Ye of little faith? The tax loophole that turns old pubs into places of worship

A complex corporate network is enabling big landlords to avoid business rates via a religious exemption and costing cash-strapped councils millions.

- Rob Davies, Michael Goodier and Jessica Elgot report

The windows are painted over, the woodwork is rotting and weeds have sprouted through the paving outside.

The former Duke of York pub in Clapham, south London, is not in the best of shape. It certainly does not look like somewhere used for regular prayer services.

Yet round the back, a piece of paper has been pinned to a door, inviting anyone who stumbles upon it to "book a private religious worship session here".

The notice provides contact details for Faithful Global, an inter-faith organisation whose website preaches "the power of community, connection and inclusion".

"Our mission is to see greater opportunities for local faith communities who are seeking suitable venues for their religious practices, community activities or private prayer." it says. However, Faithful's mission may be more financial than spiritual. In fact, the organisation is the lynchpin of a corporate network whose primary aim appears to be tax avoidance, at the expense of cash-strapped councils battling a funding crisis.

Details about the scheme's reach, revealed here today, raise questions about whether Faithful and its landlord clients are diverting millions of pounds earmarked for public services into their pockets.

The faith room scheme

To religious groups in need of a place to gather, Faithful Global appears to be the answer to their prayers. As of last week, it listed 370 properties - stretching from Cornwall to Aberdeen - that can be booked as "safe and accessible places of worship for people of all faith backgrounds".

They range from tiny retail units to gleaming office blocks and football-pitch-sized warehouses that could hold a congregation of thousands. For lone worshippers, there is a calendar of upcoming open prayer sessions to join.