Pre-Budget Report

Part of the debate – in the House of Lords at 5:18 pm on 8 November 2000.

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Photo of The Bishop of Wakefield The Bishop of Wakefield Bishop 5:18, 8 November 2000

My Lords, I am grateful for this opportunity to give a particularly warm welcome to the Government's statement on VAT and church buildings. Church buildings are part of the nation's heritage. They are maintained and repaired by the Churches, in particular by the Church of England, on behalf of the whole community. The statement is welcome because, while the Churches currently receive about £20 million in public grants towards the maintenance and repair of those buildings, many of which are national architectural treasures, they have a current annual expenditure on VAT of more than £40 million, nearly £30 million of which is paid by the Church of England. In other words, the Churches currently have to pay in VAT more than double the amount that they receive in public grant.

That unsatisfactory situation was recognised in a debate in the House in 1995. It forms the substance of the Eckstein report to be published later this month and has prompted strong personal representations to the Government by my colleagues the most reverend Primate the Archbishop of Canterbury and the right reverend Prelate the Bishop of London on behalf of all the Churches.

After years of difficult dialogue on the issue with both Conservative and Labour Governments, it is good to hear today's announcement, as far as it goes. However, there is still some way to go, as the Minister has made clear. The Government still have to refer the matter to the European Union. What will be the timetable for that? We need a timetable, not least to help in planning budgets and appeals for major maintenance and repairs and to ease the burden of fund-raising, particularly on noble clergy spouses--or is it clergy spice in the plural?

Will the Minister also give an assurance that, in referring the matter to Europe, the Government will continue their present level of commitment and press the case with perseverance and vigour? I repeat that the announcement is most welcome and the Churches of all denominations will be grateful to the Government for it. Our welcome and gratitude will be even greater when the proposals are put into effect.