Question to the HM Treasury:

To ask His Majesty's Government whether they will introduce a zero rate of VAT for repairs of rural churches.

VAT is a broad-based tax on consumption and the twenty per cent standard rate applies to most goods and services. Whilst there are exceptions to the standard rate, these have always been limited by both legal and fiscal considerations.

The Department for Culture, Media and Sport already administer the Listed Places of Worship Grant Scheme. This aims to redress financial shortfalls by providing grants towards VAT paid on repairs and maintenance to the nation's listed places of worship. With annual funding increased to £42 million per annum, the scheme handles around 7,000 claims per annum and has made grants totalling over £300 million to date.

Going further by zero rating all repairs of rural churches would impose significant additional pressure on the public finances to which VAT makes a significant contribution.

There are no plans to introduce a new VAT relief for the repair of rural churches. However, the Government keeps all taxes under review.