The Diocese of Lichfield has set a below-inflation increase in the amount of money parishes will have to pay in 2009 as their share of Church of England costs in Staffordshire, the northern half of Shropshire and most of the Black Country.
The Parish Share - the amount parishes have to contribute towards the diocesan budget - will increase by 3.50% in 2009. This is the first time in many years that it has increased by less than the rate of inflation. The 2009 budget maintains the share of income funded by parishes at around 71%; whilst expenditure on parish ministry remains at 80%.
But despite the below-inflation increase, the 2009 budget is one of growth. Thanks to an improved financial position in the diocese, the 2009 budget will fund the appointment of an additional clergy person and stipend (pay) increases of up to four per cent for clergy and staff. The budget will also see money put aside to fund expected major increases in the costs of clergy pensions in 2011 and 2014.
The diocese’s positive financial position, against a backdrop of the global financial crisis and uncertainties in the stock market and housing prices, is in stark contrast to 2002 when the diocese was facing serious financial problems. Up until that point parishes had been unable to fund ever-increasing budgets and reserves were being used to make up the difference.
From 2003 the diocese embarked on a painful five-year financial strategy which saw cuts in the number of clergy and staff, the selling of surplus housing stock and a commitment from parishes to pay off arrears in their share of the diocesan budget, which at one point had risen to £2.75 million.
As a result, the diocese is living within its means and levels of financial reserves have recovered to the extent that diocesan finance chiefs are now in a strong position to cope with the expected major increase in pension costs in the next few years.
Presenting the budget to members of the Diocesan Synod on Saturday, director of finance Jonathan Hill said: “We are in a position, thanks to the parishes and the courage of the decisions made in the past, to try and deal with difficult financial issues without selling the family silver to finance shortfalls, or making knee-jerk reactions in cutting posts. It is a case of identifying and managing these financial issues and trying to build this into the mission and ministry strategies.
“Our financial problems have not gone away and we live in well publicised turbulent economic times. But I believe we are in a better position to try and manage them. We are trying to maintain sustained levels of income and costs, reduce the share increase for a second year running, support another additional curate post – for the second year running and the fact we have options and decisions to make together is a very positive note to take forward.”
The Chairman of the Board of Finance, Mr Peter Sharpe, added: “We don’t know how long the recession will last, or how deep it will be. It will undoubtedly be a difficult time for all of us. But I remain convinced that, if we prove to be good stewards, we will be given more than enough resource to complete the tasks to which we are called and that, together, we will indeed see this journey through.”
The Lichfield Diocesan Synod approved expenditure of £15.3 million in 2009; of which £11.5 million will be requested from the parishes.
NOTES:
Although the overall amount of Parish Share will increase by 3.5 per cent, the difference for individual parishes will vary as the “parish share formula” is amended as part of a five year transitional process to take account of a property valuation exercise. This is designed to ensure wealthier parishes pay more than poorer parishes.