The charity running St Michael le Belfrey, a Grade 1 medieval church next to York Minster, is facing a “sudden government imposed £1.4m shortfall” to its major £8.5m building project.

This has been caused by a £25,00 a year cap on VAT reclaims through the government’s listed places of worship grant scheme. The cap comes into effect on 1 April and will leave the charity “unable to reclaim the VAT budgeted for”, it warns.

The charity has been in touch with the Department for Culture, Media and Sport (DCMS) since October last year and has been involved in lobbying since the start of this year to have the VAT cap on the scheme either removed or an exemption given to the charity.

The Belfrey attracts 35,000 visitors annually and on average 600 worshippers each week. Through its charity it runs social action initiatives, including a debt advice centre, counselling services and a foodbank. The charity warns that its charitable work could be reduced due to the VAT cap.

The building work involves repair and renewing the site and is currently mid construction and surrounded by scaffolding and hoardings. While the building work is taking place the charity has moved to a temporary home at The DeGrey Rooms in York.



Interim priest in charge of the Belfrey Andy Baker said the cap “could potentially leave an unfinished building eyesore in the historic heart of York”.

“We are calling on the government to exempt projects already under construction from this cap, and asking people to join us in lobbying DCMS,” he said.

Despite an exemption motion tabled in parliament last month by York Central MP Rachael Maskell, so far the government “has shown no sign in reversing their decision”.

The charity is asking its supporters to write to their local MP, DCMS minister Chris Bryant, and culture secretary Lisa Nandy calling for an exemption to the cap.

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