Church Commissioners Annual General Meeting Report of the Church Buildings (Uses and Disposals) Committee to the Board of Governors for the year to 31 December 2014 1. Introduction 1.1 The Committee is a statutory committee under the Mission and Pastoral Measure 2011 (the 2011 Measure) discharging the Commissioners’ responsibilities for church buildings closed for regular public worship. This usually involves securing a suitable alternative use where possible and, where not, deciding between the remaining alternatives of preservation by the Churches Conservation Trust (CCT) or demolition1. Our terms of reference, objectives and membership are set out in Annex A. 1.2 The Committee met on 5 occasions and also undertook a visit to churches in the Diocese of Lichfield (and two churches in the Diocese of Hereford). 2. Review of 2014 2.1 Below we set out progress on the key areas highlighted for 2014: Securing support of the General Synod for the CCT Funding Order covering the 2015 to 2018 triennium, while continuing the dialogue with Government on challenges facing the CCT and its long-term financial sustainability. The Committee’s recommendations for financing the Church’s share of CCT funding were endorsed by the Board of Governors and approved by General Synod in July. The Payment to the Churches Conservation Trust Order 2014 came into effect on 1st April 2015. While cuts in public expenditure continue to impact on the CCT it has benefited from a number of successful applications to new Listed Places of Worship Repair Fund. Participating in the work of the Simplification Group which is currently reviewing church legislation and considering concerns raised by dioceses about the constraints caused to the mission and growth of the Church of England by existing canons, legislation, regulations and procedures. This is intended to bring forward options and proposals for simplification and deregulation. 1 The Commissioners’ decision is subject to secular planning controls in respect of new uses, possible non-statutory public inquiries in certain contested demolition cases, and the right to seek Leave to Appeal to the Judicial Committee of the Privy Council where closure and the future of the building are dealt with in the same scheme. 1 Canon Bob Baker served on the Simplification Group which reported in November. Among its recommendations were proposals to streamline current consultation arrangements including removing the requirement for statutory consultation on alternative uses for closed churches (except where burials may be affected). It also proposed amending Canon B.14A to enable the Bishop to direct use of a building for occasional services only to facilitate “Festival Churches”. Dealing with a possible increase in contested demolition schemes including those where the receipt of qualifying objections could result in Non Statutory Public Inquiries. While this has not so far materialised, we continue to prepare the groundwork for bringing forward draft schemes in a small number of cases where suitable alternative uses have not been secured for listed buildings and demolition seems the only realistic option. Devising a strategy to maximise the benefits of the widened scope of the Closed Church Buildings Support Account and the opportunities this will provide to enable greater pro-activity and achieve better value in the disposal of closed church buildings. The Committee agreed new Rules governing the widened scope of the CCBSA which can now be used in applying for planning permission and listed building consent. Case officers are looking to identify suitable buildings and we look forward to progress in taking forward individual cases in 2015. Completion of the series of regional seminars on the theme of Mission, Ministry and Money aimed at helping dioceses to develop co-ordinated strategic thinking in conjunction with NCI colleagues. This has now been completed. Induction and training for new Committee members. We held Member training sessions on the 2011 Measure, the public hearing process and governance. The Lichfield visit also provided an opportunity to engage with diocesan and local representatives on the challenges of dealing with closed churches or those facing possible closure. 3. Closure of Church Buildings 3.1 During 2014 schemes or orders were made closing 23 church buildings for regular public worship (consistent with an underlying annual rate of around 25 closures since the mid 1990s). Of these, 5 were Grade II* listed, 9 were Grade II and 9 were unlisted. While 8 settled the future of the building at the time of closure, 3 of these also provided for replacement places of worship. 2 Closures included Grade II* Cheetham St John (Diocese: Manchester); Grade II Bemerton St John (Salisbury;) and unlisted Winnington St Luke (Chester) 3.2 Since 1969 some 1,895 church buildings have closed, including 60 partially (see Annex B). Although more recent figures are unavailable, over 540 new places of worship opened by 2006. While this is within an overall context of some 16,000 church buildings in use in around 13,000 parishes, concerns remain that the rate of closure may increase sharply, as small, often ageing congregations facing the daunting task of maintaining historic churches often in need of major repair and sometimes in sparsely populated parishes. This is not withstanding the very welcome announcement of the Listed Places of Worship Roof Repair Fund in the Government’s Autumn Statement. 4. Settling the future of Closed Church Buildings 4.1 There are often significant challenges in securing suitable uses for closed churches: many are listed, have historical and community significance and are surrounded by churchyard. Our regionally based specialist professional casework team work in close partnership with dioceses, parishes and other interested parties in securing such uses for most buildings. Alternative Use 4.2 Sixteen schemes provided for alternative uses (including 6 for residential use, 4 for cultural and community use and 2 apiece for worship by other Christian bodies and educational use). Welsh Bicknor St Margaret (Hereford) (on the left) sold for monument use to adjoining landowner; on the right Blackburn St Philip tower (Manchester) to be sold for use for steeplejack training. 3 Churches Conservation Trust 4.3 Three closed churches vested in the CCT, underlining the importance of our continuing ability to vest outstanding closed churches for which no suitable use can be found, thereby relieving parishes and dioceses of responsibility for their care and maintenance. Grade II* listed Ayston St Mary the Virgin (Diocese: Peterborough) (on the left) vested in the CCT; while the £4.9m scheme providing new facilities in the CCT church Bolton All Souls (Manchester) (on the right) was completed. Demolition 4.4 Five schemes authorised demolition, including 3 providing a replacement place of worship. The Committee also agreed in principle to publish schemes providing for demolition of two Grade II listed closed churches. 4.5 Last year we reported the referral of the proposed demolition of Grade II listed Birch St Peter (Diocese: Chelmsford) to the Secretary of State for Communities and Local Government. In July we were informed of the Secretary of State’s decision to hold a non statutory public inquiry into the contested demolition proposals but await further details and a date for the inquiry, the first in over 20 years. Grade II listed Stanley St Peter (on the left) was finally demolished after the Secretary of State decided not to hold a Non Statutory Public Inquiry ; the Committee approved the proposed demolition of Grade II listed Eastville St Paul (Lincoln) (right). 4.6 Annex B summarises Schemes made in 2014, while Annex C sets out the position since 1969. 4 4.7 5. 5.1 The breakdown of current cases at the year end was: Total cases at 31 December 2014 2013 2012 Pre-closure Use seeking period 57 76 64 70 56 68 Post scheme/legal/amending scheme 55 51 49 Covenants Total 40 228 45 230 52 225 Committee visit to the Diocese of Lichfield On our visit to Lichfield Diocese (and two CCT churches in the Diocese of Hereford) we saw a number of buildings which exemplified the challenges faced in sustaining historic churches while promoting mission, including where there was no PCC or local community to care for the building, and the pressures this placed on local and diocesan capacity and resources. This underlined the need for a greater strategic response and for support for those dioceses seeking to take an overview of their building stock as a first step. It also highlighted the importance of viewing buildings in the wider context of mission and ministry and the deployment of resources. A Diocesan presentation on building issues in Lichfield (on the left); while the CCT outlines plans for developing Shrewsbury St Mary the Virgin as a Gateway Church (on the right). 5.2 We also visited a selection of CCT churches, ranging from a small, remote rural building at Linley St Leonard to some of the most highly visited and resource intensive churches in its estate, including Battlefield St Mary Magdalene and Shrewsbury St Mary the Virgin (the latter attracting 50,000 to 60,000 visitors each year and a pilot scheme for the CCT’s Gateway Churches to improve visitor experience and deepen engagement with the building). This raised issues about where the strategic focus of the CCT should lie and this will be explored further with the CCT in the context of the Church Buildings Review. 6. Public Hearings of Representation Cases 6.1 The Committee held 6 public hearings of representations against draft public schemes (7 in 2013) all of which provided for alternative use, deciding in 5 5 cases that the draft scheme should proceed and in one that it should not, requiring further consideration of the future of the building. 6.2 The question of whether it was appropriate to hold public hearings in all cases was raised and there will be a review of these arrangements in 2015. 7. Financial Issues Sale Proceeds 7.1 The amount of net sale proceeds arising from the disposal of closed church buildings and sites was the highest ever achieved at £10.37 million (around £7.45m arising from capitalisation of the leases of two London closed churches). 7.2 Since 1969, just over £62 million has been raised in net proceeds, of which more than £45.4 million were distributed to dioceses to support the work of the living Church. A breakdown over the last ten years is provided below2; fuller details are in Annex E. Year Total £ To DPA £ CCT/ TMA £ 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2,255,097 1,210,951 2,983,336 3,999,759 1,737,109 1,992,383 1,403,731 1,298,168 1,558,669 10,374,768 1,503,398 807,301 1,989,191 2,666,506 1,158,072 1,328,255 935,621 865,445 1,039,113 6,916,512 751,699 403,650 994,445 1,333,253 579,036 664,128 467,810 432,723 519,556 3,458,256 Closed Church Buildings Support Account 7.3 Funded from the one-third share of net proceeds, the statutory Temporary Maintenance Account has been held by the Commissioners since 1994 to assist dioceses in maintaining closed church buildings until their future is settled. This was renamed the Closed Church Buildings Support Account (CCBSA) and its scope extended, both to assist directly with use seeking through obtaining planning permission/listed building consent prior to marketing, and also to assist with demolition costs in suitable cases, for example where the site was to be incorporated within the churchyard. An extra £1 million was made available to the CCBSA. 7.4 The Committee agreed separate Rules relating to the extended scope of the CCBSA in addition to those applying to grants towards care and maintenance during the use seeking period. Expenditure from the CCBSA in 2014 amounted to just over £65,500 (with some £8,600 reimbursed following completion of sales). 2 The figures for net proceeds provided here do not include monies raised from disposal of closed churches applied towards new churches or places of worship in the context of replacement schemes pursued under section 58 of the 2011 Measure. 6 Financing the Churches Conservation Trust 7.5 The CCT is funded jointly by the Department for Culture, Media and Sport and the Church Commissioners and preserves, in the interests of the Nation and the Church of England, closed churches of particular merit for which no suitable use is found. 7.6 The Church’s funding order for the next funding period commencing 1 st April 2015 to 31st March 2018 was approved by General Synod in July. The Church’s grant continues to be frozen at £1.355 million per annum. In the event that the one-third share of sale proceeds available towards CCT funding exceeds £0.5 million in any calendar year during the next triennium, the Commissioners will make an additional payment to the CCT from such proceeds, up to a maximum additional contribution of £0.15 million during the triennium. 8. Looking Ahead 8.1 Key areas for 2015 will include: Work of the Church Buildings Review Group – The Group appointed by the Church Commissioners and Archbishops’ Council to consider the functions carried out nationally relating to church buildings began its work in January 2015. Andrew Mackie and Ian Watmore represent the Commissioners on the Group and, with the work being set in the broader context of the Reform and Renewal agenda, it is hoped this will also address some of the wider strategic issues regarding church buildings which have been identified in recent years. Review of Public Hearing Arrangements - A Pastoral Committee Working Group (chaired by Andrew Mackie and including Bob Baker) has been reviewing the arrangements for the Pastoral Committee’s public hearing of representation cases, in particular the need to hold such a hearing in every case, irrespective of the number of representors or relevance of issues raised. The Church Buildings (Uses and Disposals) Committee will review its own handling of representation cases, including the scope for a prior sifting of cases to reduce the administrative burden on the Church. Non Statutory Public Inquiries - A major item will be the NSPI into the proposed demolition of Birch St Peter, with other potential referrals possible before the end of 2015. Use of the extended scope of the CCBSA - We expect that the new provisions for using the CCBSA to seek planning permission and listed building consent will be fully operational next year, marking a further step in the Commissioners’ more proactive approach to casework. 7 9. Members and Staff 9.1 At the start of the year the Committee welcomed Margaret Davies, Sally Muggeridge and Ian Watmore as new Members. 9.2 The Committee was again grateful for the professionalism and expertise of the staff and for the support which it received during the year. 10. 10.1 The Report The Committee presents this Report of its work during 2014 to the Annual General Meeting and invites its consideration. Andrew Mackie (Chairman) Church House Great Smith Street London SW1P 3AZ June 2015 8 List of Annexes A Committee Terms of Reference and Membership B Summary of Schemes Made in 2014 and other Transactions C Future of Closed Church Buildings and Sites 1969-2014 D Analysis of Alternative Uses since 1969 E Sale Proceeds and Financing the Churches Conservation Trust 9 10 Annex A Church Buildings (Uses and Disposals) Committee Terms of Reference 1. The Church Buildings (Uses and Disposals) Committee is a statutory committee under the Mission and Pastoral Measure 2011 appointed by the Board of Governors to conduct such business as is referred to it under these terms of reference in relation to buildings closed for regular public worship and related matters. Membership 2. The Church Buildings (Uses and Disposals) Committee shall comprise: the Third Church Estates Commissioner (who shall chair meetings of the Committee); four members of the clergy; four other lay persons; and any such additional members as the Board shall from time to time appoint. A majority of the members of the Committee shall be Commissioners. The Secretary of State for Culture, Media & Sport shall nominate one member of the Committee. Functions 3. The Committee shall be responsible for:(i) Subject to (ii) below, the functions of the Commissioners relating to: (a) closed churches; and (b) churches in use where this involves exercise of the Commissioners’ power under section 57(17) of the Mission and Pastoral Measure 2011 to ask the Churches Conservation Trust to provide advice in respect of a church in use whose future is under consideration (such power to be exercised in conjunction with the Pastoral Committee). (ii) any financial matters (including the administration of any schemes of grants or loans) assigned to the Committee by the Board subject to such conditions as the Board may impose. 11 4. The Committee shall have power to do and complete: (i) (ii) 5. Subject to (ii) below all the matters assigned to them under paragraph 3, except the following matters where the Committee shall consider and report to the Board:(a) any matters requiring new legislation; (b) any matters of general policy; and (c) any other matters where the Committee so wish. Where any representation by way of objection is received by the Commissioners with respect to a draft pastoral (church buildings disposal) scheme or to provisions relating to closed churches in a draft pastoral church buildings scheme where the use of a closed church for non-Christian religious purposes is proposed; the Committee shall: – (a) before considering the representation, consult the Board; (b) in determining whether the scheme should proceed notwithstanding the representation, pay particular regard to the views expressed by the Board; and (c) report its decision to the next following meeting of the Board. The Committee shall submit to the Board each year a report of its work during the year. Quorum 6. The Committee shall have a quorum of three, at least two of whom shall be Commissioners. Agreed by the Board on 19 April 2012 12 Church Buildings (Uses and Disposals) Committee Membership during 2014 Andrew Mackie (Chairman and Third Church Estates Commissioner) The Reverend Stephen Trott (Deputy Chairman) April Alexander The Reverend Canon Bob Baker The Reverend Canon Peter Cavanagh* John Steel* The Reverend Simon Talbott* Sally Muggeridge (from January 2014) Ian Watmore (from January 2014) Margaret Davies (nominated by the Department of Media, Culture and Sport)* (from January 2014) * Non-Commissioner Main Objectives The Committee oversees the delivery by the Closed Churches Division of its main objectives to determine the future of closed church buildings as laid down by the Mission and Pastoral Measure 2011, securing a suitable alternative use in as many cases as possible and thereafter arranging for the best churches to be preserved. To these ends, the Division:(a) works with dioceses, the Church Buildings Council’s Statutory Advisory Committee (SAC), English Heritage and local planning authorities to secure suitable alternative uses for closed churches, providing all necessary guidance and encouragement. (b) works with the SAC, the Department for Culture, Media and Sport (DCMS) and the Churches Conservation Trust (CCT) to ensure the preservation of the most meritorious closed churches for which no suitable uses can be found, taking full account also of financial and pastoral implications; (c) provides for the demolition of those closed churches for which suitable uses are not found and which are not vested in the CCT; and (d) carries out these and other divisional functions as economically as is consistent with providing a high quality service. 13 14 Annex B Church Closures 1969-2014 120 100 80 60 40 20 0 1969 1974 1979 1984 Closures 1989 1994 1999 2004 2009 2014 5 Year Rolling Average Summary of Schemes Made in 2014 In 2013, 24 schemes (21 in 2013) were made to settle the future of closed church buildings, of which: 23 made initial provision for the future of buildings; 3 amended earlier schemes; 16 provided for alternative use; 3 provided for preservation in the CCT; 5 provided for demolition (1 of which included replacing of the old church) Of the 23 schemes making initial provision for a building, 8 were at the time of closure, 5 within 2 years, 6 between 2 and 4 years, and 4 over 4 years after closure. The most common new uses provided for in schemes made were: residential (6), cultural and community use (4), educational (2) and worship by other Christian bodies (2). 15 16 Annex C Futures of closed church buildings and sites settled 1969 to 2014 The futures of 1,902 former church buildings or sites have now been settled under the Mission and Pastoral Measure3 since 1969 (including 68 closed under earlier legislation, for which an amending scheme has made new provision and 94 sites of churches demolished other than under the Measure). In addition 20 closed churches have been restored to parish use during this period, while 4 others have been subject to Compulsory Purchase Orders. Over the whole period alternative uses have been found for well over half of all closed churches dealt with (this proportion has been steadily increasing; between 2000 and 2014 alternative uses were found for over 77% of churches whose futures were settled by scheme). The Table below sets out the current authorised futures for closed church buildings dealt with under the legislation4. Future of Closed Churches 1969-2014 3 These statistics relate to schemes brought into effect and Deeds of Variation. The Table includes the sites of the 94 church buildings demolished other than under the Mission and Pastoral Measure (including 4 demolished following closure under the Measure but not by scheme). It excludes those closed churches subsequently restored to parish use and those subject to Compulsory Purchase Orders. Where provision has been made more than once for a building, only the latest authorised outcome is shown, including where this has been provided for by Deed of Variation following disposal of the freehold. 4 17 18 Analysis of Alternative Uses since 1969 Annex D Alternative Uses Adjuncts to adjoining estates Arts, crafts, music or drama Civic, cultural or community Educational Light industrial Monument Museums Office or shopping Other Other church related Private and school chapel Residential Sports Storage Worship by other Christian bodies 6 34 149 36 8 150 17 59 5 74 26 300 13 20 169 Sub Total (inc 15 partial) (inc 1 partial) (inc 1 partial) (inc 1 partial) (inc 20 partial) (inc 1 partial) 1,066 (inc 39 partial) Preservation Churches Conservation Trust Diocesan Boards of Finance Secretary of State 347 5 4 Sub Total 356 Demolitions and Site Disposals The pattern of site disposals for closed church buildings which have been or are in the course of being totally demolished (including 16 demolished under faculty) is as follows:Additions to Churchyards Housing Associations Local Authorities New Places of Worship Other Community Purposes Other purchasers Not yet decided 53 83 70 64 31 169 10 Sub Total 480 Grand Total 1,902 19 20 F R O M T H E C H UR C H Church To tal Fro m the Church Co mmissio ners Sale pro ceeds F R OM T H E ST A T E To tal Grant Fro m the DCM S Church State 5th Quinquennium and 1st triennium (1989-97) £ 2nd Triennium (19972000) £ 3rd Triennium (2000-2003) £ 4th Triennium (2003 to 2006) £ 5th Triennium 2006 to 2009 £ 6th Triennium 2009 to 2012 £ 7th Triennium 2012 to 2015 ANNEX E 4th Quinquennium (1984-94) £ FINANCING THE CHURCHES CONSERVATION TRUST 1st and 2nd Quinquennium (1969- 3rd Quinquennium 79) (1979-84) £ 450,000 1,350,000 900,000 £2,900,000 1,450,000 483,000 1,450,000 967,000 £7,010,446 4,206,268 919,848 2,804,178 1,884,330 30% 70% £22,668,580 15,888,006 2,716,000 6,780,574 4,064,574 30% 70% £10,624,285 7,437,000 1,007,188 3,187,285 2,180,097 30% 70% £12,612,000 8,829,000 697,585 3,783,000 3,085,415 30% 70% £12,729,305 8,872,162 1,559,136 3,857,143 2,298,006 30% 70% 13,088,294 9,161,806 2,911,488 3,926,488 1,015,000 31% 69% 13,219,938 9,154,758 1,362,560 4,065,180 2,702,620 33% 67% 12,154,000 8,089,000 2,495,000 4,065,000 1,570,000 £ 900,000 40% 60% £ £2,250,000 50% 50% 84.4% 88.5% 94.3% 919,848 483,000 350,000 100,000 13.3% 15.6% 11.5% 5.7% 6,917,293 3,086,729 3,038,711 1,740,421 100.0% 100.0% 100.0% 100.0% £ 60% 40% T o tal 86.7% 14.1% 40.4% 34.0% 34.4% 30.9% 49.4% 28.0% 20.4% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 1,200,000 1,516,000 1,007,188 697,585 1,559,136 2,911,488 1,362,560 2,495,000 14,601,806 N O T E : A ll ye a rs a re 1 A pril - 3 1 M a rc h 8,503,359 (c ) 3,747,968 (d) 2,964,450 (d) 2,028,128 (d) 5,037,783 (e) 5,891,167 (f) 4,872,686 (d), (g) 12,230,872 (d)(h) 60,059,567 (c ), (e), (f),(g) &(h) 85.9% 59.6% 66.0% 65.6% 69.1% 50.6% 72.0% 79.6% T o C hurc he s C o ns e rv a t io n £ A P P LIC A T IO N O F S A LE P R O C E E D S O F C LO S E D C H UR C H B UILD IN G S T o D io c e s a n P a s t o ra l A c c o unt s £ £ 1969-74 (a) 1,149,810 (b) 490,611 1,640,421 1974-79 (a) 2,004,820 (b) 683,891 2,688,711 1979-84 (a) 2,041,366 (b) 562,363 2,603,729 1984-89 (a) 4,271,099 (b) 1,726,346 5,997,445 1989-94 (a) 5,965,228 (b) 1,338,131 7,303,359 1994-97 (a) 2,231,968 2,231,968 1997-2000 (a) 1,957,262 1,957,262 2000-03 (a) 1,330,543 1,330,543 2003-06 (a) 3,478,647 3,478,647 2006-09 (a) 2,979,678 2,979,678 2009-12 (a) 3,510,126 3,510,126 2012-15 (a) 9,735,872 9,735,872 T o t a ls 45,457,762 ( a ) T o t he D P A - 2 / 3 rds o f pro c e e ds ( b) S urplus dis t ribut e d by C hurc h C o m m is s io ne rs ( pa rt o f 1/ 3 rd pro c e e ds , plus int e re s t ) ( c ) E xc lude s £ 2 5 0 ,0 0 0 t ra ns f e rre d f o r t he C lo s e d C hurc h B uilding S uppo rt A c c o unt ( d) Inc lude s s urplus s a le pro c e e ds ( plus int e re s t ) f ro m pre v io us f unding pe rio d a pplie d t o wa rds t he wo rk o f t he C C T in t he f o llo wing f unding pe rio d. ( e ) E xc lude s a f urt he r £ 2 0 0 ,0 0 0 t ra ns f e rre d f o r t he C lo s e d C hurc h B uilding S uppo rt A c c o unt ( f ) E xc lude s a f urt he r £ 2 5 0 ,0 0 0 t ra ns f e rre d f o r t he C lo s e d C hurc h B uilding S uppo rt A c c o unt ( g) E xc lude s a f urt he r £ 4 0 0 ,0 0 0 t ra ns f e rre d f o r t he C lo s e d C hurc h B uilding S uppo rt A c c o unt ( h) E xc lude s a f urt he r £ 1,0 0 0 ,0 0 0 t ra ns f e rre d f o r t he C lo s e d C hurc h B uilding S uppo rt A c c o unt 21