Scottish Churches Face Challenges as Key Funding Scheme Ends
Churches across Scotland are grappling with the ramifications of the premature conclusion of the Listed Places of Worship Grant Scheme (LPWGS), which has been a cornerstone for maintaining historic church buildings.
Last week, the National Churches Trust echoed these concerns, highlighting that the scheme’s end leaves numerous churches in a precarious position.
First introduced in 2001 under Chancellor Gordon Brown, the LPWGS provided a VAT exemption for repairs to historic places of worship. Although initially a temporary measure, successive governments extended it until the recent change in leadership under Sir Keir Starmer.
The scheme was set to be replaced by the Places of Worship Renewal Fund (PWRF) on March 31. However, the transition was marred by budget cuts, nearly halving the available funds, which have already been depleted.
The National Churches Trust pointed out that the PWRF is not yet operational, retains a diminished budget, and imposes new tax burdens.
In Scotland, the Scottish Church Leaders’ Forum expressed disappointment in a letter to culture minister Lisa Nandy, warning that the abrupt cessation of the LPWGS will severely hamper efforts to repair and maintain church facilities.
Rt Rev Rosie Frew, moderator of the Church of Scotland General Assembly, was among those who signed the letter. She underscored the threat to the sustainability of the Church of Scotland’s over 1,100 listed properties.
Rev Frew remarked, “We were surprised to learn, via a press release, that LPWGS is being closed at the end of the month and very disappointed that this decision was taken without any formal consultation with religious denominations in Scotland.
“The UK Government announced a replacement grant scheme for England only at the end of January and the UK Government appears not to have informed the Scottish Government prior to this unexpected announcement.”
She is seeking “urgent clarification and assurances” regarding continued funding for essential repairs in Scotland.
Rev Frew emphasized that churches are more than architectural landmarks; they are vibrant community hubs offering critical services, especially to those in need.
Nonetheless, financial constraints may necessitate the sale of more historic churches.
“We acknowledge the current budgetary constraints facing all levels of government, but listed churches are not simply about curating cultural architecture, they are important centres for the whole community,” she continued.
“They are living, breathing spaces at the heart of communities, the length and breadth of Scotland, and play a vital role in community life, hosting social action/outreach work including foodbanks, activities for schools, young people, and the elderly.
“The decision to end LPWGS will impact current repair projects as well as ending a scheme which has been vital over many years, and without will add further financial burdens to congregations and the Church as a whole.
“The Church has been forced to sell many historic and beloved buildings in recent years because we can’t afford to keep and run them, due to changing demographics and behaviour patterns.
“Sadly, the likelihood is that this move will make further disposals happen sooner.”
Rev Frew, alongside Scottish Catholic leader Rt Rev John Keenan, plans to discuss these issues with Kirsty McNeil MP, Parliamentary Under Secretary of State for Scotland, on March 10.
Keenan highlighted the substantial effect of the funding gap on larger projects within Catholic churches in Scotland.
“One of our eight dioceses alone has estimated that it will stand to lose over £100,000 per annum on the routine maintenance works that it carries out on its listed churches,” he said.
“In areas of deprivation where the environment is falling into depopulation and decline, the open doors of the local church and the light shining from within, is a source of solidarity, consolation and hope for the community that remains.”
This article was originally written by www.christiantoday.com



