EXCLUSIVE: Labour could slash the rental income of 15,000 landowners in the name of boosting Britain’s 5G rollout.
Labour is considering cutting rent for 5G masts on a larger scale (Image: Getty)
Crumbling British churches could lose out on thousands of pounds of vital income as Labour prepares to slash the amount they can make by leasing land to large mobile phone companies. Many of the historic buildings cared for by financially constrained parishes across the country receive thousands of pounds annually from telecommunications firms in rental agreements allowing mobile phone masts to be installed on their towers and spires. Under new plans to slash the rent owed by large firms to landowers, however, churches could see their revenue drop by up to 90% in what has been described as a triumph of “profit over social benefit”.
The cuts were initially introduced in 2017, through reforms of the electronic communications code, effectively shifting from a market-based rent to a lower-cost model which critics say resembles compulsory purchase, geared at allowing companies to build masts quicker. Despite backlash to the change, with over 1,000 tribunal cases lodged, Labour is preparing to extend the model to thousands more sites, through a law known as the Product Security and Telecommunications Infrastructure Act. The sites at risk of seeing their rents slashed are those with agreements dated before 2017 and covered by the Landlord and Tenant Act 1954 – thought to number around 15,000.
MP and former church warden Rebecca Smith says the scheme could cost churches ‘considerable income’ (Image: WikiCommons/Roger Harris)
Britain’s churches, 3,500 of which have been forced to close by deterioration and funding shortfalls over the last decade, are at particular risk, having already fallen victim to Labour’s cost-cutting through a major reduction to the Listed Places of Worship Grant Scheme (LPW) in the spring.
In April, the government halved the amount of VAT relief available for church repairs through the scheme, as well as introducing an annual cap of £25,000 and refusing to commit to extending it beyond next March.
Rebecca Smith, Conservative MP for South West Devon, and a former church warden, warned that some parishes have already seen their income drop by over £10,000 because of the rental cuts.
“Many churches in both rural and urban communities have committed to hosting 5G masts in exchange for a decent rent, supporting their finances at a stretching time,” she told the Express.
“Changing the regulations means many of these churches lose considerable income. In some cases, seeing the rent paid reduce from £14,000 to as low as £1,000 a year. I am also concerned that access to 5G in rural areas will be at risk, as there is little or no incentive for churches to rent out their land or buildings.”
Churches such as St Mary’s in Gomersal have lost thousands from the rental cuts (Image: Huddersfield Examiner)
Alison Milbank, of the Save the Parish campaign, a grassroots organisation advocating for struggling parishes, also said the impact of the scheme being rolled out on a larger scale would be “huge”.
“Each parish is totally responsible for raising the money to keep their church going, so the extra income from a mast attached to the spire makes a very big difference to very small communities,” she said.
“The implications of this decision just haven’t been thought out. It’s a bureaucratic move that prioritises profit over social benefit. Everything seems to be stacked against the future of our country’s churches.”
Ms Milbank also suggested that the reduced rent would benefit no one but the big telecommunications firms, with lower revenue reducing the incentives for landowners not to abandon the scheme altogether.
“Churches are very well-suited for this purpose – they’re often the highest buildings for miles around, and many have lightning deflection systems, which is safer for the masts,” she said. “It’s a virtuous circle. Why would you want to change that?”
Her position is well-founded, with a national survey by AP Wireless of more than 500 mast hosts finding in June that one in three are considering rejecting the income stream rather than deal with the uncertainties of huge rent reductions.
Claire Walker, chief executive of the National Churches Trust, which recently revealed that one in 20 UK churches could shut their doors in the next five years, also stressed that parishes need as much funding as possible to weather the ongoing challenges.
“Mobile phone masts, when installed in line with regulations, and with proper permissions and the backing of local communities, can significantly enhance connectivity in rural areas,” she said.
“They can also offer a helpful source of income for churches – many of which are facing urgent repair needs. Any threat to these income streams is concerning, especially in light of the uncertainty surrounding the future of the LPOW Grant Scheme, currently set to end in March 2026.”
A government spokesperson said: “We are pushing forward with our ambition for higher quality 5G coverage. We can only achieve this by delivering the infrastructure the country needs, removing planning barriers and supporting investment so everyone across Britain can benefit from next-generation connectivity.
“We have consulted on specific measures relating to renewal agreements to ensure they work for landowners, operators and communities and will set our further updates in due course.”
