Draft Grants to the Churches Conservation Trust Order 2026
(1 day, 8 hours ago)
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The Minister for Creative Industries, Media and Arts (Ian Murray)
I beg to move,
That the Committee has considered the draft Grants to the Churches Conservation Trust Order 2026.
It is great, as always, to see you in the Chair, Sir Desmond. I am pleased to be speaking to this order, which was laid before the House in draft on 28 January 2026 and requires that the Government continue to provide funding for the Churches Conservation Trust, or CCT.
The CCT, which was established by legislation in 1969 as the Redundant Churches Fund, is a charity aimed at protecting an essential part of our national heritage. It demonstrates a successful partnership between Church, Government and communities. The CCT plays a crucial role in caring for some of the most architecturally impressive churches no longer required for regular worship. It currently cares for more than 350 churches in towns, villages and cities across England, all of which are listed, mostly at grades I and II, and some of which are scheduled ancient monuments. The CCT’s collection showcases how historical buildings can be brought back to life creatively to continue to serve the communities that they were built for, once they are no longer required for their original use.
Historical places of worship are a valued part of this nation’s heritage. Around 45% of all grade I listed buildings are Church of England churches or cathedrals, and they represent some of the finest examples of our historical buildings, heritage and exceptional craftsmanship. Those buildings are also often at the heart of communities, admired by visitors and beloved by residents. The CCT’s work is crucial to ensuring that they can be kept open and enjoyed as cultural, social, tourism and educational assets. Working in partnership with local communities is key to achieving that, as collaboration helps to secure the futures of historical places of worship as living, useful buildings that continue to contribute to the social fabric of their local places.
That approach was recently demonstrated at St Torney’s in North Hill, Cornwall, the newest addition to the CCT’s portfolio. The CCT took one of the last remaining community buildings in an isolated village on the edge of Bodmin moor and turned it into a hive of community activity, hosting art shows, music, talks, children’s activities and much more. Close consultation with local residents was paramount to the success of the project, which continues to be successful. Other recent notable successes include the CCT’s work to conserve the internationally important stained glass in St Mary’s in Shrewsbury, again in close consultation with the local community, which is critical.
The CCT recognises the importance of passing down traditional heritage skills to the next generation and building expertise in skills. Through its successful heritage skills summer programme, run jointly with Historic England, the CCT provides high-level repairs to the grade II listed St John’s church in Lancaster while helping to train a cohort of young people in the craft skills needed to take care of historical churches.
Closer to home, last year saw the CCT move into its new headquarters at the Old Black Lion in Northampton. Following an innovative regeneration project, that unique space combines the fantastic revitalised historical pub with St Peter’s church, in what is the crown jewel of the CCT’s estate and its new national office. Through the Old Black Lion project, the CCT is contributing to Northampton’s wider regeneration, investing more than £2 million in the town’s most deprived wards.
The CCT is supported by funding from both the Church of England and the Government—the Government are providing more than £3 million in the current financial year. It has also sought to diversify its income streams to multiply its core funding, so it can further support its activity at a time of public funding pressures. This debate takes place at a pivotal time for the funding of places of worship: to make a lasting difference to historical places of worship, this Government are shifting towards capital funding and will invest more than £90 million over the next four years, with the launch of the places of worship renewal fund.
That new fund, which was announced in January, will allow for longer term planning, enabling us to target resources at the areas that are most in need, particularly areas with double disadvantage. In 2025, the CCT launched its new strategy, which is designed to guide the charity’s work for the next five years. Under the strategy, the CCT will focus on three interdependent principles: conservation, community and creativity. It will work with local communities both to conserve the historical fabric of churches, and to find creative new ways to reimagine such places.
This order allows the Government to continue to provide funding to support the CCT and enable it to continue its work in giving future life to the historical places of worship in its care. The instrument covers three years, providing the CCT with certainty about Government funding support for this period and helping it plan its activities with confidence. The funding will allow the CCT to continue to conserve the fabric of one of the largest collections of highly listed buildings in the country, keeping them open, for free, to everyone of all faiths and none.
I hope that Committee members share my enthusiasm for the important work done by the CCT, and recognise the key role that it plays in preserving and promoting a vital aspect of our nation’s heritage. I hope that they will approve the draft order, which will provide for the CCT from 2026 to 2029, and I commend it to the Committee.
Nigel Huddleston (Droitwich and Evesham) (Con)
It is a pleasure to serve under your chairmanship, Sir Desmond. I am very pleased that I can start my speech by saying that I agree with the Minister: the Churches Conservation Trust does indeed play a vital role in the preservation of our heritage, and our religious heritage in particular.
The CCT cares for more than 350 listed churches across England that are no longer used for regular worship, including several in my constituency, and is the custodian of the third largest collection of heritage properties in the country, surpassed only by the National Trust and English Heritage. Together, CCT churches receive as many as 2 million visitors a year. They play a key role in our tourism economy, a point especially pertinent to today’s debate, which takes place during English Tourism Week.
The Churches Conservation Trust keeps these buildings open to the public for free, operating on a far smaller turnover than the National Trust or English Heritage. It not only performs vital restoration and preservation work but, working alongside the local community, often seeks new use opportunities for its churches, which helps to revitalise and rejuvenate those spaces for the benefit of all. Our churches contain some of the country’s best examples of historical art and architecture, from medieval wall paintings to stained glass and stunning monuments. By looking after them for future generations, the CCT also helps to sustain our country’s vital craft and heritage skills.
Government funding, in the form of an annual grant, is vital to the CCT’s work, and the Opposition therefore support the grant being awarded by this statutory instrument. Other funding comes from the Church of England, the National Lottery Heritage Fund, donations, legacies and commercial income, including the innovative idea of “champing”, or church camping—something I am sure you have partaken in, Sir Desmond. The CCT keeps its costs down thanks in no small part to the more than 2,500 volunteers in churches across the country who assist the trust in its work; I am sure the Minister will join me in thanking them all.
Funding from the Department for Culture, Media and Sport represents less than a third of the CCT’s funding, but provides a crucial foundation on which to build and raise other funds. A modest sum of state investment keeps nearly 360 of our most precious historical buildings safe and open for millions of visitors in each English county, and provides a network of valuable community facilities in urban and rural settings alike.
In recent years, the CCT has been given responsibility for looking after many more churches, and its costs have increased significantly due to inflation and the effects of a changing climate. Last month, the Church of England’s General Synod agreed to increase its annual contribution to the CCT in light of those growing challenges. Yet for many years the DCMS grant has been frozen, and this statutory instrument once again provides a flat cash settlement with the same ceiling for the two subsequent years, representing a real-terms cut. Along with the abolition of the listed places of worship VAT scheme, which will cost the CCT more than £300,000 next year, those funding cuts from the state cancel out the rise from the Church.
That situation reflects a broader anxiety among the custodians of our religious heritage. Many current and former places of worship are on Historic England’s heritage at risk register, meaning that without significant intervention they are at risk of being lost to the nation due to neglect, decay or inappropriate development. Yet the Government recently announced the end of the listed places of worship scheme, having halved its budget last year to a maximum of £23 million per year, compared to the £42 million budget when my party was in power.
To the surprise of no one but the Government, last month the fund ran out of money. The replacement scheme is due to start next month, but there is still little detail about how it will work in practice, particularly for historical churches, which now face large tax bills for carrying out essential works to look after these important parts of our shared heritage. The VAT grant scheme gave the custodians of our historical places of worship the certainty they needed to carry out vital works to these public buildings, and it sent a message that these were places that we all valued.
Scrapping the VAT scheme means that people caring for historical churches, including the Churches Conservation Trust—the Government’s own body that was set up to do just that—will now have to pay a 20% tax to repair or maintain a church, while someone demolishing one would pay 0%. That sends a terrible message about what we value as a nation. To give two examples of trust churches in my constituency, investigation work to locate and fix a leak on the roof of St Lawrence’s in Evesham will cost an estimated £12,000, of which £2,000 is VAT. At All Saints in Spetchley, re-roofing the nave and chancel to protect the 700-year-old church with its fabulous medieval paintings will incur a VAT bill in the region of £20,000.
Uncertainty about the Government’s changes has meant that important—indeed, vital—repair work has been delayed or cancelled. The Government announced other changes to heritage support, but again few details have been forthcoming and the high-level information that we have received so far has just given an indication that the VAT reclaim scheme will be replaced with capital grants instead, which has caused considerable anxiety to many stakeholders who fear they will lose out. Can the Minister confirm whether that means fewer sites will receive funding? Will there be winners and losers? If so, who?
We are still in the dark about the eligibility criteria, about timescales, the application process, the Barnett consequentials for Scotland, Wales and Northern Ireland, and whether any underspend may be carried forward from one year and so on. I hope the Minister will take the opportunity in his closing remarks to provide some reassurance to those entities, including the CCT, about when more details on the new scheme will be announced. In particular, can he confirm the eligibility criteria for the new places of worship renewal fund? Finally, will he lobby the Treasury to support the Conservatives’ commitment to fully restoring funding for the places of worship scheme up to the levels we had when we were in Government?
Dame Caroline Dinenage (Gosport) (Con)
It is a great pleasure to see you in the Chair, Sir Desmond. At the risk of dangerous levels of cross-party agreement breaking out, I echo what the Minister said about the important role that the Churches Conservation Trust plays in protecting some of our nation’s most significant historical churches. This debate is timely because the Culture, Media and Sport Committee, which I chair, is currently undertaking an inquiry into built heritage and how we protect it, examining the effectiveness of current heritage protections, funding structures and the current successes and challenges of organisations tasked with looking after our most important historical assets.
Evidence we received during our inquiry has shown clearly that the Churches Conservation Trust plays an invaluable role in preserving our heritage, but is increasingly struggling to meet the growing challenges placed upon it. Witnesses told us that funding from the Church of England has not kept pace with the rising costs of conservation. What was also particularly concerning was that around 50 to 60 churches, some unused and deteriorating for over two decades, remain in limbo. Additionally, DCMS funding, which forms less than a third of the trust’s income yet provides an essential foundation for its other fundraising events, has effectively been frozen, meaning the trust has continued to take on new churches without any corresponding uplift.
Although the Church of England has now agreed to increase its annual contribution, the combination of frozen DCMS funding and the loss of the listed places of worship grant scheme, which is worth more than £300,000 a year to the trust, means it is no better off in real terms.
The new places of worship renewal fund is welcome, but we still do not know how it will be distributed, and there is understandable concern about eligibility for it and about its overall adequacy, as we have already heard from my hon. Friend the Member for Droitwich and Evesham. It is not clear how much the Churches Conservation Trust will receive from the new fund, or whether the new fund will make up for the money that it loses as a result of the old scheme’s being axed. The order before us will help the Churches Conservation Trust to continue carrying out the critical work of conserving and maintaining our shared historical assets, but it is essential that it can access new funding schemes and wider cultural support.
Does the Minister accept that, as the amounts paid to the Churches Conservation Trust are frozen, the money being made available through this instrument amounts to a real-terms cut in funding? When will we get more updates about how the new places of worship renewal fund will operate? Above all, we need certainty and predictability, so will the Minister guarantee that the Churches Conservation Trust will be able to access the new fund and that it will not lose out as a result of the old grant scheme’s being axed? Finally, what assessment have the Government made of the number of churches that will close as a result of the listed places of worship scheme’s ending?
Ian Murray
I thank the Chair of the Culture, Media and Sport Committee and the shadow Minister for their contributions. First, I will deal with some of the questions about the listed places of worship scheme.
The replacement scheme will be a £92 million fund over the next four years, which is actually an increase in funding over what was available on the VAT reclaim scheme, because it is England only and not a UK-wide scheme, therefore only eligible in England. There are no Barnett consequentials to that for Scotland, Northern Ireland or Wales, because the scheme is the Department spending budget that has already been Barnettised through the spending review. In the case of Scotland, while I know there has been a lot of discussion from Scottish Members about this, it is up to the Scottish Government to determine how they spend the spending review Barnett consequential. There is no Barnett on this allocation of budget.
The CCT should be able to apply for the places of worship renewal fund, as it can already for the listed places of worship fund, as the shadow Minister laid out. In terms of when, I can confirm it will be soon—as hon. Members know, “soon” in Government terms is anything between 1 January and 31 December, but it actually will be soon, because we acknowledge that people are a little bit in limbo here.
The reason the scheme was closed—to answer one of the questions put to me—was because 80% of the projects that were brought forward said that the work would go ahead regardless, and another 15% on top of that said that the work would have gone ahead on time and on budget, so the public purse was funding stuff that was already happening. The fact that we have gone to the new grant system means that people will be able to apply for more funding in that sense. In the past there was a £25,000 cap, and the average spend was between £3,000 and £5,000—quite small amounts of money in terms of VAT reclaim.
We encourage the heritage sector—the CCT and otherwise—to come forward with projects as soon as the criteria are announced. The fund sits under the umbrella of the £1.5 billion that DCMS announced last month for arts, heritage, museums and places of worship, so there is a lot of money going into the sector, and the sector has welcomed that. I think that answers all the questions, unless anyone would like to come back to me on that.
There is eligibility for places of worship and former places of worship—CCT places—to apply for heritage at risk funding if they fall into that category. Recently, half a million was announced for repair work to St Catherine of Siena Church and more than £250,000 for emergency repairs at St Michael’s in Birmingham, because they are both sites classed as heritage at risk. There are other avenues of funding, so I encourage the custodians of churches to come forward if they need any advice on finding the best model for them.
Government funding for CCT, along with funding from the Church of England, is crucial to the heritage sector, enabling these remarkable buildings of cultural significance to remain open and in good repair, serving the communities for which they were originally built. I want to pass on my thanks to the trustees and staff at the CCT, and all the individual volunteers who keep these buildings going in a time of need. There is a positive outlook for historical places of worship under the Government’s new funding and with the CCT’s new strategy.
Question put and agreed to.