LGA 1972, Schedule 12, Part III, Paragraph 14(5):
"A parish meeting shall not be held in premises which at the time of the meeting may, by virtue of a premises licence or temporary event notice under the Licensing Act 2003, be used for the supply of alcohol (within the meaning of section 14 of that Act), except in cases where no other suitable room is available for such a meeting either free of charge or at a reasonable cost."
This is the only legislative restriction. It is considered not to be best practice to hold meetings in a church, as this could be perceived as a barrier to attendance by some, but where no alternative exists, it is a legitimate option.