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BIRMINGHAM
11 CATHEDRAL
Annual Report
and Accounts 2025
## **CONTENTS**
_**DEAN’S WELCOME ................................................................................................. 1 KEY MOMENTS ....................................................................................................... 5 ADMINISTRATIVE REFERENCES .......................................................................... 7 PRAY ........................................................................................................................ 9**_ Church of England Worship ........................................................................................................ 10 Celebrating Music ....................................................................................................................... 14 Children & Young People............................................................................................................ 16 Rejoicing in Diversity .................................................................................................................. 17 Mission in Public Life .................................................................................................................. 18 Taking Worship into cathedral square ......................................................................................... 20 Reflective Space and personal prayer ........................................................................................ 22 _**SERVE ................................................................................................................... 23**_ Homelessness ............................................................................................................................ 24 Mental Health & Wellbeing ......................................................................................................... 25 Civic Role ................................................................................................................................... 26 Partnerships ............................................................................................................................... 28 Faith Collaboration ..................................................................................................................... 31 Public Theology .......................................................................................................................... 32 _**GROW .................................................................................................................... 33**_ Growing In Faith ......................................................................................................................... 34 Recruitment and Training of Volunteers ..................................................................................... 35 Developing Education ................................................................................................................ 36 Safeguarding .............................................................................................................................. 38 Environment and Climate Sustainability ..................................................................................... 39 Good Stewards ........................................................................................................................... 40 _**STRUCTURE, GOVERNANCE AND MANAGEMENT ........................................... 43 FINANCIAL REVIEW ............................................................................................. 50 INDEPENDENT AUDITOR’S REPORT .................................................................. 54 FINANCIAL STATEMENTS ................................................................................... 60**_
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## **DEAN’S WELCOME**
_We will remember 2025 as a year of significant change. It was a year when we could begin to put lived experience of the pandemic behind us with encouraging attendances at Easter and Christmas and a full calendar of events. It was the final year of our strategic plan which had been adopted prior to Covid in late 2019, originally to cover 2020-2023 but then extended to 2025._
It was also the year in which we bade farewell to our long-serving chief officer, Anna Pitt after 11 years. Anna arrived in 2014 in time to take a leading role in the tercentenary celebrations in 2015. She departed in January 2025 after the practical completion of the Divine Beauty project to take on the role of Executive Director of the Association of English Cathedrals. Anna’s leadership of the cathedral team through the pandemic and through the Divine Beauty project from its inception will rightly be remembered and valued especially for her drive and commitment to the Cathedral at a critical time.
It was also a year in which we welcomed a new Canon Precentor in March, a new Bishop of Aston in May and a new Chief Operating Officer in September. Canon Nathan arrived a few days before Ash Wednesday and it was his task to oversee his first Holy Week, the welcome service for Bishop Esther and coordinate ordinations at Petertide and at Michaelmas! Bishop Esther’s welcome service will be remembered for its joyfulness, not least as the new Bishop of Aston danced her way down the aisle at the end. Again, it signalled a significant change for Church of England Birmingham, pointing to a season of renewed missional energy.
Anna Pit Canon Nathan Bishop Esther
The arrival of our new COO, Michael Ball in September pointed in the same direction. Following an interim period in which the cathedral team had been ably led by the Chief Finance Officer and the Director of Operations (as acting COO), Michael was faced with a long list of big ticket items to deliver in his first six months, including finalising the new strategic plan and associated activity plans, an operating model review and an overhaul of the Cathedral’s policies and procedures. It’s been a very busy beginning for our new COO!
This was also a year in which Chapter and the Finance and Risk Committee had identified the necessity for taking concerted action to address a structural financial deficit, something which faces a number of English cathedrals following the pandemic and changes in our governance arrangements. This challenge has been met with considerable energy by Chapter, the staff team and indeed the whole cathedral community. It is
right to pay particular tribute to Mel Crooks, our Chief Finance Officer, in her leadership of this process throughout the year. Mel’s retirement has been recently announced. Her time with us has been very much a case of the right person at the right time. We are very grateful to her.
_We look forward to the next season in the Cathedral’s life with renewed confidence. In a time of great uncertainty in our world and in our nation, the Cathedral stands as a place of sanctuary, of warm welcome and encounter with Christ. Come and see!_
The Very Reverend Matt Thompson Dean of Birmingham
Michael Ball Mel Crooks
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## **KEY MOMENTS 2025**
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January
Ceremony
of Carols
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April
Walk of
Witness
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February
Readers'
Admission
and
Licensing
Service
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May
First
Nativity
Workshops
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March
Installation
of Canon
Precentor
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June
Installation
of Cathedral
Square Wheel
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July
Ordinations
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August
Try the Organ Day
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September
Gore Lecture
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October
Urban Sermon
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November
Pub
Bombings Service
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December
Christmas
Market
Carol Service
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## **ADMINISTRATIVE REFERENCES**
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## **Address**
## **Auditors**
Birmingham Cathedral Crowe UK LLP Cathedral Square Black Country House Colmore Row Rounds Green Road Birmingham Oldbury, West Midlands B3 2QB B69 2DG
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## **The Cathedral Chapter (Trustees)**
## **Dean**
The Very Revd Matt Thompson (Executive and Chair)
## **Canons**
The Revd Canon Andy Delmege (Executive)
The Revd Canon Nathan Mulcock (Executive, from 2 March 2025)
## **Non-Executive**
Andrew Lancaster (Senior Non-Executive Member)
Sandra Bailey Richard Brooks (until 21 October 2025) Sue Davis **Chief Officers** Sharon Palmer Judith Whalley Patricia Williams
Michael Ball – COO (from 15 September 2025) Melanie Crooks – CFO (from 1 January 2025) Anna Pitt – COO (until 31 January 2025)
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## **Committee Members**
**Community Committee:** The Dean (Chair), Canon Andy Delmege, Canon Nathan Mulcock (from 2 March 2025), the Revd Colleen Shekerie, Sandra Bailey, Vidar Hjardeng, Richard Newton, Michael Rauh, Richard Sahonta, Judith Whalley, Andrew Williams
_In attendance: COO (from 15 September 2025),_
## **Fabric Advisory Committee:**
Canon Dr Terry Slater (Chair), Thomas Kupper, Rita McLean, Richard Morris, Dr Paul Spencer-Longhurst _In attendance: Mary Trumper (Secretary), The Dean, Canon Precentor, (from 2 March 2025), COO (from 15 September 2025), Head of Operations, Cathedral Architect, Cathedral Archaeologist_
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## **Finance and Risk Committee:**
Sue Davis (Chair), The Dean, Canon Andy Delmege, Sandra Bailey, Andrew Williams. _In attendance: The Dean, COO (from 15 September 2025), CFO._
## **Nominations Committee:**
Andrew Lancaster (Chair), The Dean, Richard Brooks, Phil Gayle, Lucy Mair-Winter, Rachel Roberts _In attendance: The Dean, COO (from 15 September 2025),_
## **Safeguarding Committee:**
Sharon Palmer (Chair), The Dean, Canon Andy Delmege, Canon Nathan Mulcock (from 2 March 2025), Flo Butler (until 25 April 2025), Sandra Bailey, Steph Haynes, Richard Newton, Sarah Rose. Andrew Williams _In attendance: COO (from 15 September 2025), HR and Safeguarding Manager._
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## **Retained Consultants**
Cathedral Architect Cathedral Archaeologist
Kathryn Harris Richard Morris & Associates
## **Legal Advisors**
Anthony Collins Solicitors 134 Edmund Street Birmingham B3 2ES
Keelys LLP 28 Dam Street Lichfield WS13 6AA
## **Investment Managers**
Brewin Dolphin 9 Colmore Row Birmingham B3 2BJ
CCLA Investment Management Ltd Senator House, 85 Queen Victoria Street London EC2V 6DZ
## **Bankers**
The Royal Bank of Scotland PLC 79/83 Colmore Row Birmingham B3 2AP
## **Commercial Property Management**
CBRE
3 Chamberlain Square Birmingham B3 3AX
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## _**PRAY**_
## _‘to worship almighty God’_
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## **CHURCH OF ENGLAND WORSHIP**
_“We will provide the patterns and rhythms of the corporate worship of the Church of England, enriched by the Anglican choral tradition.”_
The Cathedral Church of St Philip Birmingham honours the liturgy of the hours, asking God to sanctify the passing hours in worship offered morning, noon, evening and at night, including 182 acts of choral worship in our Sunday Eucharists and Evensongs on Tuesdays, Wednesdays, and Fridays, as well as at a number of special services for diocesan and civic occasions.
We also welcomed over 2300 students and staff from local Church of England schools to the Cathedral for leavers’ services, a large increase on 2024.
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## **Special Diocesan & Cathedral Services**
Following our Admission of Readers service in February, we hosted a special welcome service in which the Reverend Canon Nathan Mulcock was installed as Canon Precentor on Sunday 2 March.
Sarah Bagnall well as we said farewell to her ahead of her ordination in the Diocese of St Albans and thanked her for all her work in the Cathedral during her placement.
May signalled new beginnings with the welcome service for the new Bishop of Aston, the Right Reverend Esther Prior. The service was enriched by a wide array of civic and diocesan representatives and wonderfully animated by musicians from Gas Street Church and singers from the Zimbabwean Mother’s Union. We also wished our ordinand from Queen’s Foundation
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covered in our mission in public life (page 17), and civic commitments (page 25), demonstrating that worship and serving God is embedded at the
heart of our strategy.
We celebrated our annual Ordinations Services in July, with 13 new Deacons and seven new Priests ordained on a gloriously sunny day, with an additional service for five deacons and one priest at Michaelmas.
Finally, we commissioned the new pastoral care team as part of our Dedication Festival and Community Day.
## **Other Special Services**
The Cathedral hosted a number of other special and annual services during 2025 which are
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**Holy Week and Easter**
We celebrated Holy Week and Easter with full ceremony, including a joyous Chrism Eucharist with music provided by the Reverend Tim Hughes from Gas Street Church, an excellent set of Good Friday reflections led by the Reverend Canon Dr Mark Pryce, Director of Ministry and Chaplain to the King, weaving meditations on the passion with selections of poetry.
We rejoiced to have 277 communicants at the Easter Day and Eve services, and 1166 attending services and events during Holy Week (up from 939 in 2024, 821 in 2023).
We also participated in the annual ecumenical Walk of Witness in the city and joined with church leaders and members of other city centre churches to mark the journey of Jesus to the cross.
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Advent and Christmas
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The year began with a Service of Light with Ceremony of Carols, a highlight of the choir’s talents, during Epiphany. We returned to the festive season in early November with a new concert of Christmas music, _A Foretaste of Christmas_ , to mark the opening of the Christmas Market, which heralds a greater integration between the market and what takes place inside the building serves our mission to welcome traders and shoppers alike. The Advent Carol Service included the opportunity of welcoming new Nativity Figures where we were joined by the artist Melanie Tomlinson as we incorporated them into the worship and prayer of the Cathedral.
December saw a full roster of Carol Services with partner institutions, and our own Christmas Market Carol Service, third annual Children’s Carol Service, two Nine Lessons and Carols before welcoming the birth of Jesus with Midnight Mass and Christmas Day services. 1072 attended worship at our Christmas services in 2025, with 328 communicants on Christmas Eve and Christmas Day.
## **Off Site Services**
During the year, our Chaplain has undertaken visits to those unable to attend services and reintroduced the Ministry of Greeting Cards, offering personalised encouragement through selected Bible passages.
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## **CELEBRATING MUSIC**
_“We will provide the patterns and rhythms of the corporate worship of the Church of England, enriched by the Anglican choral tradition.”_
Music for worship is a core part of the Cathedral’s identity, and this year has seen our music department working hard through a period of staff turnover to achieve a number of notable achievements.
The choral tradition, and organ accompaniment to sung services is complimented and runs alongside another year of greatly needed growth in income generation with external music events. These included Fever Up Candlelight Concerts, London Concertante and Picadilly Sinfonietta, as well as free of charge lunchtime recitals, and the sometimes-extraordinary pleasure visitors to the Cathedral can take from simply taking a moment to enjoy any of those groups practicing or rehearsing prior to a service or event.
## **Choral Worship**
## **Recitals**
The music department presented 182 acts of choral worship in 2025, through the Eucharist on Sunday mornings, and Evensongs on Sunday, Tuesday, Wednesday and Friday, plus a number of special services throughout the year. Each service contains four or five pieces of Anglican choral music, supported by organ music of the highest standard. These patterns and rhythms of worship draw all who seek them, and some who are not expecting them, into the worshipping life of the Cathedral.
Friday lunchtime recitals twice monthly on Fridays (and weekly in the summer months) are one of the main routes for our musical provision to reach those who don’t attend worship, as they are not chargeable events (donations are requested). These recitals support emerging talent via the conservatoire as well as internal musicians with the opportunity to perform at no charge or risk in our magnificent cathedral space. They receive healthy audiences throughout the year by both planned attenders and passers-by.
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**Carol Services**
**Musical Release**
In August the first new Birmingham Cathedral Choir music production was released for public sale for eight years. This was produced on CD, but also on multiple streaming platforms including Apple Music, Amazon and Spotify.
Reviews were excellent, with the Organists’ Review describing the choir’s “well-balanced sound and precise intonation”, “excellent ensemble discipline”, “outstanding vocal balance”, “ethereal clarity” and “impressive rhythmic precision”.
This has assisted in raising the profile of Birmingham Cathedral’s choir and sold well, meaning the choir will work towards another production in the coming years.
On Sunday 6 December the largest concert in the choir’s annual programme took place, in a new format to enable more access to Christmas music outside of worship. This was Britten’s Ceremony of Carols featuring a leading professional harpist. The event was well received and income via donations received for the Cathedral was substantial for this form of event.
Meanwhile the most widely heard event of 2025 was the BBC Radio WM Carol Service on 16 December. The Cathedral Choir was joined by the Sutton Coldfield Grammar School for Girls Gospel Choir and the service was broadcast live on the BBC, with listen back available. The event promotes the quality of our choral worship and music through broadcast and engaged with a wide audience, there are hopes to repeat the event in 2026.
Finally on Sunday 21 December a short carol service took place and was recorded for broadcast on Birmingham Hospitals Radio BHBN. This was an increase in mission for 2025 as an additional event and was warmly received.
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## **CHILDREN & YOUNG PEOPLE**
_“We will draw children and young people into the worshipping life of the cathedral through outreach and supporting emerging talent.”_
The Cathedral has a foundational commitment to children and young people, and this is present not only here but in the education (page 35) and music (page 13), where our choristers develop lifelong skills.
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## **Choristers**
## **Student Participation**
Our choristers benefit greatly from their experience of learning and performing in a culture shaped safeguarding first approach, providing them with excellent musical training and drawing them into the worshipping life of the Cathedral.
## **Choir Tour**
The Cathedral Choir embarked upon a tour to the West Country in February, with two services at Exeter Cathedral and a concert at Buckfast Abbey.
The Cathedral was pleased to attract a number of new clients in 2025, one of which were the Old Joint Stock, our near neighbours.
They are home to a small theatre production company. After discussions they delivered a lovely Christmas concert in collaboration with students from the School of Theatre Excellence (SOTE) in Birmingham at the Cathedral, a considerably larger venue than their usual venue.
We hope to establish further work with them and other partners who work with students in 2026.
This was the most intense musical project in 2025, engaging choristers and adult choirs with the opportunity to deepen their musical ensemble and blend their social cohesion through the richness of a tour situation.
As well as the musical benefits, it further drew the choristers into the worshipping life of the Cathedral to enhance their personal worshipping journey and personal development.
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## **REJOICING IN DIVERSITY**
_“We will rejoice in the diversity of the communities we serve and promote inclusion as widely as possible by the provision of innovative liturgy and by the encouragement of participation and ministry of all members of our cathedral community.”_
As part of our commitment to diversity, we have worked not just on our words and actions but on the fabric of our building.
## **_____________________________________________________________________________________**
## **Worship Reflecting Our Community**
We have recruited new readers, servers, and intercessors which have allowed our acts of worship to reflect the rich diversity of the congregation and the city, including bringing more access to those with disabilities or additional needs.
tower, ensuring compliance without compromising the architectural character of this important entrance. The result is an installation that is both functionally accessible for all users and sympathetic to its historic surroundings.
## **Preaching and Musical Diversity**
## **Accessibility Work**
A major milestone this year was the installation of the new north-west doors leading out from the nave.
We were grateful to have Batanai Padya from Christian Aid preach at our Harvest Service and the Reverend Wayne Hamilton from the Birmingham Racial Justice Board preach for our special Evensong for Black History Month.
This project brought both practical and heritage benefits, significantly enhancing accessibility and safety for all visitors. The new design allows wheelchair users to see clearly behind them before opening the doors, offering greater ease of use and peace of mind. Built to modern fire rating standards, the doors also required a precise adjustment to the threshold of the north-west
We have also looked to work constructively with musical and worship traditions to complement and enhance our rich Anglican choral tradition, including a very fruitful collaboration with Gas Street who provided music for both our Chrism service and the welcome of Bishop Esther, and the Zimbabwean singers who sang hymns in
Shona at both the Mother's Union service and Bishop Esther's welcome.
## **MISSION IN PUBLIC LIFE**
_“We will respond creatively to missional moments in public and national life as well as local events and develop the cathedral’s role regionally and nationally.”_
There have been many collaborations with civic and public figures through the year as is appropriate given our place as a centre of Christian life in Birmingham.
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## **March**
Bishop Michael, supported by the Chaplain of the Mother’s Union, Canon Martin Stephenson, led the annual Festival Eucharist Service on 22 March, with 2026 to feature their special 150th Anniversary Service at the Cathedral.
## **April**
We were privileged to hold a memorial service for Caroline Miller, former Chief Executive Officer, of the Birmingham Royal Ballet which filled the Cathedral with many people from the Birmingham arts and ballet scene and wove prayers with live ballet performance and eulogies.
Also, in April the Cathedral Chaplain, the Reverend Colleen Shekerie, led the Worker's Memorial Day service in Cathedral Square.
## **August**
The 80th Anniversary of the bombing of Hiroshima was recognised in a service led by the Cathedral Chaplain, poems and prose relating to the event was read out and alongside that of other wars and promoting peace. The Clarion singers performed, with the lighting of a remembrance candle and a period of silence.
## **September**
On 9 September, Canon Nathan went to the Council House to lead the prayers for the Emergency Services Memorial Service.
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**November**
A memorial service was held for Bishop Mark Santer with his family and those who worked with him, a new stone was installed in his memory and was blessed on the day. The event bought together many past and present senior leaders of the Church of England.
We also marked the anniversary of the Birmingham Pub Bombings with a service led by Canon Andy.
## **December**
We were proud to host for the eighth year running the Let’s Feed Brum Christmas Dinner on 13 December, which saw the Cathedral close on the day to be rearranged into dining tables and provide Christmas lunch to over 200 homeless people from the Birmingham community, supported by volunteers from LFB and the Cathedral Community.
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## **TAKING WORSHIP**
## **INTO CATHEDRAL SQUARE**
_“We will create opportunities and appropriate ways to take worship outside onto Cathedral Square.”_
We have continued to try to make less of distinction between indoors and outdoors by beginning or holding services outside in Cathedral Square, drawing people in from the square and beyond.
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## **Acts of Worship**
blessing of the Christmas market at the Christmas Market Opening Carol service.
We hold a number a services which begin outside in Cathedral Square, and we rely on the weather for their success. The first come during Lent with the Palm Sunday procession outside, the ecumenical Walk of Witness, the blessing of the Easter fire by Bishop Michael at the Easter Vigil which begin outside in the square, and the Dawn Eucharist on Easter Sunday.
## **Taking the Cathedral into More Homes**
The Cathedral’s External Relations team explored and signed up with Bloomberg Philanthropies to launch a free digital cathedral guide through the Bloomberg connects app during 2026. The guide will enable the Cathedral to enhance our global presence and welcome to visitors from afar.
We held the Workers Day Memorial Service in the square at the end of April. Summer saw our choir perform an anthem in the square to commence the celebration of Ascension, Canon Andy Delmege leading the Bike Blessing Service for invited and passing cyclists, and the Cathedral Chaplain, the Reverend Colleen Shekerie leading the Hiroshima service, as well as the blessing of the city at the end of the Corpus Christi Choral Eucharist. We concluded outdoor events with
Visitors from all over the world will be able to engage with the Cathedral online and in person, in over 50 native languages. An exciting initiative, with the hope that many thousands of visitors will discover not only the cathedral building but also learn more about Cathedral Square even when there is no guided tour, enjoying more of our wonderfully rich history.
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**Visually Welcoming**
We are constantly evolving, creating and renewing messaging ensuring that our visitors and followers gain a very clear understating of how they can engage and worship with us.
Examples of some of the updates made in 2025 include: a new banner on East End railing to raise awareness to those not walking past our front door, new 'We are open' A2 posters at the entrance. New donation banners at the entrance, renewed signage on 'candle' donation boxes, recital flyers, Easter and Christmas flyers, and refreshing posters in the railing boxes on Cathedral Square.
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## **REFLECTIVE SPACE AND PERSONAL PRAYER**
_“We will support and encourage personal prayer among our congregations, staff and volunteers and ensure the provision of quiet, reflective space within the cathedral on a daily basis.”_
The Cathedral supports and consistently encourages personal prayer among our congregations, staff and volunteers. As a place of worship and sanctuary, we work hard to ensure provision of a quiet, reflective space within the Cathedral on a daily basis.
With the completion of the Divine Beauty project, the restored windows are once again a focal point for reflection (ably interpreted for visitors by our education and tour guides). This has now led the team to be able to give consideration as to how other parts of the building might invite reflection and prayer.
To that end we publish prayers on the south altar responding to national and regional events on a regular basis and we try to incorporate these themes into our social media feed. We hope these support those coming to us as a place of sanctuary or in distress with particular concerns or needs.
Our pastoral care team, led by our Cathedral Chaplain, is a key part of this initiative and has worked this year to support the provision of different prayer stations to support private prayer with pastoral volunteers (including the prayer tree at Christmas), with ongoing promotion planned.
The new Nativity figures have also been a focus for prayer, thanks to both their sympathetic design and careful interpretation provided by the Canon Missioner. Their placement and movement around the building during Advent and Christmas being an opportunity for people to be drawn into the Christmas story.
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## _**SERVE**_
## _‘to serve all God’s people’_
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## **HOMELESSNESS**
_“We will work as a community and with partners to develop our service of the homeless people in our midst in Cathedral Square and within our parish”_
Homeless people are a valued part of the Cathedral Community, with the Cathedral offering a much needed space of welcome and sanctuary, while Cathedral Square remains one of the few public spaces in the city centre where vulnerable people are welcome.
We have been delighted to see our partnerships with Let's Feed Brum and ShowerBox deepen and flourish. With them we provide breakfast for up to 200 people each Tuesday and Thursday, the opportunity to shower and wear clean clothes, but more importantly to be treated with dignity.
We continue to support ecumenical colleagues with Street Banquet with volunteers from the cathedral community offering a good quality monthly meal. This work is deeply relational; knowing people’s names is as important as good food. An ecclesial community is emerging from Street Banquet which the cathedral is able to host.
A highlight of the year is the Let’s Feed Brum Christmas Dinner where the nave is filled with tables so that several hundred people can enjoy a meal with all the trimmings and entertainment. Many people say that this is the most important event of the year for them.
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## **MENTAL HEALTH & WELLBEING**
_“We will work as a community and with partners to support and promote good mental health and to care more effectively for those living with mental illnesses.”_
The Cathedral entered 2025 with gratitude and optimism, welcoming three newly recruited, trained, and licensed members to the Pastoral Care Team.
These individuals joined our existing volunteers in the ministry of visiting members of the congregation now living in care homes, as well as those who, for various reasons, can no longer attend services in person. The Chaplain made several visits to members of the Cathedral Community who have been hospitalised or recuperating following surgery.
During 2025 the Cathedral Chaplain received many requests for personal prayer and had conversations with individuals either exploring faith or wish to attend church regularly. With the support of the Pastoral Care Team members and the Canon Missioner, Revd Colleen collated
several resources which could be shared with members of the public who express a curiosity in Christianity, prayer and faith.
During the year, the Cathedral Chaplain received training in offering pastoral supervision to others. This is a national initiative created to offer emotional and practical skills for serving incumbent priests, working in Church of England Birmingham. This use of the Chaplain’s time is a generous ministerial offer to the wider diocesan family by the Cathedral.
The Cathedral continues to experience increased requests for healing with anointing at the 11am service on the fourth Sunday of the month.
A new healing and wholeness service has also been introduced on the second Saturday after the Eucharist to support those in need.
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## **CIVIC ROLE**
_“We will honour, joyfully and imaginatively our civic role, to mark significant, national, international and local occasions for the city and the diocese.”_
## **March**
We celebrated the annual Commonwealth Service welcoming ecumenical, interfaith and civic guests.
## **June**
Canon Precentor Nathan Mulcock and Chaplain Colleen Sherekie held a eucharist ahead of the Birmingham Pride Parade for the LGBTQ Community.
## **September**
The Cathedral hosted a service to commemorate the 150th Anniversary of the Birmingham County Football Association with 200 guests and guest speakers. The Choir wore football shirts of local clubs (Aston Villa, Birmingham City, West Bromwich Albion and Wolves) and uplifting testimony was received of how football was helping in many communities. A number of former footballers including local players were present. Awards were given out and special recognition for services to sport and young people acknowledged.
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## **October**
In October we held the Annual Justice Service, enabling those concerned in the administration of justice in the West Midlands to dedicate themselves to the good of the people and wellbeing of society, with new High Sherriff Mark Smith, the Chief Constable of West Midlands Police, and other dignitaries including His Majesty’s Lord-Lieutenant, the Lord Major of Birmingham and other Mayors from the West Midlands in attendance.
## **November**
Canon Andy Delmege continues to hold the annual memorial service for the pub bombings which is particularly appreciated by the families affected by the incident. This years’ service launched the book Remembrance and Reflection by Maggie Fogarty and Enda Mullen. This important book catches stories of those affected by the bombings which are so much a part of the history of the city and the cathedral. A bound copy of the book was presented to the cathedral to hold for the city, and many of those who contributed were invited to speak. A very poignant part of this was James and Louisa McGuinness bringing the camera their grandfather, MJ Niels McGuinness, used to take photos of the immediate aftermath of the bombings for the Birmingham Mail.
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## **PARTNERSHIPS**
_“We will strengthen partnership with Birmingham businesses, institutions and charities to promote the common good. “_
We continued our engagement with Lets Feed Brum and ShowerBox throughout the year. Our ongoing partnership with Queen Elizabeth Hospital which offers a Hepatitis testing bus was reviewed, with a new strategy for monthly visits agreed to maintain the best response rate.
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## **Nativity Figures**
Our New Nativity for 2025, by Birmingham artist Melanie Tomlinson was unveiled on Advent Sunday and provided a beautiful and contemplative focus for the Cathedral’s Christmas services. The Nativity reflects the accounts of Jesus’ birth from the Bible, and personal stories provided by members of the Cathedral Community.
These were articulated in a series of workshops through the summer as the pieces were under construction, where attendees participated in the bringing forth and creation of items which became integral to the final artworks. These added to not only the community engagement with the artwork but their grounding in the life of the Cathedral.
We find the importance of their rootedness for the Street Community and the importance of refugee journeys told within them, as reflected in the Christmas story.
Birmingham’s industrial history is present in worked metal, while mother of pearl represents the craft processes of the West Midlands and Bethlehem.
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## **Festive Cheer**
As the new nativity figures were arriving, a large number of local institutions and businesses were returning to the Cathedral for their Christmas carol concerts, among them Barclays UK Retirement Club, BBC West Midlands, Birmingham City University, Chaplaincy Plus, Gowling WLG, King Edwards School, PwC and West House School. These are attractional events which bring many people who would not otherwise connect with a place of worship into our space for a celebratory and Christian experience.
Also in November and December, we held our fifth Christmas in Cathedral Square market. Partnering with Danter Attractions to put on the event, with support from Birmingham City Council and Colmore BID its presence draws thousands of new visitors over the threshold into the Cathedral. This year we offered a new prayer tree for those entering to create a more interactive
experience to those new to the Cathedral. Overall we welcomed another record 34,500 people (26,800 in 2024) into the Cathedral in December.
The market itself continues to feature a carefully curated mix of craft, food and drink stalls selling locally made festive items. The event is now well established and continues to receive glowing feedback online and by word of mouth.
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Alongside the independent traders utilising the chalets and pitches (for mobile units) we offer, in addition the market agreement provides for space on a rotational basis to be offered to charities and local fundraisers we connect with to promote themselves, sell merchandise or wears and potentially recruit volunteers. This year we were pleased to welcome:
- BCU – Students from the School of Jewellery
- Birmingham Women’s and Children’s Hospital
- BrumTing
- Charity Link
- Fare Share
- Macmillan
## **New opportunities**
We hosted a great wine tasting event in September, a new client for the events team, which was a company event for a Birmingham team of staff and clients.
Finally, the Cathedral Chaplain has begun discussions with our new Fundraising Manager regarding the development of an outreach role, either an outreach worker or lay chaplain to strengthen connections between the business sector, public, and Chaplaincy Plus.
- Solihull Women’s Aid
- St. Basils
- WWF
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## **FAITH COLLABORATION**
_“We will work collaboratively with other city centre churches and members of other faiths to promote community cohesion and to serve the common good.”_
We continue to have friendly relations with ecumenical partners especially in the city centre.
____________________________________
## **Walk of Witness**
The Cathedral’s largest collaboration with other churches is the Good Friday Walk of Witness. We once again took part in the planning and producing of materials for this working closely with St Chad’s Cathedral and Carrs Lane Church. We were delighted to be participate alongside Bishop Michael and Bishop Esther, as well as Archbishop Bernard, Roman Catholic Archbishop of Birmingham, and other church leaders from Churches Together in Birmingham.
____________________________________
## **Other Events**
Canon Nathan Mulcock was involved in the planning committee for the annual Pray24Brum event for the week of prayer for Christian unity, which was led by the Cathedral Chaplain to conclude a weekend of prayer shared across all the Churches Together in Birmingham.
The Cathedral was also privileged to share our collective experience of Cathedral Ministry as part of the IME2 Training for Curates for a morning in October.
On behalf of the Cathedral, the Canon Missioner and the Cathedral Chaplain, have been added to the Aston University chaplaincy network. This is an important step forward in caring for students and staff of one of the major institutions situated within our parish boundaries.
The Cathedral was also delighted to be share fraternal witness with St Chad's in being present to both celebrate the declaration of St John Henry Newman to the status of Doctor of the Church and to mourn the passing of Pope Francis.
Dialogue continues with Workplace Chaplaincy CIGB. The Chaplain will act as Cathedral contact as this organisation develops a new strategy to meet the pastoral needs of those working within the city.
## **PUBLIC THEOLOGY**
_**“** We will develop a distinctive approach to public theology in order to support the public ministry of the Bishop of Birmingham and to contribute to the wider life of the city and region by the promotion of reflection on corporate social responsibility, meaning, purpose and values.”_
The Cathedral provides a distinctive strand of public theology, supporting the Bishop and parishes in how we can be a better city and region. In 2025 we focussed on the Child Poverty Emergency, seeking to help churches to address the seriousness of the situation and to offer examples of good practice and the theology which underlies them.
A workshop led by Dr Chris Shannahan from Coventry University enabled churches within the diocese and ecumenical partners to hear clearly what the issues are, to understand the theological imperatives of meeting the crisis, to hear from young people of other faiths who have lived experience of poverty, and to hear stories of what some churches are doing.
This was followed up and deepened in our Annual Gore Lecture on Christian Social Theology, held in honour of Charles Gore, the first Bishop of Birmingham, a profound theologian with a deep commitment to social justice.
In the 2025 Gore Lecture, held in September, Dr Shannahan pursued his workshop on Child Poverty further, outlining first how the
implementation of Governmental austerity policies has led to the deepening of poverty, before examining the range of Christian responses. It attracted around 40 attendees and around 150 views online.
The cathedral was privileged to host the launch of Canon Mukti Barton's book, _Wrestling with Imperial Christianity: Biblical Anti-domination and Anti-imperial Strategies for Liberation, Justice and Peace in our Fallen World_ . This well attended event opened the opportunity for us to reflect on how we might build justice and peace in a world of Empire.
____________________________________
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## _**GROW**_
_‘to share the gospel of Jesus Christ.’_
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## **GROWING IN FAITH**
_“We will work to grow our cathedral community in numbers and in depth by sharing the good news of the Christian Faith”_
## **The Good News**
In 2025, the cathedral recorded an average increase of 5% in Sunday worship vs same period in 2024.
The Reverend Elaine King and the Cathedral Chaplain continue to work closely to support the well-being of the congregation and welcome new arrivals. Visitors consistently comment on the Cathedral’s hospitality, warmth, and attentive listening, supported by volunteers offering informal pastoral care.
The cathedral saw an increase in numbers attending Christmas services and during Holy Week, but a fall in numbers attending overall during advent.
Overall visitor numbers were down around 10% in 2025, however with the completion of Divine
Beauty and no repeat of Divine Beauty tours, a levelling off in numbers was expected. Chapter notes Communications utilised all appropriate internal and external channels to promote the Cathedral and the Word during 2025.
Communications ensured clear and concise messaging with a continuously modified and updated website, digital social media and thirdparty sites to promote services and events, including those streamed or shared online.
## **Committed Team**
This year saw the retirement of Steve Hatton from Ops, the departure of Anna Pitt as Chief Officer, and from the Music Department Tim Stewart as Organ Scholar, Sarah Colgan and Beth Taylor as Soprano Lay Clerks, Celia Butterfield and Hope Pugh as Alto Lay Clerks, and Harry Brookes-Owen as Bass Lay Clerk moved on. We wish them all the best in their future endeavours.
We are delighted to welcome the following new members to the team during 2025:
|Michael Ball|-|COO|
|---|---|---|
|Fatou Bojang and Gina Meah|-|Cleaners|
|Harry Brown|-|Organ Scholar|
|Oscar Curtis|-|Bass Lay Clerk|
|Georgi Davies and Eleanor Tomlinson|-|Alto Lay Clerks|
|Matthew Feeley|-|Fundraising Manager|
|Emma Kennedy and Hester Parkin|-|Soprano Lay Clerks|
|Rose Lawrence|-|Events Coordinator|
|John Somers|-|Maintenance Technician|
We also recognise ongoing recruitment to the steward team, often through word-of-mouth recommendations. We sadly also lost some stewards due to relocation and for new job roles for those studying. The steward team remain vital to delivery of the Cathedral’s events programme.
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**_____________________________________________________________________________________**
## **RECRUITMENT AND TRAINING OF VOLUNTEERS**
_“We will develop a programme to recruit, train and nurture volunteers, guides, welcomers and visitors’ chaplains in order to enhance our capacity to offer hospitality and welcome in the cathedral”_
Recruitment of welcomers was restarted in 2025, whilst progress is still limited due to capacity with a front of house position vacancy, a number of candidates have applied and are being supported through the safer recruitment process led by the HR & Safeguarding Manager.
Training will continue throughout the coming year, covering end-of-life care, dementia, and caring for the carer. Volunteers such as welcomers in particular are encouraged to participate due to being on the front line of those in need seeking sanctuary in our building.
This includes DBS checks, references, an interview, an initial ‘try it out’ shadowing session and once appointed more formal shadowing sessions and training in areas such as safeguarding.
Modules are delivered quarterly on Saturday mornings. With increasing pastoral needs linked to an ageing congregation, volunteers have been further supported in developing pastoral listening and advocacy skills.
Other areas of volunteer recruitment will be prioritised with the appointment of a Visitor Experience and Volunteer Coordinator.
Due to the geographical spread of our volunteer team, it was agreed to undertake part of the pastoral training programs in 2025 online, requiring a reimagining of both content and delivery by the cathedral chaplain.
Training in pastoral supervision has been completed, with potential for future accreditation and additional in workplace chaplaincy skills has been undertaken. Discussions continue regarding mental-health first-aid training due to rising numbers of visitors presenting challenging behaviours.
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## **DEVELOPING EDUCATION**
_“We will develop the work of our education team with schools, children within the cathedral, community and visitors and we will explore further partnership with the Church of England Birmingham Education Team and Birmingham Diocesan Multi-Academy Trust in order to help the children and young people we all serve to grow in faith”_
The beginning of the annual school year was marked with a special Education Sunday Evensong where we welcomed Governors and Headteachers from church schools in the diocese.
We now have a committed and dedicated team of education guides who meet termly for training and updates. We are slowly building the number of schools we guide and many return year on year, many from Birmingham but some from as far as Stoke on Trent.
One of the highlights of the year was a group of 25 year seven children who are deaf. It was a learning curve for us all and a very worthwhile experience. The school intend to return in 2026 which is a blessing.
The education guides work with year 2 to 8 or 9. We deliver to the Agreed Syllabus of Birmingham SACRE but to the axiom of "What can we learn about Christianity and what can we learn from?"
We feel that we provide a missional opportunity to cater for all children, those of faith and those of none, delivering a message of love through
information, counteracting misinformation and distrust.
This high level of engagement is only achievable through the expertise and hard work of our committed volunteer education guides.
Throughout the year, Ashley Wagner, our Assistant Head of Music, visited schools, with over 250 children involved in preliminary auditions for the Cathedral Choir. He also led the music at the diocesan leavers' services attended by 1984 children.
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As part of Play the Organ Year 2025 in partnership with the Royal College of Organists, we held our annual Try the Organ Day in July. It offered an opportunity to young pianists to try out the organ under the supervision of our organists. In August, we held our first Organ Open Day for adult organists of all abilities, at which 60 people participated including the Director of Music at another cathedral.
Twice monthly lunchtime recitals have also continued throughout 2025 and are one of the Cathedral’s main vehicles for supporting emerging talent at the Conservatoire with performance space.
We explored and signed up with Bloomberg Philanthropies to launch a free digital cathedral guide through the Bloomberg connects app during 2026, and this will have enormous potential benefits for interactions with children. The guide will enable the Cathedral to offer instant translation into over one fifty native languages its general guides, but also its children’s trail, which will be listed as a digital tour to be followed for the first time via smartphone. The app will allow us to direct children to specific points of interest both inside the cathedral and in cathedral square, specific to them, and will be supported by our excellent education guides.
**_____________________________________________________________________________________**
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## **SAFEGUARDING**
_“We will promote the highest standards of safeguarding to ensure that the cathedral is a safe space for all people especially children and vulnerable adults”_
Safeguarding is Chapter’s first priority. We remain committed to ensuring that Birmingham Cathedral is a safe place for all, including and especially children and vulnerable adults.
The Cathedral Safeguarding Committee met three times during 2025 in February, May, and October. The Safeguarding Committee provides advice to Chapter on all matters of safeguarding practice. It also monitors progress of Chapter’s safeguarding training plan and compliance with the Parish Safeguarding Dashboard.
A Safeguarding Audit Task Group met three times during 2025 in March, June and November and will continue to meet regularly to progress the implementation of the recommendations from the 2021 SCIE safeguarding audit ahead of our next audit by INEQE which is now due in early February 2028 and to ensure best practices are followed in our everyday safeguarding processes.
Safeguarding Audit Task Group meeting minutes are reviewed by the Safeguarding Committee, and Safeguarding Committee minutes are reviewed by Chapter. Safeguarding has been a longstanding standing item at every Chapter meeting and is discussed whether there has been a Safeguarding Committee Meeting since the last Chapter or not.
Chapter ensures that its safeguarding policies and procedures are up to date and receives regular reports from the Cathedral Safeguarding Team, which is made up of a trained Safeguarding Professional (the Cathedral Safeguarding Officer, who is also the Diocesan Safeguarding Officer), the Deputy Cathedral Safeguarding Officer (the internal lead on Safeguarding, the COO, who has attended various in person and online safeguarding training courses since his appointment), the HR & Safeguarding Manager, and the Head of Operations.
In our 2025 safeguarding survey, we received just over 100 responses, this being the highest amount received compared to previous years, the percentage of respondents said they knew how to report a concern remains very high. We also had the highest ever number of under 18 respondents.
Chapter is committed to continuing to hold an annual safeguarding survey. We will be continuing to consider how best to tailor the questions for 2026 to assess the understanding and appreciation of safeguarding more accurately across the Cathedral Community, working as appropriate with the diocese and national recommendations.
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**_____________________________________________________________________________________**
## **ENVIRONMENT AND CLIMATE SUSTAINABILITY**
_“We will also be good stewards of God’s creation by promoting the work of EcoChurch and sustainable living”_
The Cathedral’s commitment to be good stewards of God’s creation is deepening year on year, through the work of promoting Eco Church and a sustainable planet. This year saw a number of major developments.
Following on from the achievement of A Rocha Eco Silver Award in December 2024, the Eco Group continued drive progress.
The Eco Group is a non-statutory committee of committed volunteers, chaired by the Canon Missioner Andy Delmege with external expertise who are guiding Chapter on best next steps in environmental sustainability for our historic building and Cathedral Square.
During 2025 the group drafted and finalised a new Sustainability Strategy. Following outreach, we believe we are the first cathedral in Britain to do this.
Chapter adopted the strategy in December, which sits beneath and in alignment with the new Strategic Plan for 2026 – 2030 and sets out our way forward for embedding the environment deeply in our rounded approach as we progress towards Net Zero. With the strategy set, Eco group and the cathedral generally can now be intentional about our Net Zero journey and wider sustainability in the next four years.
Other works in this field completed during the year included completing the switching to green energy tariffs.
Following last year’s success in June, it was a delight to repeat our now annual Bike Blessing service in July in Cathedral Square. The service offers the opportunity to take worship outside and bring together cyclists and non-cyclists, raising awareness of our commitment to road safety, sustainable travel choices (where possible) and highlighting prayer for the safety of our road users and local communities.
A final perhaps unexpected connection to the environment, our new Nativity figures designed by local artist with a wide range of ecological motifs, featuring the importance of this in the life of the Cathedral. This includes the experience of refugees, migrating due to climate change - showing the urgency of this is at the heart of our community, and deep reflection on the flora of the Holy Land and how this has moved around the world and been contested.
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## **GOOD STEWARDS**
_“We will be good stewards of our cathedral building and of our finances. We will encourage Christian stewardship as a response to the generosity of God in Christ”_
## **Financial Stewardship**
During 2025 our new CFO Melanie Crooks has been central not only to working with Chapter to produce its new detailed five-year plan but working to deliver improvements in our unrestricted deficit. As well as work to achieve a move to a total return policy and cohesive budget aligned to the activity plan for 2026, the CFO has presented not only to Chapter but twice to the congregation to deliver updates on the financial position of the Cathedral, and these had led to an increase in giving.
**----- Start of picture text -----**
Congregational Giving
5,000 £52,000
4,000
3,000
2,000
1,000 £37,000
Planned Giving Service Collections
**----- End of picture text -----**
**----- Start of picture text -----**
Other Giving
4,500
4,000
3,500 £28,000
3,000
2,500
2,000
1,500
1,000
£36,000
500
Donations Box Contactless
Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25
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____________________________________________________________________________________
Work by the Head of External Relations to increase facility for digital giving and promote visual signage for other giving have also resulted in improvements in per person donations. This was supported by digital messaging designed to enhance footfall and donations, through promotion and update of the cathedral website and social media to promote services and events.
Chapter notes the ongoing increase in revenue from events due to the hard work of the External Relations team, with Rose Lawrence being a welcome ‘rejoiner’ in July 2025 from Lincoln
Cathedral as Events Coordinator following success in application for a two-year Cathedrals Sustainability Fund (CSF) grant for the post.
We retained a high number of repeat bookings during 2025, which have already confirmed into 2026. This suggests good working relationships at an administrative level, high standards of care during events, and a value in the space we have to offer based on its central location, excellent acoustics and beautiful décor.
It is notable that due to our size, capacity and single ‘events space’ however, we did miss out on some opportunities. Many hirers for concerts typically want a minimum capacity of five hundred, which we cannot accommodate due to restricted views, toilets facility capacity and floor space.
Of note, the Big Wheel returned for 2025 in the summer months, generating income and attracting new visitors into Cathedral Square and also the cathedral building itself. And the biggest event of 2025 was of course the fifth year of
**----- Start of picture text -----**
2025 Income
Donations,
Investments, £78,000 Giving,
£244,000
£80,000
Gift Aid,
£21,000
Grants,
£45,000
Events,
£296,000
Ministry
Grants,
£396,000
Other ,
£16,000
**----- End of picture text -----**
Christmas in Cathedral Square Craft Market, the highly rated alternative Birmingham Christmas Market which sees a large influx of additional visitors to the Cathedral in November and December. It was a resounding success, attracting both local and international visitors. We retained a high level of interest and commitment from existing traders, who have attended the market since its first year in 2021. We attracted lots of new craft traders for 2025 and food and drink remained as popular as ever.
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2025 Expenditure
Support & Ministry,
Infrastructure, £285,000
£468,000
Music,
Direct £242,000
Raising
Funds,
£98,000
Common
Fund, Faciliites,
£75,000 £304,000
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_____________________________________________________________________________________
Towards the end of the year, a Fundraising Manager was appointed, following a successful bid to the CSF, to assist the Cathedral to generate additional funds through individual giving, applications to charitable trusts and seeking pledges of support through gifts in wills.
This work will focus on finding the necessary funds to help the Cathedral implement its Quinquennial report works, and will play a key role in achieving the fundraising targets set for the Organ Appeal ‘Divine Harmony’.
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**Care of Our Building**
During 2025 a number of mid-level projects were carried out to improve the fabric of the building.
renewed preserving the historic artistry they represent.
Security and accessibility were further strengthened this year through the installation of a new access-control system. This upgrade supports the Cathedral’s safeguarding commitments while also improving ease of movement for those with mobility challenges. It represents our continued effort to balance the needs of a modern working building with the sensitivity required of a historic site.
The Gospel handle (South-East) doors received long-awaited specialist restoration as for some years they had temporary bore temporary panels installed after emergency access by the fire service. Their reinstatement has restored the integrity and visual coherence of this entrance, returning craftsmanship and detail that had been lost. Alongside this work, the handles themselves were carefully conserved and professionally cleaned. These small but significant features now
A particularly significant moment for the staff team was receiving the final sign off for the Divine Beauty project. This marked the completion of a major period of conservation, interpretation, and renewal of the Cathedral’s world-renowned Burne Jones and Morris & Co. stained-glass windows. We remain deeply grateful to the National Lottery Heritage Fund for their generous support and for their partnership throughout this transformative undertaking. The success of the project was also made possible by the commitment and encouragement of the Cathedral Community, whose support throughout has been invaluable.
This year also saw the end of the current quinquennium, and a new document for the next five years works ordered from cathedral architect Kathryn Harris. The summary document has been delivered and detailed reports are expected to go to Chapter in January 2026.
**The Gospel handles The new access sensor**
**_____________________________________________________________________________________**
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## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Constitution and Governing Documents**
The Cathedral is governed by a Constitution and Statues adopted on 1 September 2023 in accordance with the Cathedrals Measure 2021. In compliance with the Cathedrals Measure 2021, the Cathedral was formally registered as charity (charity number 1206485) with the Charity Commission for England and Wales on 10 January 2024 and ceased its status as an excepted charity.
## **Charitable Objectives**
The charitable objectives of the Cathedral are:
- To advance the Christian religion in accordance with the faith and practice of the Church of England, in particular furthering the mission of the Church of England
- To care for and conserve the fabric and structure of the cathedral church building.
During 2025 Chapter met nine times for Board meetings and for an away day to shape the 2026-2030 Strategic Plan. All Chapter meetings took place in person, with the option for Chapter members to join online if required.
The members of Chapter are the Dean, the residentiary canons and other persons appointed in accordance with the constitution. The Dean and residentiary canons are deemed to the executive members with the other members of Chapter being nonexecutive. The Chapter must have more nonexecutive than executive members and at least 2/3rds of the non-executive members must be lay persons.
Chapter can comprise between 8 to 12 members. We currently have 9 Chapter Members. Those who served during the year and up to the date of this report are listed on page 7.
## **Appointment Terms**
- To advance any other charitable purposes which are ancillary to the furtherance of the purposes referred to above
## **Board of Trustees (referred to as “Chapter”)**
The Board of Trustees or “Chapter” as it known as, has independent control over and legal responsibility for the Cathedral’s management and administration. Chapter’s decision-making process is informed by the Cathedral Measure 2021 and its constitution.
The Bishop of Birmingham after consulting the Chapter, must appoint one of the nonexecutive members who is not a residentiary canon. This person is deemed to be the senior non-executive member of Chapter. Members of Chapter having sought the advice of the Nominations Committee must appoint the other non-executive members who are not residential canons, with each appointment requiring the prior approval of the Bishop of Birmingham. When making appointments, the Chapter has due regard to the desirability of appointing up to 4 lay persons from those among the electoral roll
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of the cathedral parish of St Philip, Birmingham.
In accordance with the constitution, nonexecutive appointments are for three years with a maximum service of nine years. A nonexecutive member of Chapter who has served nine years is not eligible for be appointed again until at least 12 months have passed since they last ceased office as a non-executive member of the Chapter.
Trustees retire in rotation. Appointments will be considered by Chapter prior to the end of each respective non -executive term. When filling vacancies, Chapter will review its existing skills with a view to ensuring it can draw on a range of relevant knowledge and experience to undertake its responsibilities.
## **Code of Conduct**
All Chapter members are required to adhere to the Cathedral Governance Code 2021 as adapted by the Association of English Cathedrals from the Charity Governance Code. The Code provides clear guidelines on expected standards of behaviour, responsibilities and best practice in fulfilling their obligations.
Prior to appointment, Chapter members complete declaration of eligibility and statements of interest which are subject to regular review. In accordance with the constitution, declaration of interest feature on each meeting agenda and Chapter members are expected to withdraw from any decisions where a conflict of interest arises.
## **Chapter Diversity**
We believe in a diverse Chapter, with a blend of background, insight and knowledge and experience is important to the effectiveness of our governance. Chapter is committed to Diversity and Inclusion and recruits with the aim of attracting individuals who will help lead in a way that embraces inspiration, diversity, and fresh thinking.
## **Chapter Induction**
All Chapter members complete an induction programme designed to inform them about the Cathedral’s structure, finances and delegation framework, which shape the Cathedral’s decision-making processes and ensure that they are fully aware of the responsibilities of being a trustee. The induction takes the form of a combination of meetings, visits, formal trustee training and the provision of appropriate reading material.
## **Committees of Chapter**
Chapter is supported in its work by four standing committees. The Chair of each committee is a trustee who reports to Chapter on the committee’s activities at each Chapter meeting. The committees are part of the overarching governance arrangements of the Cathedral. They operate in accordance with an agreed Terms of Reference as laid out within the Statues which are periodically reviewed to maintain alignment with Charity Commission expectations and guidance.
## **Finance & Risk Committee**
The committee support Chapter by reviewing on a regular basis the financial performance, budgetary control and management. It also oversees the outcomes of external audits and other review work, including financial reporting. It reviews processes of internal control and risk management. The committee met four times in 2025.
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## **Nominations Committee**
As part of the cathedral measure 2021, a Nominations Committee was recruited and began meeting in 2025, with terms of reference approved by Chapter.
The committee must advise Chapter on the recruitment of non-executive members to Chapter, the membership of committees and the training needs of members of Chapter and its committees. The committee met twice in 2025 and has begun its work.
## **Safeguarding Committee**
The committee considers the revision of safeguarding policies and provides advice to Chapter on all matters of safeguarding practice relating to the Cathedral save that all policy changes must be approved by Chapter and must comply with the national safeguarding policies of the Church of England. Safeguarding is embedded in the cathedral strategic plan.
## **Cathedral Community**
The committee may advise the Chapter on all matters affecting the Parish and the Cathedral community and may act as a channel of communication between the Chapter and the community. The committee met four times in 2025.
**Other Church of England organisations with which the cathedral co-operates in achieving its objectives**
Within the ministry of the Church of England Birmingham, the Cathedral pays an important role in co-operation with other persons and charities which form part of the Church. The Cathedral has important relationships with the
national institutions of the Church of England, specifically:
**The Archbishop’s Council** who provides guidance on governance and safeguarding and funding for sustainability.
**The Church Commissioners** from which the Cathedral receives grants and acts on behalf of clergy with HM Revue and Customs. The Commissioners pays clergy stipends for the Dean and two Residentiary Canon posts.
**The Church of England Pensions Board** which provides pensions for clergy and the Cathedral’s lay staff.
At local level key relationships include:
**The Bishop of Birmingham** for whom the Cathedral serves as the principal church of the diocese and the official seat (cathedra) of the bishop.
## **The Birmingham Diocesan Board of**
**Finance** with whom there is an established pattern of collaborative working, including our clergy team supporting the work of church schools through the Diocesan Board of Education, together with ministry and pastoral care learning and development.
**Parochial Church Councils (PCCs)** - for whom we act as the principal church of the diocese, a shared space for collaboration on diocesan matters, mission and ministry and celebration.
## **Senior Management Team**
The Senior Management Team in 2025 comprised the Dean, Residentiary Canons, the Chief Operating Officer and Chief Finance Officer. The team supports the Dean in fulfilling his responsibilities.
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Our long-standing Chief Operating Officer, Anna Pitt moved to pastures new with effect from 31 January 2025. We are grateful for Anna’s passion and care in leading the Cathedral’s lay team over a 11-year tenure and her oversight of numerous projects, most notably our Divine Beauty project. In the interim period, the Head of Operations and Chief Finance Officer took on additional responsibilities. Michael Ball joined the Cathedral team as Chief Operating Officer in September 2025.
Chapter delegates various functions to the Senior Management Team and other staff. These functions are summarised in a Scheme of Delegation.
## **Achieving Public Benefit**
As a charity, Chapter recognises their legal duty to report on the Cathedral’s public benefit in their Annual Report, as part of a requirement- given particular emphasis by the Charities Act 2011- to clearly demonstrate that the objects of the charity are for the public benefit. In setting the Cathedral’s objectives and planning its activities, Chapter have given due consideration to the Charity Commission’s guidance on public benefit and the supplemental guidance on the advancement of religion for the public benefit. As a Cathedral of the Church of England the Chapter’s statutory responsibility under the Cathedrals Measure 2021 is to be the seat of the Diocesan Bishop and a centre of worship and mission and to provide a focus for the life and work of the Church of England in the Diocese.
As a parish church cathedral, we try to enable ordinary people to live out their faith as part of our community through:
- Worship and prayer: learning about the gospel; developing their knowledge and trust in God
- Provision of pastoral care
- Mission and outreach work
The Cathedral is also at the service of the wider community through its civic engagement, community cohesion work and by providing a bridge between diverse groups in addition to being an active resource of national importance in the promotion of religion, music, education, history and architecture. Further information about how the Cathedral provides public benefit is given in the Strategic Report section to this Annual Report.
## **Fundraising**
The Cathedral aims to undertake fundraising at the highest possible standards, consistent with its values, compliant with relevant legalisation and Fundraising Regulator best practice. Care and consideration for donors is paramount, and the Cathedral aims to act in the most respectful and considerate way. Most of our fundraising income comes from our congregation, visitors, grant making trusts and foundations, alongside the Church Commissioners. The Cathedral does not engage in unsolicited telephone or on street fundraising.
The Cathedral is registered with the Fundraising Regulator and strictly adheres to the Code of Fundraising Practice, ensuing our methods are transparent, ethical and no undue pressure. We recognise the need to protect vulnerable people and works to avoid seeking or gaining a donation from anyone who might be considered at risk or unable to make an informed decision. In 2025, we did not engage third party professional fundraisers or commercial participators. We do not send direct mail or email to members of the general public for the purpose of
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## fundraising. The Cathedral received no complaints about fundraising carried out in 2025.
To support our growth plans with support from the Church Commissioners, we successfully appointed a dedicated fundraising manager at the end of 2025. Looking ahead, our strategy for next year is to diversify our funding streams further by launching a legacy giving campaign, development work with targeted trusts and foundations, investment in a new CRM system to enhance donor giving journeys and work commencing on the Organ Refurbishment funding programme.
## **Key Management Remuneration Policy**
The stipends of the Dean and the Residentiary Canons are reviewed annually by the Church Commissioners in setting national stipend rates. For other key lay management personnel pay is considered by Chapter. Each year Chapter reviews the remuneration of key lay management personnel, considering performance and benchmarking data to ensure that levels of remuneration remain appropriate.
## **Equality, Diversity, Inclusion & Belonging**
The Cathedral is passionate about being a truly inclusive organisation with the people who work and volunteer with us and our congregation and visitors being as diverse as the communities we serve. Our vision is of life in all its fullness, a flourishing life for all, becoming fully alive in Christ (John 10.10). Rooted in this Christian gospel and the Church of England’s commitment to the dignity and worth of every person, we seek to reflect God’s love through a culture in which all people are respected, valued and able to flourish.
We are committed not only to Equality, Diversity and Inclusion but also to Belonging. Belonging is where equality, diversity and inclusion intersect – a safe place of family, support and a sense of acceptance for all.
This is fundamental to our belief that God loves and recognises all and that the range of experience diversity brings is a huge asset to the Cathedral. We are determined to do our upmost to ensure an inclusive, welcoming environment for all.
## **Principal Risks and Uncertainties**
Chapter are required to ensure that effective and adequate risk management is in place to manage the major risks to which the Cathedral is exposed. They have clear mechanism for obtaining assurance on the management of risks. Chapter agrees the approach to risk including overseeing the process to identity and assess key risks and understanding how those risks are managed and mitigated. To support the identification and evaluation of the Cathedral’s key risks, a risk assessment model has been developed which incorporates strategic and operational day to day activities. Individual risks are then assessed using a scoring mechanism, with respect to the inherent likelihood of occurrence, severity of impact on the
Cathedral, the steps in place to mitigate the risk and the resulting impact on residual risk. The Finance & Risk Committee oversees the detailed risk management process and reports to Chapter.
_The Cathedral Church of St Philip Birmingham 47_
During the year, Chapter has kept under review the key risks affecting the operating environment of the Cathedral. It reviews the Cathedral Risk Register and considers any changes to risks at each Chapter meeting. The Chapter considers the principal risks and uncertainties to be as follows:
_The Cathedral Church of St Philip Birmingham 48_
## **Risk**
## **Mitigation Actions**
||The continued economic uncertainty,
including cost of living crisis, energy
prices and the impact of the global
political uncertainty results in
significant financial loss for the
Cathedral that it is unable to sustain
given lack of free reserves||
Cashflow (and outturn) forecasts based on
latest information to identify pinch points
Re-evaluation of operating model and
prioritisation of resources
Re-evaluation of investment assets held
and strategy
Use of grant funding from Church
Commissioners and pursuit of other funding
and income generation opportunities|
|---|---|---|---|
- Reliance on Investment Income for Adoption of a revised investment strategy the funding of the current operating that is focused on total return as opposed to model to deliver charitable objectives only dividend yield
- Re-evaluation of operating model and prioritisation of resources
- Pursuit of other income generation opportunities
- Major maintenance and conservation Condition surveys, quinquennial reports works significantly impacting on level and implementation of a planned of reserves preventative maintenance scheme
- Phased works planned to conserve and maintain building
- Review of strategic assets and other funding opportunities
- Cyber security attack on core Continued team awareness updates on systems impacting on ability to cyber issues operate and data breach
- Continued monitoring of IT infrastructure by specialist IT provider
_The Cathedral Church of St Philip Birmingham 49_
## **FINANCIAL REVIEW**
## **A Year in Review**
2025 has seen a return to focusing on the core day to day operations of the Cathedral and our ongoing financial sustainability.
Overall income for 2025 was £1,176,307 compared to £1,296,343 the prior year – a decrease of £120,036. An overall decrease in reported income was to be expected as we completed the project finances on our multiyear Divine Beauty project. However, if we remove the impact of the Divine Beauty project to reveal the underlying income position, our core income in 2025 actually rose by @ £128,000 year on year. This reflects our efforts (as outlined in last year’s report) focusing on
- Stewardship and Generosity engagement
- Income generation opportunities
We reinstated a regular stewardship programme with our congregation, including teaching within our Lent courses resulting in a giving increase more than inflation, of 11%. We improved signage and intentional engagement with our visitors to encourage contactless donations. Again, this improved by over £22,000 or 39%year on year. This was achieved against a fall in annual visitor numbers from 204,000 at the height of the Divine Beauty project to 186,000 in 2025.
We have continued to progress our wider outreach engagement by further events, concerts and extending the period for our flagship Summer Big Wheel and Christmas Market. This contributed an additional £46,000 in income.
The Church Commissioners continues to be our key funder, providing approximately a third (£396,375) of our core funding income. This includes strategic lay posts funded by the Cathedral Sustainability Fund (£26,978, 2024: £54,455) to support our financial sustainability action plan.
The 2025 headline expenditure of £1,471,732 when compared to the prior year figure of £1,565,331, shows a reduction in expenditure of £93,599. Again, removing the Divine Beauty project impact from the figures, the reduction falls to just £32,000. This is against a backdrop of absorbing the changes in employers’ national insurance a 6.7% rise in the national minimum wage in April 2025 and implementing the recommendations of the independent salary benchmarking study we undertook in 2024. This has significant impact on our cost base when our people account for a significant proportion of our expenditure (62%).
Other operating costs continue to be impacted by inflationary pressures, coupled with increasing compliance requirements – be it safeguarding, physical and cyber security and building regulations operating a listed building site.
Our overall net outgoings before non-cash investment movements were a further deficit of (£295,425) for the year (2024: £268,988 deficit) This is a structural deficit, and it underlines the underlying financial challenges that all cathedrals across the country are facing.
As further explained below, we adopted in 2025 a total returns investment approach to our endowed assets and were able to realise £316,918 of returns (£209,374 income and £107,544 capital gains) to support the cashflow of our day-to-day operations.
We benefited from a buoyant stock market with unrealised investment portfolio valuation gains of £338,752 (2024: £234,779) and ended the year with a net surplus in accounting terms only of £43,327 (2024: £42,791).
_The Cathedral Church of St Philip Birmingham 50_
## **Moving Forward**
We continue working on implementing our action plan to ensure that the Cathedral is sustainable financially. This work is integral to our Strategic Plan 2026-2030. This includes:
- Continued Stewardship & Generosity engagement, especially with visitors
- Enhancing our event and outreach programme with further opportunities for income generation
- Strategic use of our Total Returns approach to our endowed assets
- Operating model and working practices transformation
- Embracing opportunities to deepen partnership working
- Working with our newly appointed fundraiser to execute our fundraising strategy
- Continuing engagement with Church Commissioners to support funding for one of England’s smallest cathedrals in the most deprived diocese in the country.
## **Balance Sheet Position**
Chapter considers that the balance sheet and notes to the financial statements show broadly that the restricted and endowment funds are held in an appropriate mix of investments and current assets given the purposes for which the funds are held. While the net assets on the balance sheet date totalled £8,102,396 (2024: £8,059,069), it must be remembered that included in this total are property and investments that are held within the endowment fund, the original capital of which cannot be spent. The endowment fund’s value amounted to £7,818,060(2024: £ 7,672,348). Much of the remainder of the assets shown in the balance sheet are held in restricted funds and cannot necessarily be used for the general purposes of the cathedral. Our cumulative unrestricted fund as at 31 December 2025 was in deficit at (£2,780) (2024: £76).
Factors that may impact on future financial performance
There are a number of factors which can impact the Cathedral’s ability to meet its objectives, which are outside its direct control. As is the case for all charities with historical endowments, the Cathedral remains vulnerable to changes in the value and returns upon its investments. This is mitigated by employing specialist fund managers and advisors to help develop an appropriate investment policy. The ability of the Cathedral to generate other regular income sources such as event/ special service fee income, congregational giving, and donations significantly impacts the delivery of the Cathedral’s missional objectives. Whilst we saw an uplift in revenue from donations and events/lettings in 2025, we remain very aware of the impact of external factors.
## **Reserves Policy**
Free reserves are maintained for the following purposes:
• To avoid bank borrowing if there is a temporary shortfall in income or a surge in expenditure
• To provide for emergencies.
The cathedral's reserves policy is formulated in line with recommendations of the Charity Commission of England and Wales. The basic policy statement is as follows: “The Cathedral Chapter aims to maintain the equivalent of at least three months operating expenditure in cash and readily liquid assets in the general unrestricted fund (£321,549). This excludes all designated funds and loans. The policy is to be reviewed on an annual basis.”
The free reserves position as of 31 December 2025 shows a balance of (£2,780) and the reserves policy is not technically achieved. This position through the work being undertaken as explained in the “Moving Forward” section of this Financial Review is being pursued actively by Chapter. In addition, Chapter have worked with investment managers to review their
_The Cathedral Church of St Philip Birmingham 51_
investment policy for 2026 onwards with a view to creating greater access to capital growth on endowment funds to support the reserves policy.
## **Designated Funds**
The cathedral may, with the approval of Chapter, designate additional unrestricted reserves to be retained for an agreed purpose where this is considered prudent. Such designated reserves are reviewed on an annual basis and returned to the general fund in the event that the purpose of their designation is no longer considered adequate for their retention.
## **Restricted Funds**
The cathedral holds and administers several restricted funds. As of 31 December 2025, restricted funds totalled £287,116 (2024: £386,645). These funds are not available for the general purposes of the cathedral.
## **Endowment Fund**
During 2025, the cathedral completed a detailed review of its “endowment fund “basis with Church Commissioners to ascertain whether all the assets historically included within the fund, were endowment in nature. This review concluded that such assets were permanent endowment.
The endowment fund recorded net income of £177,135 before investment gains. The fund is made up of three components: the Investment Fund of investments held at Brewin Dolphin, the related Unapplied Total Return and the Other Fund that essentially comprises the investment property and clergy housing. As of 31 December 2025, the balance on the Investment Fund amounted to £4,084,903) and on the Other Fund amounted to £3,160,489 and they are not available for the general purposes of the Cathedral. The balance on the Unapplied Total Return fund at the yearend was £575,668. The Unapplied Total Return fund is available to support cathedral operations over the long term.
The three endowment fund components totalled £7,818,060 (2024: £7,672,348) at the yearend date.
## **Total Return Accounting**
The law governing the use of endowment funds changed in 2016. Traditionally, permanent endowment funds draw income only, maintaining capital in perpetuity for the benefit of future generations. A Total Return investment approach allows the release of both income and capital gains for use by current beneficiaries. Chapter adopted Total Return accounting for the investments managed by Brewin Dolphin with effect from 1 January 2025 by reference to the following:
- The date used for the initial value of the investment fund was 31 December 1979
- The initial value of the investment fund was determined by reference to the investments held and included in the 1979 statutory accounts, also taking into account the withdrawal of funds from the portfolio in 2023
- CPI (or its equivalent) was used to uplift the investment fund giving rise to a valuation as at 1 January 2025 of £3,938,395. The Unapplied Total Return fund as at 1 January 2025 amounted to £582,364.
Chapter have adopted the following policy in determining the amount to be allocated from the unapplied total return fund (UTR) each year to the unrestricted fund to be used for core Cathedral operations as detailed in note 14 to the accounts:
- All income that would have been credited to the unrestricted fund had Total Return accounting policy not been implemented.
- An additional amount to be released annually to the unrestricted fund, as determined by the annual budgeting process
- CPI is to be used as the inflationary measure to uplift the value of the trust for investment on an annual basis.
The Investment fund as at 31 December 2025 was £4,084,903, which remain ring
_The Cathedral Church of St Philip Birmingham 52_
fenced to preserve the real value of the original permanent endowment.
investments with effect from 1 January 2025.
## **Investment Policy**
Chapter maintains an overview of its investments through its Finance & Risk Committee, which also monitors performance against market benchmarks and considers the adequacy of its investment mix. Chapter’s policy is to review regularly the assets of each fund for which it is responsible, in relation to the purposes of each fund, and to identify appropriate investment vehicles. Chapter seeks to manage the Cathedral’s assets responsibly within an acceptable level of risk in order to resource the medium to long term strategic goals of the Cathedral.
The portfolio is manged on the following manner:
- Direct property investment (St Philips House) is managed by CBRE
- Marketable investments actively managed by Brewin Dolphin
- Remining funds within CCLA on a self-managed basis
Investment funds within certain restricted funds are held within CCLA funds selected on the basis of the income/capital needs to the respective fund as appropriate.
Throughout 2025 our overarching investment principles were as follows:
- Maintain a balanced asset allocation approach to the portfolio with a medium risk(level 6) profile
- Portfolio to be invested in well diversified, high-quality assets which provide protection against inflation over the long term
- Performance to be reviewed against a benchmark which is standard peer group benchmark for a UK charity with a medium risk profile
- Performance to be at least 2% better than inflation over the long term, as measured by the UK Consumer Price Index (CPI), whilst generating sufficient income to support the work of the Cathedral
- Investments will be made in compliance with the Ethical Investment Advisory Group (EIAG) guidelines of the Church of England and in particular to exclude investments in companies that generate more than 10% turnover from conventional fossil fuels(oil, gas, coal), fossil fuel extraction and production, or oil and gas refining.
- Adoption of a total return investment approach for our core marketable
## **Investment Performance**
The total value of all fiscal investments on 31 December 2025 was £4,778,105 (2024: £4,702,320) and the total return on investment was +12.01% (2024: +8.69%). Of this, £96,735 was invested with CCLA and the balance with Brewin Dolphin.
We achieved overall investment portfolio valuation growth year on year of £338,754 (2024: £ 234,779). The performance of Brewin Dolphin has been reviewed against agreed investment benchmarks, being the Brewin Dolphin Risk Category 6 portfolio return, Morningstar UK All Cap Target Market Exposure and CPI+2%. The 2025 performance is shown in the table below:
**----- Start of picture text -----**
Total Comparison to our
Return Investment Policy
Portfolio 12.01%
BC Risk 13.98% Objective not met
Level 6
portfolio
Morning Star 12.66% Objective not met
Index
CPI+ 2% 5.4% Objective met
**----- End of picture text -----**
_Source: Brewin Dolphin 12months to 31 December 2025 report_
_The Cathedral Church of St Philip Birmingham 53_
most significant events which have impacted on this assessment are:
The difference in performance can primarily be explained by the differing asset allocations between our portfolio and the benchmark portfolio as follows:
**----- Start of picture text -----**
Asset Class Our Benchmark
Portfolio Portfolio
Bonds 15.73% 17.0%
UK Equity 13.82% 17.0%
International 59.52% 51.5%
Equity
Alternatives 8.76% 12%
Cash 2.17% 2.5%
Total 100% 100%
**----- End of picture text -----**
_Source: Brewin Dolphin 12months to 31 December 2025 report_
It should also be noted that the benchmark portfolio does not have the same investment restrictions that our investment policy mandate requires.
## **Remuneration of Key Management Personnel**
Emoluments of higher paid lay employees are determined by Chapter with reference to regular appraisals, remuneration and salary benchmarking, and consequent recommendation of changes. The emoluments of cathedral clergy are set by and funded by the Church Commissioners on a national basis.
## **Going Concern**
Our underlying financial challenges are not unique to Birmingham, with all cathedrals across the country facing the same challenges in a difficult landscape. Chapter has considered whether the use of the going concern basis of accounting is appropriate. In doing this, it has considered whether there are any material uncertainties as to the Cathedral’s ability to continue as such. The
- The ongoing cost of living crises and its impact on the ability of our visitors and congregation to contribute to the running costs of the Cathedral
- Changes to Employer’s National Insurance in April 2025, alongside continuing energy uncertainty and its effects on costs, prices and consumer confidence
- Possible impact of global economic and political uncertainties on investment markets and our ability to access capital returns on our investment portfolio
- Increased demands on grant giving bodies that may impact our fundraising efforts
Chapter has prepared a financial forecast for the period at least 12 months from the anticipated date of approval of these financial statements that indicated that the Cathedral needs to continue to take active steps to meet its liabilities as they fall due: These include:
- Continued Stewardship & Generosity engagement, especially with visitors
- Enhancing our event and outreach programme with further opportunities for income generation
- Strategic use of our Total Returns approach to our endowed assets, with access to unapplied investment return of £572,000.
- Operating model and working practices transformation implementation in 2026
- Working with our newly appointed fundraiser to execute our fundraising strategy
- Continuing engagement with Church Commissioners to support funding for one of England’s smallest cathedrals in the most deprived diocese in the country.
_The Cathedral Church of St Philip Birmingham 54_
Based on these assessments, Chapter are satisfied the Cathedral will have sufficient unrestricted funds to continue in operational existence for at least 12 months from the date of approval of these financial statements and as such they continue to adopt the going concern basis of accounting in preparing the financial statements, however a material uncertainty exists which may cast doubt on the charity's ability to continue as a going concern.
## **Chapter Responsibilities Statement**
Chapter are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdon Accounting Standards (United Kingdome Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires Chapter to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, Chapter are required to:
Chapter are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legalisation in other jurisdictions.
## **Disclosure of Information to the Auditors**
Members of Chapter who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:
• There is no relevant audit information of which the cathedral’s auditors are unaware
• We have taken all the steps that we ought to have taken as members of Chapter in order to make ourselves aware of any relevant audit information and to establish that the cathedral’s auditors are aware of that information.
## **Approval of the Annual Report**
The Annual Report was approved by Chapter on 28 April 2026 and signed on its behalf by:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP 2019 (FRS102)
- Make judgements and estimates that are reasonable and prudent
- State whether applicable accounting standards have been followed
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
Chapter are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Constitution and Statues. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **The Very Revd Matt Thompson Dean**
**Sue Davis**
**Ch**
_The Cathedral Church of St Philip Birmingham 55_
## **INDEPENDENT AUDITOR’S REPORT**
## **Independent Auditor’s Report to the Members of the Chapter of The Cathedral Church of St Philip Birmingham**
## **Opinion**
We have audited the financial statements of The Cathedral Church of St Philip Birmingham for the year ended 31 December 2025 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cashflows and notes to the financial statements, including 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 charity’s affairs as at 31 December 2025 and of its incoming resources and application of resources, including its income and expenditure 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 requirements of the Charities Act 2011.
## **Basis for opinion**
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 charity 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.
## **Material uncertainty relating to going concern**
We draw attention to note 1 in the financial statements on going concern which indicates that the charity has made an operational deficit on unrestricted funds and there is a residual deficit on unrestricted funds following the allocation of unapplied total return from endowment investments. Whilst forecasts show that the charity will have sufficient unrestricted funds to continue in operational existence for at least 12 months from the date of approval of these financial statements, note 1 sets out a number of external factors over which the charity has limited control. As stated in note 1, events, or conditions, along with the other matters as set forth in note 1, indicate that a material uncertainty exists that may cast significant doubt on the charity’s
_The Cathedral Church of St Philip Birmingham 56_
ability to continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that Chapter’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of Chapter with respect to going concern are described in the relevant sections of this report.
## **Other information**
Chapter are responsible for the other information contained within the annual report. 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 we do not express any form of assurance conclusion thereon.
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 this gives rise to a material misstatement in the financial statements themselves. 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 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:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit
## **Responsibilities of trustees**
As explained more fully in the Chapter’s responsibilities statement set out on page 55, the trustees are 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 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, Chapter are responsible for assessing the charity’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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
We have nothing to report in this regard.
**Matters on which we are required to report by exception**
## **Auditor’s responsibilities for the audit of the financial statements**
_The Cathedral Church of St Philip Birmingham 57_
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.
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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
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.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive
to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, including financial reporting legislation and the Charities SORP (FRS 102), the Charities Act 2011, relevant tax legislation, the Cathedral Measures 1999 and 2021 and the Care of Cathedrals Measure 2011. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be necessary to the charity’s ability to operate or to avoid a material penalty. Auditing standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of Chapter and other management and inspection of regulatory and legal correspondence, if any.
We also considered the opportunities and incentives that may exist within the charity for fraud. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within management override of controls. Our audit procedures to respond to these risks included enquiries of management, Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we
_The Cathedral Church of St Philip Birmingham 58_
have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.
## **Use of our report**
This report is made solely to the members of Chapter, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to 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 charity and Chapter as a body, for our audit work, for this report, or for the opinions we have formed.
## **Crowe U.K. LLP**
## Statutory Auditor
Black Country House, Rounds Green Road, Oldbury, West Midlands B69 2DG
## **Date:**
Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
_The Cathedral Church of St Philip Birmingham 59_
## **FINANCIAL STATEMENTS**
## **For the year ended 31 December 2025**
_The Cathedral Church of St Philip Birmingham 60_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
________________________________________________________________________________
|||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|**Total**|
|---|---|---|---|---|---|---|---|
||**Note**|**General**|**Designated**|**Funds**|**Funds**|**2025**|2024|
|||**£**|**£**|**£**|**£**|**£**|£|
|**Income & Endowments From:**||||||||
|Donations & legacies||175,746|-|6,100|-|**181,846**|145,464|
|Grants in support of mission||221,315|-|206,825|-|**428,140**|648,602|
|Charges and fees arising in the||4,131|-|167|-|**4,298**|3,945|
|course of mission||||||||
|Trading & fundraising||286,385|-|4,567|-|**290,952**|244,561|
|Income from property &||30,665||4,486|209,374|**244,525**|253,771|
|investments|||-||-|||
|Other income||26,546|-|-|-|**26,546**|-|
|||||||||
|**Total Income**|2,3|**744,788**|**-**|**222,145**|**209,374**|**1,176,307**|1,296,343|
|||||||||
|**Expenditure On:**||||||||
|Raising funds||216,214|-|27,368|32,239|**275,821**|288,830|
|Charitable activities:||||||||
|Ministry||492,821||184,717|-|**677,538**|625,983|
|Cathedral & precincts upkeep||326,219|-|32,419|-|**358,638**|468,545|
|Education & outreach||9|-|-|-|**9**|17,196|
|Community, parish &||136,470|-|20,884|-|**157,354**|162,153|
|congregation||||||||
|Other expenditure||2,389|-|(17)|-|**2,372**|2,624|
|||||||||
|**Total Expenditure**|4|**1,174,122**|**-**|**265,371**|**32,239**|**1,471,732**|1,565,331|
|||||||||
|**Net (outgoing)/ incoming**||**(429,334)**||**(43,226)**|**177,135**|**(295,425)**|(268,988)|
|**resources before**||||||||
|**(losses)/gains on**||||||||
|**investments**||||||||
|Other recognised gains/(losses)|||||||77,000|
|Net gains/ (losses) on|5,7|(2,320)|-|(723)|341,795|338,752|234,779|
|investments||||||||
|||||||||
|**Net (Expenditure)/Income**||**(431,654)**||**(43,949)**|**518,930**|**43,327**|42,791|
|||||||||
|Unapplied Total Returns (UTR)|14|**316,918**|||**(316,918)**|**-**|-|
|allocated to income for||||||||
|operations||||||||
|Transfers between funds|13|111,880||(55,580)|(56,300)|-|-|
|||||||||
|||||||||
|**Net movement in funds:**||**(2,856)**||**(99,529)**|**145,712**||42,791|
|||||||||
|Total Funds brought forward|13|76|-|386,645|7,672,348|8,059,069|8,016,278|
|||||||||
|Total Funds carried forward|13|**(2,780)**|**-**|**287,116**|**7,818,060**|**8,102,396**|8,059,069|
All activities derive from continuing activities. The notes on page 63 to 90 form part of these financial statements.
_The Cathedral Church of St Philip Birmingham 61_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
________________________________________________________________________________
|||**Total**|Total|
|---|---|---|---|
||**Note**|**2025**|2024|
|||**£**|£|
|**Fixed Assets:**||||
|**Investment Assets**||||
|Property|6|**1,550,000**|1,550,000|
|Investments|7|**4,778,105**|4,702,320|
|||||
|||**6,328,105**|6,252,320|
|||||
|**Tangible Fixed Assets**||||
|Property|8|**1,165,000**|1,165,000|
|Equipment and Office|9|**314,142**|316,265|
|Refurbishment||||
|||||
|**Total Fixed Assets**||**7,807,247**|7,733,585|
|||||
|**Current Assets**||||
|Debtors|11|**65,495**|157,113|
|Cash at bank and in hand||**373,522**|349,452|
|||||
|**Total Current Assets**||**439,017**|506,565|
|||||
|Creditors: Amounts falling due|12|(143,867)|(181,081)|
|within one year||||
|||||
|**Net Current Assets**||**295,149**|325,484|
|**Total Net Assets/(Liabilities)**||**8,102,396**|8,059,069|
|||||
|**The Funds of the Cathedral**||||
|Endowment Funds|13|**7,818,060**|7,672,348|
|Unrestricted Funds|13|**(2,780)**|76|
|Restricted Funds|13|**287,116**|386,645|
|||||
|**Total Funds**||**8,102,396**|8,059,069|
The notes on pages 63 to 90 form part of these financial statements.
The financial statements were approved by the Chapter and authorised for issue on 28 April 2026 and signed on their behalf by:
**The Very Revd Matt Thompson Sue Davis Dean**
**Chair of Finance and Risk Committee**
_The Cathedral Church of St Philip Birmingham 62_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
________________________________________________________________________________
||**Total**|Total|
|---|---|---|
||**2025**|2024|
||**£**|£|
|**Cash flows from operating activities:**|||
|Net cash used in operating activities (Note A)|**(447,740)**|(347,773)|
||||
|**Cash flows from investing activities:**|||
|Rents received|**96,220**|97,537|
|Investment income received|**148,305**|156,234|
|Purchase of property, plant & equipment|**(35,682)**|(86,153)|
|Proceeds from the sale of investments|**1,634,840**|653,715|
|Purchase of investments|**(1,371,873)**|(628,973)|
||||
|**Net cash provided by investing activities**|**471,810**|192,360|
||||
|**Cash flows from financing activities:**|||
|Repayments of borrowings|**-**|-|
||**___________**|___________|
|**Net cash provided by/(used in) financing activities**|**-**|-|
||||
|Change in cash & cash equivalents in the reporting period|**24,070**|(155,413)|
||||
|Cash & cash equivalents at 1 January|**349,452**|504,865|
||||
|**Cash & cash equivalents at 31 December**|**373,522**|349,452|
## **Note A: Reconciliation of net income / (expenditure) to net cash flow from operating activities**
||**2025**|2024|
|---|---|---|
||**£**|£|
|**Net income / (expenditure) for the reporting period**|**(295,425)**|(268,988)|
|Adjustments for:|||
|Depreciation charges|**37,805**|34,105|
|Income from property & investments|**(244,525)**|(253,771)|
|Decrease/ (increase) in debtors|**91,619**|82,255|
|(Decrease)/increase in creditors|**(37,214)**|(18,374)|
|Recognition of Pension Scheme Surplus|**-**|77,000|
||||
||**(152,315)**|(78,785)|
|**Net cash used in operating activities**|**(447,740)**|(347,773)|
## **Note B: Analysis of cash & cash equivalents**
||**2025**|2024|
|---|---|---|
||**£**|£|
|Cash in hand/at bank|**23,078**|22,289|
|Cash held on deposit|**350,444**|327,163|
||||
|**Total cash & cash equivalents**|**373,522**|349,452|
_The Cathedral Church of St Philip Birmingham 63_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
________________________________________________________________________________
## **Note C: Cash and cash equivalents and net debt comprise the following balances:**
||At 1
January
Cash flows
Other non-
cash
changes
At 31
December|
|---|---|
||£
£
£
£|
|||
|Cash at bank and in hand|349,452
24,070
-
373,522|
|Cash held with investment managers for
reinvestment|25,444
36,706
-
62,150|
|Total cash and cash equivalents|374,896
60,776
-
435,672|
|Bank loans falling due after one year|-
-
-|
|Total net cash|**374,896**
**-**
**435,672**|
Within cash held with investment managers for reinvestment, £62,150 (2024: £25,444) relates to the endowment fund, which is unavailable for use until it is applied to the income fund.
_The Cathedral Church of St Philip Birmingham 64_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **1. ACCOUNTING POLICIES**
## **Basis of accounting**
The financial statements are prepared in accordance with the Charities Act 2011, applicable accounting standards (FRS102) and the Charities SORP (FRS102).
The Cathedral meets the definition of a public benefit entity under FRS102.
The financial statements are prepared under the historical cost convention as modified by the revaluation of investments and certain properties.
## **Going Concern**
The Chapter assess whether the use of going concern is appropriate (i.e. whether there exist any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Cathedral to continue as a going concern). The Chapter make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.
For the year ended 31 December 2025, the Cathedral incurred an operational deficit on its unrestricted funds of £429,334 before the allocation of £316,918 of unapplied total returns from endowment investments.. After other recognised gains and transfers of funds, there was a deficit movement in unrestricted funds of £2,856 which resulted in the balance of unrestricted funds at the end of year being in deficit by £2,780. Chapter is acutely aware of the significant financial challenges this presents for the Cathedral. The underlying financial challenges facing the Cathedral are not unique to Birmingham, with all cathedrals across the country facing the same challenges in a difficult financial and economic landscape.
In considering the appropriateness of the continued use of the going concern basis of accounting for the Cathedral’s financial statements for the year ended 31 December 2025, the most significant events which have impacted on this assessment are:
- The ongoing cost of living crises and its impact on the ability of our visitors and congregation to contribute to the running costs of the Cathedral
- energy uncertainty and its effects on costs, prices and consumer confidence
- The increased demands on grant giving bodies that may impact our fundraising efforts
- The possible impact of global economic and political uncertainties on investment markets and our ability to access capital returns on our investment portfolio as a result.
Chapter has prepared a range of financial forecasts for the 2026 and 2027 years, covering a period at least 12 months from the date of approval of these financial statements. Whilst these forecasts show that the Cathedral will have sufficient unrestricted funds to continue in operational existence for at last 12 months from the date of approval of these financial statements, they do indicate that the Cathedral needs to continue to take active steps to manage its financial position and ensure its longer-term financial viability. This work is integral to our Strategic Plan 2026-2030 These steps include:. This includes:
- Continued Stewardship & Generosity engagement, especially with visitors
- Enhancing our event and outreach programme with further opportunities for income generation
- Strategic use of our Total Returns approach to our endowed assets
- Operating model and working practices transformation
- Embracing opportunities to deepen partnership working
- Working with our newly appointed fundraiser to execute our fundraising strategy
- Continuing engagement with Church Commissioners to support funding for one of England’s smallest cathedrals in the most deprived diocese in the country.
Based on these assessments, Chapter are satisfied the Cathedral will have sufficient unrestricted funds to continue in operational existence for at last 12 months from the date of approval of these financial statements and as such they continue to adopt the going concern basis of accounting in preparing the financial statements.
- The changes to Employer’s National Insurance in April 2025, alongside continuing
_The Cathedral Church of St Philip Birmingham 65_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **1. ACCOUNTING POLICIES (continued)**
The other principal accounting policies and estimation techniques are as follows:
## **Fund accounting:**
The Chapter maintains various types of funds as follows:
## _**Endowment funds:**_
Endowment funds represent grants, donations and legacies received where the donor has stipulated that the income may be used for general purposes, but the capital must be retained. The Chapter has elected to adopt a total return accounting policy in respect of the fiscal investments held at Brewin Dolphin
## _**Restricted funds:**_
Restricted funds represent grants, donations and legacies received which are allocated by the donor for specific purposes.
## _**Unrestricted funds:**_
Designated funds are amounts which have been put aside out of unrestricted funds at the discretion of the Chapter for specific purposes.
Undesignated funds represent unrestricted income which is expendable at the discretion of the Chapter in the furtherance of the objects of the Cathedral Chapter. Such funds may be held in order to finance both working capital and capital investment.
based on an external professional valuation every 5 years. In the interim period Chapter reviewed the carrying valuation of the properties for impairment by reference to the Nationwide House Prices Indices. Upon adoption of SORP 2019 (FRS 102) Chapter elected under the transitional rules to adopt the previous valuation of the properties as deemed cost. The properties are subject to a quinquennial maintenance programme and maintain a high residual value. Chapter review the carrying valuation of the properties for impairment by reference to the Nationwide House Prices Indices. Depreciation is not charged as the properties maintain a high residual value.
Depreciation of non-property assets is charged by equal annual instalments at rates estimated to write off their cost less any residual value over the expected useful life of the assets. For computer and office equipment this is 3 years. Larger items will be depreciated over the life of the asset, as assessed by Chapter members. Assets under construction are not depreciated until they are substantially complete and in use. Assets relating to the office refurbishment are depreciated over 20 years. The capitalisation policy is for assets over £500.
## **The Cathedral building and the inventory as heritage assets**
Under S24(1) of the Care of Cathedrals Measure 2011, Cathedrals are required to keep an inventory of items owned by the Cathedral that are of architectural, archaeological, artistic or historic interest. The Measure also issues strict guidelines about the acquisition and disposal of such assets.
## **Investment property and tangible fixed assets:**
In accordance with FRS 102 investments properties are carried at their fair value and this is considered by Chapter annually and the aggregate surplus or deficit is recognised in the Endowment Fund. The investment property was last professionally valued as at December 2022. No depreciation is provided on investment properties.
No value is attributed to these assets on the balance sheet in accordance with section 6.2 of the Accounting and reporting Regulations for English Anglican Cathedrals. The Chapter have further considered the requirements of FRS 102, which postdates the Regulations and are of the opinion that the policy is compliant with this standard on the basis that information on the historical cost of the assets is not available.
Non-investment properties relate to clergy housing. Previously these were carried at market value
_The Cathedral Church of St Philip Birmingham 66_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **1. ACCOUNTING POLICIES (continued)**
## **The Cathedral churchyard as a heritage asset**
The historic churchyard of St Philip’s is the Cathedral precinct under the Care of Cathedrals Measure 2011, and like the Cathedral building is of archaeological and historic interest. No value has been attributed in the balance sheet to the churchyard or any of the items that form part of it.
No value is attributed to these assets on the balance sheet in accordance with section 6.2 of the Accounting and Reporting Regulations for English Anglican Cathedrals. The Chapter have further considered the requirements of FRS 102, which postdates the Regulations and are of the opinion that the policy is compliant with this standard on the basis that information on the historical cost of the assets is not available.
## **Investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. Realised gains and losses are calculated as the difference between sales proceeds and their opening carrying value or purchase value if acquired subsequent to the first day of the financial year. Realised gains or losses are recognised in the Statement of Financial Activities when investments are sold. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.
The Cathedral does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the Cathedral is that of volatility in equity markets and investment markets due to wider economic conditions, the attitudes of investors to investment risk and changes in sentiment concerning equities and within particular sectors or subsectors.
unapplied total return that can be either retained for investment or released to income at the discretion of Chapter.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments within a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Creditors and provisions**
Creditors and provisions are recognised where the Cathedral has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Financial Instruments**
The Cathedral has elected to apply the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments” of FRS102 in full to all of its financial instruments. Trade debtors which are receivable within 1 year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost being the transaction price less any amounts settled and any impairment losses. Trade creditors payable within 1 year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less amounts settled.
## **Total return investment accounting**
The cathedral adopted a “total return basis for the investment of part of its permanent endowment with effect from 1 January 2025. The Cathedral can invest its permanent endowments without regard to the capital/income distinctions of standard trust law and with the discretion to apply any part of the accumulated total return on the investment as income for spending each year. Until this power id exercised, the total return is accumulated as a component of the endowment known as the
## **Income**
All income is recognised in the Statement of Financial Activities when the Cathedral has legal entitlement to the income, ultimate receipt is probable and the amount to be recognised can be quantified with reasonable accuracy. Where a claim for repayment of income tax has or will be made, such income is grossed up for the tax recoverable.
_The Cathedral Church of St Philip Birmingham 67_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **1. ACCOUNTING POLICIES (continued)**
## _Grant income:_
Grant income is recognised when the amount can be measured reliably and there is clear entitlement and certainty of receipt. Grants received which are subject to pre-conditions for entitlement or use specified by the donor which have not been met at year end are included in creditors.
## _Donations and legacies:_
Donations and legacies are recognised when the amount can be measured reliably and there is clear entitlement and certainty of receipt.
## _Rent and Investment income:_
Rent and investment income is accounted for when receivable. Fiscal investment income arising from the endowment fund is credited to the unapplied total return in the year in which the distribution is due.
## **Expenditure**
Liabilities are recognised as soon as there is a legal or constructive obligation committing the Cathedral to pay out resources, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following headings and all costs are allocated to a specific category.
## _Cost of Raising Funds:_
These are the costs of managing the Endowment, Restricted and Unrestricted funds in investments and properties.
_Ministry_ – these are the direct costs to order the worship and promote the mission of the Cathedral. These include the costs for the clergy employed by the Chapter, the costs of supporting their work across the city and diocese of Birmingham and the costs related to services, music and other Cathedral activities.
_Cathedral and precincts upkeep_ – these are the costs required to ensure the ongoing maintenance and upkeep of the Cathedral building and fabric.
_Education and outreach_ – these include costs associated with the Cathedral education programme of activities, including staff costs and payments to other local organisations and charities.
_Community, parish and congregation_ – these are the costs (including staff costs) associated with supporting the Cathedral’s work with its community, parish and congregation and the annual contribution to the Birmingham Diocesan Board of Finance in respect of Common Fund.
_Other expenditure_ – this includes bank charges, provisions against slow moving stocks or trade debtors as deemed necessary in the normal course of business.
Support Costs – these consist of central management, administration and governance costs. These are costs which are incurred directly in the support of charitable activities. They are allocated to categories of expenditure based on the proportion of staff time spent on each area of activity.
## _Charitable Activities:_
Expenditure on charitable activities includes the costs of activities undertaken to further the purposes of the Cathedral and their associated support costs as follows:
All expenditure is stated inclusive of any irrecoverable VAT.
_The Cathedral Church of St Philip Birmingham 68_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **1. ACCOUNTING POLICIES (continued)**
## **Redundancy and termination benefits**
Redundancy and termination benefits are recognised as soon as there is a legal or constructive obligation committing the Cathedral to pay out resources.
## **Value added tax**
The Cathedral recovers 45% of all VAT paid, subject to the current partial exemption rules. VAT is charged at full rate on all vatable sales.
## **Pensions**
The Cathedral contributes to the Church Workers Pension Fund for lay staff. Contributions to the Church of England Funded Pension Scheme for the Cathedral clergy are fully funded by the (Section 21) grant receivable from the Church Commissioners. Both these schemes are multiemployer pension schemes.
The pension costs charged as expenditure represent the Cathedral’s contributions payable in respect of the accounting period, in accordance with FRS 102. Deficit funding for the lay worker pension scheme to which the Cathedral participates is accrued at current value in creditors distinguishing between contributions falling due within one year and after more than one year. Details of the scheme are given in note 16 to the financial statements.
Deficit funding in respect of the clergy in the Church of England Funded Pension Scheme is fully met by the Church Commissioners and hence the deficit funding liability is included in the financial statements of the Church Commissioners who have responsibility for this liability.
## **Critical accounting estimates and areas of**
## **judgement**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenses during the year.
## _Accounting estimates_
The Cathedral makes estimates and assumptions concerning the future. The resulting accounting
estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
## _Valuation of investment property_
The Cathedral carries its investment property at fair value, with changes in fair value being recognised in the Statement of Financial Activities. The Cathedral engaged independent valuation specialists to determine fair value at 31 December 2022, this valuation was reviewed by The Cathedral at 31 December 2025 and it was determined that there was not a material movement in the valuation. Some of the key assumptions used to determine the fair value of these assets are based on the valuer’s knowledge and experience of the market and values of similar properties, which could be deemed subjective.
## _Assumptions surrounding the Church Workers Pension Scheme_
The Cathedral contributes to the Church Workers Pension Fund for other staff. Although this scheme is a multi-employer pension scheme, as required under FRS 102, the Cathedral recognises its agreed deficit funding liabilities on its balance sheet. The key actuarial assumptions that underpin the required deficit funding contributions liability are based on the actuary’s knowledge and experience. Any changes in these assumptions as given in note 17 could have a significant impact on the required deficit funding contributions and resulting balance sheet liability.
## _Area of judgement_
## _Non-deprecation of freehold properties_
Depreciation is not provided on buildings because their expected residual values are not materially less than their carrying values.
All estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
_The Cathedral Church of St Philip Birmingham 69_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **2. Income and Endowments from:**
|||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|Total|
|---|---|---|---|---|---|---|---|
|||**General**|**Designated**|**Funds**|**Funds**|**2025**|2024|
|||**£**|**£**|**£**|**£**|**£**|£|
|**Donations & Legacies**||||||||
|Congregational||78,077||2,605||**80,682**||
|collections and giving|||-||-||**72,308**|
|Donations||75,176|-|2,896|-|**78,072**|**56,845**|
|Tax recoverable under||20,493|-|599||**21,092**|**11,527**|
|gift aid|||||-|||
|Legacies||2,000|-|-|-|**2,000**|**4,784**|
|||||||||
|||**175,746**|**-**|**6,100**|**-**|**181,846**|**145,464**|
|**Grants in support of**||||||||
|**mission**||||||||
|Church||206,797|-|175,032|-|**381,829**|**397,039**|
|Commissioners||||||||
|Archbishops Council||-||14,546||**14,546**||
|Benefact Group||-|-|15,803|-|**15,803**|**18,813**|
|National Heritage||-|-|(43,070)|-|**(43,070)**|**85,392**|
|Lottery||||||||
|Other Grants||14,518|-|44,514|-|**59,032**|**147,358**|
|||||||||
|||**221,315**|**-**|**206,825**|**-**|**428,140**|**648,602**|
|The Cathedral in 2025|received £30,487||in grant income from the UK Government’s|||Listed Places of Worship||
|Grant Scheme (2024: £136,713).||||||||
|**Charges & fees**||||||||
|**arising in the course**||||||||
|**of mission**||||||||
|Facility and other fees||**4,131**|**-**|**167**|**-**|**4,298**|**3,945**|
|**Trading &**||||||||
|**fundraising activities**||||||||
|Income from lettings of||252,128|-|770|-|**252,898**|**237,442**|
|Cathedral/churchyard||||||||
|Gross income from||34,257|-|3,797|-|**38,054**|**7,119**|
|other activities||||||||
|||||||||
|||**286,385**|**-**|**4,567**|**-**|**290,952**|**244,561**|
|**Income from**||||||||
|**property and**||||||||
|**investments**||||||||
|Property||26,220|-|-|70,000|**96,220**|**97,537**|
|Investments||1,294|-|3,695|139,374|**144,363**|**148,727**|
|Interest receivable on||||||||
|short term deposits||3,151|-|791|-|**3,942**|**7,507**|
|||||||||
|||**30,665**|**-**|**4,486**|**209,374**|**244,525**|**253,771**|
|**Other income**||||||||
|Other items||26,546|-|-|-|**26,546**|**-**|
_The Cathedral Church of St Philip Birmingham 70_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## _Prior Year Comparatives_ :
||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|Total|
|---|---|---|---|---|---|---|
||**General**|**Designated**|**Funds**|**Funds**|**2024**|2023|
||**£**|**£**|**£**|**£**|**£**|£|
|**Donations & Legacies**|||||||
|Congregational|||||||
|collections and giving|69,388|-|2,920|-|**72,308**|60,775|
|Donations|55,780|-|1,065|-|**56,845**|52,115|
|Tax recoverable under|10,889|-|638||**11,527**||
|gift aid||||-||18,882|
|Legacies|4,784|-|-|-|**4,784**|37,000|
||||||||
||**140,841**|**-**|**4,623**||**145,464**|168,772|
|**Grants in support of**|||||||
|**mission**|||||||
|Church|224,229|-|172,810|-|**397,039**|416,399|
|Commissioners|||||||
|Benefact Group|18,813|-|-|-|**18,813**|21,875|
|National Heritage||-|85,392|-|**85,392**|1,000|
|Lottery|||||||
|Other Grants|1,719|-|145,639|-|**147,358**|23,201|
||||||||
||**244,761**|**-**|**403,841**|**-**|**648,602**|462,475|
The Cathedral in 2024 received £ 136,713 in grant income from the UK Government’s Listed Places of Worship Grant Scheme (2023:£15,750).
|**Charges & fees**
**arising in the course**
**of mission**
Facility and other fees
**3,705**
**-**
**240**
**-**
**3,945**
2,496
**Trading &**
**fundraising activities**
Income from lettings of
Cathedral/churchyard
237,442
-
-
-
**237,442**
182,199
Gross income from
other activities
318
-
6,801
-
**7,119**
3,461
**237,760**
**-**
**6,801**
**-**
**244,561**
185,660
**Income from**
**property and**
**investments**
Property
97,537
-
-
-
**97,537**
100,520
Investments
145,173
-
3,554
-
**148,727**
167,970
Interest receivable on
short term deposits
6,611
-
896
-
**7,507**
3,055
**249,321**
**-**
**4,450**
**-**
**253,771**
271,545
**Other income**
Other items
-
-
-
-
**-**
5,050|**Charges & fees**
**arising in the course**
**of mission**
Facility and other fees
**3,705**
**-**
**240**
**-**
**3,945**
2,496
**Trading &**
**fundraising activities**
Income from lettings of
Cathedral/churchyard
237,442
-
-
-
**237,442**
182,199
Gross income from
other activities
318
-
6,801
-
**7,119**
3,461
**237,760**
**-**
**6,801**
**-**
**244,561**
185,660
**Income from**
**property and**
**investments**
Property
97,537
-
-
-
**97,537**
100,520
Investments
145,173
-
3,554
-
**148,727**
167,970
Interest receivable on
short term deposits
6,611
-
896
-
**7,507**
3,055
**249,321**
**-**
**4,450**
**-**
**253,771**
271,545
**Other income**
Other items
-
-
-
-
**-**
5,050|
|---|---|
|||
|||
|||
||Property
97,537
-
-
-
**97,537**
100,520|
||Investments
145,173
-
3,554
-
**148,727**
167,970|
||Interest receivable on
short term deposits
6,611
-
896
-
**7,507**
3,055|
|||
||**249,321**
**-**
**4,450**
**-**
**253,771**
271,545|
||**Other income**|
||Other items
-
-
-
-
**-**
5,050|
_The Cathedral Church of St Philip Birmingham 71_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **Property Income**
||**Nursery**|**St Philip’s**|**Total**|**Total**|
|---|---|---|---|---|
||**Drive**|**House**|**2025**|2024|
||**£**|**£**|**£**|£|
|Rents and Service Charges|26,220|70,000|**96,220**|97,537|
||||||
|Less: Charges|(2,879)|(4,800)|**(7,679)**|(12,314)|
||||||
||23,341|65,200|**88,541**|85,223|
The freehold of St Philip’s House, St Philip’s Place, is subject to a lease for one hundred and twenty-five years from 10 February 2022.
_Prior Year Comparatives:_
||**Nursery**|**St Philip’s**|**Total**|
|---|---|---|---|
||**Drive**|**House**|**2024**|
||**£**|**£**|**£**|
|Rents and Service Charges|27,537|70,000|97,537|
|||||
|Less: Charges|(2,565)|(9,749)|(12,314)|
|||||
||24,972|60,251|85,223|
## **3. Expenditure on:**
||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|Total|
|---|---|---|---|---|---|---|
||**General**|**Designated**|**Funds**|**Funds**|**2025**|2024|
||**£**|**£**|**£**|**£**|**£**|£|
|**Raising**|||||||
|**Funds**|||||||
|Cost of|||||||
|services|47,059|-|-|-|**47,059**|36,045|
|directly|||||||
|recoverable|||||||
|Gross cost of|||||||
|shop and|70|-|-|-|**70**|64|
|other|||||||
|activities|||||||
|General|2,494|-|-|-|**2,494**|6,990|
|marketing|||||||
|costs|||||||
|Cost of|1,292|-|12,147|-|**13,439**|4,434|
|fundraising|||||||
|Investment|||||||
|property|-|-|-|4,800|**4,800**|9,749|
|costs|||||||
|Investment|||||||
|management|
-|-|-|27,439|**27,439**|28,004|
|costs|||||||
|Property|2,879|-|-|-|**2,879**|2,565|
|Costs|||||||
|Support|162,420|-|15,221|-|**177,641**|200,979|
|costs|||||||
||||||||
||**216,214**|**-**|**27,368**|**32,239**|**275,821**|288,830|
_The Cathedral Church of St Philip Birmingham 72_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **4. Expenditure on (continued):**
|||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|Total|
|---|---|---|---|---|---|---|---|
|||**General**|**Designated**|**Funds**|**Funds**|**2025**|2024|
|||**£**|**£**|**£**|**£**|**£**|£|
|**Ministry**||||||||
|**Costs**||||||||
|Clergy||||||||
|stipends and||9,056|-|138,077|-|**147,133**|123,480|
|expenses||||||||
|Clergy||39,670|-|-|-|**39,670**|34,635|
|housing costs||||||||
|Clergy||4,269|-|15,826|-|**20,095**|5,096|
|support costs||||||||
|Service costs||72,916|-|5,001|-|**77,917**|63,759|
|Music costs||226,096|-|15,490|-|**241,586**|221,600|
|Support costs||
140,814|-|10,323|-|**151,137**|177,413|
|||||||||
|||**492,821**|**-**|**184,717**|**-**|**677,538**|625,983|
|**Cathedral &**||||||||
|**precincts**||||||||
|**upkeep**||||||||
|Maintenance||||||||
|& interior||238,617|-|30,355|-|**268,972**|363,827|
|upkeep||||||||
|Cathedral||34,530|-||-|**34,530**|38,664|
|insurance||||||||
|Support costs||
53,072|-|2,064|-|**55,136**|66,054|
|||||||||
|||**326,219**|**-**|**32,419**|**-**|**358,638**|468,545|
|**Education**||||||||
|**and**||||||||
|**Outreach**||||||||
|Educational||9|-|-|-|**9**|17,196|
|activities||||||||
|||||||||
|||**9**|**-**|**-**|**-**|**9**|17,196|
|**Community,**||||||||
|**parish**|**&**|||||||
|**congregation**||||||||
|Diocese||61,205|-|13,923|-|**75,128**|70,902|
|Events||587|-|-|-|**587**|1,631|
|Support costs||74,678|-|6,961|-|**81,639**|89,620|
|||||||||
|||**136,470**|**-**|**20,884**|**-**|**157,354**|162,153|
|**Other**||||||||
|**Expenditure**||||||||
|Interest &||||||||
|similar||2,389|-|(17)|-|**2,372**|2,624|
|charges||||||||
|payable||||||||
|||||||||
|||**2,389**|**-**|**(17)**|**-**|**2,372**|2,624|
_The Cathedral Church of St Philip Birmingham 73_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **4. Expenditure on (continued):**
## **ANALYSIS OF SUPPORT COSTS:**
||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|Total|
|---|---|---|---|---|---|---|
||**General**|**Designated**|**Funds**|**Funds**|**2025**|2024|
||**£**|**£**|**£**|**£**|**£**|£|
|**Support Costs**|||||||
|Raising funds|162,420|-|15,221|-|**177,641**|200,979|
|Ministry|140,814|-|10,323|-|**151,137**|177,413|
|Cathedral & precincts|53,072|-|2,064|-|**55,136**|66,054|
|upkeep|||||||
|Community, parish &|74,678|-|6,961|-|**81,639**|89,620|
|congregation|||||||
||||||||
||**430,984**|**-**|**34,569**|**-**|**465,553**|534,066|
|**Analysis**|||||||
|Office rent||-|-|-||2,250|
|Office running costs|109,071|-|6,724|-|**115,795**|154,255|
|Staffing costs|298,713|-|27,845|-|**326,558**|358,481|
|Governance –|23,200|-|-|-|**23,200**|19,080|
|Auditor’s fees|||||||
||||||||
||**430,984**|**-**|**34,569**|**-**|**465,553**|534,066|
_Prior Year 2024 Comparatives:_
||||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|
|---|---|---|---|---|---|---|---|
||||**General**|**Designated**|**Funds**|**Funds**|**2024**|
||||**£**|**£**|**£**|**£**|**£**|
||Raising|||||||
||Funds|||||||
||Cost of|||||||
||services||36,045|-|-|-|36,045|
||directly|||||||
||recoverable|||||||
||Gross cost of|||||||
||shop and||64|-|-|-|64|
||other|||||||
||activities|||||||
||General||6,990|-|-|-|6,990|
||marketing|||||||
||costs|||||||
||Cost of||4,434|-|-|-|4,434|
||fundraising|||||||
||Investment|||||||
||property||9,749|-|-|-|9,749|
||costs|||||||
||Investment|||||||
||management||-|-|-|28,004|28,004|
||costs|||||||
||Property||2,565|-|-|-|2,565|
||Costs|||||||
||Support||181,972|-|19,007|-|200,979|
||costs|||||||
|||||||||
||||241,819|-|19,007|28,004|288,830|
_The Cathedral Church of St Philip Birmingham 74_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
|||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|
|---|---|---|---|---|---|---|
|||**General**|**Designated**|**Funds**|**Funds**|**2024**|
|||**£**|**£**|**£**|**£**|**£**|
|**Ministry**|||||||
|**Costs**|||||||
|Clergy|||||||
|stipends and||5,074|-|118,406|-|123,480|
|expenses|||||||
|Clergy||34,635|-|-|-|34,635|
|housing|||||||
|costs|||||||
|Clergy||3,047|-|2,049|-|5,096|
|support costs|||||||
|Service costs||60,107|-|3,652|-|63,759|
|Music costs||211,782|-|9,818|-|221,600|
|Support||160,645|-|16,768|-|177,413|
|costs|||||||
||||||||
|||475,290|-|150,693|-|625,983|
|**Cathedral &**|||||||
|**precincts**|||||||
|**upkeep**|||||||
|Maintenance|||||||
|& interior||259,813|-|104,014|-|363,827|
|upkeep|||||||
|Cathedral||38,664|-|-|-|38,664|
|insurance|||||||
|Support||57,127|-|8,927|-|66,054|
|costs|||||||
||||||||
|||355,604|-|112,941|-|468,545|
|**Education**|||||||
|**and**|||||||
|**Outreach**|||||||
|Educational||17,196|-|-|-|17,196|
|activities|||||||
||||||||
|||17,196|-|-|-|17,196|
|**Community,**|||||||
|**parish**|**&**||||||
|**congregation**|||||||
|Diocese||70,902|-|-|-|70,902|
|Events||941|-|690|-|1,631|
|Support costs||78,453|-|11,167|-|89,620|
|||150,296|-|11,857|-|162,153|
|**Other**|||||||
|**Expenditure**|||||||
|Interest &|||||||
|similar||2,588|-|36|-|2,624|
|charges|||||||
|payable|||||||
||||||||
|||2,588|-|36|-|2,624|
_The Cathedral Church of St Philip Birmingham 75_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|
|---|---|---|---|---|---|
||**General**|**Designated**|**Funds**|**Funds**|**2024**|
||**£**|**£**|**£**|**£**|**£**|
|**Support Costs**||||||
|Raising funds|181,972|-|19,007|-|200,979|
|Ministry|160,645|-|16,768|-|177,413|
|Cathedral & precincts|57,127||8,927||66,054|
|upkeep||-||-||
|Community, parish &||||||
|congregation|78,453|-|11,167|-|89,620|
|||||||
||478,197|-|55,869|-|534,066|
|**Analysis**||||||
|Office rent|2,250|-|-|-|2,250|
|Office running costs|143,052|-|11,203|-|154,255|
|Staffing costs|313,815|-|44,666|-|358,481|
|Governance –|19,080|-|-|-|19,080|
|Auditor’s fees||||||
|||||||
||478,197|-|55,869|-|534,066|
## **5. Investment income and losses**
||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|Total|
|---|---|---|---|---|---|---|
||**General**|**Designated**|**Funds**|**Funds**|**2025**|2024|
||**£**|**£**|**£**|**£**|**£**|£|
|Dividends receivable|1,294|-|3,695|139,374|**144,363**|148,727|
|Interest receivable|3,151|-|791|-|**3,942**|7,507|
|Property income|26,220|-|-|70,000|**96,220**|97,537|
||||||||
||**30,665**|**-**|**4,486**|**209,374**|**244,525**|253,771|
|Realised|405|-|-|47,793|**48,198**|2,090|
|(losses)/gains|||||||
|Unrealised|(2,725)|-|(723)|294,002|**290,554**|232,689|
|(losses)/gains|||||||
||||||||
||(2,320)|-|(723)|341,795|**338,752**|234,779|
||||||||
|Total income & losses|
**28,345**|**-**|**3,763**|**551,169**|**583,277**|488,550|
_Prior Year Comparatives:_
||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|
|---|---|---|---|---|---|
||**General**|**Designated**|**Funds**|**Funds**|**2024**|
||**£**|**£**|**£**|**£**|**£**|
|Dividends receivable|145,173|-|3,554|-|148,727|
|Interest receivable|6,611|-|896|-|7,507|
|Property income|97,537|-|-|-|97,537|
|||||||
||249,321|-|4,450|-|253,771|
_The Cathedral Church of St Philip Birmingham 76_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
|Realised|-|-|-|2,090|2,090|
|---|---|---|---|---|---|
|(losses)/gains||||||
|Unrealised|1,688|-|289|230,712|232,689|
|(losses)/gains||||||
|||||||
||1,688|-|289|232,802|234,779|
|||||||
|Total income & losses|
251,009|-|4,739|232,802|488,550|
## **6. Investment property**
||**Unrestricted**|**Restricted**|
**Endowment**|**Total**|
|---|---|---|---|---|
||**Funds**|**Funds**|**Funds**|**Funds**|
||**£**|**£**|**£**|**£**|
|At valuation: 1 January 2025|-|-|1,550,000|**1,550,000**|
|Change in market value|-|-|-|**-**|
||||||
|At valuation: 31 December 2025|-|-|
1,550,000|**1,550,000**|
The Endowment Fund represents the freehold of St Philip’s House, St Philip’s Place which is subject to a lease of one hundred and twenty-five years from 10 February 2022. The investment property was professionally valued by Richard Connolly BSc MRICS of CBRE Ltd as at 31 December 2022.
## **7. Investments**
||**Unrestricted**|**Restricted**|**Endowment**|
**Total Funds**|
|---|---|---|---|---|
||**Funds**|**Funds**|**Funds**||
||**£**|**£**|**£**|**£**|
|Investments at 1 January 2025|70,468|80,451|4,551,401|
**4,702,320**|
|Purchases|-|-|1,371,873|
**1,371,873**|
|Sales|(56,339)|-|(1,578,501)|
**(1,634,840)**|
|Transfer|5,198||(5,198)|
**-**|
|Change in market value|(2,320)|(723)|341,795|
**338,752**|
||||||
|Investments at 31 December 2025|**17,007**|**79,728**|**4,681,370**|**4,778,105**|
|Investments are categorised as follows:|||||
|Listed investments|**-**|**12,371**|**4,619,220**|**4,631,591**|
|Unlisted investments|**17,007**|**67,357**|**62,150**|**146,514**|
||||||
||**17,007**|**79,728**|**4,681,370**|**4,778,105**|
Unlisted investments consist of freely marketable shares in The Central Board of Finance Investment Funds and COIF administered by the CCLA Fund Managers. The investment transactional costs for the year were £27,439 (2024: £28,004). The historical cost of the investments held with Brewin Dolphin is £876,485 (2024: £876,485). The historical cost of the investments at CCLA Fund Managers is unknown.
_The Cathedral Church of St Philip Birmingham 77_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **8. Fixed assets - Property**
||**Unrestricted**|**Restricted**|**Endowment**|
**Total Funds**|**Total Funds**|
|---|---|---|---|---|---|
||**Funds**|**Funds**|**Funds**|**2025**|**2024**|
||**£**|**£**|**£**||**£**|
|Deemed cost at 1 January 2025||||||
|and 31 December 2025|-|-|1,165,000|
**1,165,000**|1,165,000|
|All fixed asset properties are|freehold and used as follows:|||||
||||**2025**|**2024**||
||||**£**|**£**||
|**For Cathedral use:**||||||
|38 GoodbyRoad|||**575,000**|
575,000||
|4 NurseryDrive|||**295,000**|
295,000||
|12 NurseryDrive|||**295,000**|
295,000||
|||||||
||||**1,165,000**|
1,165,000||
The properties are for the use of the clergy of the Cathedral. The occupiers are provided with this accommodation rent free to enable them to perform their duties. Where properties are not required for use of the clergy of the Cathedral, they are rented out to other parties on a short-term basis.
## **9. Fixed assets – equipment and office refurbishment**
||**Unrestricted**|**Restricted**|
**Endowment**|**Total**|
|---|---|---|---|---|
||**Funds**|**Funds**|**Funds**|**Funds**|
||**£**|**£**|**£**|**£**|
|**Cost**|||||
|At 1 January 2025|379,662|27,466|
-|407,128|
|Additions|27,282|8,400|
-|35,682|
|As 31 December 2025|**406,944**|**35,865**|**-**||
|**Accumulated depreciation**|||||
|At 1 January 2025|82,448|8,415|
-|90,863|
|Depreciation charge for the year|32,832|4,973|
-|37,805|
||||||
|At 31 December 2025|**115,280**|**13,388**|**-**|**128,668**|
|**Net book value**|||||
|At 31 December 2025|**291,664**|**22,478**|**-**|**314,142**|
||||||
|As 31 December 2024|297,214|19,051|
-|316,265|
## **10. Employees and office holders**
The average monthly number of employees during the year was as follows **:**
||**2025**|2024|
|---|---|---|
|Clergy|**4**|
4|
|Vergers|**7**|
7|
|Music & services|**13**|
13|
|Administration|**11**|
11|
||||
||**35**|
35|
_The Cathedral Church of St Philip Birmingham 78_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **10. Employees and office holders (continued):**
**Average number of full-time equivalent staff:**
||**2025**|2024|
|---|---|---|
|Clergy|**4**|
3|
|Vergers|**5**|
5|
|Music & services|**4**|
4|
|Administration|**8**|
10|
||||
||**21**|
22|
Employee and office holder costs during the year were as follows **:**
||**2025**|**2024**|
|---|---|---|
||£|
£|
|Salaries & Stipends|**757,227**|
706,927|
|Employer’s National Insurance|**71,942**|
52,479|
|Employer’s Pension Contributions|**68,850**|
64,879|
|Redundancy & Termination|**-**|
25,000|
|Payments|||
|Employer’s ApprenticeshipLevy|**550**|
462|
||||
|Total Costs|**898,569**|
849,747|
No member of staff was paid in excess of £60,000 in the year ended 31 December 2025 (2024: one member of staff was paid in the banding of £80,000 - £90,000 for the year).
## **Remuneration of key management personnel**
Key management personnel are considered to be those having authority and responsibility delegated to them by Chapter for planning, directing and controlling the activities of the Cathedral. During 2025 they were:
The Dean The Very Reverend Matt Thompson Canon Precentor The Revd Canon Nathan Mulcock (from 2 March 2025) Canon Missioner The Revd Canon Andy Delmege Chief Operating Officer Anna Pitt (until 31 January 2025) Chief Operating Officer Michael Ball (from 15 September 2025) Chief Finance Officer Melanie Crooks (from 1 January 2025)
The total remuneration, employer pension contributions, employer National Insurance contributions and expenses for these six people for the year amounted to £199,842 (2024: £217,337 for four people).
## **Remuneration to members of Chapter**
Included within staff costs are payments to members of Chapter under the Cathedrals Measure 1999 and the Cathedral constitution. 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. No supplement to these scales is paid. These payments are set out below:
_The Cathedral Church of St Philip Birmingham 79_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
|||||**Employer’s**|
|---|---|---|---|---|
||**Salaries &**|**Employer’s**|**Employer’s**|**Apprenticeship**|
||**Stipends**|**National**|**Pension**|**Levy**|
|||**Insurance**|**Contributions**|**Contributions**|
||**£**|**£**|**£**|**£**|
|Remuneration of members of Chapter|||||
|The Very Revd Matt Thompson|43,303|5,202|8,006|207|
|The Revd Canon Nathan Mulcock (from 2|
27,602|4,650|5,289|178|
|March 2025)|||||
|The Revd Canon Andy Delmege|33,081|3,988|6,405|165|
||||||
||103,986|13,840|19,700|550|
The Very Revd Matt Thompson and The Revd Canon Andy Delmege were also provided with the use of a house free of rent and council tax in furtherance of their duties. The Archbishop’s Council has estimated the value to the occupier, gross of income tax and national insurance of church provided housing in 2025 to be £27,370 (2024: £23,300). The Revd Canon Nathan Mulcock was provided with a housing allowance £11,567 and a resettlement allowance of £3,235.
No remuneration was paid to lay members of Chapter in their capacity as Chapter members. Reimbursement of expenses incurred relating to altar supplies and travel costs totalling £787 (2024: £40) was paid in total to 2 (2024:1) member of Chapter during the year. Clergy Chapter members had no expense reimbursement for their role as members of Chapter, only in their Office holder position.
## **11. Debtors**
|||Restated|
|---|---|---|
||**2025**|2024|
||**£**|£|
|Trade debtors|**36,567**|13,352|
|Other debtors|**5,164**|28,660|
|Accrued income|**15,042**|108,260|
|Prepayments|**8,722**|6,841|
||||
||**65,495**|157,113|
Included within other debtors is £802 employer surplus contributions (2024: £26,979) in relation to the Church Workers Pension Scheme (Defined Benefit Section).This is being utilized towards employer pension contributions into the Pension Builder 1994 section over 2024 and 2025 (see note 16). The 2024 restatement relates to an amendment in the analysis of debtors.
## **12. Creditors: Amounts falling due within one year**
||||Restated|
|---|---|---|---|
|||**2025**|2024|
|||**£**|£|
||Trade creditors|**17,269**|24,037|
||Other creditors (including Social Security and other taxes)|**42,218**|42,625|
||Deferred income|**35,000**|35,000|
||Accruals|**50,380**|79,419|
|||||
|||**143,867**|181,081|
The 2024 restatement relates to an amendment in the analysis of creditors.
_The Cathedral Church of St Philip Birmingham 80_
**13. Movements in funds**
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
||**Balance**
**b/f at**
**1.1.2025**
**Income**
**Expenditure**
**Capital**
**movements**
**Transfers**
**Balance c/f**
**At**
**31.12.2025**|
|---|---|
||**£**
**£**
**£**
**£**
**£**
**£**|
|||
||**Restricted Funds**|
||Mission & Development Fund
**67**
261
(66)
-
-
**262**|
||Altar Linen Fund
**300**
-
-
-
-
**300**|
||Belliss Fund
**1,207**
55
-
-
-
**1,262**|
||Choir Tours Fund
**-**
1,288
(4,178)
-
2,890
**-**|
||Music Fund
**17,059**
4,080
(3,870)
-
**17,269**|
||Chorister Hardship Fund
**6,137**
-
(3)
-
-
**6,134**|
||St Philip’s Singers Fund
**985**
-
-
-
-
**985**|
||FCM Song School
**9,788**
602
(3,600)
187
-
**6,977**|
||Flower Fund
**796**
2,706
(3,782)
280
**-**|
||Harridine Bequest
**32,803**
785
(1,137)
-
**32,451**|
||Net Zero
**500**
-
-
-
**500**|
||Arts–Measure of Us
**624**
-
(624)
**-**|
||Arts–Something Good
**403**
-
(403)
**-**|
||Tercentenary Pilgrimages Fund
**1,428**
-
-
**1,428**|
||The Provost’s Book Fund
**4,388**
199
-
-
-
**4,587**|
||FCM Music Trust Fund
**22,531**
851
(2,402)
-
-
**20,980**|
||Howlett Bequest
**3,966**
151
-
-
**4,117**|
||Bells Restoration Fund
**57,306**
-
-
**57,306**|
||Bulbs
**544**
-
-
**544**|
||Divine Beauty
**122,747**
(27,102)
(34,232)*
-
(61,413)
**-**|
||Sound Equipment
**806**
-
-
**806**|
||Nativity Figures
**250**
16,760
(17,250)
-
1,027
**787**|
||Arts Council-Porch Window
**47**
-
-
**47**|
||Church Commissioners Stipends
152,000
(152,000)
-
-
**-**|
||Church Commissioners CSF1
**-**
11,756
(14,419)
-
2,663
-
**-**|
||Church Commissioners -CSF3
**-**
25,822
(25,369)
-
-
**453**|
||Benefact-General
**-**
15,803
-
-
-
**15,803**|
||Archbishops Council – Trauma
Project
**-**
14,546
-
-
-
**14,546**|
||Fundraising campaign:|
||Mission Fund
**13,027**
(2,400)
-
-
**10,627**|
||Music Fund
**17,202**
-
**17,202**|
||Music Endowment
**71,417**
1,582
(1,800)
227
-
**71,426**|
||Other
**317**
-
-
-
-
**317**|
|||
||**386,645**
**222,145**
(265,371)
**(723)**
(55,580)
**287,116**|
_The Cathedral Church of St Philip Birmingham 81_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **13. Movements in funds (continued)**
||**Balance**|||||**Balance c/f**|
|---|---|---|---|---|---|---|
||**b/f at**|||**Capital**||**At**|
||**1.1.2025**|**Income**|**Expenditure**|**movements**|**Transfers**|**31.12.2025**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Unrestricted Funds**|||||||
|General unrestricted fund|**76**|744,788|(1,174,122)|(2,320)|428,798|**(2,780)**|
||||||||
||**76**|744,788|(1,174,122))|(2,320)|428,798|**(2,780)**|
|**Endowment Funds**|Restated||||||
|General Endowment Fund -fiscal|**3,938,395**|-|-|-|146,508|**4,084,903**|
|investments|||||||
|General Endowment Fund –|**582,364**|139,374|(27,439)|341,795|(463,426)|**572,668**|
|Unapplied Total Return on fiscal|||||||
|investments|||||||
|General Endowment Fund -|**3,151,589**|70,000|(4,800)|-|(56,300)|**3,160,489**|
|Other|||||||
||||||||
||**7,672,348**|**209,374**|(32,239)|341,795|(373,218)|**7,818,060**|
The Chapter adopted a Total Return accounting approach with effect from 1 January 2025 with respect to the fiscal investment element of its Endowment Fund. The Endowment Fund balance at 1 January 2025 has been restated to show the sub analysis of the total endowment fund.
‘*Included within the Divine Beauty restricted fund in year movement is a reduction adjustment (£43,070) to the entitled grant income as at 1 January 2025 following completion of the project
Details of the inter-fund transfers in the year are as follows:
|||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|
|---|---|---|---|---|---|
|||**General**|**Designated**|**Funds**|**Funds**|
|||**£**|**£**|**£**|**£**|
|Income (UTR) from Endowment Fund to||316,918|||(316,918)|
|General Fund|1|||-||
|Investment property income (not UTR)|2|70,000|||(70,000)|
|from Endowment Fund to General Fund||||-||
|Balance on Divine Beauty Fund returned|3|42,515||(61,413)|18,898|
|to General Fund and Endowment Fund||||||
|Expenditure on Flowers funded from|4|(280)||280||
|General Fund||||||
|Expenditure on CSF1 project from|5|(2,663)||2,663||
|General Fund||||||
|Expenditure on Choir Tour funded from|6|(2,890)||2,890||
|General Fund||||||
|Transfer CCLA investment from|7|5,198|||(5,198)|
|Endowment Fund to General Fund||||||
|Balance on ACE Measure of Us Project to|8|||(624)||
|Nativity Figures Fund||||624||
|Balance on ACE Something Good project|9|||(403)||
|to Nativity Figure Fund||||403||
|||||||
|||428,798||(55,580)|(373,218)|
1. This represents the support of the unapplied total returns (UTR) in the Endowment Fund towards operating
- expenditure within the General Fund
2. This represents the support of investment property income in the Endowment Fund towards operating expenditure within the General Fund.
3. This represents the balance on the completed Divine Beauty Fund being returned to the General and Endowment
- Funds as previously allocated to support the project working capital in 2023
4. This represents the support of the General Fund towards the expenditure on Flower Fund activities which exceeded
- the funding available.
5. This represents the support of the General Fund towards the expenditure on CSF1 project Fund activities which
- exceeded the funding available.
6. This represents the support of the General Fund towards the expenditure on Choirs Tours Fund activities which
- exceeded the funding available.
_The Cathedral Church of St Philip Birmingham 82_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
7. This represents a reclassification to correct a historical incorrect treatment of a CCLA investment fund as Endowment Fund when it was Unrestricted General Fund monies.
8. This represents the transfer of the final Arts Council England Measure of Us project funding to the Nativity Figures project as agreed by Arts Council England.
9. This represents the transfer of the final Arts Council England Something Good project funding to the Nativity Figures project as agreed by Arts Council England
_The Cathedral Church of St Philip Birmingham 83_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **13. Movements in funds (continued)**
## **Prior Year Comparatives for fund movements**
||**Balance**
**b/f at**
**1.1.2024**
**Income**
**Expenditure**
**Capital**
**movements**
**Transfers**
**Balance c/f**
**At**
**31.12.2024**|
|---|---|
||**£**
**£**
**£**
**£**
**£**
**£**|
|||
||**Restricted Funds**|
||Mission & Development Fund
**1,498**
292
(1,723)
-
-
**67**|
||Altar Linen Fund
**300**
-
-
-
-
**300**|
||Belliss Fund
**1,146**
61
-
-
-
**1,207**|
||Choir Tours Fund
**-**
4,350
(5,540)
-
1,190
**-**|
||Music Fund
**25,339**
6,748
(90)
-
(14,938)
**17,059**|
||Chorister Hardship Fund
**6,287**
-
(150)
-
-
**6,137**|
||St Philip’s Singers Fund
**985**
-
-
-
-
**985**|
||FCM Song School
**13,929**
461
(4,038)
(564)
-
**9,788**|
||Flower Fund
**2,663**
2,471
(4,338)
-
**796**|
||Harridine Bequest
**31,404**
767
632
-
**32,803**|
||Net Zero
-
500
-
-
-
**500**|
||Arts–Measure of Us
**624**
-
-
**624**|
||Arts–Something Good
**403**
-
-
**403**|
||Tercentenary Pilgrimages Fund
**1,428**
-
-
**1,428**|
||The Provost’s Book Fund
**4,167**
221
-
-
-
**4,388**|
||FCM Music Trust Fund
**22,531**
-
-
**22,531**|
||Howlett Bequest
**3,787**
179
-
-
**3,966**|
||Bells Restoration Fund
**57,306**
-
-
**57,306**|
||Bulbs
**544**
-
-
**544**|
||Divine Beauty
**-**
220,630
(97,883)
-
**122,747**|
||Sound Equipment
**806**
-
-
**806**|
||Nativity Figures
**-**
250
-
-
-
**250**|
||Arts Council-Porch Window
**-**
7,645
(7,598)
-
-
**47**|
||Church Commissioners Stipends
**-**
118,356
(118,356)
-
-|
||Church Commissioners Section
28 CSF1
**-**
46,504
(46,504)
-
-
**-**|
||Church Commissioners Section
23 CSF2
**1**
7,951
(7,952)
-
-
**-**|
||Fundraising campaign:|
||Mission Fund
**12,452**
575
-
-
-
**13,027**|
||Music Fund
**15,669**
1,672
(360)
221
-
**17,202**|
||Music Endowment
**71,097**
322
(2)
-
**71,417**|
||Other
**317**
-
-
-
-
**317**|
|||
||**274,683**
**419,955**
(294,534)
**289**
(13,748)
**386,645**|
|||
||**Balance**
**b/f at**
**1.1.2024**
**Income**
**Expenditure**
**Capital**
**movements**
**Transfers**
**Balance c/f**
**At**
**31.12.2024**|
||**£**
**£**
**£**
**£**
**£**
**£**|
||**Designated Funds**|
|||
||Security Fund
**6,500**
-
-
-
(6,500)
**-**|
||Maintenance Fund
**4,812**
-
-
-
(4,812)
**-**|
|||
||**11,312**
**-**
**-**
**-**
(11,312)
**-**|
||**Unrestricted Funds**|
|||
||General unrestricted fund
262,733
876,388
(1,242,793)
78,688
25,060
**76**|
|||
||**262,733**
876,388
(1,242,793)
**78,688**
25,060
**76**|
||**Endowment Funds**|
|||
||General Endowment Fund
**7,467,550**
-
(28,004)
232,802
-
**7,672,348**|
|||
||**7,467,550**
**-**
(28,004)
232,802
-
**7,672,348**|
_The Cathedral Church of St Philip Birmingham 84_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **13. Movements in funds (continued)**
## **Prior Year Comparatives for fund movements (continued)**
Details of inter-fund transfers in the year are as follows:
|||||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|
|---|---|---|---|---|---|---|
|||||**General**|**Designated**|**Funds**|
|||||**£**|**£**|**£**|
|Expenditure
on|Maintenance||||||
|funded
by||designated|
1|4,812|(4,812)|-|
|Maintenance Fund|||||||
|Expenditure on Security project|||2||||
|funded by designated||Security||6,500|(6,500)|-|
|Fund|||||||
|Expenditure on Music||activities|3|13,748|-|(13,748)|
|funded by Music Fund|||||||
|Expenditure on Choir Tour funded|||||||
|from Music Fund|||4|-|-|(1,190)|
|||||||1,190|
||||||||
|||||25,060|(11,312)|(13,748)|
1. This represents the support of Maintenance designated fund towards maintenance costs within the General Fund
2. This represents the support of Security designated fund towards security costs within the General Fund
3. This represents the support of the restricted Music fund towards general music costs within the General Fund
**4.** This represents the support of the Music Fund towards the expenditure on Choir Tours Fund activities which exceeded the funding available.
The specific purposes for which the various funds are to be applied are as follows:
**Designated Funds Purpose** St Philips Singers Fund Singers. Special Music Fund
This fund was created from a legacy received from a member of the St Philip’s
This fund is used by the Director of Music for special events requiring additional musicians.
Divine Beauty Fund (Legacy) This fund is to be used towards the costs of the Divine Beauty project. Strategic Development Fund This fund is to be used towards developing a strategic plan for the Cathedral. New Income Development This fund is to be used towards costs incurred in the pursuit of new income Fund streams for the Cathedral. Civic Duties Fund This fund is to be used towards the costs the Cathedral will incur to meet its civic duties on the death of a prominent person. Security Fund This fund is to be used towards the match funding required for a grant towards improving the Cathedral’s security. Maintenance Fund This fund is to be used for maintenance of the Cathedral.
This fund is to be used for maintenance of the Cathedral.
**Restricted Funds** Mission & Development Fund
This fund consists of donations made by the friends and family of Simon Richmond. It is intended to be used for evangelism and /or development of the Cathedral in memory of Simon Richmond.
This comprises of a donation toward new altar linen.
Altar Linen Fund This comprises of a donation toward new altar linen. Belliss Fund This fund was provided on the understanding that the Cathedral would keep the Belliss monument in good order. Choir Tours Fund The Choir raises money from sales of compact discs, tapes, raffles, donations and other sources to fund their tours. Music Fund This fund consists of funds raised or donated in support of the Cathedral’s choirs and music.
Chorister Hardship Fund This comprises funding received from the Friends of Cathedral Music. St Philips’s Singers Fund This fund comprises money raised by the St Philip’s Singers that will be used for their needs.
## **Restricted Funds (continued)**
_The Cathedral Church of St Philip Birmingham 85_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## FCM Song School
Flower Fund Harridine Bequest Fund St Philip’s Education (Christchurch) Trust
These funds represent grants from Friends of the Cathedral Music which are devoted to these purposes.
Funds received specifically towards the provision of flowers in the Cathedral. A bequest received towards the cost of building a new Cathedral. This fund is to support the Cathedral’s education work.
Arts – Measure of Us/Something Good Funds Tercentenary Pilgrimages
The Provost’s Book Fund FCM Music Trust Fund Howlett Bequest Fund
Bells Restoration Fund
Bulbs
Divine Beauty
## Sound Equipment
Church Commissioners Stipends Church Commissioners Section 23 ACE Porch Window
Net Zero
Nativity Archbishops Council – Trauma
Benefact Group - General
Grants received toward the cost of further arts projects.
Grants received to help towards the cost of arranging pilgrimages from all Birmingham Deanery’s to their Mother Church.
The Provost’s book fund represents funds provided to aid the former Provost with his research.
This fund represents a grant from the Friends of Cathedral Music to support the proposed Birmingham Cathedral Music Trust.
This fund is to provide maintenance and cleaning for the Howlett family grave in Birmingham; to establish the “Seraphim” award used to promote music in the Cathedral; and to encourage links with Eastern Europe, Germany and Russia. Having discharged all our responsibilities with regard to the will the Cathedral’s only remaining duty is to keep the family grave at Yardley Cemetery in good order. Therefore £4,000 is to be kept in this fund for this purpose with the remaining funds being used towards the Cathedral music.
This fund is to be used towards the restoration of the Cathedral bells and was created with a legacy received for this purpose.
This fund is to be used towards the planting and maintenance of daffodil bulbs in the Cathedral grounds.
This fund is to be used towards the costs of the Divine Beauty project, and includes grants from organisations such as the National Lottery Heritage Fund, The Dulverton Trust and other kind funders.
This fund represents donations received towards the costs of the replacement sound equipment. This fund comprises of the grant received from Church Commissioners to pay the clergy of the Cathedral.
This fund comprises of the grant received annually from Church commissioners towards the salary costs of lay staff.
This fund comprises an Arts Council England development project for the porch window
This fund represents donations towards the development & delivery of Net Zero environmental projects
This fund represents donations towards new Nativity figures
This fund represents the grant received from Archbishops Council from the Impact & Innovation fund towards the Trauma, survivors project
This fund represents the annual grant received from Benefact Group towards agreed activities with the funder.
Fundraising Campaign Mission fund Campaign donations made to support the mission objectives of the campaign. Music Fund Campaign donations made to support music in the Cathedral. Music Endowment Fund Capital fund for income to be used towards the music of the Cathedral. Other Other campaign donations received
_The Cathedral Church of St Philip Birmingham 86_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
**Endowment Fund** General endowment fund
These are historic permanent endowment funds. The Chapter can utilise the income generated from these funds towards its general charitable activities. With effect from 1 January 2025, the Chapter adopted a Total Return Accounting approach to the fiscal investment element of the General Endowment Fund. The Fund is now split into the following components:
- Investment Fund (or Trust for Investment) – this represents the original value of the fiscal investment endowment uplifted each year by an inflationary measure
- Unapplied Total Return- this represents the amount of the investment valuation over and above the value of the Trust for Investment. The amount approved for application in the year is transferred to the Unrestricted General Fund
- Other – this represents the value of the. Property and other assets held by the Cathedral within the Endowment Fund, not subject to Total Return Accounting
## **14.Endowment Fund – Total Return**
||**Investment**|**Unapplied**|**Other**|**Total**|
|---|---|---|---|---|
||**Fund**|**Total Return**|**Fund**|**Endowment**|
||**£**|**£**|**£**|**£**|
|**At 1 January 2025**|3,938,395|582,364|3,151,589|**7,672,348**|
|**Movements in the reporting period:**|||||
|Dividends, interest and rent|-|139,374|70,000|**209,374**|
|Realised and unrealised gains and (losses)|-|341,795|-|**341,795**|
||||||
|**Less:**|||||
|Investment management costs|-|(27,439)|(4,800)|**(32,239)**|
||||||
|Indexation using CPI|146,508|(146,508)|-|**-**|
||||||
||146,508|307,222|65,200|**518,930**|
|**Unapplied Total Return allocated to**|||||
|**income**|||||
|Equating to dividends, interest and rent||(139,374)|(70,000)|**(209,374)**|
|Additional annual transfer||(177,544)||**(177,544)**|
|Other fund transfers||-|13,700|**13,700**|
||||||
||-|(316,918)|(56,300)|**(373,218)**|
|**Net movements in the reporting period**|146,508|(9,696)|8,900|**145,712**|
||||||
|**At 31 December 2025**|**4,084,903**|**572,668**|**3,160,489**|**7,818,060**|
The Chapter adopted a Total Return accounting approach with effect from 1 January 2025on its fiscal investments. The Fund was split into capital funds and Unapplied Total Return (UTR). To establish the UTR, indexation was applied from 31 December 1979 at Consumer Price Index (or equivalent) ~~.~~ The Other Fund relates to the property and non-fiscal investment assets held within the overall Endowment Fund.
_The Cathedral Church of St Philip Birmingham 87_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **15.Capital and operating lease commitments**
There are capital commitments of £nil which are contracted for but not provided in the financial statements as at 31 December 2025 (2024: £nil).
At 31 December 2025 the Cathedral as a lessee, had annual commitments under non-cancellable operating leases as follows:
||**2025**|**2024**|
|---|---|---|
||**£**|**£**|
|**Expire date**|||
|Within 1 year|-|20,640|
|Between 2 to 5 years|-|72,240|
|More than 5 years|-||
Operating lease charges during the year ended 31 December 2025 amounted to £nil (2024: £20,639). In 2025 the operating lease relating to the commitments detailed above was terminated with payments previously made under the lease (£26,546) being refunded to the Cathedral and included in Other Income with the Statement of Financial Activities (note 2).
At 31 December 2025, the Cathedral as a lessor, had the following commitments in relation to income from its properties:
||**2025**|**2024**|
|---|---|---|
||**£**|**£**|
|**Due:**|||
|Within 1 year|75,200|85,120|
|Between 2 to 5 years|280,000|280,000|
|More than5 years|8,125,833|8,195,833|
_The Cathedral Church of St Philip Birmingham 88_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **16.Pension costs**
Birmingham Cathedral participates in the Defined Benefits Scheme section of Church Workers Pension Fund (“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.
The Church Workers Pension Fund has a section known as the Defined Benefits Scheme and a section known as the Pension builder Scheme, which has, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.
being recognised in the SoFA, giving a total charge of Nil for 2025 (2024: Nil).
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 (‘the Board’) having taken advice from the Actuary.
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.
## **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 subpools 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. This does 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. The pensions costs charged to the SoFA during the year are contributions payable towards benefits and expenses accrued in that year (2025 : Nil, 2024: Nil) plus the figures in relation to the DBS deficit as
A valuation of DBS is carried out once every three years. At the most recent valuation at 31 December 2022, there was a surplus of £73.6m. The next actuarial valuation is due at 31 December 2025.
In 2024, the Board has entered into a full buy-in agreement with Aviva to insure all accrued benefits within the DBS of the CWPF.I It was also agreed that some employers could use assets in the DBS in lieu of contributions to the Pension Builder Classic and/ or Pension Builder 2014. Over the year to 31 December 2025, £26,177 of surplus assets from the DBS has been used to fund contributions in Pensions Builder 2014 for Birmingham Cathedral (DBS). The remaining pension surplus to be utilized for Pension Builder Scheme contributions is £802 (2024: £26,979)
The Church of England Pensions Board agreed that deficit contributions should cease with effect from 31 December 2022 for employers whose pools were estimated to be materially in surplus. As a result, there is no obligation recognised as a liability within the Employer’s financial statements as at 31 December 2024 or 31 December 2025.
## **Pension Builder Scheme**
Both sections of the Pension Builder Scheme are classed as defined benefit schemes.
_Pension Builder Classic_ provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.
_The Cathedral Church of St Philip Birmingham 89_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
_Pension Builder 2014_ is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.
There is no sub-division of assets between employers in each section of the Pension Builder Scheme.
The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SOFA in the year are the contributions payable (2025: £49,150 2024: £46,095).
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2022.
For the Pension Builder Classic section, the valuation revealed a surplus of £34.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2026, the Board chose to grant a discretionary bonus of 10% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 1997 service so that the pension increase was also 10% (where usually it would be calculated based on inflation up to an annual cap of 5% for pensions in payment in respect of service prior to April 2006 and 2.5% for pensions in payment in respect of service post April 2006 ). This followed improvements in the funding position over 2025. There is no requirement for deficit payments at the current time.
For the Pension Builder 2014 section, the valuation revealed a surplus of £8.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time. The legal structure of the scheme is such that if another employer fails, Birmingham Cathedral Chapter could become responsible for paying a share of the failed employer’s pension liabilities.
## **17. Related party transactions**
The Birmingham Diocesan Board of Finance is considered to be a related party.
The Cathedral ceased to share office space with the Birmingham Diocesan Board of Finance during the year and paid an amount of £nil (2024: £2,250) in respect of this.
The Birmingham Diocesan Board of Finance recharged housing costs during the year related to the Canon Missioner of £10,800(2024: £10,800) and other recharges of £23,705 (2024: £22,465) were made during the year.
Common fund payments paid to the Birmingham Diocesan Board of Finance for the year ending 31 December 2025 were £75,128 (2024: £70,902).
The balance due to the Birmingham Diocesan Board of Finance as at 31 December 2025 was £nil (2024:£nil)
Rental income totalling £10,800 and a contribution of £1,421 towards the costs of an additional ordination service was receivable from the Birmingham Diocesan Board of Finance for the year ending 31 December 2025 (2024: £11,203). The balance due to the Cathedral at 31 December 2025 was £nil(2024: £nil)
The Cathedral in addition provides staff and resources free of charge to the Birmingham Diocesan Board of Finance for the provision of agreed Services during the year.
The Bishops of Birmingham and Aston are considered to be a related party. The Bishop of Birmingham contributed £1,421 towards the costs of an additional ordination service and the Bishop of Aston £45 for non- cathedral parking during the year ended 31 December 2025. The balance due to the Cathedral at 31 December 2025 was £nil (2024: £nil).
A family member of one of the Chapter Members (Sue Davis), is also a trustee of the Birmingham Municipal Charity (Charity number 1146182) grant making entity. The Cathedral received a grant of £9,000 towards the new Nativity figures from the entity in the year ended 31 December 2025.
_The Cathedral Church of St Philip Birmingham 90_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **18.Net assets by Fund**
||**Unrestricted**|**Restricted**|
**Endowment**|**2025**|
|---|---|---|---|---|
||**fund**|**fund**|**fund**|**Total funds**|
||**£**|**£**|**£**|**£**|
|Investment property|-|-|1,550,000|**1,550,000**|
|Fiscal investments|17,007|79,728|4,681,370|**4,778,105**|
|Tangible fixed assets|291,664|22,478|1,165,000|**1,479,142**|
|Debtors|48,892|16,602|**-**|**65,495**|
|Cash at bank and in hand|(222,711)|168,389|427,844|**373,522**|
|Creditors due within 1 year|(137,632)|(81)|(6,154)|**(143,867)**|
||||||
|**Net Assets**|(2,780)|287,116|7,818,060|**8,102,396**|
||**Unrestricted**|**Restricted**|
**Endowment**|**2024**|
|---|---|---|---|---|
||**fund**|**fund**|**fund**|**Total funds**|
||**£**|**£**|**£**|**£**|
|Investment property|-|-|1,550,000|**1,550,000**|
|Fiscal investments|70,468|80,451|4,551,401|**4,702,320**|
|Tangible fixed assets|297,214|19,051|1,165,000|**1,481,265**|
|Debtors|79,716|77,397|**-**|**157,113**|
|Cash at bank and in hand|(296,126)|232,389|413,189|**349,452**|
|Creditors due within 1 year|(151,196)|(22,643)|(7,242)|**(181,081)**|
||||||
|**Net Assets**|76|386,645|7,672,348|**8,059,069**|
## **19.Connected entity**
The Friends of Birmingham Cathedral (‘the Charity’) is a registered charity (number 1064150) that exists wholly for the benefit of the Cathedral. Although certain members of Chapter and the Cathedral’s COO are trustees of the Charity, the Charity is not considered to be controlled by Chapter. Only income received from the Charity is included in the Cathedral’s financial statements. The summary financial performance and position of the charity for the year including relevant information about its income and assets is set out below:
||**2025**|**2024**|
|---|---|---|
||**£**|£|
|Gross income|**123**|203|
|Expenditure|**-**|-|
|Amount paid to the Cathedral|**-**|-|
|Funds b/fwd|**14,529**|14,326|
||||
|Funds c/fwd|**14,652**|14,529|
Owing to circumstances outside of the control of Birmingham Cathedral, the financial statements for The Friends of Birmingham Cathedral for the 2025 and 2024 years were not available. The summary financial information detailed above is based on the information available to the Cathedral.
_The Cathedral Church of St Philip Birmingham 91_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
No transactions arose in the year to 31 December 2025 between Birmingham Cathedral and The Friends of Birmingham Cathedral (2024: £Nil).
_The Cathedral Church of St Philip Birmingham 92_
## FINANCIAL STATEMENTS
For the year ended 31 December 2025
______________________________________________________________________________
## **20.Prior year comparative statement of financial activities**
|||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**|**Endowment**|**Total**|**Total**|
|---|---|---|---|---|---|---|---|
||**Note**|**General**|**Designated**|**Funds**|**Funds**|**2024**|2023|
|||**£**|**£**|**£**|**£**|**£**|£|
|**Income & Endowments**||||||||
|**From:**||||||||
|Donations & legacies||140,841|-|4,623|-|**145,464**|168,772|
|Grants in support of||244,761|-|403,841|-|**648,602**|462,475|
|mission||||||||
|Charges and fees arising||||||||
|in the course of mission||3,705|-|240|-|**3,945**|2,496|
|Trading & fundraising||237,760|-|6,801|-|**244,561**|185,660|
|Income from property &||||||||
|investments||249,321|-|4,450|-|**253,771**|271,545|
|Other income||-|-|-|-|**-**|5,050|
|||||||||
|**Total Income**|2|**876,388**|**-**|**419,955**|**-**|**1,296,343**|1,095,998|
|||||||||
|**Expenditure On:**||||||||
|Raising funds||241,819|-|19,007|28,004|**288,830**|257,924|
|Charitable activities:||||||||
|Ministry||475,290|-|150,693|-|**625,983**|605,122|
|Cathedral & precincts||355,604|-|112,941|-|**468,545**|1,166,502|
|upkeep||||||||
|Education & outreach||17,196|-|-|-|**17,196**|11,777|
|Community, parish &||150,296|-|11,857|-|**162,153**|130,625|
|congregation||||||||
|Other expenditure||2,588|-|36|-|**2,624**|2,560|
|||||||||
|**Total Expenditure**|4|**1,242,793**|**-**|**294,534**|**28,004**|**1,565,331**|2,174,510|
|||||||||
|**Net (outgoing)/incoming**||||||||
|**resources before**||**(366,405)**|**-**|**125,421**|**(28,004)**|**(268,988)**|(1,078,512)|
|**(losses)/gains on**||||||||
|**investment**||||||||
|Other recognised||77,000|-|-|-|77,000|-|
|gains/(losses)||||||||
|Net gains/(losses) on|5,7|1,688|-|289|232,802|**234,779**|213,545|
|investments||||||||
|||||||||
|**Net**||**(287,717)**|**-**|**125,710**|**204,798**|**42,791**|(864,967)|
|**(Expenditure)/Income**||||||||
|||||||||
|Transfers between funds|13|25,060|(11,312)|(13,748)|-|-|-|
|||||||||
|**Net movement in funds:**||**(262,657)**|**(11,312)**|**111,962**|**204,798**|**42,791**|(864,967)|
|||||||||
|Total Funds brought||262,733|11,312|274,683|7,467,550|8,016,278|8,881,245|
|forward||||||||
|||||||||
|Total Funds carried||**76**|**-**|**386,645**|**7,672,348**|**8,059,069**|8,016,278|
|forward||||||||
_The Cathedral Church of St Philip Birmingham 93_
## **Colmore Row, Birmingham, B3 2QB**
## **@BhamCathedral**
**www.birminghamcathedral.com**
## **For any questions about this report,**
**please email enquiries@birminghamcathedral.com**