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A major York church development has been saved after a mystery donor offered to donate £1.2 million – the full shortfall the project faced after a government rule change.

The unnamed donor has approached St Michael le Belfrey and offered to cover the outstanding cost, if needed, of the £8.5 million Impact project next to York Minster.

“This is an extraordinary and wonderful blessing,” said Andy Baker, the church’s interim priest in charge.

Mr Baker previously said the Grade I listed church where Guy Fawkes was baptised in 1570 risked becoming an “eyesore in the historic heart of York” after a sudden change in the government's grant scheme for listed places of worship.

In January, the Department for Culture, Media and Sport (DCMS) announced it would cap the Listed Places of Worship Grant Scheme for VAT reclaims at £25,000 per year.

But the Belfrey said the cap was introduced mid project, meaning the church cannot reclaim the VAT budgeted for.

This sparked fears that the project would have to be scaled back or, at worst, left unfinished.

However, the day before the Belfrey was due to instruct its design team and contractors that a significant reduction in the project’s scope would be necessary, the donation was pledged.

“When we were faced with the shortfall, following the government’s sudden introduction of the VAT cap, we led a call to pray – with people praying together in person, and via online meetings, as well as fasting,” Mr Baker said. “A number of people believed that God would provide the money at the right time.”

 

 

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