UPDATE: Churches across England and Wales are facing imminent collapse as campaigners warn of a devastating ‘stealth tax’ introduced by Chancellor Rachel Reeves. Starting in April 2026, churches will lose their VAT exemption on repairs, a move critics argue risks the structural integrity of nearly 1,000 historic buildings.
Campaigners from the National Churches Trust have raised urgent alarms, stating that this policy could lead to many churches “crumbling into disrepair.” The Trust reports that churches contribute a staggering £55 billion in annual social benefits to the UK, making the financial implications of this tax even more concerning.
Reeves’ decision reverses a previous policy that capped the VAT allowance at £25,000 annually for church repairs. Now, without any tax breaks, the burden of repair costs will increase significantly, jeopardizing these vital community hubs.
“These statistics should be an alarm bell for the Government,” said Sir Philip Rutnam, Chair of the National Churches Trust. “Once these buildings are gone, they are gone forever.”
The impact is already being felt. St Mary’s Church in Totnes, a 500-year-old structure, is at risk of collapse despite the local community raising £1.4 million for urgent repairs. However, due to changes in funding schemes, they face a troubling £130,000 shortfall that puts their efforts in jeopardy.
Father Jim Barlow, Rector at St Mary’s, expressed deep frustration: “This has been a big knock for us. The project has been over 15 years in the planning and has already been through major restructuring.”
Meanwhile, in Wales, St Illtud’s Church, one of the oldest churches dating back to 500 AD, is suffering from severe water damage. The costs for essential repairs are projected at around £500,000, but without government support, they may need to find an extra £100,000 to continue.
“We are left in limbo,” said a church representative. Buckets have been placed around the church to collect dripping water, highlighting the urgent need for intervention.
Critics, including Conservative MP Saqib Bhatti, are calling for Reeves to reverse the ‘church tax’, emphasizing the integral role churches play in community life. “They are custodians of our heritage and important places of sanctuary for people of all faiths and none,” Bhatti stated.
The situation intensifies as the Prime Minister’s local church recently received £639,000 in public funding, raising questions about the government’s commitment to preserving historic sites.
As the April deadline approaches, the National Churches Trust is urging immediate action to prevent irreparable damage to these cherished community landmarks. The future of countless churches rests on the government’s next steps.
Stay tuned for updates as this situation develops. The call for action is clear: without government intervention, these historic buildings risk fading into history.
