Universities: VAT on Alterations to Listed Buildings

Lord Cormack Excerpts

Thursday 5th July 2012 Lords Chamber

[Lord Sassoon]

My Lords, on the noble Lord’s first question, he makes the point that I would make: that the Listed Places of Worship Grant Scheme is a continuation of an existing scheme and not a new scheme that has been introduced. As regards his question on Europe, we need to abide by the VAT rules that Europe sets. Those rules very seriously constrain us, and the noble Lord makes the important point that we have to work within those constraints.

[Lord Cormack]

My Lords, does my noble friend the Minister accept that the Listed Places of Worship Grant Scheme, while it is welcome, does not address the issue satisfactorily? All buildings in the ownership of cathedrals, for instance, are not eligible for it; it is just the place of worship itself. All the heritage organisations, headed by the Heritage Alliance, have submitted evidence to his department which shows that all those who truly know and care about the future of our built heritage in this country believe that the Government have got it wrong. Can we please have a rethink on this?

[Lord Sassoon]

My Lords, there has been a consultation; there have been extensive discussions; and the response to the consultation was published on 28 June. Concessions have been made that will significantly help university listed buildings; for example, certain transitional repairs will be allowed to carry on for four summers. I shall not be drawn again into a discussion of listed places of worship, save to say that some of the same considerations apply. For example, anomalies in the arrangements affecting universities include the fact that those listed buildings which are used for business purposes such as teaching are already subject to VAT as are alterations to all non-listed university buildings, so there are very considerable anomalies here which we are clearing up.