Finance Consultations David Tomkins Chair, Diocesan Board of Finance

Church Members Parishes Dioceses Church Commissioners

Church Commissioners Late 80s/early 90s – over-distribution Cuts in expenditure £66m 1991; £20m 1997 Cap liabilities New pensions scheme from 1998 Funded by parishes Cost to dioceses – £35m Transitional relief up to 2003

The big squeeze

The Liverpool approach Strategy 1998 – 2003 Sheffield share of stipendiary clergy Cushion parishes from pensions hit Quotas – RPI + 3% Diocesan deficits of £300,000 a year

Increasing parish share - % 1998 1999 2000 2001 2002 1990 Parishes 54 56 59 64 67 48 Church Comm. 29 26 24 22 20 40

1999 - 2001 Actual After capital receipts Investments 1999 -£351k 2000 -£321k £208k -£870k 2001 -£500k + ? ?

Forward to 2002 Income £7,121k Parishes £4,774k 67% CC Core 1,099k Temp £352k 20% Expend £7,542k Stipends £4,361k 58% Pensions £1,088k 14% Housing £605k 8% Centre £432k 6% Deficit £421k

2002 assumptions Stipend increase 3% (RPI +0.5%, not 1% as in strategy) Quota increase of 7% (RPI + 4.5%, not 3% as in strategy) Diocesan Synod yet to approve 2002 budget – seen as holding year

2003 and beyond No action means numbers get out of control 2002 deficit 421k (underlying £773k) Could reach £600k (underlying £950k) Further costs could take it over £1 million

The £1 million deficit Total turnover - £7-8 million Quota increase of 21%, if it all comes from that source Reduction in clergy numbers by 40, if it all comes from that source Boards and Church House in total only equal half the amount Will have to be a combination

Our task What is our mission? What is God saying to us? Renewed vision … Appropriate priorities & structures … Financial framework … To grow and continue to advance God’s kingdom