The Church, Listed Buildings and VAT

I read in the news today that the Church of England fears renovation projects could be scrapped because of planned changes to VAT in the budget.

This will mean that VAT will be charged on approved alterations to listed buildings, previously exempt.

There are a number of issues to be dealt with here I think. 

The first of these is that it is not targeted on churches but will affect ALL owners of listed buildings.  This will impact upon private individuals and also the likes of the National Trust and English Heritage who between them must have a large number of properties that fall into this category and will also suffer.

Secondly the wording is that it is for alterations.  Repairs of the fabric of the buildings to allow them to continue to be used should not be affected. Additions of new shops and cafes will be.  That is different from the needs of simply keeping these buildings open as a place of worship.

Finally, the church is not a poor organisation.  A quick glance at the accounts will show that is asset rich and has many commercial investments.  As such it should be prepared to bite the bullet and contribute to the nations coffers with everyone else.  Claims of lack of funds are not acceptable.  If it were essential repairs that were being taxed then maybe they have a point, but it is in fact improvements.

What really annoys me however is the fact that the Treasury has reported that church projects will not be cancelled as there will be provision from the Listed Places of Worship Scheme whereby we the taxpayer will seemingly make up any extra costs!  I have said before and will say again, Church and State should be separate.  What the Church wants, it should fund from it's own significant income.