Listed Places of Worship Grant Scheme

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VAT to be reclaimed on repairs to listed places of worship

Page updated: Thursday 18 June 2026

In late January 2026, the UK Government announced the closure of the Listed Places of Worship Grant Scheme, which had allowed VAT to be reclaimed on repairs to listed places of worship, at the end of March 2026.

This announcement was unexpected and will impact current projects as well as ending a scheme which has been vital over many years, and without it will add further burdens on the future.

What do I need to know?

The Listed Places of Worship Grant Scheme, which allowed churches to reclaim VAT on repairs, will close at the end of March 2026. This unexpected decision will impact both ongoing and future projects, increasing financial pressure on congregations. The UK Government has apologised for poor communication and says responsibility now lies with the Scottish Government, who are currently considering possible support, but no replacement funding has been confirmed.

Actions

  • We are asking congregations to write to their MSPs and have prepared a briefing to help them to do this
  • If you have ongoing or planned building work, contact your Presbytery Building Officer for advice.
  • Wait for further updates, expected after the Scottish Election (or sooner if available).

Action briefing for congregations

Action briefing for congregations with listed places of worship – June 2026

Contact your MSPs about support in Scotland following the end of the Listed Places of Worship Grant Scheme

Key Facts

What has changed?

The Listed Places of Worship Grant Scheme has closed, and the replacement fund applies only in England.

Who should be contacted?

All of your MSPs — 1 constituency MSP and 7 regional MSPs.

What should MSPs be asked to do?

Press Scottish Ministers for clarity on support in Scotland and back a practical Scottish funding route.

Why now?

A new Parliament is in place, and this is the right moment to raise the issue clearly and early.

The UK-wide Listed Places of Worship Grant Scheme has closed. For many congregations in Scotland, this means essential repairs and improvement projects for listed church buildings will become more expensive, placing further pressure on already stretched budgets.

Why now? The immediate question is what response the Scottish Government will make. A new Parliament is now in place, MSPs are taking up constituency and regional casework, and this is a good moment for congregations to raise the issue early and clearly with all of their representatives.

The UK Government has replaced the former scheme with the Places of Worship Renewal Fund for England only. It has also said that decisions about support in Scotland are now for the Scottish Government. Congregations are therefore encouraged to write to their MSPs — ideally to all eight of them.

As many people as possible should write. Individual messages from constituents usually carry more weight than a standard text, so office-bearers, members and church users are encouraged to write in their own words. If you have a local church meeting or a presbytery, diocesan, district or synod meeting coming up, you may wish to agree a short statement of concern and use it as the basis for individual messages.

If you are writing in a regional role, such as a Presbytery Clerk, Bishop, Superintendent, or as a member of a property or finance committee, consider writing to all MSPs whose constituencies and regions fall within the area you cover.

How to contact your MSPs

Use the Scottish Parliament’s Find your MSP tool and enter your postcode, or the postcode of your church building. Everyone in Scotland is represented by 8 MSPs — 1 constituency MSP and 7 regional MSPs — and you are encouraged to write to all of them.

Email is usually the quickest and easiest route. If you prefer to write, the postal address for MSPs is: The Scottish Parliament, Edinburgh, EH99 1SP. If an MSP holds a local surgery and you are able to attend, that can also be a useful way to raise the issue in person.

What to say

We are not offering a template letter. MSPs are more likely to engage with messages that are personal, local and specific. Please explain the issue in your own words and include details about your congregation and building.

Three things to ask your MSPs to do

1. Ask Scottish Ministers what support will be made available in Scotland following the closure of the UK-wide scheme.

2. Support the development of a practical Scottish funding route that recognises the heritage and community value of listed places of worship.

3. Visit your church building, or meet representatives of your congregation, to understand the local impact.

A short sample email opener

I am writing as a constituent and as someone involved in [name of congregation/church] to ask for your support following the closure of the Listed Places of Worship Grant Scheme. This change will increase the cost of caring for our listed church building, which is both a place of worship and an important community space used by local people and organisations.

  • Explain that the scheme has closed and that Scotland does not currently have an equivalent replacement.
  • Describe your church building and why it matters locally, including its history, heritage value, and the worship and community activity it supports.
  • Set out the practical impact. If you have current, recent or planned works, explain what the loss of VAT recovery means for cost and timing.
  • If community groups, schools, charities or local organisations use your premises, mention this and give examples of the wider public benefit.
  • Stress that listed churches are not only heritage assets but living spaces that serve communities through worship, hospitality, social action, support services and local partnerships.
  • If appropriate, invite your MSP to visit your church building to see both its repair needs and its value to the wider community.

Follow up

Please let the national office know if you have contacted your MSPs, and what response you receive. Write to the Parliamentary Officer, David Bradwell – dbradwell@churchofscotland.org.uk

If you do not receive a response after a reasonable interval, follow up politely. MSPs often receive a high volume of correspondence, and a brief reminder can be effective.

If other community groups or organisations use your church building, ask them if they will also write to their MSPs to explain how they value the space and how important it is to their work.

Further information:

As of June 2026, no replacement support for Scotland has been confirmed. The key issue now is what action the Scottish Government will take, which is why engagement with MSPs matters at this stage.

Churches and other faith groups in Scotland are in close contact with each other, and with partners in Wales who face a similar situation. There is broad agreement that church buildings are not only heritage assets but important spaces for community wellbeing and local service.

If you are currently undertaking works to a building, or have a project planned that will be affected by the end of the scheme, please contact your Presbytery Building Officer in the first instance for advice on options, timing and next steps.

The previous scheme has closed and there will be no further funding rounds. In Scotland, congregations may still wish to explore other funding routes where appropriate, but no direct replacement for the former VAT recovery scheme has yet been announced.

Meeting with UK Government on 10 March 2026

Senior representatives from the Church of Scotland and the Scottish Catholic Bishops' Conference met UK Government ministers on 10 March to raise serious concerns about the closure of the Listed Places of Worship Grant Scheme (LPWGS) — a programme that reimbursed VAT on eligible repair work to listed church buildings.

The meeting was attended by Fiona Twycross (Minister for Heritage – Department for Culture, Media and Sport) and Kirsty McNeill (Scotland Office Minister). Discussions centred on the real-world impact of the decision on congregations that depend on the scheme to keep historic buildings safe, functional, and open to the wider community.

Rosie Frew, Moderator of the General Assembly, opened by conveying regret about the decision and how it was communicated, noting that Scottish churches had received no advance notice before the public announcement. She emphasised that concern about the closure extends across denominations and faith traditions.

Bishop John Keenan, President of the Catholic Bishops' Conference of Scotland, questioned why a VAT reclaim mechanism for churches was being removed while free-to-enter museums continue to benefit from VAT exemptions — and stressed the scheme's importance for funding essential repairs.

Both UK Government ministers apologised for the lack of prior engagement, conceding that churches should have been kept informed.

They explained that evaluation of the old scheme had concluded many repair projects would have proceeded without the grant, and that the scheme disproportionately benefited congregations with sufficient capital to fund work upfront.

The UK Government ministers stressed that funding for listed places of worship is a devolved responsibility. They confirmed that a new heritage repair fund is being developed — but for England only — and that equivalent funding has already been passed to the Scottish Government through the Barnett Formula.

Church representatives, however, noted that Scottish Government officials had indicated they were unaware of the change, highlighting significant communication gaps between the two governments.

Church leaders warned that without the LPWGS, congregations will be forced to redirect limited resources from community outreach — including anti-poverty programmes — towards basic building maintenance.

They also pushed back against suggestions that churches should turn to lottery funding as an alternative. Many congregations are unable to accept such funding for ethical or pastoral reasons, particularly those working with people affected by gambling harm.

The meeting produced several commitments:

  • The Scotland Office will establish a more regular dialogue to ensure better engagement with churches.
  • Officials will share details of communications between the UK and Scottish Governments regarding the scheme's closure.
  • Information on VAT exemptions for museums and galleries will be provided to churches.
  • The Church of Scotland requested data on how much money Scottish listed places of worship had received over the lifetime of the scheme.

Looking Ahead

The closure of the Listed Places of Worship Grant Scheme represents a significant change for congregations responsible for maintaining heritage buildings. While the UK Government frames the decision within the context of devolution, Scottish churches have made clear that urgent clarity — and genuine collaboration between governments — is now essential.

The Scottish Government have said that they are "actively exploring options to ensure that listed places of worship in Scotland are not disproportionately affected".

In June, the Moderator joined other Scottish church leaders in signing a letter to Màiri McAllan MSP, Cabinet Secretary for Education, Culture and Gaelic, asking for a meeting to discuss finding a resolution to this issue.

If you are currently undertaking works to a building or have a project planned that will be impacted by the changes, in the first instance, please contact your Presbytery Building Officer for advice. The current scheme to reclaim VAT for works undertaken since April 2025 has now closed, as there was a capped budget of £23million which has now been spent. Information from the UK Government can be found at Listed Places of Worship (LPW) Grant Scheme.

Finally, in the event of any queries, please contact us using the details below: