Church restoration faces £600,000 tax blow

A historical church has said it faces a £600,000 shortfall on a major restoration project because of recent changes to tax rules.

Grade I-listed St Mary Magdalene in Newark is undergoing £4m of repairs and refits to enhance its role as a community hub.

The church began the project expecting to be able to reclaim a substantial portion of the cost of VAT through the government's Listed Places of Worship Grant Scheme.

However, project leaders said a new £25,000 cap on claims had left them "scrabbling" to make up the difference.

The government said it had taken the "difficult" decision to introduce the cap due to financial pressures.

Andrew Fearn, church warden and project lead, said: "We are lobbying furiously to try and persuade the government what they have done is thoughtless and in our case, we think, cruel.

"We are mid-contract, and the rug has been pulled from under our feet.

"We are scrabbling around now to work out how we can fill that gap but of course a public appeal to pay £600,000 of VAT doesn't really have legs."

Parts of the building, on Church Walk, date back to the 12th Century and its 236 feet (72 m) high spire is believed to be the fifth highest in England.

The church also functions as a community space, hosting toddler groups, youth hangouts, a community cafe, library group, flowers festivals and regular concerts.

It is also currently on Historic England's Heritage at Risk Register and is currently closed until November 2025 for the renovations.

Church rector Chris Lion said: "In overall government spending terms, the amount of money needed to solve this problem is tiny but for the churches involved it is huge and we don't have an easy answer as to what we do without it."

The government said it expected 94% of claims to be unaffected by the new cap.

A Department of Culture, Media and Sport spokesperson said: "Listed places of worship are important to faith communities and provide a range of services to the wider public.

"Many of them are architecturally and historically significant.

"This is why the government has extended the Listed Places of Worship Grant Scheme until 31 March 2026. "

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