Agenda item

The Trust noted that, like many charities operating across the cultural, heritage and hospitality sectors, it faced significant challenges arising from economic uncertainty, rising operational costs, labour market pressures and increasing competition. Members heard that the organisation remained vulnerable to external factors, including geopolitical events, climate change impacts, adverse weather, reduced visitor spend and evolving customer expectations, which required continued investment in sustainability, innovation and digital transformation. It was reported that these challenges were being addressed through the Trust’s Strategic Vision, Goals and Operational Business Plan.

The Committee noted the Trust’s strategic framework, including its vision of creating a sustainable home for all its activities, its mission to repair, maintain and restore Alexandra Palace for public enjoyment, and its purpose of enriching lives through great experiences. Members were advised that the Trust’s strategic objectives included climate resilience, heritage protection, community engagement, partnership development, organisational resilience and improving access to culture, entertainment and green spaces. The Trust’s values of collaboration, passion, resourcefulness, boldness and openness were also highlighted.

Members noted that the Three-Year Operational Business Plan for 2026/27 had been updated to provide direction for what was expected to be a demanding year. The key business objectives remained focused on achieving financial and fundraising targets, delivering strategic projects collaboratively, enhancing operational standards through the “Brilliant Basics” framework, and embedding organisational strategies and policies. Performance would be monitored through a range of measures and KPIs, including financial sustainability, revenue growth, fundraising performance, staff retention, training compliance and customer satisfaction.

The Committee was informed that achieving a sustainable budget position remained a key priority following several years of deficits. Forecasts for 2026/27 indicated that the Trust was on track to achieve a surplus after loan repayments, supported by increased income from the Restoration Levy and Gift Aid. Members noted that 76% of the Trust’s income was now self-generated or fundraised, with the remaining 24% provided through grant funding from Haringey Council.

Members noted that financial pressures remained, including substantial increases in business rates, the ongoing impact of employer National Insurance increases, higher wage costs, inflationary pressures and reduced profit margins affecting Gift Aid contributions from the trading subsidiary.

The Committee heard that a range of mitigation measures had been implemented, including approved increases to car parking charges, enhanced fundraising initiatives, a review of insurance arrangements, and income generation through new attractions and tenants, including Summit and the Boating Lake Café.

Members further noted that operational efficiencies were being pursued through a review of traffic management arrangements, reassignment of costs under existing agreements with the trading subsidiary, and streamlined processes to support the introduction of new business systems.

It was reported that, despite financial constraints, the Trust continued to invest strategically in staff and volunteer development, digital and IT improvements, including a new accounting system, and essential repairs, restoration and maintenance works across the estate.

The Committee noted that, whilst a sustainable budget had been achieved for 2026/27, the Trust remained focused on addressing future cost pressures through income generation, operational efficiencies and targeted investment. Members also noted that the Trust held no reserves and that building financial surpluses over the next five years would be essential to improve long-term financial sustainability and ensure compliance with the Charity Governance Code.

Members noted that the Restoration Levy, applied to tickets sold at Alexandra Palace, contributed towards the funding of essential restoration, maintenance and repair works and supported the preservation of the historic building while enhancing the visitor experience.

RESOLVED:

1)    Noted the 2026/27 forecast against budget.

2)    The Trustees approved the current forecast as the revised budget, to be used for the remainder of the year.