In the autumn of 1875 came the news that steps were being taken to subdivide the parish of Westhoughton. Acting under the advice of the Bishop of Manchester and the Vicar of Deane (patron of the living of Westhoughton) the Vicar was trying to raise an endowment fund which would be met by a grant from the Ecclesiastical Commissioners to pay the stipend of the future vicars of Daisy Hill. Subscriptions to the fund were invited. Miss Haddock was prepared to offer a site for a church, Mrs. Makant had already purchased Turner Hill to be used as a parsonage and the executors of the late R. Haddock offered £500 towards the Endowment Fund. In the Vicar’s words: “With so good a beginning the work ought to be brought to a successful issue, which may God in his great mercy grant.”
However, there were delays in the formation of a separate parish because the Ecclesiastical Commissioners were refusing to accept Turner Hill as a parsonage.
In the meantime the school flourished and in 1876 Mrs. Makant met the cost of alterations and decoration of the school buildings and the conversion of the old school-house (presumably the two-storey part of our old school) into classrooms to accommodate forty children. The school then worked to a budget of just over £267 - of this £147 was for the teaching staff, £10 for fuel and gas, £9 for repairs and cleaning, under £1 for rates and £60 for the work of decorating and conversion. The preacher at the Annual Sermons that year was the Rev. H.H. Oliver, curate of Westhoughton, the first time he is mentioned in the magazine in connection with the parish of which he was eventually to become the first Vicar.
Some time during 1878 the Commissioners must have withdrawn their objections to the new parish for the Vicar announced in his December magazine letter, “We hope to see soon the beautiful and substantial church of St. James, Daisy Hill, advancing towards completion in the next twelve months.” The building contract was given to Mr. Winward of Wigan. It was given to him partly because he presented the lowest tender but also because he had built several churches to the designs of Austen and Paley, the architects of Daisy Hill, including Howe Bridge and Atherton Parish churches. The work on the building began on St. Matthias’ Day, 24th February 1879, when the first sod was turned by Miss Haddock. The foundation stone was laid on the 19th May at 4 p.m. in the presence of the Bishop of Manchester, but long before that time hundreds of people had gathered round the site of the new church, paying 4d for front seats and 2d for side seats. In addition to the scholars and congregation of Daisy Hill, the teachers and scholars of the Parish Church were present and by the time the ceremony commenced there were 2,000 people gathered
The foundation stone was laid by Mrs. Makant, using the silver trowel which is now one of the treasures of the church and which was subscribed for by about 120 people “all of whom either brought or sent their subscriptions without being asked”. The builder presented Mrs. Makant “with a handsome Mallet and Level of bay wood”. In his address the Bishop of Manchester praised Lancashire people. He said they made him feel that the work in which he was engaged was full of hope.
He hoped that those who had seen the laying of the Foundation Stone “would live to see the Church rise in fair proportions heavenwards and would grow up to be good, intelligent churchmen, not tossed about with blasts of vain doctrine”. That same evening the Bishop held a Confirmation service at the Parish Church when out of the 95 candidates presented 43 were from Daisy Hill.
By the end of December 1880 progress had been made in the building of the church. The scaffolding was being cleared away and it was expected to be completed by the following Easter. The Vicar was seekingcontributions to the £1,000 required by the Bishop for the endowment of the parish before the consecration. In fact, this amount had not been raised by the time of the consecration. It was not usual for a bishop to consecrate a new church until £1,000 had been found, but an exception was made in the case of Daisy Hill through the efforts of the incumbent of Westhoughton.