Agenda item

Members noted that the Trust had continued to face significant sector-wide challenges, including economic uncertainty, rising operational costs, and labour market pressures. These factors had made it increasingly difficult to maintain a balanced budget while also growing income streams and investing in conservation           and     restoration.

It was highlighted that the organisation remained vulnerable to external shocks, including geopolitical instability affecting utilities and supply chains, as well as climate change impacts leading to adverse weather, event cancellations, reduced visitor numbers, and lower on-site spend. Increasing competition across events, hospitality, theatre, and leisure, alongside rising customer expectations around sustainability and digital delivery, was also noted.

Strategic Framework:

Members noted that financial and operational planning continued to be guided by the Trust’s established strategic framework. This included its Vision to create a sustainable future, its statutory Mission to repair and maintain the site for public benefit, and its Purpose to enrich lives through experiences.
The organisation’s ten strategic goals and core values were reaffirmed as underpinning all activity and decision-making.

Operational Business Plan 2026/27:

It was reported that the Three-Year Operational Business Plan had been updated ahead of 2026/27, maintaining a focus on financial sustainability, collaborative delivery of strategic projects, embedding organisational standards, and strengthening internal culture and engagement.

Key performance indicators had been established, including financial sustainability, revenue growth, staff metrics, and visitor satisfaction measures.

Financial Performance and Budget Position
Members noted that the Trust had moved toward financial stability, with the 2025/26 forecast indicating a small surplus after loan repayments, following several years of deficit.

The proposed 2026/27 budget achieved a balanced position, with increased income driven by restoration levy, gift aid, and new revenue streams. It was noted that approximately 70% of income was now self-generated, with the remainder provided through grant funding.

Financial Pressures:

Ongoing financial challenges were highlighted, including substantial increases in business rates, general inflationary pressures affecting wages and construction costs, and impacts on subsidiary profit margins and gift aid contributions.

Mitigation Strategies:

Members noted that a range of mitigation measures had been implemented. These included proposed increases in car parking charges, enhanced fundraising activity (including a Patron Scheme and donation initiatives), review of insurance arrangements, and maximisation of new commercial opportunities such as the Summit attraction and Boating Lake Café.
Operational efficiencies were also pursued through cost reviews, revised operating models, and process improvements linked to new systems.

Strategic Investment:

Despite financial pressures, the Trust had continued to prioritise investment in key areas, including workforce development, digital and IT infrastructure, and essential repairs and maintenance of the estate.

Reserves Position:

It was noted that the Trust currently held no reserves, despite a policy requirement to maintain six months of operating costs. Members acknowledged the need to generate sustained surpluses over the medium term to achieve financial resilience and compliance with governance standards.

Restoration Levy:

Members noted that the Restoration Levy continued to provide a key source of funding for maintenance and conservation works. The levy had been increased in January 2026, supporting essential investment in the historic estate.

Budget Assumptions (2026/27):

It was reported that income was projected to increase overall, driven by higher gift aid, restoration levy income, parking revenue, and new attractions. Modest increases were also assumed across leases and donations.
Expenditure was projected to rise due to inflation, increased staffing costs, and strategic investments, partially offset by efficiencies in some areas. The overall budget position remained broadly balanced after loan repayments.

Risk Management:

Members noted key risks, including potential income shortfalls, cost overruns, external economic pressures, regulatory changes, and dependency on key supplier contracts. The Trust committed to ongoing monitoring and reporting of risks.

Car Parking Charges:

Members were asked to consider a proposed 10% increase in car parking charges to support income generation and maintain financial sustainability. The revised tariff structure aimed to remain competitive, improve fairness, and discourage long-term parking. It was noted that the increase would generate additional income but carried potential risks, including negative stakeholder

perception and customer resistance.

RESOLVED:

-          Approved the APPCT (Trust) Unrestricted Budget for 2026/27

-          Approved the increase in car park charges