CHESTER CATHEDRAL
THE CATHEDRAL CHURCH OF CHRIST AND THE BLESSED VIRGIN MARY IN CHESTER
ANNUAL REPORT OF THE CHAPTER AND ACCOUNTS
YEAR ENDED 31 DECEMBER 2025
Charity Number: 1203715
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
| CONTENTS | Page |
|---|---|
| Annual Report of the Chapter | 1-13 |
| Independent Auditor’s Report | 14 - 17 |
| Statement of Financial Activities | 18 |
| Consolidated Balance sheet | 19 |
| Cathedral Balance sheet | 20 |
| Statement of Cash Flows | 21 - 22 |
| Notes to the Financial Statements | 23 - 49 |
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The members of Chapter, (who are the Trustees of the charity of the purposes of the Charities Act) present their annual report together with the financial statements of The Cathedral Church of Christ and the Blessed Virgin Mary in the Diocese of Chester (known as Chester Cathedral) for the year ended 31 December 2025.
The report has been prepared in accordance with Part 8 of the Charities Act 2011. The financial statements have been prepared in accordance with the accounting policies set out on pages 23 to 26 of the attached financial statements and comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
Annual Chairman’s Report 2025
DISCOVERY, ENCOUNTER, and FAITH, enriching the soul.
I approach my review of 2025 full of gratitude for the fantastic contribution that my colleagues have made at Chester Cathedral to make the good news of Jesus Christ more visible in the City of Chester, its wider diocese, and worldwide. It is a delight to be Dean and Chairman of a community and institution that is so full of hope and creativity.
This cathedral community summarizes its collective purpose with the words, “Discovery, encounter, and faith: enriching the soul”.
-
Discovery: over the past year we have maintained the principle of being free to enter every day except during the summer exhibition period and the Christmas Tree Festival. This ensures that the Abbey Church and all our other historic spaces are open and accessible for visitors and locals to discover and ponder at their own pace.
-
Encounter: Chester Cathedral is not just a building. An expert community ensures that the buildings and its collection are maintained and interpreted, that we are safe, and hospitable. Whilst there is much to discover here, it comes alive in personal encounter with staff, guides, volunteers and church members; the building, its people and its worship offer all day and every day the possibility of a holy encounter.
-
Faith: of course, the greatest discovery and encounter that people can make here is faith in Jesus Christ. This cathedral is proudly a worshipping community with exemplary liturgy and worship taking place here and streamed to a worldwide congregation. The opportunity to express and explore faith here goes beyond mere encounter. The place and its people support a community that explores what it means to be a human being within the framework of the Christian tradition that transforms lives.
This is no trivial purpose to fulfil: curating a space which is open for all to freely enter and discover, whilst paying all the bills, and at the same time managing to keep the facilities in good order with the building in good repair, and ensuring that there is a good environment for prayer and worship on the same day as an evening concert.
Chester Cathedral was one of six that took part in an audit pilot by business advisers BDO. This review process is now being rolled out across other English Cathedrals by the Church Commissioners and we look forward to seeing how we compare against a larger number of peers. The audit so far has reviewed five cathedrals and has demonstrated that this Cathedral is performing well in comparison, being operationally stable on a free to enter basis with the current levels of activity in the building. The Cathedral is not, however, generating sufficient surplus to maintain the historic fabric in the long term. This remains a challenge that cannot be resolved simply by charging for entry because this would in turn reduce footfall, reduce missional impact, and reduce secondary spend in the successful and important Gift Shop and Refectory.
1
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Peace Doves, May 2025
West End Re-ordering
The financial performance of the Cathedral and its commercial subsidiary during the calendar year 2025 has returned a very small surplus, just 0.3% of turnover. This demonstrates that virtually every penny that is earned by and given to Chester Cathedral is reinvested in running and maintaining the charity. BDO found very little to criticise here and there are no simple solutions that are within the power of the Cathedral to increase income and improve care of the heritage, although this remains always the aspiration of the Leadership Team and Chapter.
One strategy that has been adopted by the Cathedral is to provide in-house training for heritage skills artisans whose additional capacity adds to the existing team. Contracting out a proportion of the Works Team’s time to contribute to maintenance across the historic city of Chester adds to a virtuous circle by improving the range of training opportunities, growing partnerships, and increasing income. Chester Cathedral undertakes its training in collaboration with the national Cathedrals Workshop Fellowship and we are hoping that this will form the basis of a regional heritage skills training centre of the northwest of England based here.
Maintenance of the fabric has been made harder by the removal of the Government’s Listed Places of Worship VAT reclaim scheme. This has resulted in an average additional VAT cost of £75k per year for repairs and restoration. It also adds a further cost for large projects such as the organ restoration and Project Discovery of between 10%-20%.
2
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025
Two large projects, organ restoration and Project Discovery remain significant aspirations for the Chapter. Restoration of the Cathedral’s well regarded Grand Organ is well overdue after more than 55 years since the last rebuild. We have been greatly assisted by a large grant from the Julia Rausing Trust. Work is scheduled to be undertaken in 2027-2028 but before contracts can be signed, a shortfall of between £300k-£500k dependent on VAT calculations needs to be found.
30 St Werburgh Street was brought back into the Cathedral’s use under the working title of “Project Discovery” during the course of 2025, having previously been occupied by a high street bank, and is now being rebranded as part of Chester Cathedral. The project has been supported by a £¼m grant from the Heritage Fund which has funded some of the refurbishment, a new Volunteer/Staff Hub, and a range of activities in the building. We have also been generously supported through a number of private donations which has enabled the office staff to be relocated from 9 Abbey Square. A restructure of tenancies enabled by the vacation of 9 Abbey Square has increased estate income by £200k per year. All of this adds up to a significant improvement in the accommodation available for cathedral activities, significantly increased income, and a stronger visible presence in the City Centre.
In November the safeguarding audit team from INEQE visited Chester to collect the evidence they need in order to report on safeguarding practice in the Cathedral and the Diocese. INEQE have been commissioned by the Church of England to audit over a five-year rolling programme on every diocese and cathedral in England as well as the National Safeguarding Team. They collected evidence online from Chester Cathedral for several months prior to the week-long visit which included interviewing staff and volunteers. At the time of writing, the final INEQE report has not been received but we look forward to reading the audit team’s recommendations and working on them. The audit was a reassuring process that has emphasised for Cathedral and Diocese how important is the partnership working that we now conduct.
These are headlines that are detailed further in this report and Accounts. There have been many achievements through the course of the year that are the fruits of outstanding work and commitment from volunteers and staff who serve here. My thanks and appreciation for all their work is unbounded.
Very Revd Dr Tim Stratford Dean.
Anthony Lees-Smith, Canon Missioner, driving around “Making Tracks” (summer 2025)
3
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Chester Cathedral Strategic Plan
2025 was the first year of our revised five-year strategic plan that seeks to provide opportunity for Discovery, Encounter, and Faith to all who engage with the Cathedral.
Our strategic plan considers both the changing needs society has for its cathedrals and the need for financial sustainability and provides a blueprint for both improvements to our business as usual, and to the major projects that we will need to undertake. We recognise that we are reaching capacity within some of our existing income generating activities and must seek new income streams to support our work in the longerterm.
An executive group meet regularly to define this work in more detail, monitor progress, and support each other in delivery. Our objectives include:
Revitalise heritage and environment – We will use our assets to inspire everyone who engages with Chester Cathedral to think beyond the day to day and to make positive change. This may include the Cathedral’s built heritage, stories, music, green spaces, or the example set by caring for its assets and God’s creation in the best way possible.
Share the Story – Chester Cathedral is a leading attraction in the region, with many stories to tell: the history of the building, those who have lived, worked and worshipped within it, our Christan faith, our historic and modern-day collections. We will interpret and share these stories to encourage personal discovery and encounter; to enable learning for all; to empower us all as we seek to understand our shared pasts and present; and to inspire a new generation with the importance of our Cathedral.
Sustainably grow resources – The Cathedral is committed to making a positive social impact. Integral to this is a range of successful income generating activities as well as building capacity and skills within the team. We will ensure the highest ethical and environmental standards in all that we do.
Nurture a healthy culture in a safe setting – The values of Love, Grace, and Welcome are central to the culture of Chester Cathedral with safeguarding underpinning all that we do. We will embed these values to grow the Cathedral’s mission and its life as a flourishing community in a safe environment. We recognise the work and ministry of each member of its large and committed body of staff and volunteers.
Encourage spiritual encounter – We will enable all those who encounter the Cathedral to take the next step on their spiritual journey or in their discipleship. This may be through worship and music, teaching and learning, reflection, interpretation of the building, or interaction with the sacred space.
Cultivate partnerships with the diocese and community – Chester Cathedral is the Mother Church for the Dioceses of Chester and seat of the Bishop of Chester. We will share fellowship with the Bishop and provide a warm and supportive environment for diocesan and episcopal ministries. The Cathedral will embrace the diversity of parishes and communities when they gather here and play a significant role in connecting with the City and region.
Extend outward facing mission – Through a creative and imaginative programme for all, we will seek to inspire and inform in a way that is inclusive and accessible for children, young people and adults. Working closely with partners in the wider community, we offer a distinctive Christian voice in the public square to challenge injustice, bring transformation and strive for the common good.
All of our strategic work is underpinned by our Cathedral values of Love, Grace, and Welcome which is demonstrated through our commitment to inclusiveness, safety and wellbeing, and environmental sustainability. Further details of our current environmental sustainability work can be found on our website.
4
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Financial overview
2025 saw the Cathedral grow its income from donations, gifts and grants, and from its trading activities by 4.5%, helping to keep pace with the inflationary increases in expenditure. Overall income increased to just under £4.9m with expenditure at almost £4.85m.
All at the Cathedral work hard to achieve our strategic aims. This is an exciting time for the Cathedral as we find ways to grow our offer to new audiences and to maintain and develop our historic assets while still engaging effectively with our community.
During 2025 we moved into new premises adjacent to the Cathedral which have given us an essential and appropriate space for some of our administrative, community and commercial activities, taking some of the pressure off the Cathedral spaces, allowing them to be accessible for more of the time to cathedral visitors and those seeking quiet sanctuary.
We aim to create a living cathedral where the main cathedral buildings are used as efficiently as possible and so are bristling with activity and vitality almost all the time. This limited capacity does make it difficult to bring in the new additional income streams that we realise we need to increase if we are to maintain the site and to engage with our community in new ways.
The cost of keeping the Cathedral open to the public continues to rise and we are particularly aware of the increasing costs associated with compliance and with employment. Due to increases in rental income and events income we have once again managed to keep pace with these increases and achieve a balanced operating budget at the end of the year. The acquisition of 30 St Werburgh Street has been instrumental in this, allowing us to renegotiate the use of other buildings on our site and providing the additional space for meetings, conferences and community activity. We are grateful to those who have supported our development and use of this building, particularly the National Lottery Heritage Fund and are pleased to have been able to host a range of new activities, including a well-attended programme for World Aids Day. We look forward to further development of the site and the activities within it during 2026.
Our already well-established activities have demonstrated strong financial performance in 2025, with increases in retail, catering, tourism and events. Ticket sales for our light show in the early part of 2025 were less than hoped, although feedback received about the quality of the experience were positive and we have learned from this experience for future exhibitions.
Growing Stewardship Giving remains one of our bigger challenges. We have introduced new online and digital ways that regular gifts can be made, we are engaging with different audiences and welcoming more online members, all of whom may become donors in the future.
The graph below illustrates how our income streams have grown over the past five years, rising, even in comparison to pre-pandemic levels, to keep pace with increasing operational costs. However, the rate of growth is now slowing as we reach the limits of our current capacity. As these income streams begin to plateau, it becomes essential for us to identify and develop new sources of revenue to ensure future sustainability.
5
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
*Please note: 2019 has been included as a comparison of pre-pandemic figures. 2020 income has been removed as the effects of the COVID pandemic were so far from normal values to use as a comparison.
We have continued to repay capital on our borrowing, and no new loans were agreed. These repayments reduce the amount of cash available and limit our ability to save cash reserves to invest in more strategic improvements or new income generating activities, but we expect the impact of this to reduce over forthcoming years as the outstanding balance reduces and loans are paid off.
Cost control across the team has been excellent, with all cost areas seeking to obtain the best value from every item of expenditure. The trustees and leadership team have been pleased with financial performance, and the Cathedral is in a stable financial position to begin 2026.
Fundraising, partnerships and support
We are supported in our work by a huge number of individuals and organisations, both local and national. Details of just a few are outline below:
Cheshire West and Chester Council – The Cathedral works closely with CWaC, including participating regularly in working groups designed to deliver the Chester One City Plan to ensure that the work the Cathedral performs is delivered in a collaborative and complimentary way with other organisations in the city. We also support the city through a small annual contract, providing specialist stonemasonry services on the historic city walls.
Heritage Skills – The Cathedral is an active member of the Cathedrals’ Workshop Fellowship, who support the training and development of teams of skilled craftspeople. During the year three of our stonemasons passed their Foundation Certificate and one passed their Foundation Degree with the University of Gloucester through the CWF programme. Our Executive Director is the current Chair of the CWF board of trustees, and we were pleased to host their graduations in Chester.
6
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
We recognise the significant responsibility we have in making sure that essential skills are preserved and passed on to future generations of craftspeople, without whom we will be unable to maintain our nation’s rich built heritage.
To this end, we have commissioned research into regional heritage skills needs and brought together various stakeholders including local government organisations, education providers and regional businesses, to develop a plan to promote sector resilience and ensure these skills are available in the North-West now, and in forthcoming years.
Cathedrals Music Trust – We have been supported in our music outreach work by the Cathedrals Music Trust and Westminster Foundation. The appointment of our Head of Music Outreach has enabled the delivery of high quality music engagement with local schools and residents, including the introduction of a regular ‘Small Sounds’ programme for pre-school children.
We continue to work alongside Transforming Lives Together to address issues of poverty, loneliness and social inequality in our Diocese. Our Place of Welcome sessions take place each Monday, offering support and companionship to those who seek it.
National Lottery Heritage Fund – We are excited to have been awarded a grant of £250,000 by the National Lottery Heritage Fund during the year to fund a programme of work and activities designed to engage with new audiences and improve the support and development opportunities available for our amazing staff and volunteer teams.
Eaton estate - The Cathedral Works Department has continued to develop a positive and mutually beneficial relationship with our friends at the Eaton Estate, developing skills and supporting each other with projects. In 2025 members of the Cathedral masonry team spent time working on significant developments on the Estate and were delighted to welcome back their staff for the occasional team-building day out. The Cathedral and the Rural Estates team have continued to discuss new ways of mutually supportive working and planted the seeds for potential "joint apprentice" training to further maximise our combined resources.
Sustainability Partnerships - Over the past year, the Cathedral has continued to demonstrate its commitment to cutting carbon emissions and promoting biodiversity to support local wildlife. As one of the key projects in our strategic plan, we’ve focused on understanding how our day-to-day operations affect the environment and on finding practical ways to reduce that impact.
One major step forward has been the rollout of a detailed energy sub-metering programme. This will give us much better information about how we use energy across the site and help us measure the impact of any future energy-saving projects.
We’ve also worked with the Cheshire Wildlife Trust to commission a full Biodiversity Report for the Cathedral Estate. This will show us which actions we should prioritise and how best to put them into practice.
7
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Charitable purpose
The Cathedral opened its doors on all 365 days of 2025, welcoming almost 600,000 people through its doors, the highest year since COVID, and around a further 150,000 people viewed one of our services online. We hosted over a thousand acts of public worship, over 100 concerts and performances, and 94 school visits. In addition to these we hold weekly Places of Welcome sessions, a regular organ recital programme, family holiday activities, Music outreach sessions for children, and provide facilities for a range of other charities and community groups.
In addition to our commercial and organised programme of activities, we aim to provide a place that people can use for social gatherings, spiritual reflection, and for lifelong learning. Our café is open almost every day of the year and we are supported by a team of volunteer chaplains who are available for the pastoral care of our visitors.
We are responsible for an historically important site and our small team of skilled and trainee craftspeople supported an increasing programme of maintenance and improvement across the cathedral estate. Projects this year have included significant repair work to the exterior of the Refectory which was deteriorating and causing concern for the Mortlake tapestry located beneath the window. Other work has included grant funded improvements to our Nave lighting which had failed and to properly light the North Aisle mosaics. Work has continued to improve our inventory and cataloguing and the team have enabled increased public access to the library and our collections, supported by our team of dedicated library volunteers.
Safeguarding remains one of our most important areas of our work. Our Safeguarding Officer works closely with the Diocesan safeguarding team to continually improve our processes, communications and training, and were pleased to be part of the Diocesan-wide launch of the Speak out Stay Safe campaign during the year. We also took part in a scheduled safeguarding audit and expect to receive our audit report in early 2026 but were pleased with the initial verbal feedback received.
Reserves
It is our policy to hold sufficient cash reserves to cover the greater of: employment costs for a minimum of three months, other core fixed costs for a minimum of six months, and the maximum identified level of emergency costs (which is reviewed annually). For 2026 this figure remains £1,000,000. The majority of these reserves are held with CCLA’s Church of England Investment Fund which is usually available with 2-3 days notice.
At the year-end date the Cathedral’s unrestricted free reserves stood at £973,611.00. The Cathedral are comfortable that there are sufficient unapplied total returns held in readily accessible investments to cover the shortfall.
Risks
During 2025 we began a full review of our risk register with an external professional working on a voluntary basis. While the work is still underway, we hope that it will improve our understanding of the risks and mitigations associated with our activities.
Increasing costs remain a significant challenge that features strongly in our risk register, particularly as we rely heavily on voluntary giving in the form of gifts, grants and donations, which are more difficult to increase annually. The impact of changes in legislation have had financial consequences for us over recent years, including increasing the overall cost of employment, additional compliance requirements and changes in grant availability. Uncertainty over future legislative changes can make forecasting difficult.
8
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Our central location is a huge benefit but does bring with it a few risks that we must be considerate of. As the city centre changes, the cathedral must adapt to meet new needs. This may be in the form of changes to access, travel, use of spaces, and planning expectations. Our partnerships within the city are key, ensuring awareness of these changing needs and enabling us to adapt to meet them as we continue with our strategic aims.
The impact of national and world events are being monitored closely, particularly in relation to the effect on tourism and inflation.
Looking forward
The five-year strategic plan includes projects and partnerships designed to increase the Cathedral’s charitable mission while ensuring that we remain financially sustainable. More details of the strategic plan can be found on our website.
One of the key projects we are working on is called Project Discovery. This project includes the development and use of the newly acquired building, and its integration with the city, the wider site, and specifically with the main historic buildings. We hope it can provide an answer to the question of how to overcome the barriers that prevent visitors from accessing the Cathedral. We know that it can be difficult to find the current entrance to the Cathedral and that it can be an intimidating and imposing environment for those who have less experience of Church settings. We hope that this project will identify ways that we can overcome this.
The project also seeks to provide improved ways of engaging with our rich heritage. This includes the history of this important site as a place of Christian worship as well as the stories of those associated with it and the role they have played in the development of Chester.
Another project centres around our Share the Story objective and details improvements in the way we care for our assets and stories, the way we interpret them and display them in our exhibitions programme. Other work is focussed on the use of our wider estate, especially the properties on the West side of Abbey Square which requires improvement. We are investigating possible future uses of these properties and assessing different business cases.
Our projects all seek to fulfil our strategic objectives; generating both improved engagement and the increased financial performance that will be needed to ensure the Cathedral remains sustainable for future generations.
9
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Structure, governance and management
Chapter
The Chapter is name of our board of trustees. They meet every two months, joined by the senior executive team, and participate in training and sit on other governance committees as required.
Chapter members are recruited in line with the Church of England’s Safer Recruitment Policies, all take part in a formal induction programme, and are all invited to attend the induction training provided by the Association of English Cathedrals.
At the year-end the following were members of the Cathedral Chapter:
The Very Reverend Dr Tim Stratford, The Dean
The Reverend Canon Rosie Woodall, The Vice Dean and Canon Precentor
The Reverend Canon Dr Anthony Lees-Smith, Canon Missioner
Janet Carr, The Senior Non-executive member
Dr Mary Horbury, Non-executive member
Dr Anna Sung, Non-executive member
Ian Watmore, Non-executive member
Margaret Harrison, Non-executive member
Cathedral leadership team
The Cathedral Leadership Team are the key management team of the Cathedral, responsible for controlling, running and operating the cathedral on a day-to-day basis. This team includes the three Commissioners Canons, Executive Director, Communications Director, Safeguarding Officer, Head of Commercial Enterprise, and Head of Heritage and Fabric. The group is supported by the Executive Assistant.
Conflicts of interest
The Dean would like to declare that his spouse is the Education Officer of the Cathedral, and that he has asked to be removed from any decision related to this post.
Occasionally the adult children of the staff team, including the Cathedral leadership team, have been employed on a casual basis on the same terms and condition as other casual roles.
10
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The College of Canons
The Dean, suffragon bishops, archdeacons and non-residentiary canons meet as the College of Canons. Their function is to further and support the spiritual, educational, evangelistic, social and ecumenical work of the Cathedral.
Community Rolls
The wider Cathedral community may apply to join one of the Community Rolls. The worshipping community roll is open to individuals who are baptised, aged 16 or over, and worship regularly at the Cathedral. Membership of the wider community roll is open to anyone who is a member of the cathedral community but not eligible to join the worshipping roll.
Finance and Investment Committee
In accordance with the constitution and statutes, the Finance and Investment Committee advises the Chapter in connection with its responsibilities in the field of financial and investment management and the management of property and assets belonging to the Cathedral. The committee meets every two months and is chaired by the Senior Non-executive member of Chapter.
Audit and Risk Committee
The Audit and Risk Committee meets at least three times each year with an independent Chair, Mr Annesley Wright.
Nominations and Development Committee
The Nominations and Development Committee oversees the recruitment and training of senior appointments and meets at least three times each year with and independent Chair, Professor Anna Sutton.
Ministry Committee
The Ministry Committee meets with Dr Mary Horbury as the Chair.
The Fabric Advisory Committee
Under the Care of Cathedrals Measure 1990, the Fabric Advisory Committee is responsible to the Cathedral’s Fabric Commission for England and considers applications from Chapter regarding proposed development of, and changes to, the Cathedral’s fabric. The committee meets quarterly with Canon Dr Frances Hulbert as the Chair.
Chester Cathedral Enterprises Limited
The commercial activities carried out within the Cathedral are governed by Chester Cathedral Enterprises Limited. The Board of Directors meets regularly throughout the year.
The Chester Cathedral Development Trust
The Development Trust was established to raise funds for the maintenance and development of the fabric of the Cathedral.
11
CHESTER CATHEDRAL
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Chester Cathedral Education Trust
The Education Trust was established to raise funds to support the educational work of the Cathedral.
The Chester Cathedral Music Trust
The Music Trust was established to support the musical activity of the Cathedral.
Statutory Post Holders and Senior Staff
Chief Operating Officer Carolyn Bruce Safeguarding Officer Sharon Scarlett Organist and Master of the Choristers Philip Rushforth Cathedral Architect Tony Barton, Donald Insall Associates Cathedral Archaeologist Simon Ward Estate Management Neil Tunks, DN Surveyors Limited Auditors HaysMac LLP Bankers NatWest Bank
Approved by the Chapter on 12 May 2026 and signed as authorised on their behalf by:
The Very Reverend Dr Tim Stratford – Dean of Chester
12
CHESTER CATHEDRAL
STATEMENT OF CHAPTER’S RESPONSIBILITIES IN RELATION TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The members of Chapter are responsible for preparing the annual report and accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practices. Under the provisions of the Cathedrals Measure 2021 and Constitution of Chester Cathedral, Chapter is required to prepare accounts for each financial year, which give a true and fair view of the state of the Cathedrals affairs and of its financial activities during the year. In preparing those accounts, members of Chapter are required to:
-
select suitable accounting policies and then apply them consistently;
-
comply with applicable accounting standards, namely the Charities SORP (FRS102) and in accordance with the Accounting and Reporting regulations for English Anglican Cathedrals specified by the Church Commissioner under section 30 of the Cathedrals Measure 2021, subject to any departures disclosed and explained in the accounts.
-
prepare and publish an annual report and audited accounts which give a true and fair view of the financial activities for each financial year and of the assets, liabilities and funds at the end of each financial year of the cathedral and its connected entities;
-
state that they have complied in all material respects with these regulations or describing which regulations have not been complied with and give reasons for the non-compliance;
-
make judgements and estimates that are reasonable and prudent;
-
keep proper accounting records from which the financial position of the Cathedral can be ascertained with reasonable accuracy at any time; and
-
safeguard the assets of the Cathedral and taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to the auditors
So far as each of the trustees is aware at the time that the report is approved:
-
There is no relevant audit information of which the Charity’s auditors are unaware: and
-
The trustees have taken all steps that they ought to have taken to make themselves are of any relevant audit information and to establish that the auditors are aware of that information.
Approved by the Chapter on 12 May 2026 and signed as authorised on their behalf by:
The Very Reverend Dr Tim Stratford – Dean of Chester
13
CHESTER CATHEDRAL
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CATHEDRAL CHAPTER OF CHESTER
FOR THE YEAR ENDED 31 DECEMBER 2025
Opinion
We have audited the financial statements of Chester Cathedral for the year ended 31 December 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Cathedral Balance Sheet, the Consolidated Cash Flow statement, and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
-
give a true and fair view of the state of the Cathedral and the group’s affairs as at 31 December 2025 and their net movement in funds for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the regulations specified by the Church Commissioners under the powers given to them by section 30 of the Cathedrals Measure 2021.
-
have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Chapter’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the cathedral’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Chapter with respect to going concern are described in the relevant sections of this report.
14
CHESTER CATHEDRAL
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CATHEDRAL CHAPTER OF CHESTER
FOR THE YEAR ENDED 31 DECEMBER 2025
Other information
The Chapter are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
-
sufficient accounting records have not been kept by the Cathedral or group;
-
the Cathedral and group’s financial statements are not in agreement with the accounting records; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of the members of Chapter
As explained more fully in the Chapter Responsibilities statement set out on page 13, the Chapter is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Chapter determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Chapter is responsible for assessing the Cathedral’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Chapter either intends to liquidate the Cathedral or to cease operations, or have no realistic alternative but to do so.
15
CHESTER CATHEDRAL
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CATHEDRAL CHAPTER OF CHESTER
FOR THE YEAR ENDED 31 DECEMBER 2025
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the group and its circumstances, we identified that the principal risks of noncompliance with laws and regulations related to the requirements of the Charities Act 2011 and Cathedrals Measure 2021, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as income tax, payroll tax and sales tax.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and to manual accounting journals. Audit procedures performed by the engagement team included:
-
Inspecting correspondence with tax authorities;
-
Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
-
Evaluating management’s controls designed to prevent and detect irregularities;
-
Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
-
Challenging assumptions and judgements made by management in their critical accounting estimate
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
16
CHESTER CATHEDRAL
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CATHEDRAL CHAPTER OF CHESTER
FOR THE YEAR ENDED 31 DECEMBER 2025
Use of our report
This report is made solely to the Chapter, as a body, in accordance with section 144 of the Charites Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Chapter those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Cathedral and the Cathedral Chapter as a body, for our audit work, for this report, or for the opinions we have formed.
HaysMac LLP Statutory Auditor
10 Queen Street Place London EC4R 1AG
Date: 21/05/2026
17
CHESTER CATHEDRAL
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating Income and Expenditure)
FOR THE YEAR ENDED 31 DECEMBER 2025
| Note Income and endowments from: Donations, grants and legacies 2 Other trading activities 3 Investments 4 Other income 5 Total: Expenditure on: Raising funds 7 Ministry 8 Music 9 Cathedral and precincts upkeep 10 Education and outreach 11 Other expenditure 12 Total: Net income before (losses)/gains Net (losses)/gains on listed investments 16 Unrealised pension gain 21 Net gains on investment property 15 Net income Transfers between funds Net Movement in funds Funds brought forward Funds carried forward |
Unrestricted 2025 £ Restricted 2025 £ Endowed 2025 £ TOTAL 2025 £ TOTAL 2024 £ |
|---|---|
| 866,309 584,574 - 1,450,883 1,366,259 2,229,866 19,033 - 2,248,899 2,161,367 - - 1,196,814 1,196,814 969,729 4,961 - - 4,961 60,622 ---------------- ---------------- ---------------- ---------------- ---------------- 3,101,136 603,607 1,196,814 4,901,557 4,557,977 1,907,564 9,671 521,474 2,438,709 2,230,658 465,294 161,762 - 627,056 667,079 360,132 85,691 - 445,823 440,651 1,077,557 225,829 - 1,303,386 1,153,941 80,421 14,510 - 94,931 77,296 - 280 - 280 280 ---------------- ---------------- ---------------- ---------------- ---------------- 3,890,968 497,743 521,474 4,910,185 4,569,905 (789,832) 105,864 675,340 (8,628) (11,928) - (9,043) (38,523) (47,566) 36,592 - - - - - - - 1,220,357 1,220,357 800,905 ---------------- ---------------- ---------------- ---------------- ---------------- (789,832) 96,821 1,857,174 1,164,163 825,569 675,340 - (675,340) - - (114,492) 96,821 1,181,834 1,164,163 825,569 ------------------ ------------------ ------------------ ------------------ ------------------ 1,067,176 597,606 20,437,437 22,102,219 21,276,650 ------------------- ------------------ --------------------- --------------------- --------------------- 952,684 694,427 21,619,271 23,266,382 22,102,219 ============ =========== ============= ============= ============= |
The statement of financial activities includes all gains and losses recognised in the year. The net income of the Charity for the year was £1,202,000 (2024: £810,000). All activities relate to continuing operations
The accompanying notes form part of the financial statements.
18
CHESTER CATHEDRAL
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED 31 DECEMBER 2025
| 2025 | 2024 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Fixed assets | |||
| Tangible assets | 14 | 2,251,947 | 1,522,958 |
| Investment properties | 15 | 20,060,642 | 19,588,142 |
| Other investments | 16 | 1,303,983 | 1,311,550 |
| ------------------ | ------------------ | ||
| Total fixed assets | 23,616,572 | 22,422,650 | |
| ============ | ============ | ||
| Current assets | |||
| Stocks | 62,950 | 83,279 | |
| Debtors | 17 | 457,795 | 259,383 |
| Bank and cash | 750,284 | 749,062 | |
| ------------------ | ------------------ | ||
| Total current assets | 1,271,029 | 1,091,724 | |
| ============ | ============ | ||
| Creditors: amounts falling due within one year | 18 | (1,003,173) | (687,246) |
| Net current assets | 267,856 | 404,478 | |
| Total assets less current liabilities | 23,884,428 | 22,827,128 | |
| Creditors: amounts falling due after one year | 19 | (618,046) | (724,909) |
| ------------------ | ------------------ | ||
| Total net assets | 23,266,382 | 22,102,219 | |
| ============ | ============ | ||
| The funds of the cathedral | |||
| Endowment funds | 23 | 21,619,271 | 20,437,437 |
| Restricted funds | 22 | 694,427 | 597,606 |
| Unrestricted funds | 952,684 | 1,067,176 | |
| ------------------ | ------------------ | ||
| Total net assets | 23,266,382 | 22,102,219 | |
| ============ | ============ |
Approved by Chapter on 12 May 2026 and signed on their behalf by:
Dean & Member of Chapter
The accompanying notes form part of the financial statements
19
CHESTER CATHEDRAL
BALANCE SHEET
FOR THE YEAR ENDED 31 DECEMBER 2025
| 2025 | 2024 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Fixed assets | |||
| Tangible assets | 14 | 2,196,150 | 1,464,244 |
| Investment properties | 15 | 20,060,642 | 19,588,142 |
| Other investments | 16 | 925,186 | 963,709 |
| -------------------- | -------------------- | ||
| Total fixed assets | 23,181,978 | 22,016,095 | |
| ============ | ============ | ||
| Current assets | |||
| Stocks | - | - | |
| Debtors | 17 | 649,501 | 462,181 |
| Bank and cash | 358,937 | 455,258 | |
| -------------------- | -------------------- | ||
| Total current assets | 1,008,438 | 917,439 | |
| ============ | ============ | ||
| Creditors: amounts falling due within one year | 18 | (763,609) | (602,748) |
| Net current assets/liabilities | 244,829 | 314,691 | |
| Total assets less current liabilities | 23,426,807 | 22,330,786 | |
| Creditors: amounts falling due after one year | 19 | (618,046) | (724,909) |
| -------------------- | -------------------- | ||
| Total net assets | 22,808,761 | 21,605,877 | |
| ============ | ============ | ||
| The funds of the cathedral | |||
| Endowment funds | 23 | 21,619,271 | 20,437,437 |
| Restricted funds | 22 | 236,806 | 101,264 |
| Unrestricted funds | 952,684 | 1,067,176 | |
| -------------------- | -------------------- | ||
| Total net assets | 22,808,761 | 21,605,877 | |
| ============ | ============ |
Approved by Chapter on 12 May 2026 and signed on their behalf by:
Dean & Member of Chapter
The accompanying notes form part of the financial statements
20
CHESTER CATHEDRAL
CONSOLIDATED CASHFLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
| 2025 | 2024 | |
|---|---|---|
| Total | Total | |
| £ | £ | |
| Cash flows from operating activities (note A) | ||
| Net cash (used in) operating activities | (1,023,337) | (967,406) |
| Cash flows from investing activities | ||
| Purchase of tangible fixed assets | (12,238) | (28,114) |
| Purchase of investments | (40,000) | - |
| Investment income | 1,196,814 | 969,729 |
| -------------------- | -------------------- | |
| Net cash provided by investing activities | 121,239 | (25,791) |
| ============ | ============ | |
| Movement of bank loans | (120,017) | (174,848) |
| -------------------- | -------------------- | |
| Net cash (used in) financing activities | (120,017) | (174,848) |
| ============ | ============ | |
| Change in cash and cash equivalents in the year | 1,222 | (200,639) |
| Cash and cash equivalents at the beginning of the year | 749,062 | 949,701 |
| -------------------- | -------------------- | |
| Cash and cash equivalents at the end of the year | 750,284 | 749,062 |
| ============ | ============ | |
| Note A | ||
| Reconciliation of net income to net cash outflow from | 2025 | 2024 |
| operating activities | ||
| Total | Total | |
| £ | £ | |
| Net income as per the Statement of Financial Activities | 1,164,163 | 825,569 |
| Gains on investment property | (1,220,357) | (800,905) |
| Investment income | (1,196,814) | (969,729) |
| Losses/(gains) on investments | 47,566 | (36,592) |
| Depreciation charges | 31,107 | 31,023 |
| Decrease/(Increase) in stock | 20,329 | (21,300) |
| (Increase)/Decreases in debtors | (198,412) | 124,818 |
| Increase/(Decrease) in creditors | 329,081 | (120,290) |
| -------------------- | -------------------- | |
| Net cash (outflow) from operations | (1,023,337) | (967,406) |
| ============ | =========== |
21
CHESTER CATHEDRAL
CONSOLIDATED CASHFLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
Analysis of changes in net debt
| 1 January | Cash flows | Other non | As at 31 | |
|---|---|---|---|---|
| 2025 | Cash | December | ||
| changes | 2025 | |||
| £ | £ | £ | £ | |
| Cash | 749,062 | 1,222 | - | 750,284 |
| Loans due in less than one year | (176,815) | 120,017 | (106,863) | (163,661) |
| Loans due in more than one year | (724,909) | - | 106,863 | (618,046) |
| ------------------- | ------------------ | ------------------ | ------------------- | |
| Total | (152,662) | 121,239 | - | (31,423) |
| =========== | =========== | =========== | =========== |
22
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The principal accounting policies adopted in the preparation of the accounts are set out below.
1 Accounting policies
1.1 Accounting convention
The financial statements have been prepared under the historical cost convention, with items recognised at cost or transaction value except for the revaluation of investment properties and other investments. They have been prepared in accordance with:
-
The accounting and reporting Regulations for English Anglican Cathedrals dated December 2018 as specified by the Church Commissioners under Section 30 of the Cathedrals Measure 2021; and
-
• The Charities SORP (FRS102) and the Charities Act 2011.
The Cathedral constitutes a public benefit entity as defined by FRS102.
As permitted by section 408 of the Companies Act 2006 no separate Statement of Financial Activities is presented for the charity.
Total Returns Adoption
In July 2019, the Chapter of Chester Cathedral agreed to adopt a Total Return policy on investments. The Chapter used 1952 as the base house price. Applying the lower of CPI/RPI to this figure confirms the current base value as £5,850,000. Chapter agreed that funds equivalent to £11.4m should be moved from endowment property and £0.8m from endowment investments to unapplied total return and will decide annually how much of this fund, if any, can be transferred to the income and expenditure account. However, since the assets within the fund are principally held as property, the expectation is that any transfers will only be for major changes in the Cathedral's strategy or operations.
The value of the Permanent Endowment Fund will increase at the lower of the change in the CPI or RPI rate each year.
1.2 Going concern
The financial statements have been prepared on a going concern basis as the Chapter believe that no material uncertainties exist in connection with the Cathedral’s ability to operate for the foreseeable future. The Chapter has considered the level of funds held and the expected level of income for twelve months from authorising these financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Members of Chapter in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Permanent Endowment funds are subject to specific conditions by donors that the capital must be maintained by the chapter.
23
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
1.4 Income
Income from collections and other donations is recognised when received by or on behalf of the Cathedral. Income from grants and legacies is recognised when notified in writing, any conditions related to the entitlement have been met and the amount can be measured reliably. Grant income includes a grant from the Church Commissioners to fund the stipend costs of The Dean and canons, the costs of which are shown in staff costs.
Income from investments is recognised when receivable. Investment income from common investment funds managed by CCLA Investment Managers Ltd is considered receivable when dividends are declared. Net gains and losses on investments are recognised when investments are sold and on revaluation.
1.5 Donated assets and services
Offers of gifts or books to the Cathedral Library are considered by the Canon for Worship and Spirituality and Vice Dean and the Cathedral Librarian. Books on the Cathedral itself or the Diocese and their respective histories, or books written by authors, past and present, associated either with the Cathedral or Diocese are especially welcomed. Offers of other kinds of gifts are considered by Chapter and where appropriate by the Cathedral's Fabric Advisory Committee (FAC).
The disposal of donated assets which are deemed to have outlived their usefulness is carefully considered by the FAC and where appropriate, proposals are submitted to the Cathedral's Fabric Commission for England (CFCE). No items are disposed of without the agreement of the FAC and decisions of the CFCE are always complied with.
In the case of such items once donated by individuals or families, surviving relatives are always informed when a decision is made in favour of disposal.
Where services are provided to the Chapter as a donation that would normally be purchased, the contribution is included in the financial statements at an estimate based on the value of the contribution to the Chapter.
1.6 Expenditure
Expenditure (including depreciation and pension costs and the costs of repairs, restoration and maintenance of the Cathedral) is accounted for on the accruals basis and is allocated under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.
Support costs have been allocated on the assumption that they arise in proportion to direct expenditure of the charitable activity.
1.7 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings Nil Fixtures and fittings 10% or 25% straight line IT equipment 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in net income/(expenditure) for the year.
24
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
1.7 Tangible fixed assets (continued)
No depreciation is provided on freehold property because Members of Chapter are of the opinion that the properties are maintained to such a high standard that any depreciation charged would be negligible.
1.8 Investment properties
Investment property is held at fair value. The valuation is considered annually and any gain or loss arising from revaluation is reflected in the Statement of Financial Activities.
1.9 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the Chapter. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.10 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11 Stocks
All stock is recognised at the lower of cost and net realisable value.
1.12 Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition of opening of the deposit or similar account.
1.13 Liabilities
Provisions are recognised when the Cathedral has an obligation at the reporting dates as a result of a past event which it is probable will result in the transfer of economic benefits and the obligation can be estimated reliably.
Provisions are measured at the best estimate of the amounts required to settle the obligation.
1.14 Financial instruments
The Cathedral only holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the Cathedral and their measurement bases are as follows:
-
Financial assets – trader and other debtors are basic financial instruments and are debt instruments measured at amortised costs. Prepayments are not financial instruments.
-
Cash at bank is classified as a basic financial instrument and is measured at face value.
-
Financial liabilities – trade creditors, accruals and other creditors are financial instruments and are measured at amortised costs. Taxation and social security are not included in the financial instruments’ disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
1.15 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when Chapter is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
25
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
1.16 Leases
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight-line basis over the term of the relevant lease.
| Unrestricted | Restricted | Endowment | Total | ||
|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | ||
| 2025 | |||||
| £ | £ | £ | £ | ||
| 2 | Donations and legacies | ||||
| Donations & Gifts | 751,282 | 19,247 | - | 770,529 | |
| Legacies | 3,751 | - | - | 3,751 | |
| Grants | |||||
| Church Commissioners | 10,858 | 222,931 | - | 233,789 | |
| Other grants | |||||
| - Education | 12,491 | 2,500 | - | 14,991 | |
| - Worship | 22,078 | 34,263 | - | 56,341 | |
| - Music | 27,886 | 11,299 | - | 39,185 | |
| - Capital grants | 37,963 | 294,334 | - | 332,297 | |
| ------------------ | ------------------ | ------------------ | ------------------ | ||
| Total | 866,309 | 584,574 | - | 1,450,883 | |
| =========== | =========== | =========== | =========== | ||
| Total | |||||
| Funds | |||||
| 2024 | |||||
| £ | £ | £ | £ | ||
| Donations and legacies | |||||
| Donations & Gifts | 641,100 | 162,407 | - | 803,507 | |
| Legacies | 3,000 | - | - | 3,000 | |
| Grants | |||||
| Church Commissioners | - | 247,593 | - | 247,593 | |
| Other grants | |||||
| - Education | 14,282 | 700 | - | 14,982 | |
| - Worship | 18,205 | 52,924 | - | 71,129 | |
| - Music | 579 | 3,500 | - | 4,079 | |
| - Capital grants | 112,814 | 109,155 | - | 221,969 | |
| ------------------- | ------------------- | ------------------- | ------------------- | ||
| Total | 789,980 | 576,279 | - | 1,366,259 | |
| ============ | ============ | ============ | ============ |
Capital Grants includes projects such as the new Pilgrim Porch, Abbey Gateway renovation and other funded maintenance work. The Church Commissioner Grants include grants towards Canon stipends.
“Donations and Gifts” includes worship service offerings, congregational income, and visitor donations.
Church commissioners’ income covers grants relating to stipends along with other items such as grants for energy costs.
26
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| Unrestricted | Restricted | Endowment | Total | ||
|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | ||
| 2025 | |||||
| £ | £ | £ | £ | ||
| 3 | Other Trading Activities | ||||
| Trading income | 1,304,555 | - | - | 1,304,555 | |
| Events | 610,894 | 19,033 | - | 629,927 | |
| Visitor income | 314,417 | - | - | 314,417 | |
| -------------------- | ------------------ | ------------------ | ------------------ | ||
| Total | 2,229,866 | 19,033 | - | 2,248,899 | |
| ============ | =========== | =========== | ============ | ||
| Total | |||||
| Funds | |||||
| 2024 | |||||
| £ | £ | £ | £ | ||
| Trading income | 1,230,933 | - | - | 1,230,933 | |
| Events | 657,187 | - | - | 657,187 | |
| Visitor income | 273,247 | - | - | 273,247 | |
| -------------------- | ------------------ | ------------------ | ------------------ | ||
| Total | 2,161,367 | - | - | 2,161,367 | |
| ============ | =========== | =========== | ============ | ||
| Unrestricted | Restricted | Endowment | Total | ||
| Funds | Funds | Funds | Funds | ||
| £ | £ | £ | 2025 | ||
| £ | |||||
| 4 | Investment income | ||||
| Income from investment | - | - | 1,167,357 | 1,167,357 | |
| property | |||||
| Income from other | - | - | 29,457 | 29,457 | |
| investments | |||||
| ---------------- | ----------------- | ------------------ | ------------------ | ||
| Total | - | - | 1,196,814 | 1,196,814 | |
| ======= | ======== | ======== | ======== | ||
| Total | |||||
| Funds | |||||
| 2024 | |||||
| £ | £ | £ | £ | ||
| Income from investment | - | 941,745 | 941,745 | ||
| property | |||||
| Income from other | - | - | 27,984 | 27,984 | |
| investments | |||||
| ---------------- | ----------------- | ------------------ | ------------------ | ||
| Total | - | - | 969,729 | 969,729 | |
| ======= | ======== | ======== | ======== |
27
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| Unrestricted | Restricted | Endowment | Total | ||
|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | ||
| 2025 | |||||
| £ | £ | £ | £ | ||
| 5 | Other income | ||||
| Insurance claims | 4,961 | - | - | 4,961 | |
| Other | - | - | - | - | |
| ---------------- | ----------------- | ------------------ | ------------------ | ||
| Total | 4,961 | - | - | 4,961 | |
| ======= | ======== | ======== | ======== | ||
| Total | |||||
| Funds | |||||
| 2024 | |||||
| £ | £ | £ | £ | ||
| Insurance claims | 52,822 | - | - | 52,822 | |
| Other | 7,800 | - | - | 7,800 | |
| ---------------- | ----------------- | ------------------ | ---------------- | ||
| Total | 60,622 | - | - | 60,622 | |
| ======= | ======== | ======== | ======== |
28
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
6 Staff costs and employee information
| 2025 | 2024 | |
|---|---|---|
| Salaries and stipends and related costs | £ | £ |
| Wages, salaries | 1,998,777 | 1,494,603 |
| Social security | 219,748 | 129,043 |
| Pension | 197,456 | 132,168 |
| --------------------- | --------------------- | |
| 2,415,981 | 1,755,814 | |
| ============= | ============= | |
| The average monthly number of staff during the year was: | ||
| 2025 | 2024 | |
| Number | Number | |
| Clergy - costs borne by the Church Commissioners | 3 | 3 |
| Full time employees | 37 | 34 |
| Part time employees | 57 | 49 |
| ------------ | ------------ | |
| 97 | 86 | |
| ======= | ======= |
The average full time equivalent staff was 64 (2024: 62)
The above costs include the remuneration of the Dean and Residentiary Canons which is disclosed in the table below.
These costs are borne by the Church Commissions and an equal amount of income is recognised in the financial statements.
The number of staff with remuneration excluding employer pension contribution of £60,000 or above was:
| 2025 | 2024 | ||
|---|---|---|---|
| Number | Number | ||
| £60,001 | to £70,000 | 1 | 2 |
Key management personnel comprise of the Executive Director, Safeguarding Officer, Head of Commercial Enterprise, Head of Heritage and Fabric and Communications Director. The total renumeration of the Senior Management Team £314,866 (2024: £316,815)
29
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
6 Staff costs and employee information (continued)
Included within staff costs are payments to the members of Chapter. The remuneration of and pension provision for clerical members of the Chapter, are paid in accordance with scales laid down annually by the Church Commissioners, Archbishops Council, and the Church of England Pensions Board. These payments are set out in the table below. No other members of Chapter are remunerated.
| Stipend/ | Apprentice | Social | Pension | Total | |
|---|---|---|---|---|---|
| salary | -ship levy | security | contributions | 2025 | |
| £ | £ | £ | £ | £ | |
| Dean (The Very Reverend Dr Tim | 43,303 | 204 | 5,119 | 8,006 | 56,632 |
| Stratford) | |||||
| The Canon for Worship and | 33,316 | 146 | 3,420 | 6,405 | 43,287 |
| Spirituality (The Reverend Canon | |||||
| Rosemary Woodall) | |||||
| Canon Missioner (The Reverend | 33,316 | 152 | 3,601 | 9,281 | 46,350 |
| Canon Dr Anthony Lees-Smith) | |||||
| ----------------- | -------------------- | -------------------- | -------------------- | -------------------- | |
| 109,935 | 502 | 12,140 | 23,692 | 146,269 | |
| ========== | ============ | ============ | ============ | ============ |
| Stipend/ | Apprentice | Social | Pension | Pension | Total | |
|---|---|---|---|---|---|---|
| salary | -ship levy | security | contributions | 2024 | ||
| £ | £ | £ | £ | £ | ||
| Dean (The Very Reverend Dr Tim | 41,751 | 178 | 3,727 | 8,513 | 54,169 | |
| Stratford) | ||||||
| Vice Dean and Canon Missioner (The | 2,456 | 12 | 234 | 615 | 3,317 | |
| Reverend Jane Brooke) | ||||||
| The Canon for Worship and | 32,049 | 149 | 2,849 | 6,810 | 41,857 | |
| Spirituality (The Reverend Canon | ||||||
| Rosemary Woodall) | ||||||
| Canon Missioner (The Reverend | 14,014 | 55 | 965 | - | 15,034 | |
| Canon Dr Anthony Lees-Smith) | ||||||
| ----------------- | -------------------- | -------------------- | -------------------- | -------------------- | ||
| 90,270 | 394 | 7,775 | 15,938 | 114,377 | ||
| ========== | ============ | ============ | ============ | ============ |
30
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| Unrestricted | Restricted | Endowment | Total | |
|---|---|---|---|---|
| Funds | Funds | Funds | Funds | |
| 2025 | ||||
| £ | £ | £ | £ | |
| 7 Raising funds | ||||
| Fundraising and publicity - staff | 415,308 | - | - | 415,308 |
| Trading costs - other trading activities | 1,491,764 | 9,671 | - | 1,501,435 |
| Investment management1 | - | - | 464,312 | 464,312 |
| Financing costs | - | - | 57,162 | 57,162 |
| Support Costs | 492 | - | - | 492 |
| ------------------- | ------------------ | ------------------ | ------------------ | |
| Total | 1,907,564 | 9,671 | 521,474 | 2,438,709 |
| ============ | =========== | =========== | ============ | |
| Total | ||||
| Funds | ||||
| 2024 | ||||
| £ | £ | £ | £ | |
| Fundraising and publicity - staff | 547,680 | - | - | 547,680 |
| Trading costs - other trading activities | 1,208,921 | 30,544 | - | 1,239,466 |
| Investment management1 | - | 12,240 | 356,843 | 369,083 |
| Financing costs | - | - | 74,289 | 74,289 |
| Support Costs | 140 | - | - | 140 |
| ------------------- | ------------------ | ------------------ | ------------------ | |
| Total | 1,756,741 | 42,784 | 431,132 | 2,230,658 |
| ============ | =========== | =========== | ============ |
Investment management includes grant funded refurbishment of investment properties.
1 This figure contains maintenance costs of the endowed estate including externally funded capital works.
31
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| Unrestricted | Restricted | Endowment | Total | |
|---|---|---|---|---|
| Funds | Funds | Funds | Funds | |
| 2025 | ||||
| £ | £ | £ | £ | |
| 8 Ministry | ||||
| Staff costs | 202,009 | - | - | 202,009 |
| Clergy stipends and working expenses | - | 146,270 | - | 146,270 |
| Clergy housing costs | 7,783 | - | - | 7,783 |
| Clergy support costs | 14,561 | - | - | 14,561 |
| Rates, utilities and water | 21,435 | - | - | 21,435 |
| General expenses | 36,739 | - | - | 36,739 |
| Support Costs | 182,767 | 15,492 | - | 198,259 |
| --------------- | ------------------ | -------------------- | ------------------ | |
| Total | 465,294 | 161,762 | - | 627,056 |
| ======= | ======== | ========= | ======== | |
| Total | ||||
| Funds | ||||
| 2024 | ||||
| £ | £ | £ | £ | |
| Staff costs | 210,410 | - | - | 210,410 |
| Clergy stipends and working expenses | - | 114,377 | - | 114,377 |
| Clergy housing costs | 46,420 | - | - | 46,420 |
| Clergy support costs | 11,086 | - | - | 11,086 |
| Rates, utilities and water | 16,006 | - | - | 16,006 |
| General expenses | 59,756 | - | - | 59,756 |
| Support Costs | 191,013 | 18,011 | - | 209,024 |
| --------------- | ------------------ | -------------------- | ------------------ | |
| Total | 534,691 | 132,388 | - | 667,079 |
| ======= | ======== | ========= | ======== |
32
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| Unrestricted | Restricted | Endowment | Total | |
|---|---|---|---|---|
| Funds | Funds | Funds | Funds | |
| 2025 | ||||
| £ | £ | £ | £ | |
| 9 Music | ||||
| Staff costs | 198,276 | 34,486 | - | 232,762 |
| Direct Music expenses | 38,607 | 10,336 | - | 48,943 |
| Recitalist fees | 3,803 | - | - | 3,803 |
| Maintenance | 22,857 | - | - | 22,857 |
| General expenses | 5,256 | - | - | 5,256 |
| Support costs | 91,333 | 40,869 | - | 132,202 |
| --------------- | ----------------- | ----------------- | ----------------- | |
| Total | 360,132 | 85,691 | - | 445,823 |
| ======= | ======== | ======== | ======== | |
| Total | ||||
| Funds | ||||
| 2024 | ||||
| £ | £ | £ | £ | |
| Staff costs | 156,897 | 71,271 | - | 228,168 |
| Direct Music expenses | 20,829 | 29,969 | - | 50,798 |
| Recitalist fees | 4,805 | - | - | 4,805 |
| Maintenance | 12,243 | - | - | 12,243 |
| General expenses | 701 | 4,555 | - | 5,256 |
| Support costs | 127,370 | 12,011 | - | 139,381 |
| --------------- | ----------------- | ----------------- | ----------------- | |
| Total | 322,845 | 117,806 | - | 440,651 |
| ======= | ======== | ======== | ======== |
33
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| Unrestricted | Restricted | Endowment | Total | |
|---|---|---|---|---|
| Funds | Funds | Funds | Funds | |
| 2025 | ||||
| £ | £ | £ | £ | |
| 10 Cathedral and precincts upkeep | ||||
| Staff costs | 442,476 | 58,500 | - | 500,976 |
| Refuse & recycling | 13,898 | - | - | 13,898 |
| Insurance | 92,351 | - | - | 92,351 |
| Rates, utilities and water | 152,657 | - | - | 152,657 |
| Maintenance and interior | 54,438 | 153,644 | - | 208,082 |
| upkeep | ||||
| Irrecoverable VAT | 60,613 | - | - | 60,613 |
| General expenses | 99,693 | - | - | 99,693 |
| Support costs | 161,431 | 13,685 | - | 175,116 |
| ------------------- | ---------------- | ----------------- | ------------------ | |
| Total | 1,077,557 | 225,829 | - | 1,303,386 |
| ========= | ======= | ======== | ======== | |
| Total | ||||
| Funds | ||||
| 2024 | ||||
| £ | £ | £ | £ | |
| Staff costs | 155,004 | 176,963 | - | 331,967 |
| Refuse & recycling | 12,704 | - | - | 12,704 |
| Insurance | 88,486 | - | - | 88,486 |
| Rates, utilities and water | 106,131 | - | - | 106,131 |
| Maintenance and interior | 176,512 | 139,346 | - | 315,858 |
| upkeep | ||||
| Irrecoverable VAT | 37,997 | - | - | 37,997 |
| General expenses | 76,174 | - | - | 76,174 |
| Support costs | 168,714 | 15,910 | - | 184,624 |
| ------------------- | ---------------- | ----------------- | ------------------ | |
| Total | 821,722 | 332,219 | - | 1,153,941 |
| ========= | ======= | ======== | ======== |
34
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| Unrestricted | Restricted | Endowment | Total | |
|---|---|---|---|---|
| Funds | Funds | Funds | Funds | |
| 2025 | ||||
| £ | £ | £ | £ | |
| 11 Education and outreach | ||||
| Staff costs | 54,170 | - | - | 54,170 |
| General expenses | 8,333 | - | - | 8,333 |
| Support costs | 17,918 | 14,510 | - | 32,428 |
| ----------------- | ----------------- | ----------------- | ------------------ | |
| Total | 80,421 | 14,510 | - | 94,931 |
| ======== | ======== | ======== | ======== | |
| Total | ||||
| Funds | ||||
| 2024 | ||||
| £ | £ | £ | £ | |
| Staff costs | 51,567 | - | - | 51,567 |
| General expenses | 5,237 | - | - | 5,237 |
| Support costs | 18,726 | 1,766 | - | 20,492 |
| ----------------- | ----------------- | ----------------- | ------------------ | |
| Total | 75,530 | 1,766 | - | 77,296 |
| ======== | ======== | ======== | ======== | |
| Unrestricted | Restricted | Endowment | Total | |
| Funds | Funds | Funds | Funds | |
| 2025 | ||||
| £ | £ | £ | £ | |
| 12 Other expenditure | ||||
| Other | - | 280 | - | 280 |
| ------------------ | ----------------- | ------------------ | ---------------- | |
| Total | - | 280 | - | 280 |
| ======== | ======== | ======== | ======= | |
| Total | ||||
| Funds | ||||
| 2024 | ||||
| £ | £ | £ | £ | |
| Other | - | 280 | - | 280 |
| ------------------ | ----------------- | ------------------ | ---------------- | |
| Total | - | 280 | - | 280 |
| ======== | ======== | ======== | ======= |
35
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| 13 | Analysis of support costs including | 2025 | 2024 |
|---|---|---|---|
| governance | £ | £ | |
| Support Costs | |||
| Staff costs | 358,707 | 327,079 | |
| Depreciation | 10,417 | 10,417 | |
| Telephone | 6,288 | 7,789 | |
| Postage and stationery | 5,100 | 4,039 | |
| Office equipment | 7,773 | 6,720 | |
| Legal and professional | 5,551 | 21,617 | |
| Bank charges | 7,380 | 8,303 | |
| IT & IT projects | 44,862 | 96,434 | |
| General expenses | 36,402 | 21,757 | |
| Governance costs | |||
| Audit fees | 28,003 | 23,213 | |
| Chapter Expenses | 14,531 | 26,153 | |
| ----------------- | ----------------- | ||
| 525,014 | 553,521 | ||
| ======== | ======== | ||
| Allocated as follows: | £ | £ | |
| Ministry | 198,259 | 209,024 | |
| Music | 132,202 | 139,381 | |
| Cathedral and precincts upkeep | 175,116 | 184,624 | |
| Education and Outreach | 19,437 | 20,492 | |
| ----------------- | --------------- | ||
| 525,014 | 553,521 | ||
| ======== | ======= |
36
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
14 Tangible Fixed Assets Group
| Freehold | |||||
|---|---|---|---|---|---|
| land & | Plant and | Fixtures & | IT | ||
| Buildings | equipment | Fittings | Equipment | Total | |
| Cost of Valuation | |||||
| At 1 January 2025 | 1,415,143 | 244,838 | 338,473 | 2,961 | 2,001,415 |
| Additions | - | 12,238 | - | - | 12,238 |
| Transfer from investment property |
747,858 | - | - | - | 747,858 |
| ------------------ | ------------------ | ------------------ | ------------------ | ------------------ | |
| At 31 December 2025 | 2,163,001 | 257,076 | 338,473 | 2,961 | 2,761,511 |
| ========= | ========= | ========= | ======== | ========= | |
| Depreciation | |||||
| At 1 January 2025 | - | 171,245 | 304,251 | 2,961 | 478,457 |
| Charge | - | 15,156 | 15,951 | - | 31,107 |
| ------------------ | ------------------ | ------------------ | ------------------ | ------------------ | |
| At 31 December 2025 | - | 186,401 | 320,202 | 2,961 | 509,564 |
| ======== | ======== | ======== | ======== | ======== | |
| Net Book Value at | 2,163,001 | 70,675 | 18,271 | - | 2,251,947 |
| 31 December | |||||
| 2025 | |||||
| Net Book Value at | 1,415,143 | 73,593 | 34,222 | - | 1,522,958 |
| 31 December | |||||
| 2024 |
37
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| 14 | Tangible Fixed Assets | ||||
|---|---|---|---|---|---|
| Cathedral Only | |||||
| Freehold | Fixtures & | IT | Total | ||
| land & | Fittings | Equipment | |||
| Buildings | |||||
| Cost of Valuation | |||||
| At 1 January 2025 | 1,415,143 | 353,352 | 2,961 | 1,771,456 | |
| Transfer from investment property |
747,857 | - | - | 747,857 | |
| ------------------ | ------------------ | ----------------- | ------------------ | ||
| At 31 December 2025 | 2,163,000 | 353,352 | 2,961 | 2,519,313 | |
| ========= | ========= | ======== | ======== | ||
| Depreciation | |||||
| At 1 January 2025 | - | 304,251 | 2,961 | 307,212 | |
| Charge | - | 15,951 | - | 15,951 | |
| ------------------ | ------------------ | ------------------ | ------------------ | ||
| At 31 December 2025 | - | 320,202 | 2,961 | 323,163 | |
| ======== | ========= | ========= | ========= | ||
| Net Book Value at | 2,163,000 | 33,150 | - | 2,196,150 | |
| 31 December 2025 | |||||
| Net Book Value at | 1,415,143 | 49,101 | - | 1,464,244 | |
| 31 December 2024 |
38
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
15 Investment Property Group and Cathedral
Fair value
Fair value £ At 1 January 2025 19,588,142 Transfers to fixed assets (747,857) Revaluation 1,220,357 -------------------- At 31 December 2025 20,060,642
Investment properties are held at fair value which is assessed annually by the Chapter. A revaluation exercise was undertaken as at 31st December 2025, following a full property revaluation, by our Managing Agent, Neil Tunks of DN Surveyors Ltd, on the basis of open market and an increase in the valuation has been reflected in the financial statements as shown above. The historic cost of the properties is not known.
16 Investments
| Group | |||
|---|---|---|---|
| Listed | Other | ||
| Investments | investments | Total | |
| Cost or valuation | £ | £ | £ |
| At 1 January 2025 | 1,311,550 | - | 1,311,550 |
| Additions | 40,000 | - | 40,000 |
| Revaluation | (47,567) | - | (47,567) |
| ------------------ | ------------------ | ------------------ | |
| At 31 December 2025 | 1,303,983 | - | 1,303,983 |
| ========= | ========= | ========= | |
| Cathedral only | |||
| Listed | Other | ||
| investments | investments | Total | |
| Cost or valuation | £ | £ | £ |
| At 1 January 2025 | 963,609 | 100 | 963,709 |
| Revaluation | (38,523) | - | (38,523) |
| ------------------ | ------------------ | ------------------ | |
| At 31 December 2025 | 925,086 | 100 | 925,186 |
| ========= | ========= | ========= |
39
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| 17 | Debtors: amount falling due | 2025 | 2024 |
|---|---|---|---|
| within one year | £ | £ | |
| Group | |||
| Trade debtors | 403,577 | 241,713 | |
| Chester Cathedral Enterprises Ltd | - | - | |
| Prepayments and accrued income | 33,986 | 17,670 | |
| Other Debtor (VAT) | 20,232 | - | |
| ------------------ | ----------------- | ||
| 457,795 | 259,383 | ||
| =========== | =========== | ||
| Cathedral only | |||
| Trade debtors | 332,048 | 186,494 | |
| Chester Cathedral Enterprises Ltd | 236,235 | 258,014 | |
| Prepayments and accrued income | 33,986 | 17,673 | |
| Other Debtor (VAT) | 20,232 | - | |
| ------------------ | ----------------- | ||
| 649,501 | 462,181 | ||
| =========== | =========== |
40
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
| 18 | Creditors: amounts falling due within | 2025 | 2024 |
|---|---|---|---|
| one year | |||
| Group | £ | £ | |
| Banks loans | 163,661 | 176,815 | |
| Trade creditors | 144,648 | 126,721 | |
| Other taxation and social security | 48,777 | 100,040 | |
| Accruals and deferred income | 449,034 | 236,834 | |
| Other creditors | 197,053 | 46,836 | |
| ------------------- | ------------------- | ||
| 1,003,173 | 687,246 | ||
| ========= | ======== | ||
| Deferred income | |||
| Opening position | 173,490 | 229,131 | |
| Resources deferred during the year | 373,238 | 173,490 | |
| Amounts released from prior periods | (173,490) | (229,131) | |
| ------------------- | ------------------- | ||
| 373,238 | 173,490 | ||
| ========= | ========= |
| Resources deferred during the year 373,238 173,490 Amounts released from prior periods (173,490) (229,131) ------------------- ------------------- 373,238 173,490 ========= ========= |
Resources deferred during the year 373,238 173,490 Amounts released from prior periods (173,490) (229,131) ------------------- ------------------- 373,238 173,490 ========= ========= |
Resources deferred during the year 373,238 173,490 Amounts released from prior periods (173,490) (229,131) ------------------- ------------------- 373,238 173,490 ========= ========= |
|---|---|---|
| Deferred income relates to monies received in rental income received in advance for the following | ||
| financial year. | ||
| Creditors: amounts falling due | 2025 | 2024 |
| within one year | ||
| Cathedral only | £ | £ |
| Banks loans | 163,661 | 176,815 |
| Trade creditors | 90,067 | 98,903 |
| Other taxation and social security | 48,777 | 51,084 |
| Accruals and deferred income | 449,034 | 229,110 |
| Pension deficit | - | - |
| Other creditors | 12,070 | 46,836 |
| ------------------- | ------------------- | |
| 763,609 | 602,748 | |
| ========= | ========= |
41
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
18 Creditors: amounts falling due within one year (continued)
Cathedral only
Deferred income
| Deferred income | ||
|---|---|---|
| 2025 | 2024 | |
| £ | £ | |
| Opening position | 173,490 | 229,131 |
| Resources deferred during the year | 373,238 | 173,490 |
| Amounts released from prior periods | (173,490) | (229,131) |
| ------------------- | ------------------- | |
| 373,238 | 173,490 |
Deferred income relates to monies received in rental income received in advance for the following financial year.
| 19 | Creditors: amounts falling due after one | 2025 | 2024 |
|---|---|---|---|
| year | £ | £ | |
| Group and Cathedral only | |||
| Bank loans | 618,046 | 724,909 | |
| Pension deficit | - | - | |
| ------------------ | ------------------ | ||
| 618,046 | 724,909 | ||
| ========= | ========= | ||
| 20 | Bank loans and overdraft |
2025 | 2024 |
| Group | £ | £ | |
| Payable within one year | 163,661 | 176,815 | |
| Payable after one year | 618,046 | 724,909 | |
| ------------------ | ------------------ | ||
| 781,707 | 901,724 | ||
| ========= | ========= | ||
| Cathedral only | |||
| Payable within one year | 163,661 | 176,815 | |
| Payable after one year | 618,046 | 724,909 | |
| ------------------ | ------------------ | ||
| 781,707 | 901,724 | ||
| ========== | ======== |
42
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
20 Bank loans and overdraft (continued)
Included in loans figures are four loans
-
Loan of £513,000 provided at 2% over base rate, over 15 years and is repayable at £49,505 per annum, maturity date February 2027.
-
Loan of £481,000 provided at 2.65% over base rate, over 13 years and is repayable at £54,535 per annum, maturity date October 2036.
-
CBIL loan of £150,000 provided at 3% over base rate, over 5 years and is repayable at £30,000 per annum, maturity date is August 2026.
-
Bank Loan of £305,000 provided at 2.65% over base rate, over 15 years and is repayable at £34,580 per annum, maturity is December 2038.
21 Pension commitments
Chester Cathedral (DBS) participates in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Employer and the other participating employers.
CWPF has two sections:
1. Defined Benefits Scheme
-
Pension Builder Scheme, which has two subsections;
-
a. deferred annuity section known as Pension Builder Classic, and,
-
b. cash balance section known as Pension Builder 2014.
Defined Benefits Scheme
The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries.
For funding purposes, DBS is divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns.
The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. They do not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers’ sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool.
The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, is exposed to actuarial risks associated with the current and former employees of other entities participating in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. Payments made to the scheme in year were £Nil (2024: £Nil) which includes contributions in respect of deficits arising in earlier years and administrative costs. The SoFA credit or charge arising from past deficits is shown in the table below.
If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool, further transfers may be made from the Life Risk Pool to the employers’ sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be settled by the Church of England Pensions Board on the advice of the Actuary.
43
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
21 Pension commitments (Continued)
A valuation of the DBS scheme is carried out once every three years. The most recent valuation as at December 2025 showed the scheme was in an overall surplus and thus no payments into the scheme will be made going forwards while this remains the case.
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out below:
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Balance sheet liability at 1 January | - | - |
| Unrealised gain on pension assets | - | - |
| Remaining change to the balance sheet liability* | - | - |
| (recognised in SoFA) | ||
| Interest costs | - | - |
| Deficit contribution paid | - | - |
| ----------------- | ------------------ | |
| - | ||
| Balance sheet liability at 31 | - | - |
| December | ||
| ======== | ========= |
The legal structure of the scheme is such that if another employer fails, the employer could become responsible for paying a share of that employer’s pension liabilities.
44
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
22 Restricted funds Cathedral only and group
| B/f | Income | Expenditure | Transfers/Gains | C/f | |
|---|---|---|---|---|---|
| Bellringers Fund | 3,377 | 1,115 | - | - | 4,492 |
| Grand Organ Fund | 50,432 | - | (4,199) | - | 46,233 |
| Education from Mission | 7,352 | 1,761 | (149) | - | 8,964 |
| Church Commissioners Grants | - | 146,269 | (146,269) | - | - |
| Cathedral Music Grant | - | 8,955 | (2,985) | - | 5,970 |
| Scientists in Congregation | 5,020 | - | (5,020) | - | - |
| All Churches | - | 15,803 | (15,803) | - | - |
| Other restricted grants | 35,084 | 446,109 | (310,047) | - | 171,146 |
| ------------------- | ------------------ | ------------------ | ------------------ | ------------------- | |
| Total: Cathedral only | 101,265 | 620,012 | (484,472) | - | 236,805 |
| Subsidiary charities | 496,341 | (16,405) | (13,271) | (9,043) | 457,622 |
| ------------------- | ------------------ | ------------------ | ------------------ | ------------------- | |
| Total group | 597,606 | 603,607 | (497,743) | (9,043) | 694,427 |
| ========= | ======== | ======== | ========= | ========= |
Prior year comparative - Cathedral only and group
| B/f | Income | Expenditure | Transfers/Gains | C/f | |
|---|---|---|---|---|---|
| Bellringers Fund | 17,525 | 300 | (14,448) | - | 3,377 |
| Grand Organ Fund | 46,532 | 3,900 | - | - | 50,432 |
| Education from Mission | 7,816 | - | (464) | - | 7,352 |
| Church Commissioners Grants | 14,326 | 180,262 | (194,588) | - | - |
| Cathedral Music Grant | 25,000 | - | (25,000) | - | - |
| Scientists in Congregation | 5,832 | - | (812) | - | 5,020 |
| All Churches | 7,770 | 19,543 | (18,813) | (8,500) | - |
| Other restricted grants | 27,373 | 359,810 | (360,599) | 8,500 | 35,084 |
| ------------------- | ------------------ | ------------------ | ------------------ | ------------------- | |
| Total: Cathedral Only | 152,174 | 563,815 | (614,724) | - | 101,265 |
| Subsidiary charities | 481,266 | 12,464 | (12,519) | 15,130 | 496,341 |
| ------------------- | ------------------ | ------------------ | ------------------ | ------------------- | |
| Total group | 633,440 | 576,279 | (627,243) | 15,130 | 597,606 |
| ========= | ======== | ======== | ========= | ========= |
45
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
23 Endowment fund
| At 1 January 2025 Gift component Unapplied total return Movement in reporting period Investment return - net income Investment return - net gains Less investment management costs Less: financing costs CPI increase Unapplied total return allocated to income Net movement in the period At 31 December 2025 Gift component Unapplied total return |
Clergy-Use property Trust for investment Unapplied total return Total endowment 1,415,143 2,855,655 - 4,270,798 - - 16,166,639 16,166,639 |
|---|---|
| 1,415,143 2,855,655 16,166,639 20,437,437 - - 1,196,814 1,196,814 - - 1,181,834 1,181,834 - - (464,312) (464,312) - - (57,162) (57,162) - 94,767 (94,767) - |
|
| - 94,767 1,762,407 1,857,174 - - (675,340) (675,340) |
|
| - 94,767 1,087,067 1,181,834 1,415,143 2,950,422 - 4,365,565 - - 17,253,706 17,253,706 |
|
| 1,415,143 2,950,422 17,253,706 21,619,271 |
46
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
24 Analysis of net asset between funds - Group
| Unrestricted | Restricted | Endowment | ||
|---|---|---|---|---|
| funds | funds | funds | Total | |
| 2025 | 2025 | 2025 | 2025 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 88,947 | - | 2,163,000 | 2,251,947 |
| Investment property | - | - | 20,060,642 | 20,060,642 |
| Investments | - | 378,797 | 925,186 | 1,303,983 |
| Net current assets | 863,737 | 315,630 | (911,511) | 267,856 |
| Long term liabilities | - | - | (618,046) | (618,046) |
| -------------------- | -------------------- | -------------------- | -------------------- | |
| 952,684 | 694,427 | 21,619,271 | 23,266,382 | |
| ========= | ======== | ========== | ========= | |
| Unrestricted | Restricted | Endowment | ||
| funds | funds | funds | Total | |
| 2024 | 2024 | 2024 | 2024 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 107,814 | - | 1,415,143 | 1,522,957 |
| Investment property | - | - | 19,588,142 | 19,588,142 |
| Investments | - | 347,841 | 963,709 | 1,311,550 |
| Net current assets | 959,362 | 249,765 | (804,648) | 404,479 |
| Long term liabilities | - | - | (724,909) | (724,909) |
| -------------------- | -------------------- | -------------------- | -------------------- | |
| 1,067,176 | 597,606 | 20,437,437 | 22,102,219 | |
| ========= | ========= | ========= | ========= |
47
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
24 Analysis of net asset between funds – Cathedral Only
| Unrestricted | Restricted | Endowment | ||
|---|---|---|---|---|
| funds | funds | funds | Total | |
| 2025 | 2025 | 2025 | 2025 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 33,150 | - | 2,163,000 | 2,196,150 |
| Investment property | - | - | 20,060,642 | 20,060,642 |
| Investments | - | - | 925,186 | 925,186 |
| Net current assets | 919,534 | 236,806 | (911,511) | 244,829 |
| Long term liabilities | - | - | (618,046) | (618,046) |
| -------------------- | -------------------- | -------------------- | -------------------- | |
| 952,684 | 236,806 | 21,619,271 | 22,808,761 | |
| ========== | ========= | ========= | ========= | |
| Unrestricted | Restricted | Endowment | ||
| funds | funds | funds | Total | |
| 2024 | 2024 | 2024 | 2024 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 49,101 | - | 1,415,143 | 1,464,244 |
| Investment property | - | - | 19,588,142 | 19,588,142 |
| Investments | - | - | 963,709 | 963,709 |
| Net current assets | 1,018,075 | 101,264 | (804,648) | 314,691 |
| Long term liabilities | - | - | (724,909) | (724,909) |
| -------------------- | -------------------- | -------------------- | -------------------- | |
| 1,067,176 | 101,264 | 20,437,437 | 21,605,877 | |
| ========= | ========= | ========= | ========= |
48
CHESTER CATHEDRAL
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2025
25. Subsidiary company
The Cathedral owns 100% of the share capital of Chester Cathedral Enterprises Limited, a company registered in England (registered company number 01382905).
The Cathedral controls three charitable trusts which are wholly for the benefit of the Cathedral: The Chester Cathedral Education Trust (registered charity number 1147915), The Chester Cathedral Development Trust (registered charity number 257123) and the Chester Cathedral Music Trust (registered charity number 115457).
The results of Chester Cathedral Enterprises Limited for the year ended 31 December 2025, were as follows:
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Income | 2,191,261 | 1,230,933 |
| Expenditure | (1,455,752) | (973,121) |
| Profit for the Year | 735,509 | 257,812 |
| Total assets | 55,797 | 58,714 |
| Total liabilities | (55,697) | (58,614) |
| Net funds at the end of the year | 100 | 100 |
26. Related party transactions
Three members of Chapter receive stipends within the Church of England structure. Details are provided in note 6.
The Dean’s spouse is employed as an Educational Officer within the Cathedral.
49