George Osborne’s move means churches will have to pay hundreds of thousands of pounds more for repairs.
The standard rate of VAT, 20 per cent, will be applied to all work carried out on listed buildings instead of the current zero rating for approved alterations.
Tory MP Tony Baldry, who is Second Church Estates Commissioner, and the Bishop of London, the Rt Rev Richard Chartres, met Mr Osborne last week.
Mr Baldry said he was confident the Government did want to find a way to differentiate between churches carrying out vital alterations and rich owners of listed houses making changes for their own benefit.
As village shops and pubs close, churches are again becoming the heart of the community, even acting as post offices, chemists, cafes and pubs. Often pricey renovations are required.
Pamela Greener
Pamela Greener, wife of the Dean of Wakefield, helped raise £3million to turn their medieval cathedral into a true community hub, upgrading the ancient heating system, levelling out the floors and putting in comfortable seating. Now the church leaders may have to pay an extra £200,000 in VAT.
She said: “To lump churches in with billionaires wanting to install swimming pools and luxury cinemas in their mansions is preposterous.
“In the recession, churches are stepping up to the mark and truly doing the work of the Big Society, reaching out to those who need help.
“I think it is completely daft to lump together village halls, community buildings and old historic houses, which are struggling to make ends meet, in with billionaires and their lavish lifestyles.
“A little church in a Cumbrian village might be the only public building in the village and is used for everything. We deserve to have a little help keeping them at their best.”
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