor, George Osborne, asking him to keep zero-rate VAT on alterations to listed church buildings.
As part of the Budget, the Chancellor proposed introducing VAT at 20 per cent on alterations to listed church buildings.
The Bishop said: “Listed church buildings are vital community assets, contributing a huge amount to community cohesion and development.
“From time to time they need to be adapted if they are to be made usable for a wide variety of community purposes and to meet modern expectations, not to mention comply with contemporary regulations.
“The burden of raising the money for these repairs and alterations rests with the local church community.
“If VAT is levied on listed church building alterations, as the Chancellor proposes, then at a stroke, 20 per cent is added to the cost.
“This is a massive increase. It will certainly deter churches from making changes to their buildings. In some cases it will scupper plans altogether.
“At a time when local churches are already facing huge additional costs from metal theft and higher insurance premiums, this feels like a kick in the teeth. Local neighbourhoods, especially in rural areas, will be the losers.”
St Christopher’s Church, in Willingale, between Ongar and Writtle, is one of the churches which would be badly affected.
Jane Cass, churchwarden, said the church is finishing work on a new oak bell frame and hopes to make changes to the vestry.
She said the church was unable to claim any money back from the Government for the bell frame works, as the labour was carried out voluntarily.
Dr Simon Baker, PCC Treasurer at St Christopher’s, said: “With a project costing tens of thousands of pounds, the additional 20 per cent is a cost we cannot recover.
“As a small church, we will face significant challenges in raising the additional funds.”
The Government has launched a consultation on VAT at http://bit. ly/HmjpDV which closes on May 4.
If the decision is agreed, the new measures will come into force on October 1.
The Church of England has created an e-petition on the issue, which is at http://epetitions.direct.gov.uk/ petitions/32229
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