A new cap on the amount of VAT that listed places of worship can reclaim on repairs is expected to add £8 million to Wells Cathedral's costs over the next decade.

Under the revised rules, cathedrals and other listed places of worship will only be able to claim up to £25,000 per year in VAT refunds between now and March 2026.

Nerys Watts, chief operating officer of Wells Cathedral, warned that the change would have a significant financial impact, particularly as the cathedral embarks on a major restoration project to fully repair its century-old lead roofs. She said historic religious buildings require ongoing and expensive maintenance, and the cap will make an already challenging situation even harder.

Although government figures suggest 94% of claims will be unaffected by the cap, Watts argued that those undertaking large-scale repairs will struggle.

Wells and Mendip Hills MP Tessa Munt welcomed the extension of the VAT refund scheme to 2026 but raised concerns about the cost burden the cap could place on cathedrals and churches.

She told the BBC: "The daily cost of running the cathedral is absolutely staggering, but these are very beautiful places. Taking the VAT out of the bill by allowing people to claim that would be very significant, it's going to mean a lot in some of our cathedrals in the country."

Munt also called for flexibility beyond March 2026, suggesting that organisations that have completed restoration work by that deadline should still be allowed to reclaim VAT costs.

A spokesperson for the Department for Culture, Media and Sport defended the decision, saying: "Listed places of worship provide a range of services to the public regardless of faith or background. Many of them are architecturally and historically significant. This is why the government has extended the Listed Places of Worship Grant Scheme until 31 March 2026. It will continue to enable religious organisations to claim grants covering eligible VAT costs paid towards repairs and renovations."

However, there has been no confirmation on whether the scheme will continue beyond that date.