Urgent Warning: Churches Face Collapse from New ‘Stealth Tax’

UPDATE: Campaigners are sounding the alarm as churches across England and Wales face imminent collapse due to a proposed ‘stealth tax’ on historic buildings, announced by Chancellor Rachel Reeves. Starting April 2026, churches will no longer be exempt from paying VAT on repairs, a move that could lead to widespread disrepair of vital community structures.

Officials from the National Churches Trust warn that nearly 1,000 churches, chapels, and cathedrals urgently need repairs, and the removal of this tax break could jeopardize their future. These churches contribute an estimated £55 billion worth of social benefit annually to the UK, highlighting the critical role they play in local communities.

Sir Philip Rutnam, Chair of the Trust, stated,

“These statistics should be an alarm bell for the Government – now is the moment to act to save these important buildings before they fall even more into disrepair. Once these buildings are gone, they are gone forever.”

The impact of this decision is already being felt. St Mary’s Church in Totnes, Devon, a 500-year-old landmark, faces slow decay and is at risk of collapse. Locals have raised £1.4 million for urgent repairs, but new changes leave them with a staggering £130,000 shortfall. Father Jim Barlow, Rector at St Mary’s, expressed frustration, stating, “This is really disheartening for those who have worked so hard and for the local community.”

Meanwhile, St Illtud’s Church in Glamorgan, one of the oldest churches in Wales dating back to 500 AD, is experiencing severe water damage. Urgent repairs are estimated to cost around £500,000, but the church may now face an additional £100,000 funding gap without the government’s support.

In the wake of this policy shift, concerns are mounting across the country. Tory MP Saqib Bhatti has called for the reversal of this ‘church tax,’ stating, “The Christmas period is an important reminder of the role churches play in our communities. They are custodians of our heritage.”

As the debate intensifies, the Prime Minister’s local church quietly received £639,000 from the Government for its repairs, raising questions about the inequity of funding distribution.

Officials from the Department for Digital, Culture, Media and Sport (DCMS) commented,

“Listed places of worship serve as vital community hubs for faith communities whilst providing valuable services to the wider public.”

With the clock ticking, advocates urge immediate action to preserve these historic structures before they succumb to neglect. The future of countless churches now hangs in the balance, and the community awaits the government’s next move.

Stay tuned for updates as this situation develops, and join the conversation on social media to support the preservation of our historic heritage.