Sale of vicarages helps tackle crisis
The sale of redundant vicarages helped the Diocese of Lichfield tackle financial problems as it saw the value of its assets across the Black Country and Staffordshire fall by almost 20 per cent in 2008.
The sale of redundant vicarages helped the Diocese of Lichfield tackle financial problems as it saw the value of its assets across the Black Country and Staffordshire fall by almost 20 per cent in 2008.
Church leaders insist they are well placed to weather the storm after sale of church property, including six vicarages, and new funds saw it get an extra £2.3 million. Sale of property realised £1.6 million, parishes' share or contribution was on target and spending under budget.
Value of diocese investments fell by 19 per cent to £2.6 million as it made a net loss of £326,000 in 2008.
The financial arm of the diocese says the church is in a good position to cope with the economic downturn.
Finance director Jonathan Hill said they were not in the process of investing short term and this was a paper deduction. It was also an opportunity, when the time was right, to purchase undervalued stock.
In cash terms, the board had a surplus of £1.2 million in unrestricted funds which was used to boost the salary reserve for clergy – hit by falling investments – and to build reserves for future rises in clergy pension costs.
In April the Church of England Pensions Board said contributions paid by dioceses would rise from 39.7 per cent to 45 per cent from January 1 2010 and warned they could go as high as 57 per cent.
This year the diocese, expects to spend £2.374m on pension contributions – rising to £2.726m next year.
Mr Hill said they had to make very hard decisions in 2002 and as a result cut expenditure. Parishes responded positively in restoring the diocese to a strong financial footing.
They faced the same financial difficulties as other organisations but were in a much stronger position than some other dioceses and stronger than in 2002.
He said they were on a firm financial footing to face challenges and liabilities that beyond their control, because they had made the right decisions so far.
Current full service pension for clergy is £13,093 per year plus a lump sum of £39,279. Parish clergy in the diocese will get a salary of £22,315 this year – up four per cent on last year and slightly higher than the regional benchmark.
Some redundant vicarages are being let. No churches have closed.
