Value Added Tax: Listed Places of Worship

Lord Bishop of Bath and Wells Excerpts

Tuesday 24th April 2012 Lords Chamber

[Lord Sassoon]

My Lords, I confirm that there are indeed transitional arrangements in place for approved alterations to listed buildings, which cover contracts in place before Budget day. Contracts in place on that day will retain the zero rate if the work is performed by 20 March 2013. Our consultation paper specifically asks for comments on whether the transitional period is sufficient. We will of course listen to any reasonable comments about these transitional arrangements and will consider whether any more generous arrangements could be implemented.

[The Lord Bishop of Bath and Wells]

My Lords, of the 563 churches in my diocese, 503 are listed—some 89 per cent. Their upkeep relies almost entirely on voluntary fundraising and support from their congregations. In promoting the big society, many wish to open those buildings to wider community use. What incentive does the Minister believe is being created for congregations to do so by making them pay VAT up front only to claim it back through a scheme that is not adequately funded? Would not a simpler and real incentive for local churches to improve their buildings be to retain the current exemption on VAT?

[Lord Sassoon]

The right reverend Prelate raises some important points. I can give him only partial comfort, or the answer that he wants, in respect of some of his question. First, as I have already explained, we intend to make sure that the compensation number fully reflects the additional costs of the Budget change. The element that troubles us most is that under the previous VAT arrangements the incentivisation worked in favour of alterations of listed buildings as opposed to repair and maintenance. We do not want to see anything that incentivises people against repairing and maintaining and therefore preserving the core heritage features of the property, so we think that it is right to put alterations, repairs and maintenance on an even basis. Therefore, although I cannot give the right reverend Prelate the comfort that we intend to revisit that issue, I stress again that we want to make sure that the churches are fully protected against the impact of the Budget change.

Sunday Trading (London Olympic and Paralympic Games) Bill [HL]

Lord Bishop of Bath and Wells Excerpts

Tuesday 24th April 2012 Lords Chamber

[The Lord Bishop of Bath and Wells]

My Lords, it will not surprise the House that the Church of England, like most Christian churches, is no great enthusiast for Sunday training, notwithstanding the most excellent speech that we have heard from across the Chamber. Just as the Olympic ideals promote the principle that the Olympic Games are about much more than the games themselves, so the way the working week is ordered says some powerful things about the priorities of a flourishing society.

There is a danger of contradictory messages here, of the desire to create a better and more wholesome society and having the time to do so, and finding a natural space within a week in which that can be encouraged somewhat further. I stress to your Lordships that the church’s reluctance to enthuse about Sunday trading is not about its own institutional self-interest. Our churches offer ministry seven days a week, every week of the year, but Sunday remains the one day of the week when most people, by and large, are able to share common time for their own pursuits. The work/life balance is not merely an individual concern, where the life part of the equation cannot be shared with a wider spectrum of other people. Our whole society, I believe, begins to break down if we do not have something that reflects that value.

The number of people who can share a common day of leisure forms a critical mass below which many of our voluntary institutions cannot survive. Too often in debates on Sunday trading we have heard about the virtues of shopping as a shared leisure activity. But for people to shop, others must work. Very significant numbers of people, including high proportions of women and men with family responsibilities, are employed in retailing and distribution, and a great many other people in other walks of life are obliged to work when the shops are open. We are all consumers, but if Sunday trading was to become an unfettered norm, we would pretty soon all be workers too, and the rich associational life of our nation—its charities, amateur sports, extended family life and, yes, its churches—which is already desperately fragile, would crumble.

I cannot warmly commend this Bill, although I suspect it will pass. None the less, I thank the Ministers concerned for their careful consultation with my colleagues at Church House, and for their assurances that this Bill is prompted solely by the unique circumstances surrounding the Olympic Games, which will have an impact on many of our communities for the duration of the events—although I beg leave to doubt that the traders of Shepton Mallet will see much change in their normal footfall.

I am grateful that the Bill contains an unequivocal sunset clause, but no Government can have complete control over the way in which events may be used to support other arguments in the future. I am grateful to the Minister for his assurances that this is no stalking-horse for future deregulation of shopping hours, and I trust that this Bill will do precisely what it says on the tin.

However, I give notice that the church will be on guard against arguments from any quarter that try to insinuate that this Olympic experiment has been so successful that it must be extended in the future. An exceptional measure for an exceptional period in time is not replicable and it will give us no worthwhile economic indicators about deregulation in general. In the past, the calls for greater deregulation have not come from across the whole retail industry but from the chains, which saw an opportunity to steal a march on their competitors. I gather that the present proposal is not universally welcomed across the industry and that many stores will not be availing themselves of its provisions. However, competitive pressure has already forced Sunday opening on some firms that did not want to open on Sundays and we must be wary lest this permissive Bill becomes a covert lever for wider deregulation later.

I remind your Lordships, as the noble Lord, Lord Newby, has also done, of the rights of shop workers to opt out of Sunday working if they so wish. These rights were part of the reason the Sunday Trading Act 1994 finally made it on to the statute book after earlier attempts at deregulation by Mrs Thatcher’s Government had been roundly defeated. They were a crucial concession and yet they have not proved to be all that robust in practice. I am glad that we shall see an amendment to this Bill that regularises the opt-out for staff, but it must be a robust amendment, which does what it says on the tin. If the Olympic period is such an exceptional opportunity for British business, it is only right that those whose labour makes that possible—on all days of the week—are properly protected.

It would be extremely churlish of me not to conclude by saying that I believe and hope that the Olympic Games will be a resounding success for our country, and that if this Bill is to be passed, it will be limited to simply that period of time.