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Draft Grants to the Churches Conservation Trust Order 2003
Sixth Standing Committee on Delegated Legislation
Wednesday 26 February 2003
 

The Minister of State, Department for Culture, Media and Sport (Mr. Richard Caborn): I beg to move, That the Committee has considered the draft Grants to the Churches Conservation Trust Order 2003.

The purpose of the order is to specify the maximum Government grant to the Churches Conservation Trust for a three-year period beginning on 1 April 2003. My right hon. Friend the Secretary of State is empowered to make such an order under section 1 of the Redundant Churches and Other Religious Buildings Act 1969, subject to the approval of the Treasury and the House. The order constitutes the statutory basis on which the Government provide financial support for the trust's work.

The Churches Conservation Trust—formerly the Redundant Churches Fund—was established in 1969 under provisions in the Pastoral Measure 1983, as amended. The trust's role is to care for Anglican churches of historic or architectural interest that are no longer required for regular worship and for which no suitable alternative use can be found. The trust's chairman and trustees are appointed by Her Majesty on the advice, submitted through the Prime Minister, of the Archbishops of Canterbury and of York. Since July 2001, the trust has been ably chaired by my right hon. Friend the Member for Birkenhead (Mr. Field).

There are almost 13,000 listed Anglican churches, and it is a sad fact that every year about 30 of them cease to be required for regular worship as a result of demographic and social change. Many are in inner-city or rural locations, and some are of great historic or architectural interest.

There is a statutory procedure for dealing with such so-called redundant churches. Most are found other suitable uses, including as places of worship for other denominations, community centres, concert halls, offices and, latterly, as houses. The future of churches of historic, architectural or archaeological importance for which no satisfactory new use can be identified can be secured by vesting in the Churches Conservation Trust, which has received 11 such churches in the past three years. In such cases, the decision is made by the Church Commissioners, who take expert advice from the Advisory Board for Redundant Churches, which is an independent body. The funds available to the trust are also a decisive factor.

The trustees have legal responsibility for more than 330 churches, of which 310 are grade I or II. They range from the magnificent 18th century church of St. Paul's, Portland square in Bristol, which is one of the most important examples of provincial ecclesiastical Georgian architecture, to St. Bartholomew's, Richard's Castle in Herefordshire, which is an ancient church dating back to the 12th century. Were it not for the trust, many beautiful churches would face damaging alterations, deterioration or even destruction. As it is, however, they are maintained in sound condition, are accessible to the public, and remain a focus in their localities.

The trust's main duty is to repair and maintain such churches, but increasingly it is concerned to find ways to encourage people from all backgrounds who are not familiar with historic buildings to see its churches as places where they are welcome and which belong to them. June 2001 therefore saw the launch of the trust's website at www.visitchurches.org.uk, and I hope that every member of the Committee has logged on to it. That achievement has raised the trust's profile and reflects its wish to be as accessible as possible. Such an innovation was to some extent overdue, but it is good to see it.

The trust is also developing a strong education programme for primary and secondary schools and that, too, is welcome. Last year, its education officer launched a series of leaflets for teachers so that they could be well informed about the issue. Schoolchildren were among the 27,000 people of all ages who visited St. Mary's, Shrewsbury in autumn 2001 to experience Anthony Gormley's inspiring display of sculptures, ''Field for the British Isles''.

In line with departmental objectives, the trust aims as far as it can to invest in churches in Government priority action areas. About £2.3 million from the Heritage Lottery Fund has been invested in work at St. Paul's, Portland square in Bristol. The trust hopes to lease the church to a local charity that teaches circus skills. That will allow the building to regain its place at the heart of the community and to become a landmark project for the regeneration of that deprived part of Bristol. [Interruption.] I think that hon. Members are saying that there were summersaults from politicians, but the House of Commons can cater quite well for that without help from a church in Bristol. In any case, the repairs contract is providing excellent training opportunities for disadvantaged young people through collaboration with a local government-funded agency.

The trust has achieved the majority of its objectives, which it set out in its 2001 to 2004 funding agreement. That included a 10 per cent. year-on-year increase in visitor numbers. As regards future plans, a new funding agreement is being drawn up and will be ready for implementation by the end of March. The trust has again set itself challenging targets, including a move towards team-based working in five designated regions. Meanwhile, the role of the trust's churches as a focus for education and community activity will continue to be promoted.

The next few weeks will see the trust's long-awaited move to new office accommodation in west Smithfield. That is an exciting step for the trust, which has had to battle with a cramped working environment and an outdated telecommunications system for too long. The trust's continued presence in the City of London can be justified by its need to be close to its two major sources of funding. It further benefits by not having to pay business rates in the City, owing to its charitable status.

My Department is the trust's major financial supporter and contributes 70 per cent. of its grant in aid funding. The Church Commissioners provide the remaining 30 per cent. That ratio has been in place since it was agreed in 1994. English Heritage is sometimes able to provide funds to assist with major repairs to individual redundant churches that are due to be vested in the trust. In addition, the Heritage Lottery Fund has awarded several grants to the trust, which hopes to receive more for projects in the coming years.

Financial provision to the trust for the three financial years ending on 31 March 2003 will total £12.6 million. Of that, £8.8 million will have come from the Department for Culture, Media and Sport and £3.8 million from the Church Commissioners. The order provides for Government grants of up to £9 million to the trust in the next three financial years. That is an aggregate of the public spending review figures for the next three financial years. Those figures have already been made public and the trust has been notified for financial purposes.

The grant allocated to the trust continues to be determined in accordance with departmental spending review procedures, within the limits of the maximum that the order specifies for the three-year period as a whole. The Church Commissioners' maximum contribution for those three years has been set at £3.857 million; the Synod approved it today. We therefore propose that the trust's maximum overall budget for the next three years be £12.9 million, against £12.6 million for 2000 to 2003. The Government are confident that that level of funding will enable the trust to keep its existing churches in satisfactory repair, receive a limited number of new churches—the Church Commissioners will need to prioritise eligible buildings—and achieve the targets set out in the funding agreement.

The order represents the Government's continuing commitment to the care and protection of our built heritage, as voiced in the Government report ''The Historic Environment: A Force for our Future'', which we published in December 2001. The report outlined the Government's commitment to realising the full potential of the historic environment harnessed as a lifelong learning resource for all and made accessible to the whole of society. The order will help the trust to achieve its aspiration of ensuring that some of the finest buildings in England become better known, better appreciated, better understood and even more widely loved by a growing proportion of the population.

Mr. Malcolm Moss (North-East Cambridgeshire): May I start by saying what a pleasure it is to serve under your chairmanship, Mr. Beard? The Opposition will not oppose the order. We fully support the grant to the Churches Conservation Trust, which does  invaluable work in maintaining a critical part of our national heritage. We also pay tribute to the Church Commissioners for their contribution to that cause.

I have a few questions, which the Minister might be able to answer when he sums up. It is all very well offering money to rescue churches that would otherwise fall into disrepair, but are the Government being sufficiently pre-emptive? Are they doing enough to minimise the unintentional redundancy of churches in circumstances in which local communities or the Church authorities find it difficult to maintain them? If money were spent pre-emptively, we might not need quite so much to bring buildings back from the dead, so to speak.

We are pleased that the trust has set up its own website and heightened its profile nationally; that is obviously important and an extremely good move. Are the Government sufficiently pleased, however, with the conduct of local consultation on buildings that are threatened? Are the right processes in place to ensure that local communities have a say in whether such buildings become redundant in the first place, and, when that is almost inevitable, in what their future should be?

The Minister said that 11 churches had been put on the register in the past three years. Our research, which might be inaccurate, suggested that there were only five; it would be interesting to have confirmation that we were measuring the same period. None the less, 11 is a fairly substantial number, as it accounts for about a third of the churches that became redundant in that period. As the Minister rightly said, the great proportion find other uses, but is the rate at which churches are becoming redundant increasing substantially, or is there a steady trickle of four of five a year?

The increase in funding from £8.8 million to £9 million is, of course, welcome. However, that is an increase of only 1.94 per cent. over the next three years, which averages out at a 0.65 per cent. increase per annum, which is well below the rate of inflation. Although there may not be a linear relationship between the costs involved in the trust's work and inflation generally, wages and the cost of materials are certainly large inflationary factors in any figures, and the funding in no way keeps pace with inflation. Is the Minister confident that his Department's share of the money is sufficient to do the necessary work?

What did the trust ask for? It must have had input, and presumably the Minister can tell us what it deemed necessary to do the job that it has been given to the best of its ability. What was the real basis on which he and his team determined the figure of £9 million? It is a nice round figure, but it does not make much sense to anyone who looks at the percentage increase on what has been offered over the past three years. Will he tell us how he determined the final figure?

When the last statutory instrument was debated, the Minister said that the trust had set itself challenging targets, mainly financial. He alluded to some of them, but did not say whether they had all been met, although I think that he said that a majority had been.  Will he give us a closer definition of what he means by a majority? Was he talking about 90 per cent., 99 per cent. or perhaps just over 50 per cent?

Has there been any change in the amount of funds available from charitable and non-state sources? If the money from those sources for the upkeep of churches has increased, has the Government's contribution fallen? Has the Minister or his Department carried out any assessment of the relative funding from English Heritage, the Heritage Lottery Fund, local authorities or other independent sources? Does his Department have any proposals to encourage potentially larger donations from those sources? He mentioned £2.3 million from the Heritage Lottery Fund, so money is obviously coming from such sources, but does that happen on an ad hoc basis? Do the Government have an overview of the figures?

The Minister mentioned the trust's new offices. He alluded to the fact that there were no rates to pay because it was, in effect, occupying its own buildings, but he did not say whether there was any increase in the overheads of running the trust as a result of moving into new premises.

All in all, we support the order, but we would be grateful for the Minister's answers to our questions.

Mr. Adrian Sanders (Torbay): We support this mechanism for getting money to where it is needed. It is vital that we do what we can to preserve and enhance our ecclesiastical heritage. However, I have two questions, one of which might require a written reply.

This draft order, like the previous one, which was introduced in 2000, is for three years. Are there mechanisms in place to review it within the three-year period in circumstances that are obviously beyond the Minister's control? For example, if inflation returns or other disasters occur, it might be necessary to reconsider the situation, so is there a review mechanism?

My second point relates to an interesting issue raised with me by my right hon. Friend the Member for Berwick-upon-Tweed (Mr. Beith). The Historic Chapels Trust does a similar job to that of the Churches Conservation Trust in relation to disused nonconformist and Roman Catholic chapels of historical and architectural significance. Together with the Churches Conservation Trust, it won concessions on value added tax—hon. Members may recall their campaign—and Scottish and Welsh trusts won a similar concession. However, the trusts face a similar problem arising from the Licensing Bill.

The Government plan to exempt churches from expensive and bureaucratic licensing procedures for concerts in places of worship, but they have not so far made specific proposals to include the Churches Conservation Trust in the Licensing Bill exemption. There is a danger that the money granted today will return to the Treasury in the form of charges under the Bill. Has the Minister raised that issue with colleagues?

If not, will he do so and give us his view? Those are my points, but we shall support the order.

Bob Russell (Colchester): Following on the points made by my hon. Friend the Member for Torbay (Mr. Sanders), we need to be clear whether the Chancellor is giving with one hand on VAT and taking with the other. Ministers and others must also consider, albeit not today, how the nonconformist Churches and other faiths—not only Christian faiths—can be brought under the same umbrella. While it is right and proper for us to support the order, we should move on from the thought that only the Anglican church should benefit from this largesse.

We should put on record our appreciation to everybody involved in the Churches Conservation Trust. As the hon. Member for North-East Cambridgeshire (Mr. Moss) said, perhaps if there were more resources more could be done. Many historic buildings in our communities would benefit from such assistance.

I am particularly keen on the trust because there are already three buildings under its jurisdiction in my constituency—one would expect that in Britain's oldest recorded town—so perhaps I am putting out the begging bowl for more. Will the Minister tell me in his reply today, or later in writing, whether there is a route back for a church whereby it can again become a regular parish church or place of worship? Suppose the community has departed, the church is redundant but has been restored to perhaps its best condition in centuries, and then the closure of a port and massive urban regeneration brings more people into the area than historically lived there. There in their midst is a closed church. Is there a mechanism, if the community desires it, to bring that church back into active use?

I am not sure who has legal ownership of the buildings. If ownership is no longer with the diocese, does it still have any say over the use to which a church, once closed, can be put? I ask that because the Greek Orthodox community in my constituency would like to take over a closed church, but is apparently having difficulties in so doing. Is there something in the rules and regulations that enables the former owners to prevent a different denomination or faith from coming in?

Those are pertinent questions, which I hope the Minister will answer in writing, if not in his response today.

Mr. Frank Field (Birkenhead): I add my expressions of pleasure at speaking under your chairmanship, Mr. Beard. I declare an interest in that I am chairman of the Churches Conservation Trust, although I think that I have not put it in the Register of Members' Interests—I shall go and do so immediately after the Committee rises. If I take a slightly different angle from the other speakers in this debate, it is because I am the chairman of that body.

Thanks to taxpayers' money and to support from the Church Commissioners, this country now has the finest collection of ecclesiastical buildings anywhere in the world, and it has put them under one stewardship. The taxpayers and the Church have done that not only because they believe that the buildings are of great beauty, but because they are part of the English memory. For them to be carelessly destroyed would be a huge act of vandalism.

I shall comment later on some of the issues that have been raised, but the debate gives me an opportunity not only to congratulate the staff who conserve our buildings and ensure that they are open to the public, but in the House of Commons to express to the huge number of volunteers my respect for their extraordinary effort. I also put on the record our thanks to them, whether they are paid or unpaid, for that effort.

Let me pick up the comments so deftly put by the Opposition speakers. We must accept that we are discussing a standstill budget. Although the Secretary of State, when the public expenditure round was agreed, wrote to all the organisations that he helps to fund saying what a generous settlement had been made, we had a standstill budget. However, the Secretary of State said that money was being kept back for modernisation, and I assure the Minister that when money becomes available for which organisations can apply, the trust will be one of the first to do so.

We will happily work under the heading of modernisation, because we must think well beyond the bounds that the trust has sought to maintain up to now in carrying out its functions. I therefore welcome the care that the Government have taken in limiting taxpayers' money given to us. They have said that there is an offer of new money, but that nothing will come to us automatically: it will depend on the quality of our plans. The debate that took place in General Synod earlier showed that this is the last time that its members will approve their side of the agreement.

The full effects of the squandering of historic assets by previous Church Commissioners on the financial running of the Church are now becoming only too plain. Had they not lost that £800 million by thinking that they could pull off a fast move in American property, the Church today would have an extra £50 million a year in income. The effects of that folly of a decade ago are beginning to show in the Church's daily operations. I therefore do not expect Synod to approve its side of the motion again.

When the hon. Member for Colchester (Bob Russell) mentioned Churches that are not established Churches being outside the fund, there was considerable agreement among Labour Back Benchers about what appears to be unfairness. Therefore, the modernisation proposals that we take to the Government must not only rethink our role, but do so in a way that takes into account other Christian denominations, so that the best of their buildings can be treated as well as redundant Anglican buildings have been in the past.

To end on a personal note, we are always pleased to hear from other groups that might wish to use our churches. One of the hon. Gentleman's local churches, St. Martin's, which I think was used as a restaurant for a time, was most weirdly painted in ways that did not enhance the building. There clearly are problems surrounding who gain leases on buildings and how they treat them. However, it was good news that there might be somebody in the market for the three churches in his constituency.

I am grateful for this opportunity to speak. I want, through the Government, to thank taxpayers for their support. May I also convey, through my hon. Friend the Second Church Estates Commissioner, our thanks to the Church. My right hon. Friend the Minister will add another first to the many firsts of his parliamentary career: I do not think that in three years' time another Minister will move a similar motion to the one moved today.

Second Church Estates Commissioner (Mr. Stuart Bell): I add my own expressions of satisfaction that I am in this Committee under your chairmanship, Mr. Beard. I can agree with my right hon. Friend the Member for Birkenhead in this respect: I will probably not be in another Committee with you for the next three years, as I do not normally sit on these Committees.

Let me tell the Committee a story about Winston Churchill, who used to walk the grounds of 10 Downing street, dictating to his secretary. He used to start with ''Mr. Speaker, sir, I didn't intend to speak today, but,'' and then he gave his set speech. I did not intend to speak today, but came simply to congratulate my right hon. Friend the Minister. However, as my right hon. Friend the Member for Birkenhead referred to the Church Commissioners, it might be useful to put some points on record, although I will not speak of dissatisfaction, because I was hardly dissatisfied with the Minister's statement.

The figure of £800 million for the supposed loss some years ago is not correct. The Church Commissioners never lost that amount on property. However, that figure has got into the system, and like all figures that get into the system, it is impossible to get out, as we have heard today. When I became Church Estates Commissioner in 1997, the commissioners' assets were £3 billion. Under my stewardship, they increased to £4.5 billion. Victory has 1,000 fathers, and why should I not be one of them? Assets have decreased a little, to about £4.3 billion, because of the fall in the stock markets, but they are sufficient for a lengthy period.

I therefore do not associate myself with the views expressed by my right hon. Friend that this is the last time that the commissioners will grant money to the Churches Conservation Trust. The money is the Church Commissioners' money, not Synod's money. I am very glad that that grant has been approved today, but I do not believe that it represents the last contribution that the Church Commissioners will make.

On the wider issue of Church and state, although we have many debates about the Church being established or disestablished, Church and state come together under this order. The Church makes its contribution through the Church Commissioners; the state makes its contribution through the taxpayer and my right hon. Friend. Thus, we see how the established Church works in harmony and, in this case, in the interests of our stock of redundant churches.

I end on a happy note by congratulating my right hon. Friend the Member for Birkenhead on his work as chairman of the Churches Conservation Trust. I also congratulate my right hon. Friend the Minister. He might not be in his post in two or three years' time, but I am sure that whoever is in his post then will introduce a similar order.

Mr. Caborn: I shall try to answer in writing the questions that I do not answer now, because I cannot give all the details now, although I have been going through the annual report to try to find answers. I advise hon. Members that if they read the 2000–01 annual report—an extremely good read—it will probably answer all the questions that they have asked. None the less, I shall do my very best.

My right hon. Friend the Member for Birkenhead mentioned the change in the funding arrangements. Part of our funding comes from the Church of England or, to be more precise, the Church Commissioners. Originally, the Church provided 60 per cent. of our budget and the taxpayers 40 per cent. That ratio is now 30 per cent. and 70 per cent. respectively, but it would be wrong to take a simple reading of those figures. Both Church and taxpayers are committing more in money terms to our work than they did originally. However, the Church lost certain fiscal privileges—some have been mentioned today—such as exemptions from rates on vicarages, so part compensation was made by adjustments to the proportion of the grant that taxpayers made to the trust, which explains today's figures of 70 per cent. and 30 per cent. The formula has changed.

The amount of money that the trust asked for is outlined on page 31 of the report, which says:

    ''We have applied to our sponsors for £14,798,000 to enable us to take forward our core work . . . This is a comparatively modest increase, at 17 per cent., on our statutory funding of £12,612,000''.

So, the answer to the question asked about that is 17 per cent., of which we granted 2 per cent. Nevertheless, we are looking at all the budgets and I am sure that the hon. Member for North-East Cambridgeshire, whose party stands for cuts in taxation and public funding, will wholeheartedly agree that one has to be very prudent when considering public expenditure to make sure that the money is spent in the right way.

My right hon. Friend the Member for Birkenhead mentioned that my Department is going through a modernisation process. We have held back some funds to drive that modernisation forward. I am sure that the hon. Member for North-East Cambridgeshire would totally agree with that, too.  I was asked whether the trust has hit its targets. If hon. Members look at the report, as I recommend they do, they will see that there has been a 10 per cent. increase in the number of visitors. The education targets are also set out in the annual report. I cannot give the details about the finances of the new offices, but I shall write to the hon. Gentleman.

The hon. Member for Torbay asked whether the draft order can be changed during the three-year period. It can be, but if it were, the money would have to come out of other expenditure by my Department. We are setting out a comprehensive spending review for three years. If we want to make a course correction, we can do so—any Department can—but we cannot go back to the Treasury and ask for more money. Therefore, if there were a crisis in the organisation, it would have to come to us and make a good case, because we would have to rob Peter to pay Paul, which would not be easy.

I cannot answer the questions about Roman Catholics and VAT now, but will come back to them. The Licensing Bill has been part of a long debate, but I shall draw the comments of the hon. Member for Colchester to the attention of my hon. Friend the Minister for Tourism, Film and Broadcasting, who is dealing with that Bill.

Until the timely speech of my right hon. Friend the Member for Birkenhead, I had not realised the parlous state of the Church of England's finances. He gives a warning that we should all heed. Managing that type of change will not be easy. As he said, we are all custodians of a collection of churches that is probably unrivalled anywhere in the world. If serious financial problems are likely to arise in the next two or three years, we must recognise that now and consider how we can ensure that our heritage is maintained for future generations.

I smiled when I was asked whether churches can be taken back into use as a church or be used for other purposes. I got married in a church inside Sheffield university 37 years ago, and when I went back about three years ago I found that it had been changed into a lecture room for the university. When I gave a lecture there, I said that 35 years ago I had been standing at the altar there, and it had not changed at all. It makes an incredibly good lecture theatre, and the pews are still in place. I said to some of the students ''I was here 35 years ago, but getting married, not lecturing''. Sheffield university has kept that church in tremendous order, and it is now used daily by students. If churches can keep their historical context and be used in a modern setting, we should encourage that, and we should also encourage the population to visit them.

Question put and agreed to.

Resolved,

    That the Committee has considered the draft Grants to the Churches Conservation Trust Order 2003.

Committee rose at eight minutes past Three o'clock.