The Church is facing down a legal battle trying to stop the cash being spent on the 'vanity project'
The Church of England has insisted it has to give away £100million in "slavery reparations" payouts because it is its "moral imperative as a Christian investor" to do so.
Church Commissioners, who run the Church's investment portfolio, say they are "outraged" by its links to the transatlantic slave trade, which Britain abolished in 1807, and its alleged ongoing effects on people today.
And despite fierce opposition to the handouts, they are vowing to press ahead.
Their initiative proposed establishing Project Spire, a "fund for healing, repair and justice" through the Charity Commission.
But they are facing down a legal challenge, according to documents released before the General Synod.
In December, 27 MPs and peers wrote to incoming Archbishop of Canterbury Dame Sarah Mullally, urging her to halt the fund.
They argued the endowment is meant to be used to support parish ministry, maintaining its wealth of buildings, and historic records.
The staggering nine-figure fund announced in 2023 responded to what was described as a "historic pool of capital tainted by its involvement in African chattel enslavement".
Queen Anne's Bounty, originally created to boost the income of poor clergy, invested in the South Sea Company in the 18th century - which traded in slaves.
The fund also received many donations which may have come from people "connected to" slavery and plantations.
Despite the huge sums of money involved, an independent oversight group concluded in 2024 that the fee was, in fact, not enough.
"The sum of £100million is very small compared to the scale of racial disadvantage originating in African chattel enslavement," it said.
The group called on the Church to ramp up its handouts package tenfold to £1billion instead, calling the original timeframe too slow.
When asked whether Project Spire had been abandoned, the Bishop of Norwich, Graham Usher, responded on behalf of the commissioners.
He pointed to a United Nations vote in March which described the transatlantic slave trade as the "gravest crime against humanity".
"This further re-emphasises our moral imperative as a Christian, responsible investor to address the issue," he said.
"We continue to be outraged by our historic links to African chattel enslavement and our part in the responsibility for the enduring legacies of this abhorrent past that continue to affect the lives of people today."
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The bishop said he had been expecting the legal challenge - and admitted it "must be respected, considered in a disciplined manner, and factored into our planned timetable for progress".
The December letter, led by Shadow Home Office Minister Katie Lam, challenged the "evidential basis" of Project Spire.
Senior Tories Chris Philp, Claire Coutinho and Neil O'Brien also lent their signatures to the letter.
They wrote: "The Church has a long and complex historical record, one that includes both moral failures and courageous leadership in the abolitionist movement.
"To reduce this history to a simplistic narrative of guilt does a disservice both to truth and to the Church's own legacy."
The MPs urged Dame Sarah to prioritise strengthening parishes rather than pursuing what they called "high-profile and legally dubious vanity projects".
They said this would reassure concerned worshippers, clergy and members of the public alike.
Her words came after churchgoers vowed to stop donating to collection plates if their hard-earned cash went towards "reparations".
Some 81 per cent of respondents to a survey earlier this year said Church money should benefit local congregations rather than fund slavery payouts.
When asked about spending priorities, 71 per cent favoured building repairs and maintenance, while 48 per cent supported funding regular services.
Just 24 per cent believed historic "injustice" reparations should take precedence.
The scheme was initially endorsed by the disgraced ex-Archbishop of Canterbury Justin Welby.
