Burnham-On-Sea MP Ashley Fox has raised fresh concerns for the future of historic churches and places of worship after the Government confirmed that this year’s £23million Listed Places of Worship Grant Scheme budget has been fully allocated — leaving no funding available for new applications.
The long‑running scheme has, for more than 20 years, enabled listed churches, chapels and other faith buildings to reclaim VAT on essential repair works. With the fund now closed, congregations face the full 20% VAT cost on often complex and specialist conservation projects.
The Government has said that all awards for the 2025/26 financial year have been issued and that no further funding rounds will take place. Details of any replacement scheme have not yet been published.
Ashley Fox previously warned churches across his constituency that the proposed successor fund would fall far short of what is needed. While ministers indicated a £92million pot spread over four years, repair needs for parish churches alone are estimated at £150million, with a projected VAT burden of at least £120million.
Nationally, 3,500 places of worship have closed in the past decade, with a further 2,000 expected to shut within the next five years.
Ashley said the loss of VAT support places many buildings at risk. “Churches and places of worship are part of our national story and at the heart of many local communities,” he said. “Removing the ability to reclaim VAT on essential repairs places a serious financial strain on congregations who are already working tirelessly to keep these buildings open.
“I have launched a petition calling on the Government to reinstate full VAT relief on repairs, establish a sustainable long‑term funding mechanism, and engage properly with faith groups and heritage bodies. With no funding left and no clear replacement in place, many churches will be facing real uncertainty about how they will afford urgent repairs.”
Residents and church groups can sign the petition here.
