§ Dr. Evan HarrisTo ask the Chancellor of the Exchequer (1) what the cost was in 2002–03 of administering grants provided under the scheme providing rebates on VAT paid in respect of repairs to places of worship listed as being of architectural significance; and what the value of grants awarded in 2002–03 was; [126186]
(2) what assessment he has made of the impact on listed buildings which are not places of worship but which are in need of repair of his policy of providing grants equal to VAT paid only in respect of places of worship. [126187]
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§ John HealeyIt is the Government's long-term objective to reduce the rate of VAT charged on repairs to listed places of worship from 17.5 per cent to 5 per cent. However, as this change is not permitted under current EU rules, the Commission has agreed to look at UK proposals to amend the VAT rules when the reduced rate provisions are reviewed this year. The listed places of worship grant scheme has been introduced in the interim to award grants equivalent to the savings that would result from a reduced VAT rate.
The total costs of the scheme are published on a routine basis in the annual report of the Department for Culture, Media and Sport. That Department monitors the administration of the scheme to ensure value for money is given at all times, and monitors the impact of the scheme to ensure it is working effectively. There is no evidence that the scheme has had any impact on other listed properties.