CHURCHES would get “adequate” compensation for having to pay VAT on alterations, Banbury MP Tony Baldry was told in the Commons.

Mr Baldry, who is a Church Commissioner, asked the Treasury what impact the controversial change would have on listed places of worship, which do not currently pay VAT.

Exchequer secretary David Gauke said an extra £5m a year in grants would be provided.

He said the amount should prove “adequate” but more would be provided, if it proved necessary.