Upcoming Budget Announcement Raises Concern Among Faith Communities
The upcoming autumn budget, expected to introduce budget cuts and tax increases, has religious communities concerned about its impact
Britain is bracing for what Prime Minister Keir Starmer described as an autumn budget that will be “painful” and that “tough decisions will be made”.
Many religious communities, in the days leading up to the announcement, have expressed a lot of concern.
Essential Community Support at Risk
The National Churches Trust Charity, speaking on the importance of community support, stated:
“The UK’s churches take an immense amount of pressure off the NHS and provide essential support services that would cost an extra £8.4 billion a year to deliver. This is equivalent to nearly 4% of UK health spending. It would be the same cost as employing 230,000 nurses.”
However, It adds that “The UK’s church buildings are dangerously underfunded, with many in the most deprived areas falling into disrepair and facing closure, Without urgent support, we risk losing this shock absorber for the NHS, and a vital safety net for the most vulnerable people in our society.”
Proposed budget cuts could limit funding for these essential services, reducing many genuine outreach efforts to help communities.
Havisha (who wished to withhold her surname), 21, a devout Sikh expressed concern about how the upcoming budget cuts will affect her community. She said:
“[A budget Cut] would cause troubles; as my place of worship serves “langar” (food for free) everyday 3 meals. It is a religious trend followed everywhere by the Sikhs. I believe the budget cut will affect this religious ritual.”
Christians Against Poverty’s Chief Executive Officer, Stewart McCulloch, said: “Ahead of the Autumn Statement, our message to the UK Government and MPs from all political parties is to choose people over politics.”
Security Concerns Amid Budget Cuts
With budget cuts being expected, another concern amongst religious communities is that of security.
During the Conservative government, The Security Minister Tom Tugendhat authorised £28 million in funding, which was issued to places of worship nationwide.
This funding was approved for the purpose of helping protect faith communities from the threat of hate crimes and terror attacks.
Mohammed Alaradi, a student and devout Shi’a Muslim, said:
“I would feel deeply concerned if funding for mosque security were lacking. Mosques are not only places of worship but also centres for community and support. Insufficient security funding would leave us vulnerable to threats, impacting our ability to practice our faith openly and safely.
“In a time when hate crimes remain a reality, government support for protective measures at religious institutions is essential. A lack of funding could heighten anxiety and discourage community engagement, undermining the values of diversity and inclusion in the UK.”
Government Grants for Places of Worship Threatened
One of the key grants that helps faith communities with expenses is the Listed Places of Worship Grant, which has been renewed by every government in power since 2004. The funding covers the VAT on repairs of over £1,000 in authorised places of worship.
The grant is set to expire on 31 March 2025, and so far, there has been no indication from the Prime Minister on whether it will be renewed
In a paper published by the Anglican Church back in 2018 on the cost of repairs, it stated: “the church receives less than £30m in grants for the maintenance of its buildings (£11m from the Government). In real terms the value of the grants from Government is falling, year on year, at above inflation, due to increasing costs of building work.”
In a letter directed at the chancellor, Sir Philip Rutnam, the former permanent secretary at the Home Office and now chairman of the National Churches Trust; said:
“Without VAT rebates for repairs, the places of worship would have to rely on local funds to make up the difference. For major restoration projects such as Leicester and Salford Cathedral, it amounted to more than £1 million.”
A recent publication by The Telegraph points to the possibility that the chancellor might scrap the VAT relief fund
If VAT rates increases and the relief fund is not renewed, most places of worship may face challenges in covering essential maintenance and operational costs.
The Office for Budget Responsibility has been approached for comment on whether a VAT increase will be part of the upcoming budget.
Awaiting the Government’s Decision
The outcome of the budget announcement will be closely watched, with many religious communities bracing for a potentially challenging future.
The announcement will be made by Chancellor Rachel Reeves on October 30th at 12:30 PM.
What are your thoughts on the upcoming budget announcement? How could your community be affected? Let us know in the comments
