Progress in VAT fight

30 April 2012


The Chancellor of the Exchequer has promised measures to alleviate the increase in VAT bills for alterations to listed churches following meetings with senior church officials last week.

George Osborne met with members of the Church Buildings Council, the Lord Bishop of London, the Rt Revd Richard Chatres, and other church leaders last week to discuss his proposed increase in VAT on alterations to listed buildings.

At the meeting a deal was made to reassure the Church of England that they would be recompensed for VAT bills, which it was estimated would cost churches £20 million a year under the proposed changes.

No firm agreement has been made yet but it is expected that between £10m and £15m compensation will be announced soon.

The Dean of Winchester has met with the Exchequer Secretary to the Treasury to continue efforts in this diocese to highlight the detrimental effect that the proposed imposition of VAT on alterations to churches and cathedrals would have and to request that the Government reverses its decision.

Please do ensure that you, and as many of your congregation, family and friends sign the national e-petition, which at this time, stands at an encouraging 24,811 signatures, but we need to have over 100,000 signatures to achieve the best impact. We really do urgently need everyone to sign up to raise the figure and so demonstrate the importance of the reversal of this decision to the continued life of our churches and their service to their communities.

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