The government risks shooting itself in the foot over VAT relief scheme

Ahead of Wednesday’s budget Rachel Reeves is having to hunt for cash behind every sofa cushion. But if she removes help to repair places of worship, she could find unintended consequences await

Imagine if you had tens of thousands of volunteers who were motivated to give their time simply because they wanted to make the world a kinder, fairer place. Imagine that their volunteering plugged gaps left unfilled by government and neighbours. Imagine that all these helpful souls needed was somewhere safe and warm to operate from, but without that, they’d have to give up and go home.

This isn’t hard to imagine, of course, because it’s the situation the government finds itself in vis à via the vast array of community work done or hosted by the nation’s places of worship.

The National Churches Trust has estimated that the social and economic wellbeing benefit of the UK’s churches is worth £55bn. That takes the form of food banks, warm spaces, debt counselling, after-school clubs – providing the safety net that prevents people in need from slipping further into poverty or isolation and potentially require more costly intervention by the state.

You’re not going to attract a dementia café or mums and toddlers club to an unheated Victorian barn.

Because many churches are old, leaky and creaky, (some 45 per cent of the UK’s Grade I listed buildings are maintained by the CofE), their congregations want to do the only responsible thing and fix the roof, update the windows, install more efficient heating. You’re not going to attract a dementia café or mums and toddlers club to an unheated Victorian barn.

What made such repairs easier was the Listed Places of Worship Grant scheme put in place in 2001 by Gordon Brown, Reeves’ predecessor as chancellor (rewind past the Tory ones and Alistair Darling), which allowed Listed Places of Worship grants to cover the VAT on repair bills higher than £1,000. Brown understood the contribution faith communities would willingly make.

Yet in April it was suddenly announced that the scheme would only award grants up to £25,000, leaving any major project that was under way or about to begin either scrabbling to find hundreds of thousands of pounds or having to go back to the drawing board to be scaled down. A few churches have supporters with deep pockets, most don’t. 

As the Archbishop of York, Stephen Cottrell, told the Sunday Telegraph, “The vast majority of fundraising for our churches is done locally by heroic volunteers and we are deeply grateful for all they do. For more than 20 years, they have relied on the Listed Places of Worship Grant Scheme to give that crucial bit of extra help.” There are fears it could be scrapped all together.

Volunteers at a church that runs many social projects
Volunteers at St Laurence Church in Chorley, Lancashire, (also above) which has had to postpone finishing roof repairs because of the cap on VAT relief. Photo: CofE

Clearly, ahead of Wednesday’s autumn budget, the chancellor, Rachel Reeves is having to hunt behind every sofa cushion to find cash that can be put towards reducing the national debt. Aside from these buildings’ heritage value, ending the Listed Places of Worship scheme might make some sense if churches only served as a self-righteousness boost for the few.

But a survey published by the Church of England late last week found that two in five people, or 43 per cent of all adults, reported having had contact with their local church, 23 per cent of those – nearly seven million people in the UK – “for community support such as parent toddler groups, lunch clubs and food banks”. The CofE, which runs or supports 31,300 social action projects, estimates that “2.8 million people, 4 per cent of the UK population, have been in contact with their local church for a food bank.”  

The churches have shown themselves to be a trusted partner of government. They shut their doors during the pandemic, aware they had to set an example to other faith communities even though many of their own members were furious; they rallied support for the Coronation of King Charles with the bellringing initiative Ring for the King.

Yet even cathedrals, irreplaceable treasures, are not immune. Jo Kelly-Moore, Dean of St Albans and Chair of the Association of English Cathedrals, said: “The threat to end the Listed Places of Worship Grant, and the cap currently imposed, is having a hugely negative impact on our cathedrals, many of which have long-term repair and renewal projects costing hundreds of thousands of pounds.” Cathedrals are often criticised for charging visitors to look around, yet how else are they supposed to keep the lights on? (And they do stress that anyone wanting a space to pray can be shown in without charge.)

Cutting costs where heritage places of worship are concerned is short-term thinking. Churches come with ready-made goodwill and generally accessible premises. If churches cannot host community events because they are too cold or simply unsafe, alternative provision will sooner or later end up costing the state, undermining what Ms Reeves is trying so hard to achieve.

Boris Johnson is on to something – the obesity crisis could point to a deeper malaise

Boris Johnson wishes religious leaders would address the “aching spiritual void in people’s lives”. He makes a good point

It was one of the most intriguing headlines I had seen in years: “Boris Johnson blames the Church of England for obesity crisis”. Of all the shortcomings our rotund former PM could pin on the Church, that was not one I had expected.

He had recorded his comments for the National Food Survey, an independent review by the Government, before the Archbishop of Canterbury, Justin Welby, announced two weeks ago that he was stepping down, taking “personal and institutional responsibility” for safeguarding failings.

Welby’s move has prompted a good deal of raking over personal and institutional failings, much of which has circled around the undeniable reality of declining church attendance.

What is up with people that they plainly are seeking solace in something that they know is self-destructive?

Academics have tried to understand this numerical trend of the last 50 years or so, and pointed to, among others, a desire for greater sexual freedoms, the end of deference culture, clergy failing to keep up with social change, and people having more disposable income and greater expectations of individualism.

However, Johnson made an astute point about “what is obviously an aching spiritual void in people’s lives, that drives them to gorge themselves”. “Religious leaders, as well as politicians, they think, ‘what is up with people that they plainly are seeking solace in something that they know is self-destructive’. And when did you last hear the Archbishop of Canterbury preach a sermon about that?”  

And as if to bear it out, this week also heard about Prime Minister Sir Keir Starmer’s plans to help people on long-term benefits back into work.

According to the white paper in which the plans were outlined, a record 2.8 million people are out of work due to long-term sickness, and “economic inactivity is higher in some coastal and ex-industrial communities”. The paper proposes expanding access to mental health and musculoskeletal services, and tackling obesity. Analysis by The Times found that “the problems are concentrated in the poorer, ‘left behind’ places that successive governments have failed to level up, where obesity, inactivity, addiction, depression and hopelessness caused by lack of opportunity can become a mutually reinforcing spiral … Some 69 per cent of those claiming incapacity benefits cite mental health conditions and 47 per cent cite musculoskeletal problems, with the average claimant having 2.7 illnesses which often interact with each other.”

“Work is a necessity, part of the meaning of life on this earth, a path to growth, human development and personal fulfilment”

Pope Francis

What if some of these problems point to, to quote Johnson, a spiritual void? One that is also not filled by over-eating, substance misuse and inactivity? Many poorer areas are post-industrial, ie where mining or manufacturing, which used to provide the economic foundations of those communities, have departed for cheaper climes, leaving the old workforce without a job, without alocal work stream, and without the community and way of life that grew up around it. The white paper stresses that there is work to be done – as they immigration stats bear out – but new forms of work have been slow to fill the gaps that were left, or have appeared in different areas, or may not offer the same level of community or, in its stead, fulfilment.

Why would this count as a spiritual void? Because as the Work and Pensions Secretary, Liz Kendall MP, acknowledged in the white paper, work itself can provide “dignity and purpose”, and people of faith would argue that dignity is God-given. The so-called Protestant work ethic puts a positive moral value on doing a job well, and the place of dignified work is important in Catholic Social Teaching. Pope Francis has said: “Work is a necessity, part of the meaning of life on this earth, a path to growth, human development and personal fulfilment. Helping the poor financially must always be a provisional solution in the face of pressing needs. The broader objective should always be to allow them a dignified life through work.”

Material help, in the form of cash benefits, can meet material needs. However, any initiative that offers the person who is long-term sick counselling and physiotherapy could make only temporary progress if the reason for their depression and back trouble is exacerbated by not having meaningful work and a meaningful community life to get out of bed for.

It is rare to find a preacher talk about eating disorders, body image and self-destructive behaviour in a way that is not glib

Perhaps what Johnson was alluding to was that it shouldn’t be the duty of government to preach hope, and that is what he believes is the task of Churches. Johnson has a lengthy relationship with Church. The twice-divorced father of nine (or thereabouts) children was baptised Catholic, confirmed Anglican and married his current wife, Carrie, at Westminster Cathedral. Around a decade earlier, while he was mayor of London, I heard Johnson addressing an interfaith group of community leaders with a fond and clear recollection of a Sunday School lesson. It concerned the achievements of Rahab the prostitute but had some relevance for 2010s London that was something to do with faith without deeds being dead (look up James 2). More recently, Johnson described himself as a “very, very bad Christian,” but judging by his comments to the food survey, in this instance he could be commended as a refreshingly honest and thoughtful one. 

A few points then: when one of the main sources of employment for a town shuts, a viable replacement or replacements need to be available, or a kind of social depression will follow, that can take decades to recover from. Expectations of work that provides meaning – and enjoyment – have grown in the social media age, not always in ways that have matched the jobs and salaries that are on offer.

Historically, religious industrialists such as the Quakers were motivated by a holistic vision for society to open factories and look after the needs – including the spiritual needs – of their employees (albeit in a way we might regard as paternalistic). These days we expect business to step in, but there may be scope for partnerships forged between business, the state and the third sector. The government’s plans draw in employers such as the Premier League, Channel 4 and the Royal Shakespeare Company may inspire young job-seekers, though it is to be hoped that enough jobs in these competitive sectors can be found.

Second, Johnson clearly expects church-going to nurture the soul, and I hear his comments as a plea for churches to be more emotionally literate. It is rare to find a preacher who will talk about eating disorders, body image and self-destructive behaviour and link them in a way that is not glib to the way that a relationship with God can come to fill the spiritual void. The church I attended as a student did just that, and as a result attracted many people who found considerable healing there.

Finally, if Johnson has felt frustrated by a lack of spiritual content in newsworthy comments made by an archbishop, a better way to find out whether the Church is preaching its message of hope is perhaps not to tune into HQ but to pop into the local branch.

In the House of God

Try walking with one eye shut, and then re-open your other eye. You get that moment of sudden greater understanding when you get to see your surroundings in 3D again.

Sometimes there is a way of looking at the world that shows us a dimension we had missed. A way that explains a person’s priorities, their concerns, their red lines, the communities with whom they share concerns. A dimension not always obvious.

What does the Greens’ co-leader Carla Denyer have in common with Ruth Cadbury, who is descended from the confectioners and social reformers? What does that mean for the values they espouse? Why was new Hindu MP Uma Kumaran so proud to meet Pope Francis, whom she whom she hailed as “probably the world’s foremost climate leader”?

For my article in this week’s issue of The Tablet I delve into the increased religious diversity that’s now filling the benches of the House of Commons, and take a look at what it could mean in practice.

This isn’t about tribalism – thank God. This is about the way our elected politicians understand, navigate and value difference. We have MPs of all faiths and none representing mixed constituencies fairly and faithfully. In July’s election we had Muslim MPs standing against fellow Muslims of other parties, showing that values derived from the same creed can be expressed in different ways politically.  

So look at the Commons through the lens of religion and see what you hadn’t previously spotted.

Click here.