Labour has finally moved to back Britain’s churches in what marks the party’s 15th U-turn in power.

Under the Listed Places of Worship Grant Scheme, churches could claim back just £25,000 per year in VAT on renovation works.

GB News shone a light on how the “stealth tax” could accelerate the number of British churches crumbling into disrepair just days ago, amid fears 2,000 could shut in the next five years alone.

But now, the Government has set aside more than £200million to protect heritage buildings, which includes churches.

That sum includes £75million for “at risk” heritage, which provides grants towards the repair and conservation of historic buildings, including churches.

A £92million fund, the Places of Worship Renewal Fund, will replace the controversial £23million Listed Places of Worship Grant Scheme.

The Government said it will “bring these important buildings into line with other heritage assets” and give them access to the “same level of financial support from the government as historic houses, monuments and other heritage sites”.

Tory MP Nigel Huddleston said last night that by cutting funding and placing a cap on grants for repairs and maintenance, the Government’s previous policy “had put many historic religious buildings at risk”.

He said: “Thank you to everyone who backed our calls for the Government to reverse its cuts to the Listed Places of Worship Scheme.

“I welcome the U-turn announced this evening. By cutting funding and placing a cap on grants for repairs and maintenance, the government’s previous policy had put many historic religious buildings at risk.

“They play a vital role in our communities and our nation’s heritage.

“That’s why we Conservatives committed to reversing these cuts and I am glad the Government has changed course.”

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The National Churches Trust (NCT), which has lead campaigns to save at-risk churches and extended the Listed Places of Worship Grant Scheme, welcomed the funding – but warned churches will have to bear “the full cost of VAT on repairs”, unlike museums of art galleries.

Sir Philip Rutnam, chair of the organisation, said: “We have been campaigning for this for some time, and we look forward to understanding how the new scheme will operate.

“Churches depend overwhelmingly on volunteers so the scheme will need to be simple, accessible and predictable if it is to be a success.

“However we are very concerned that in future listed places of worship will have to bear the full cost of VAT on repairs.

“This brings to an end a system that has operated successfully for over 20 years.

“It means that in future local people will have to raise money not just to repair roofs and towers but to pay a 20 per cent tax to the Government.

“Museums and galleries offering free admission don’t have to pay VAT on repairs, but in future churches will.

“We call on the Government to end this unfairness and not to expect local volunteers to pay these extra taxes.”

According to figures from the NCT, 3,500 churches have closed in the last decade, including 500 which ceased operations last year.