What recent discussions the Church commissioners have had with the Chancellor of the exchequer on the effects on church incomes of the gift aid scheme.

The Churches, and I suspect all charities, are extremely grateful for gift aid. However, the administrative complexity, and particularly the need to keep paper gift aid declarations on file, causes great difficulty.

I thank my hon. Friend for that reply. Churchgoers all over my Constituency of Gloucester, both of the Church of England, which spends more than £1 billion a year maintaining a community presence across the city and all over our country, and of other Churches would welcome the introduction of a gift aid "light" scheme, meaning light in administrative burden for smaller charities. Does my hon. Friend agree that it would be a good idea, and would Her Majesty's Treasury support it?

My hon. Friend makes an extremely good point. The plans being developed in Gloucester are extremely good ideas and we should like to encourage Her Majesty's Revenue and Customs to move to a more streamlined system with an option for an online filing and accounting system. That would save time and money, not just for the Churches and charities but also for HMRC.

Last year, gift aid that went to St Edmundsbury cathedral was 25% lower than the aid it received from the listed places of worship grant scheme. I am delighted that the Government have extended that scheme from March 2011, but could my hon. Friend tell me what steps will be taken to publicise that scheme much more widely, so that more of our English church heritage can be preserved?

I think it is extremely good news that Ministers in the Department for Culture, Media and Sport have extended the scheme; that is very welcome. I think the hundreds of thousands of volunteers who raise money for the repair and refurbishment of churches up and down the country are very conscious of the VAT scheme on listed buildings and churches. My hon. Friend can rest assured that every diocese will be making sure that it is publicised in every parish.

The hon. Gentleman has acknowledged the importance of the gift aid scheme. Last week the Exchequer Secretary to the Treasury, in a reply to a question in this Chamber, indicated that some £4.5 million comes off the gift aid scheme. What discussions has the hon. Gentleman had with the Churches to ensure that the gift aid scheme can be increased, to ensure that they can then use that money for the work that they do?

The difficulty with the gift aid scheme at the present moment is that churches and parishes have to maintain enormous numbers of paper records, just in case there is any spot check from HMRC. It involves thousands of volunteer hours just to do so, and it would be perfectly possible to do it as effectively online, much more simply. That would be in everyone's interests, not least those of HMRC. The Church and, I am sure, other charities will continue to pursue that with ministerial colleagues in the Treasury and with the Treasury itself.