HC Deb 31 January 2000 vol 343 cc779-80
33. Mr. Gordon Marsden (Blackpool, South)

What recent representations the Church Commissioners have made to the Chancellor in support of the abolition of VAT levied on repairs or restoration of church buildings. [105970]

Mr. Stuart Bell (Second Church Estates Commissioner, representing the Church Commissioners)

The Church's original submissions to the review of charity taxation highlighted the significant sums paid in VAT on repairs to working, listed church buildings. That burden usually falls on parishes, where most resources for local ministry and for building repairs are found by parish-based giving and fund raising. The imposition of VAT at 17.5 per cent. on church building repairs absorbs a large amount of locally raised funds and resources, for no local benefit.

Mr. Marsden

I thank my hon. Friend for that answer. Does he agree that, at the start of the third Christian millennium, it is both depressing and inequitable that £18 million should be paid in VAT on £123 million of church repairs at a time when domestic house repairs are assessed at 5 per cent? Will he urge his hon. Friends and the Church Commissioners to continue to press that point? He might even persuade the Primate of England to divert some of his formidable lobbying attentions from section 28 to consider a far more important issue.

Mr. Bell

I shall not be led to discuss section 28 today. However, the points made by my hon. Friend on VAT on church repairs are being raised with my hon. Friend the Financial Secretary—as are those that I mentioned in my response to the hon. Member for Vale of York (Miss McIntosh). We are seeking a meeting with my hon. Friend the Financial Secretary.

I am grateful to my hon. Friend the Member for Blackpool, South (Mr. Marsden) for confirming that £18 million of the £123 million that the Church spent on repairs was paid in VAT alone.

Mr. Owen Paterson (North Shropshire)

From correspondence, the hon. Gentleman is aware of the problems with the major restoration of the parish church in Wem. We have trouble with SITA in organising a refund of the landfill tax. Will the hon. Gentleman personally organise a meeting of all the interested parties, so that that long-standing problem can be resolved?

Mr. Bell

I am grateful to the hon. Gentleman for putting that question on behalf of his constituents. I shall be glad to look into the matter and, if possible, arrange the meeting that he suggests.