Diocese of East Anglia deficit starts to fall reveals ARA

Published by Keith Morris on November 8, 2024

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The Diocese of East Anglia’s million-pound deficit is beginning to fall, according to 2023 Annual Reports and Accounts, just submitted to the Charity Commission.

Director of Operations and Finance, Rev Paul Raynes, said: “The recovery from the Covid pandemic has been slow. But total income rose 8 per cent in 2023 and is now back to the same level in cash as in 2017, thanks mainly to a healthy 12 per cent rise in the offertory. Spending rose half as fast as income, at 4 per cent. The operating deficit fell by a fifth, from £1.3 million to £1.0 million.

“These encouraging trends do not take the effect of inflation into account. In real terms, after adjusting for inflation, spending has been cut back by over £1 million since 2017. But total income is some £2.5 million lower in real terms over the same period. This explains why the deficit continues, despite the strong discipline the Diocese – both the Curia and individual parishes – have imposed on spending.

“Spending on common shared Diocesan services – often referred to as the Curia – was dominated by general services such as property, legal fees, finance, and support to the Bishop (about a third of the total), the costs of training new priests and deacons and supporting retired and sick priests (about a fifth), supporting schools (another fifth) and by a grant to the Cathedral of St John the Baptist (a tenth). [See chart below.]

“The ongoing deficit can only be funded by running down the Diocese’s reserves. That cannot continue indefinitely,” said Paul. “The Bishop and Diocesan Trustees have committed to reduce the deficit to zero within three years.”