Breaking News

Church in Newark faces £600k shortfall once cap on reclaiming VAT imposed

THE parish church of St Mary Magdalene’s, Newark-on-Trent, in Nottinghamshire, is facing a shortfall of £600,000 on its £4-million “Reawakening” project, as a result of the new cap on the Listed Places of Worship (LPWG) Scheme.

Under the LPWG Scheme, churches have been able to reclaim funding equivalent to the amount of VAT charged on repairs. The Government announced in January that the scheme, which had been due to expire at the end of March, would be extended by one year — but that, after 31 March, individual places of worship would be eligible to reclaim a maximum of £25,000 (News, 24 January). This has left St Mary’s — a building the size of a small cathedral, and on Historic England’s “At Risk” register — with the £600,000 shortfall.

Work began last November to repair its leaking roof and crumbling external stonework, and to reorder the building to enhance its function as a community hub. Designated a “resourcing church” by the diocese of Southwell & Nottingham, its main funder is the National Lottery Heritage Fund (NLHF), with funding, too, from Historic England, the C of E’s Strategic Development Fund, the National Churches Trust, and the Wolfson Foundation.

The church was tackling the situation on several fronts, the Rector, the Revd Christopher Lion, said on Monday. “Firstly, we’re lobbying the Government to try and see if it will reverse its decision, because we feel that this is a really unreasonable move. For projects that are already in progress like ours, the word my churchwarden used was ‘cruel’. It’s pulling the rug from under your feet when you’ve already signed contracts.”

ST MARY MAGDALENE, NEWARKSt Mary Magdalene’s, Newark-on-Trent, Nottinghamshire

Of the Government’s contention that 94 per cent of restoration work would be unaffected, he commented: “The vast majority of church building projects are minor repairs, or something like putting a new toilet in. We’re talking about a major project that is essential to the probable future of our church, which is a Grade I listed building that’s been at the heart of our town for generations. It’s essential that we safeguard its future.”

Before work started, the church had done one round already of what was termed “value engineering”: cutting a sizeable portion of the initial plans after looking at what it could afford in the light of rising costs of labour and materials. It is also going back to its funders, including the NLHF. The diocese had agreed to bring forward cash-flow arrangements that it had put in place, Mr Lion said, and the church had brought forward as much purchasing of materials as possible to keep spending within the financial year.

“In the grand scheme of government spending, the amount it would actually cost to exempt projects already under contract is negligible. Yet the impact on the communities is going to be huge if these building projects don’t complete, or if the worst came to the worst and we do have to stop the work and find the money elsewhere,” Mr Lion said.

The church is closed until November this year, with all services and community activities taking place elsewhere until the work is completed. He is aware of two other churches — Holy Trinity, Clapham, and St Michael le Belfrey, York — which are in the same position. The three are trying to co-ordinate their lobbying efforts. “I remain optimistic that the work will be able to continue,” he said.

“It doesn’t mean that, in the short term, there aren’t some very real problems that we have to find practical solutions to, but I think, ultimately, for me, it comes down to trust in God.”

Source link

Related Posts

1 of 6