Donor offers £1.2m to save stalled church project

An anonymous donor has offered to pay £1.2m towards the cost of renovating a church in York after the project stalled due to a change in tax laws.

Works at St Michael Le Belfrey began last year but alterations to a government grant scheme left the future of the project hanging in the balance.

The church - famous as the place where Guy Fawkes was baptised - was left with a £1.4m shortfall after the government changed the rules around recouping VAT on the project.

The Rev Andy Baker, priest at St Michael Le Belfrey, called the donor's offer to pay the outstanding funds if necessary "an answer to prayer".

He said the renovation, which includes stonework repairs and cleaning, replacing the roof and adding insulation, would have had to be "significantly scaled back" if the money had not been found.

"It would have been very disappointing really to have had to go through such a long process to then end up with a reduced finished product," he said.

After the cap was imposed in March, the church reduced the shortfall by £200,000 through making advance payments to contractors.

The unnamed donor pledged the donation the day before St Michael Le Belfrey was due to instruct the design team that the scope of the project would need to be reduced, Mr Baker said.

Mr Baker said while he was "relieved" the project - which has a completion date of summer 2026 - could continue, he was sympathetic to other churches that faced a similar dilemma.

"Churches aren't just beautiful buildings - we're working with our community, in our community. These aren't just vanity projects," he said.

A spokesperson from the DCMS previously said the changes took place against a "tough financial background" and "competing priorities" within the department.

It said 94% of claims were expected to be unaffected by the change, adding that the the government had extended the Listed Places of Worship Grant Scheme until 31 March 2026.

Mr Baker said St Michael Le Belfrey would continue to campaign "for an outcome where the government fully recognises the value that our churches make to society, spiritual development and the economy of this country".

"We are so thankful to all those who have supported us in particular local MP Rachael Maskell, who has worked tirelessly on our behalf," he said.

"We pray that their passion and wisdom will be heard and understood."

The latest offer is the second time an unnamed benefactor has stepped in to help the church, which was previously gifted £1m that it used to set up a social action programme.

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