OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-02-28-accounts

Natioiial Triist ,11 1,1 Celebrating National Trust Annual Report 2020121 years 4

The National Trust in brief

Our purpose

To look after special places throughout England, Wales and Northern Ireland for everyone, for ever.

About us

In 1895, our founders, Octavia Hill, Robert Hunter and Hardwicke Rawnsley, pledged to preserve our historical and natural places. Their aim was not only to save important sites, but to open them up for everyone to enjoy.

From this trio of environmental pioneers, the National Trust was created – and their original values are still at the heart of everything we do 125 years later.

As Europe’s largest conservation charity, we look after special places for the nation to enjoy. We rely on our millions of members, volunteers, staff and supporters. Without your help, we wouldn't be able to protect the miles of coastline, woodland and countryside, and the hundreds of historic buildings, gardens and precious collections that are in our care.

The National Trust cares for:

This Annual Report can also be viewed online at www.nationaltrustannualreport.org.uk

The National Trust for Places of Historic Interest or Natural Beauty is a registered charity (no. 205846). It is incorporated and has powers conferred on it by Parliament through the National Trust Acts 1907 to 1971 and under the Charities (National Trust) Order 2005.

The Trust is governed by a Board of Trustees whose composition appears on page 48. A brief description of the Trust’s organisation is given on pages 37 to 47. Our bankers, investment advisers and independent auditors are identified on page 88 and the contact details for our principal offices are listed on page 106. This Annual Report has been prepared by the Board of Trustees and covers the period March 2020 to February 2021.

National Trust Annual Report 2020/21

2

Contents

Message from the Chair and Director-General 2
Board of Trustees’ report for 2020/21 3
Strategic Report:
Nature, beauty, history. For everyone, for ever – our strateg to 2025 5
Our performance 2020/21 6
Looking after 7
Land and nature 9
Experiences 12
Urban places 14
Growing support 16
People and resources 20
Climate and environment 24
Financial review 26
Governance – structure, management and internal control 37
Annual report of the Council 2020/21 50
The fnancial statements 2020/21:
Consolidated statement of fnancial activities 52
Balance sheet 53
Consolidated cash fow statement 54
Notes to the fnancial statements 55
Independent auditors’ report to the Trustees of the National Trust 85
The Trust’s advisers 88
Glossary of fnancial, property and fund terms 89
Operating margin 90
Year on record:
Acquisitions of properties, works of art and other objects 91
Visiting fgures 93
Grants and donations 95
Supporter groups 96
Legacies 97
Contact details 106

National Trust Annual Report 2020/21

Contents

1

Message from the Chair and Director-General

We are pleased to present this report describing how the National Trust responded to the unprecedented challenges which arose due to the Covid-19 pandemic during 2020/21, the Trust’s 125th anniversary year.

The kind, energetic and dedicated way that our staff and volunteers have responded to everything that this tumultuous year has thrown at us has been humbling, and we are immensely proud of what we have achieved together.

It is therefore with great sadness that we report the passing of both staff and volunteers as a result of Covid-19 and we extend our sincere condolences to their families and friends.

2020 was a year of firsts for the National Trust. Never had every single property been legally obliged to close, and almost the whole organisation was put into hibernation, with the majority of our staff furloughed and most volunteers asked to pause their support. Lockdown made our day-to-day lives unrecognisable.

While managing lockdowns and reopenings, we faced difficult decisions as we looked for a way to contend with our significantly reduced visitor income and the resulting financial loss. These decisions meant re-shaping our organisation to make us leaner, more flexible and more resilient so that we could readily adapt to the quickly changing environment. We are confident that we will emerge from the pandemic with the right resources in place to implement our strategy.

Octavia Hill, one of the National Trust’s founders, once said that without space ‘we cannot reach that sense of quiet in which whispers of better things come to us.’ More than a century later, her words feel more relevant than ever.

The pandemic has not impacted every person equally, and those living without access to nature or culture were particularly affected by lockdown restrictions. Our legacy from this period of time should ensure that everyone can enjoy nature-rich green spaces on their doorstep and access local heritage and the shared cultural spaces that help bring communities together.

As we recover from the pandemic, we will continue to play our part in supporting the nation. The National Trust remains steadfastly committed to conservation and to helping everyone enjoy the special places in our care for the long term.

----- Start of picture text -----
Photography ©National Trust/ John Millar
----- End of picture text -----

----- Start of picture text -----
Photography © National Trust Images
----- End of picture text -----

Tim Parker Hilary McGrady Chair Director-General 21 July 2021 21 July 2021

A personal message from our outgoing Chair

In October I will step down from my role as Chair. During this time, I have met wonderful people and visited astonishing places. I have learned more than I could ever have imagined and been inspired by a charity whose knowledge and expertise is needed today as much as at any time in its history.

The last year has been one of the most difficult in the history of the Trust. Having completed two terms, I agreed to stay on as Chair to provide stability during the pandemic. I took the decision to stand aside this year in the knowledge that the Trust is well placed for post-pandemic recovery and already resuming its work to protect and care for places so that people and nature can thrive.

The Director-General and her team, the Board of Trustees and the Council are strong and determined to deliver a strategy that meets the conservation challenges of the day.

I wish them and all involved with the National Trust well and thank you for your support during my time as Chair.

Tim Parker, Chair

Your membership and support are the National Trust’s future. Thank you to everyone who has supported our work over this most challenging year.

National Trust Annual Report 2020/21

Message from the Chair and Director-General

2

Board of Trustees’ report for 2020/21

The Trustees are pleased to present the 2020/21 Annual Report & Accounts of the National Trust. The financial year began three weeks before the start of the first lockdown in the UK and concluded when the nation was in its third lockdown.

A year like no other

In the year that marked 125 years since the foundation of the National Trust, we expected to hold celebrations, continue or complete important and exciting nature and conservation projects and welcome record numbers of visitors to our places.

The pandemic changed all that, for the National Trust as for so many others. For the first time ever we were legally required to shut down all our houses, our estates and our offices. It was a huge shock to all who work or volunteer for the organisation.

Emergency structures and decision-making processes were quickly developed: the Board worked very closely with the Executive team to reflect on the implications and to examine and approve action plans. The Board met 20 times during the year, adapting to and making the best of virtual working, both to conduct the normal business of the Trust and to consider pandemic-related matters ranging from the change in the security needs of our houses to the challenging financial picture as it unfolded.

Responding to secure our long-term future

The pandemic abruptly reversed a long period of growth in membership and revenues. It quickly became clear that operating income would reduce by more than £200 million in the 2020/21 financial year compared to the budget that we had set, which would cause the Trust to face substantial operating losses unless costs were reduced immediately. We were able to save £41.8 million by substantial cuts in non-staff costs and a further £114 million by immediately stopping many projects and all but essential conservation work. The Government’s Coronavirus Job Retention Scheme (‘furlough’), which launched in April, enabled the Trust to relieve the loss of income while retaining many staff members. At many points during 2020 most of our staff were furloughed. In total the charity saved £197 million of planned spend to mitigate against the £213 million of reduced income in year.

It was also clear that the fall in membership would result in lower revenues in the following years, even if all limitations were lifted by the end of the year. This necessitated a reduction in costs on an ongoing basis too. In July 2020, having reviewed the financial forecasts, the Board authorised the Executive Team to launch a consultation on a structural cost reduction programme, including reductions in staff numbers. This is never easy, but the overarching requirement to avoid a rapid and continued drain on reserves made this an essential step. The restructure led to the loss of 1,767 staff, out of an overall headcount of 12,389, made up of 845 voluntary and 922 compulsory redundancies.

These combined actions resulted in an annual reduction in costs of £94.5 million. While these losses are individually very hard, the overall headcount of the Trust after this programme is at levels comparable to 2013.

These decisions were made after much deliberation. We remain immensely proud of our dedicated and loyal staff and determined to maximise the amount we continue to spend on our conservation work without jeopardising our future sustainability. We are already seeing the reintroduction of some of our most pressing projects. The actions that we took, alongside the signs of recovery that we have seen in recent months, give us confidence in the long-term sustainability of the organisation.

National Trust Annual Report 2020/21

3

Board of Trustees’ report 2020/21

Membership and donations

For much of the year we were unable to welcome members to our properties. We supported members by offering payment holidays and freezing renewal costs. We were very heartened by the fact that our membership retention rate reduced by only 1.2%. We closed the year with 5.4 million members, a drop of just over 0.5 million, caused mostly by not being able to carry out face-to-face recruitment at Trust places. We are delighted that we have seen a small but consistent growth in membership since the end of the financial year. We are also very pleased that donations have held up and philanthropy met or exceeded targets. We are hugely appreciative of the continued support of our members and donors.

Reputational matters and the Charity Commission

In the latter part of 2020 there were a number of critical press articles about the Trust and the Charity Commission received a formal complaint regarding the interim report we published detailing the links to the transatlantic slave trade and centuries of British colonialism at some of the places the Trust cares for.

We welcome the Charity Commission's conclusion that there were no grounds for regulatory action against the Trust. We are also pleased the Commission is satisfied that we gave due consideration to how the report, and the research behind it, would help us explain the history of our properties and thus further our charitable purpose.

Visiting our places

Within the legal frameworks of lockdowns, we were determined to continue to offer the best experience we could to visitors in a safe and compliant manner. Despite restrictions we welcomed 13.6 million visitors during the year at our pay for entry places. This was made possible through the rapid introduction of a booking system alongside the design and introduction of comprehensive Covid-safe processes.

Annual General Meeting

Restrictions meant that we were unable to hold the Annual General Meeting in 2020 as the Trust’s legal framework did not provide the flexibility to host an online event. An informal members’ broadcast in the autumn was joined by hundreds of members, many of whom submitted questions and were able to interact virtually with our Chair, Director-General and Secretary.

We fully expect to host an Annual General Meeting in the autumn of 2021, and work is in hand to make the necessary changes to our rules to provide flexibility in future for both in-person and digital hosting of these events.

Thank you

We finish by thanking our staff and our volunteers for their resourcefulness, resilience and forbearance throughout this difficult time. We also thank our historic families, donors, funders, partners, Council, Regional Advisory Boards and Specialist Advisory groups, whose support has proved more valuable than ever despite the difficulties of meeting in person. Special thanks go to our members who have demonstrated a remarkable commitment to our cause. We are extremely grateful to everyone who has helped us get through this challenging year and look forward to working with all in the Trust ‘family’ in the years of recovery to come.

Board of Trustees’ report 2020/21

National Trust Annual Report 2020/21

4

Nature, beauty, history. – For everyone, for ever our strategy 2020–2025

Last year we reported that we had reached the midway point of our 10-year strategy ‘Playing our part’ and had subsequently reviewed our ambitions and objectives for the next five years.

The pandemic, however, saw the world change rapidly, and plans for working towards our renewed goals were heavily impacted. Less capital expenditure was available and there were fewer opportunities for our people, contractors and partners to deliver projects.

This prompted us to pause and reflect on what was needed at that time. We adjusted our short-term plans and reviewed our long-

term plans to help us recover from the impacts of the pandemic on our people and finances.

The Trust’s core purpose, to care for nature, beauty and history throughout England, Wales and Northern Ireland, continues to guide us as it has for the past 125 years. Our overall strategy remains the same, but our organisation has changed. It has been a challenging year but, going forward, we are leaner, more flexible and ready to focus our efforts on our biggest priorities.

What we are doing:

Looking after: we will care for places and give them a sustainable future

Experiences: we will make sure our places keep evolving, attracting people and inspiring them

Land and nature:

we will improve the state of nature in the UK

Urban places: we will address unequal access to nature, beauty and history where people live

Growing support: we will give people more opportunities to get involved and support our work

People and resources: we will be an inclusive, welcoming and sustainable organisation

You can read more about work carried out to achieve our ambitions on pages 6 to 25.

Our strategy

National Trust Annual Report 2020/21

5

Our performance 2020/21

We use Key Performance Indicators (KPIs) to measure progress against our strategic objectives. To focus on essential work during the pandemic, we suspended measurement in some areas, including our Conservation Performance Indicator and monitoring service delivery at properties. In addition, as stated in our 2019/20 Annual Report, we did not set KPI targets for this year.

Our performance against core measures is detailed throughout the strategic report and illustrates the impact that Covid-19 had during 2020/21. In 2021/22 we will continue to monitor the strength of our recovery against similar core measures while carrying out a review of our KPI measures which will be published in 2022/23.

National Trust Annual Report 2020/21

Our performance 2020/21

6

We will care for places and give them a sustainable future.

Looking after

In the face of restrictions related to the pandemic, looking after our places remained a priority throughout the year. We were able to provide essential care for our collections, put procedures in place to reopen gardens and houses safely, and deliver the most important conservation projects.

Conservation Performance Indicator (CPI)

The use of the Conservation Performance Indicator – a measurement tool that helps us monitor the condition of our most important assets – was paused during 2020/21. This allowed us to focus on reopening properties and to recover from the impact of Covid-19.

The Trust’s commitment to high conservation standards meant that, despite the need for redundancies during the Reset programme, significant specialist curatorial expertise was retained, with levels remaining above those of five years ago. We also introduced new curatorial roles at houses with significant collections, such as Belton House, Lincolnshire and Blickling, Norfolk. This meant we could continue to meet conservation demands and ensure public engagement in collections of historic libraries, paintings and sculpture, furniture, decorative art, textiles, photography and social history.

Houses reopening

During the year, our collections and house teams operated on a skeleton staff who worked through essential tasks to care for our assets. This included keeping our precious collections secure, carrying out delicate cleaning and battling pests that thrived in the absence of visitors.

In readiness for lockdown measures easing in July 2020 and in an atmosphere of uncertainty we launched a pilot at seven properties to ensure that we could welcome staff, volunteers and visitors back safely and with confidence. Measures included one-way systems and rigorous cleaning regimes. The success of the pilot paved the way for us to reopen.

The nation faced further lockdown measures in November 2020. The teams worked rapidly to close properties again as it became clear that there was no likelihood of them reopening before spring 2021.

Parkland and gardens

Our parkland and gardens provided a valuable outdoor escape for millions of people throughout the pandemic, when restrictions allowed, with fewer staff and volunteers than usual working creatively on low-cost displays and maintenance. We asked for the public’s help at Ham House, London, where visitors were invited to help cut the lavender parterre. In return, they were given bunches to take home with them.

Each year we use the vegetables grown in our gardens in our restaurants. With our places closed this year, we donated these vegetables to local food banks where possible.

Notable conservation projects this year included:

Old stairs, Dyrham Park, South Gloucestershire

As part of a £10 million site-wide revitalisation, the Old Stairs originally installed in the 1690s were repaired, reinforced and redecorated, removing a weight restriction that had limited the number of people allowed on the staircase. Work involved stripping away modern paint layers and following the historical decorative approach to grain soft woods to imitate the expensive and rare walnut used originally.

State bed, Erddig, Wrexham

Crafted in the 18th century, the Erddig state bed is gilded and hung with beautiful but fragile Chinese silks. We are part-way through a £400,000 conservation project to stabilise and repair the silk, with match funding of £100,000 provided by the Wolfson Foundation. The conservation work is being carried out at our Textile Conservation Studio in Blickling, Norfolk.

Excavation photographs, Sutton Hoo, Suffolk

A remarkable series of photographs by amateur photographers Miss M K Lack and Miss B Wagstaff provides first-hand accounts of the excavation in 1939 of the Anglo-Saxon ship burial at Sutton Hoo. The collection, gifted to the National Trust by Andrew Lack, great-nephew of one of the photographers, has been conserved, re-housed and professionally digitised. Page-turning technology allows visitors to experience for themselves the unfolding story of the excavation through the photographers’ eyes.

The Trust cares for over 200 collections containing a total of more than a million items.

National Trust Annual Report 2020/21

Looking after

7

Seaton Delaval Hall, Northumberland:

2020 was a significant year for the £7.5 million restoration project at Seaton Delaval Hall, once a flamboyant party house. Work has included re-roofing of the west wing, transformation of the historic brewhouse into a 90-seat café, installation of an accessible path network and the opening of our new Baroque theatre-inspired play area, made possible with funding from the National Lottery Heritage Fund.

‘Keeping the project going throughout the last 12 months has taken teamwork, trust, openness, resilience, perseverance and a good sense of humour. The positive feedback we received from visitors when we reopened in July 2020 is testament to the passion and hard work shown by the team.’

Helen Nisbet, Project Manager

An update on Clandon Park House, Surrey

In 2015 Clandon Park House was badly damaged by fire. The Trust and its insurer Zurich have reached an agreed position on the damage, the terms of which are confidential between the parties. As a result, subject to statutory consents, essential conservation works to repair the core structure of the house will commence in late summer 2021 and run for approximately two years. Designs for the renewal of the house and its future cultural, community and visiting use are being developed in parallel. The house and gardens at Clandon continue to be open to members and visitors as works allow.

% CPIs static or improving

The Conservation Performance Indicator measures how well we are maintaining or improving the condition of the places in our care.

----- Start of picture text -----
Suspended
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
In 2017/2018 the KPI was rebaselined and therefore no figure was recorded.
87%
86%
84%
----- End of picture text -----

Carneddau Landscape Partnership

Climate change, farming patterns, invasive species and visitor pressures are impacting the fragile landscapes and rich biodiversity of Carneddau, in the far north of Snowdonia, Gwynedd. Traditional knowledge, place names and stories that connect people with the landscape are also at risk of being lost.

Funded by a £1.7 million grant from the National Heritage Lottery Fund, this partnership is being led by the Snowdonia National Park Authority with the Trust being one of the core partners.

The scheme will be carried out over five years and is made up of several projects designed to increase understanding and enjoyment of the area’s history, cultural traditions and wildlife.

Work to date has included:

Future projects will include:

National Trust Annual Report 2020/21

Looking after

8

We will improve the state of nature in the UK

Land and nature

The nation’s outdoor spaces played a huge part in helping us all through a hard year. There has never been a more important time to both look after the priority habitats and ecosystems in our care, and to support and encourage others to do more for nature.

Environmental issues ranked as the third most important issue facing the UK in 2020 with 86% of adults reporting that protection of the environment is important to them.[1]

Improving our land

The Trust looks after over 250,000 hectares of land with 41% designated as nationally important for nature.

Disappointingly, progress towards our four key targets for helping nature’s recovery slowed significantly this year with pandemic restrictions in place. Whilst this provided some opportunities for nature to flourish in areas that would normally be too disturbed, we will need to resume our conservation work with renewed vigour as soon as possible.

1. Making sure all our designated wildlife sites are in good ecological condition

Constant and long-term effort is needed to restore many of our wildlife sites and ensure that they are as resilient as they can be to environmental change. This year, 42% (against a target of 50% for 2025) of our most important sites and habitats scored highly against the Conservation Performance Indicator, remaining static from last year.

Making sure all our designated wildlife sites are in good ecological condition (%)

Our target is for our most important nature sites to score high or very high for condition by 2025. Measured through our Conservation Performance Indicator.

----- Start of picture text -----
N/A baseline
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
42% 42%
39%
----- End of picture text -----

We are pleased to report that we received funding from Natural England which will help us to monitor the condition of 6,500 hectares of nationally important sites. This work will inform our conservation management and ensure that remedies are put in place to improve the condition of Sites of Special Scientific Interest such as Dovedale Wood, Staffordshire, which contains diverse plant life and where unusual birds such as pied flycatchers can be seen.

We are working with other major landowners to ensure our activities are co-ordinated at a landscape scale.

2. Create and restore 25,000 hectares of wildlife habitats

Since last year, a further 267 hectares of priority habitat have been created or restoration is underway making a total of 10,617 hectares. This included work to restore dynamic sand dunes at key sites across England and Wales.

At Sandscale Haws National Nature Reserve, Cumbria, the amount of bare sand has dropped from 34% to less than 2% since the 1940s, resulting in the loss of scarce plants and specialist sanddune species such as natterjack toads.

Our restoration has included restoring dune slacks, creating a breeding ground for natterjacks and removing invasive plants and hawthorn scrub to help a diverse range of plants flourish. This work, funded through a £12 million EU LIFE and National Heritage Lottery Fund partnership, is helping to establish good conservation practice.

Restoring or creating 25,000 hectares of wildlife habitats

Our target is by 2025 to have completed or have work underway in creating/restoring 25,000 hectares of top-class nature consevation habitat.

----- Start of picture text -----
baseline
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
10,617 ha
10,358 ha
7,676 ha
3,709 ha
----- End of picture text -----

1Source: The People and Nature Survey for England, Natural England

Land and nature

National Trust Annual Report 2020/21

9

3. Supporting and promoting nature-friendly farming

We achieved 38.3% against our target of 50% (up from 37% in 2019/20). This slight uplift was the result of conservation work carried out in previous years and further progress will be made as we return to focusing on our strategy.

Supporting and promoting nature-friendly farming (%)

Our target is for 50% of National Trust land to be more 'nature friendly' by 2025 based on a measure of the percentage of land area scoring 1 or 2 in a Land Condition Assessement.

----- Start of picture text -----
baseline
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
37% 37% 38.3%
32%
----- End of picture text -----

Our nature and climate ambitions

Last year we announced some ambitious environmental pledges to help tackle climate change. We have made good progress integrating them into our work. This will help us meet our target to become net-zero carbon by 2030.

Our ambition to plant 18,000 hectares of new woodland steadily gained momentum, with around 50,000 trees established since January 2020 and in Stroud, Gloucestershire we created new wildlife habitats and corridors as part of a larger landscape project to increase biodiversity (see case study).

Looking forward, we will utilise external funding and partnership opportunities to support the acceleration of our conservation work. This includes income received from the Green Recovery Challenge Fund to deliver £3.8 million of projects at some of our treasured historic estates.

We will continue to care for our natural places and ensure they are enjoyed by our supporters and the public.

Influencing the debate

Covid-19 and policy changes linked to Brexit meant that we have been working with the Government and devolved administrations. Highlights include:

4. Maintaining the condition of soils, water and wildlife

We are making practical improvements through infrastructure investment and changes to land management to ensure all our land meets a basic minimum standard. In 2020/21 we tackled two areas ending the year with 64 cases of non-compliance against a target reduction to zero by 2025 (down from 66 in 2019/20).

Maintaining the condition of soils, water and wildlife by eliminating minimum standard failures

Our target is for 100% of our land to reach a basic minimum standard by 2025 based on a Land Condition Assessment.

----- Start of picture text -----
baseline
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
119
92
66
64
----- End of picture text -----

‘Following Brexit and the coronavirus pandemic, farming has a once in a generation opportunity to create a more sustainable industry that puts nature and climate at the very heart of its business model.’

Rosie Hails, Nature and Science Director

National Trust Annual Report 2020/21

Land and nature

10

Future farming policy

Farming is the Trust’s primary land use spanning over 200,000 hectares. Working with our 1,350 tenants and in-hand farms remains key to delivering our strategy and we want our farmers to be in the strongest possible position as they head towards a world without subsidy for the first time in 50 years.

We welcomed the new Agriculture Act at the end of 2020, quickly followed by the release of the Government’s Agricultural Transition Plan to implement it in England. Together, they provide an opportunity to put sustainability, wildlife, protecting and nurturing vital soils, improving water quality and flood prevention at the heart of land management.

While we continue our work with the Department for Environment, Food and Rural Affairs to help design the necessary schemes, we will explore how we and our tenants can become more involved in the piloting and practical roll-out of the new farming system. We will also pursue the same support for nature and farming in Wales and Northern Ireland.

More than 126,000 hectares of our land is within a National Park. That’s an area the size of Berkshire.

Stroud landscape project

The UK has only half of its natural biodiversity left due to centuries of habitat loss, land management changes and development, putting it in the bottom 10% of all countries globally.[2]

The Stroud landscape project, Gloucestershire, is a pioneering partnership working with partners such as the Gloucestershire Wildlife Trust and the Woodland Trust as well as 24 local landowners, to help reverse these changes. The project aims to make our network of wildlife sites more joined up, creating havens for wildlife that will boost diversity.

To date the project has:

The more connections between habitats we can create, the more it will help wildlife to move across the landscape and thrive. Plans for 2021 include expanding into other parts of Stroud and the surrounding areas.

‘We are taking decisive action to reconnect and revitalise this magnificent stretch of the Cotswolds so wildlife can not only recover but prosper long into the future.’

David Armstrong, Lead Ranger and Stroud Landscape Project Manager

2Source: PREDICTS project Natural History Museum

National Trust Annual Report 2020/21

Land and nature

11

We will make sure our places keep evolving, attracting people and inspiring them.

Experiences

After a record-breaking year in 2019/20, the pandemic and subsequent restrictions saw visitor numbers drop from 28 million to 13.6 million. With many of our places closed for much of the year, we sought new ways to inspire and connect people to our cause.

Digital experiences

With places closed, we increased digital activity taking the breadth of the National Trust, nature, beauty and history, directly to people in their homes by providing accessible and engaging digital experiences.

Highlights included:

Rising at DAWNS

Commissioned as part of our 125th anniversary celebrations from artists non zero one, DAWNS invited people to experience the moment of dawn together through music. Originally intended to involve live audiences gathering in person, it was adapted into a digital experience.

At 3.43am on Saturday 16th May 2020, more than 7,000 people tuned in to the online broadcast. Six musicians gave a live performance of a piece composed by artist James Bulley that celebrated darkness turning to light across the UK. The experience reached new audiences with only 18% of participants having taken part in a National Trust event before.

‘Especially meaningful in lockdown, it was lovely to join my daughter 175 miles away in watching the dawn together.’

Event participant

Other programming

‘What a World’ at Penrhyn, Gwynedd

Penrhyn worked with local children and poets Martin Daws and Aneurin Karadog to respond creatively to objects with a colonial past. Their poems, displayed in lights, highlighted the colonial history of these objects, as well as Penrhyn’s links with Jamaica and the transatlantic slave trade. ‘What a World’ opened briefly in 2020 and reopened in 2021.

Seasonal sparkle at Dunham Massey, Cheshire

Working with partners Raymond Gubbay Ltd, the team at Dunham Massey created a safe, socially distanced, outdoor experience for this after-dark trail, with more than 134,000 tickets sold. Where dates were cancelled due to a change in restrictions, bookings were carried over to Christmas 2021.

‘Well done National Trust for making it happen. Lots of space…and as always the staff were brilliant.’

Member

Heritage Open Days

The festival took place in September 2020 with the theme of ‘Hidden Nature’. Despite the pandemic, 1,788 Covid-safe events ran with two-thirds of organisers producing digital experiences for the first time. The festival attracted 168,000 visits in person and 665,000 digital visits. Highlights included:

This terraced property was turned into a work of art by former owner Khadambi Asalache, a Kenyan-born poet, novelist, philosopher and civil servant, who bequeathed it to the Trust. Tours are limited to six people in person but, during the festival, we trialled interactive online tours which meant that more people could have access to the hand-carved fretwork.

National Trust Annual Report 2020/21

Experiences

12

• Rangers Reveal

Ranger staff who care for countryside, coast and parklands shared some of their favourite walks for Heritage Open Days in a series of downloadable walking trails. The trails gave directions, detailed highlights of the routes, gave hints on wildlife to look out for and the rangers gave their perspective on the walk.

Access for all

Efforts to make everyone welcome have continued. At Castle Ward, County Down, a new pathway inspired by archival material has recreated a historic route through the grounds with a modern

Visitor numbers (m)

This measures the number of visits to our properties that are within the pay barrier; there are millions more visits to our open access places.

----- Start of picture text -----
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
28m
26.6m 26.9m
24.5m
13.6m
----- End of picture text -----

approach. The path provides an accessible route to the house and collections, offering spectacular views of the Gothic façade and Strangford Lough, with seating along the way. This project was funded by the Department for Communities and the Northern Ireland Museums Council as part of their Access and Inclusion programme.

Overall service standards

Our service standards measure was suspended for 2020 due to the pandemic.

Overall service standards (%)

----- Start of picture text -----
This measures the number of people that rated the service they received
at our properties as 'excellent'.
Suspended
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
67%
63% 63%
61%
----- End of picture text -----

Peter Rabbit’s™ Winter Adventure

Normally our properties create a range of family activities for visitors but with restrictions in place and many staff furloughed this year this was not possible. We adapted by taking a new approach.

Inspired by our connection with Beatrix Potter and her Cumbrian home Hill Top, Peter Rabbit’s™ Winter Adventure was created as an activity supported centrally and promoted through a national plan. Properties benefited from a readymade product that could be easily rolled out and visitors benefited from a high-quality creation.

Working with Penguin Random House, the outdoor Peter Rabbit™-themed trail was safe, fun and engaging. It encouraged a connection with nature and highlighted the importance of friendship and supporting others as Peter asked for help to get his friends ready for winter.

For those not able to visit a property, we produced digital activities including puzzles, and crafting and baking inspiration.

A total of 77,000 people participated in person at 87 properties and there were 79,000 engagements with the digital content.

Beatrix Potter left 4,000 acres of land, including 15 farms, to the care of the National Trust. Her legacy has helped ensure the survival of the Lakeland landscape.

National Trust Annual Report 2020/21

Experiences

13

We will address unequal access to nature, beauty and history.

Urban places

In the spirit of our founder Octavia Hill, we are committed to working with others to increase access to parks and green spaces in and around urban areas. We want everyone to have access to nature and green space close to where they live.

In 2020/21 the pandemic saw people confined to their neighbourhoods. We know that regular use of natural environments for physical activity can cut the risk of suffering mental ill health by half, and it became more important than ever to encourage people to connect with nature on their doorsteps and to realise the benefits it brings.[3]

Valuing our parks through the Future Parks Accelerator Programme

The Future Parks Accelerator Programme, in collaboration with National Lottery Heritage Fund and the Ministry of Housing, Communities and Local Government, aims to support local authorities in Newcastle, Nottingham, Plymouth, Edinburgh, Camden and Islington (London), Cambridge and Peterborough, Birmingham, Bournemouth and Christchurch and Poole, to:

With one in eight households in the UK having no access to a garden, urban parks experienced a 300% increase in visits during the first lockdown. Covid-19 brought a shift in focus to the programme with several participants placing a greater emphasis on reducing inequality of access. It also motivated participants to consider how green space could play a role in ensuring a green recovery from the pandemic.

In Edinburgh, the FPA project team has made huge progress towards creating a framework to make sure parks and green spaces are at the heart of communities and accessible by all. A pilot scheme helped them to develop and test a green infrastructure mapping app for smartphones used at five selected parks to monitor the quality of the green spaces considering biodiversity and ecosystem services. The information gathered will inform plans to improve the spaces to benefit both people and wildlife.

The mapping took place with the help of students on the undergraduate Nature, Greenspace and Health course at the University of Edinburgh, along with community group members. The app was also used to carry out interviews with participants to monitor their response as they volunteered and supply further evidence of the wellbeing benefits provided by green space.

80% of the UK population live in towns or cities, and that’s forecast to grow to over 90% by 2030.

3R Mitchell (2013) Is physical activity in natural environments better for mental health than physical activity in other environments?

National Trust Annual Report 2020/21

Urban places

14

Priority cities

We are progressing urban green space and built heritage projects in cities that we identified as a priority. These are NewcastleGateshead, London, Manchester and Birmingham. Each city has its own approach on how best we can intervene based on current need and opportunity.

Out of 325 local authorities, Birmingham ranks at the bottom of the Heritage Index in respect of its built environment. This is due, in part, to eleven Grade II*-listed buildings being at risk. We are working in partnership to protect its rich and varied heritage.

3. A toolkit for delivering economic value through heritage investment

Working with Historic England, we developed a toolkit for the Greater Birmingham and Solihull Local Enterprise Partnership. This demonstrated how investing in heritage can support economic recovery and growth and bring public benefit to communities.

Historic England's research shows that 80% of people believe that local heritage makes their area a better place to live, and one in four businesses say that the historic environment is an important factor in deciding where to locate.

Four ways that we are helping

1. A business plan for Birmingham Botanical Gardens

The charity running the Birmingham Botanical Gardens, a historic green oasis in the heart of the city with a unique botanical heritage, had been struggling to secure its future.

Thanks to funding from Greater Birmingham and Solihull Local Enterprise Partnership, we worked with the charity to better understand what makes the gardens unique and helped them to develop a sustainable business plan.

2. Restoring the Roundhouse

A unique example of Birmingham’s civic and industrial heritage, the Grade II*-listed Roundhouse was at risk. In 2020, the building was subject to a full-scale renovation to save its historic fabric and to re-purpose the site for the 21st century.

This work took place thanks to a landmark partnership with the Canal & River Trust, and funding from the National Lottery Heritage Fund and Historic England.

Roundhouse Birmingham is now a heritage enterprise and independent charity. It operates as a city-centre visitor destination providing city and canal tours guided by volunteers while securing a sustainable future for the building through a range of lettable space. The Canal & River Trust and National Trust are its parent organisations.

4. Contemporary art at the Moseley Road Baths

As the oldest Grade II*-listed pool still open for public swimming in the UK, these council-owned and communityrun Edwardian baths contain many unique features, including Britain’s only surviving set of 46 slipper baths and steam-heated drying racks. However, due to steady dilapidation, they have been at risk for many years.

During 2020, Trust New Art, the Trust’s programme of contemporary art, commissioned Birmingham artists, Juneau Projects, to work with local people to create a hand-painted animation that celebrated the baths and the community that surrounds them. This formed part of an art installation in the magnificent Gala Pool hall, where viewers were invited to relax on specially created wave furniture and soak up the atmosphere of the unique heritage space.

Work continues to ensure that this internationally important building remains at the heart of the Balsall Heath community as a source of pride and statement of intent for heritage in Birmingham.

‘As individuals, the historic environment enriches our lives. It's a source of pride and identity; it provides a deep emotional connection; it is a focus for shared experiences.’

Duncan Laird, Head of Urban Places

National Trust Annual Report 2020/21

Urban places

15

Growing support

Our supporters – Trust members, visitors and donors – play a vital role in providing the funding we need to look after the special places in our care.

We have been overwhelmed by the generosity, loyalty and commitment of our supporters during such challenging times. This continued support made us more determined than ever to bring people closer to nature, beauty and history.

Keeping our supporters informed

On page 12 we wrote about some of the digital experiences which helped people remain connected to our cause thorough the pandemic. These were part of the member engagement programme started in April 2020.

In addition, we sent at least two emails a month to members who had given their permission. A designated members’ area on our website shared Trust news as well as up-to-date visit information. 975,000 supporters engaged with our communications and at the end of September there were 78,289 views of our members’ area in one week, the highest spike for the year.

The number of people viewing our website increased. With people spending more time at home, many turned to the Trust for culinary inspiration. Our Development Chef, Rebecca Janaway, engaged the nation from her kitchen with interactive recipe videos and our online recipe pages saw an annual 292% rise in website views.

We continued to tell our stories through film and TV. Highlights included BBC’s Springwatch and Countryfile, alongside BBC Two’s Great British Railway Journeys, ITV’s A Year In The Beacons and the Channel 4 series George Clarke’s National Trust Unlocked.

‘You cannot imagine what a pleasure it has been to walk around Tyntesfield’s beautiful and tranquil grounds on paths free of mud, knowing that we are perfectly safe. The staff are so friendly, and we always end one of our walks with a hot chocolate and Cornish pasty served from your well organised, socially distanced café. It is the highlight of our week.’

Visitor

We will give people more opportunities to get involved and support our work.

Membership

The first lockdown occurred during our busiest months. When normally we would see our peak recruitment of members, our places were closed. We reversed a price rise and offered payment breaks and discounts to our members.

As anticipated, the pandemic led to a decline in membership in 2020/21. We started the year with 5.95 million members (2.78 million memberships) and finished with 5.37 million (2.35 million memberships). Despite the challenges that people faced, the number of people who renewed their membership remained relatively consistent with previous years at 84.2% (2019/20: 85.4 per cent) for which we were thankful. Property closures limited opportunities to attract new members. Despite this we recruited 213,056 new memberships in 2020/21, compared to 546,647 in 2019/20.

We are pleased to report that since April 2021 we have seen a small yet consistent growth in membership numbers.

Membership numbers (m)

----- Start of picture text -----
This measure is based on the the numer of membership packages sold.
The number of individual members as at 28 February 2021 was 5,366,727.
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
2.78m
2.63m
2.53m
2.46m
2.31m
----- End of picture text -----

Membership retention (%)

----- Start of picture text -----
This KPI measures the propoertion of total memberships that are
renewed in a given year.
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
85.4% 85.5% 85.4% 85.4%
84.2%
----- End of picture text -----

National Trust Annual Report 2020/21

Growing support

16

Commercial

As restrictions began to lift, some properties reopened into a busy summer as visitors looked to us to provide a safe space to enjoy the outdoors. We served over 4.9 million hot drinks from June to February.

With shops closed, our online retail saw a 65% increase in sales contributing more than £500,000 towards conservation projects.

With the pandemic halting most overseas travel, UK holidays were in demand. We achieved a record-breaking 96% holiday cottage occupancy rate in August 2020 and became a Which? Recommended Provider.[4]

Remarkably, online donations totalled more than £865,000, growing 383% from 2019/20. Appreciating the solace that nature provided during the pandemic, thousands donated to our Everyone Needs Nature appeal, raising more than £580,000. This funding will help us create meadows, replenish woodland, grow wildlife-friendly habitats, and create accessible green spaces. Supporters were also invited to text to donate for the first time, providing a quick way to give.

Gifts in wills remained an important income source, and we received £44.6 million in support of our work.

Fundraising

The financial impact of Covid-19 meant that fundraising was more critical to the Trust’s work than ever.

Generous support totalling £79 million from individual donors, charitable trusts, grant funders and gifts in wills meant that essential work could continue at our places.[5]

The Royal Oak Foundation marked the Trust’s 125th anniversary year with their largest ever gift – $4 million (£2.92 million) for the purpose of collections conservation. In recognition of this transformative gift, the Trust renamed the conservation studio at Knole, The Royal Oak Foundation Conservation Studio, for a period of 10 years.

----- Start of picture text -----
Fundraising income (£m)
This is the income we receive through legacies, grants, gifts and appeals
that funds our conservation work.
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
95.2m
91.1m 94.4m
83.2m
79.0m
----- End of picture text -----

We were awarded £13.8 million in Covid-related grants including:

4Source: UK Holiday Cottage Company Reviews 2021 - Which?

5 An additional £1.4 million of fundraising income was generated through our trading subsidiary The National Trust (Enterprises) Ltd, bringing the total fundraising income across all sources to £80.4 million in 2020/21.

National Trust Annual Report 2020/21

Growing support

17

Dedicate a Tree

Holiday cottages

In January 2020, the Trust set out its ambition to plant 20 million trees and become net-zero carbon by 2030. Planting trees such as oak, beech, and hazel contributes to reducing emissions by providing carbon-secure habitats and diffusing pollution. They also create habitats for wildlife, such as the red squirrel and the greater spotted woodpecker.

Dedicate a Tree launched in September 2020 as part of our larger Plant a Tree initiative. It allows supporters to celebrate or remember a loved one while also giving back to nature.

By repurposing buildings as holiday cottages, we generate income for our core purpose and engage guests with our work.

Recently renovated holiday lets Pentire Farmhouse and Pengirt Cottage are part of a major project at Pentire Head, Cornwall. Working with the tenant farmer, new habitats are being developed to restore the landscape. This is generating more space for wildflowers and creating different ways of farming that benefit wildlife and encourage rare birds – the skylark population has already increased. The cottages provide an opportunity to enjoy this precious landscape.

By February 2021, more than 13,000 saplings had been planted thanks to Dedicate a Tree donations of £297,665.

‘Having helped to plant trees has really inspired my mum and it's lovely to see her enthusiasm after such a difficult year.’

We operate over 505 cottages, bothies and bunkhouses and 23 campsites across England, Wales and Northern Ireland.

Donor

National Trust Annual Report 2020/21

Growing support

18

Our fundraising promise

As a charity, fundraising is essential to the National Trust’s ability to meet our core purpose and deliver public benefit. We are committed to a transparent and ethical approach to all our fundraising activity. We are registered with the Fundraising Regulator and abide by the Code of Fundraising Practice and the Fundraising Promise. We are also organisational members of the Institute of Fundraising and support the professional development of our staff in relation to excellent fundraising practice.

We do:

We do not:

We make every effort to ensure that our fundraising activity never feels unreasonably intrusive, persistent or pressurised, but rather focuses on inspiring support and celebrating the impact of fundraised income. In 2020, we issued a comprehensive guidance document to provide all Trust staff with the correct and compliant ways of handling fundraised income, ensuring our fundraising messaging and subsequent use of income is clear and transparent.

All supporters who share their details with us, in relation to any fundraising activity, will be shown a privacy policy, clearly stating how we will use their data. We operate a robust data retention policy, ensuring controls over the amount and type of data we store. All our fundraising mass marketing appeals are on an opt-in only basis, and supporters can manage their permissions online or by calling our Supporter Service Centre (SSC). We also operate a rigorous contact planning process that limits the number of communications a supporter might receive, and we respect the wishes of supporters who do not wish to receive fundraising communications, including those who have registered with the Fundraising Preference Service.

In 2019 we implemented a robust policy, and developed accompanying guidance, for all fundraisers, on engaging with people in vulnerable circumstances. These policies follow Charity Commission and Institute of Fundraising recommendations and were complemented by comprehensive mandatory training for all fundraising staff during 2020. A further round of training is being planned for 2021 to ensure we address changes in staff and roles over the last year.

Processes have been implemented to ensure all supporters are able to engage with the National Trust in the way that is right for them, without experiencing undue pressure or intrusion into their privacy. Our ethical approach to fundraising is reflected in the low number of fundraising complaints that we receive (18 in 2020). If we do receive a complaint, we respond in accordance with our agreed complaint guidelines. We welcome feedback from supporters about how we can improve our fundraising practice in future.

National Trust Annual Report 2020/21

Growing support

19

We will be an inclusive, welcoming and sustainable organisation.

People and resources

In response to the pandemic, we focused our efforts on supporting and looking after the welfare of our dedicated and skilled people – 50,000 volunteers and almost 10,000 staff – helping them to respond to a fast-changing environment.

Wellbeing and resilience

Looking after our people during this difficult year was our priority. We initiated several wellbeing and resilience activities, including:

A year of change and recovery

We took swift action in March 2020 to keep people safe, ensure compliance with Government restrictions and limit long-term damage to the Trust. Many of our places were closed and, with the support of our trade union, Prospect, we placed around 80% of staff on furlough. We retained a small number of essential staff and volunteers to look after our places during this period.

As the restrictions started to lift at the end of the summer, we were able to bring staff and volunteers back to prepare for reopening properties and welcoming visitors.

In late autumn, we were once again forced to close our indoor spaces and placed many of our staff back on furlough. This situation remained in place at the end of the reporting year, though we looked ahead to welcoming back our staff, volunteers and visitors in spring 2021.

Reset programme

It was with enormous regret that the Trust took the decision to undertake a major staff restructure to ensure that it remained financially stable in the long-term. This resulted in 922 compulsory and 845 voluntary redundancies, 1,767 people in total. At an already challenging time we acknowledge how difficult this was for those affected and we thank everyone involved for their professionalism throughout these changes.

Developing our future talent

During the year, we continued our commitment to develop our future talent by supporting our current apprentices. Further apprenticeship schemes were put on hold, with plans for them to recommence in 2021.

Volunteering

To keep volunteers safe, this year the majority were asked to pause their support while government restrictions were in place.

A small number of volunteers, such as beekeepers, pony monitors and animal care teams, continued their roles across the year. Some other volunteers adapted their roles to support the Trust from home with tasks such as:

In preparation for reopening, around 12,000 volunteers completed the mandatory e-learning module on safe operating procedures via an online volunteering training tool introduced in 2020.

National Trust Annual Report 2020/21

People and resources

20

Volunteering at Quarry Bank, Cheshire

Amy is undertaking a master’s degree in Arts and Cultural Management. Part of her course involves learning about how people access and participate in culture. She has been volunteering at Quarry Bank as an Accessibility Project Volunteer to research how we can make the property as open and welcoming as possible to visitors with autism.

Amy said, ‘Volunteering through lockdown has been a challenging yet amazing experience. With help from my manager, I’ve been able to undertake my research remotely. So far, I’ve surveyed adults with autism, parents and carers of children and adults with autism, and professionals supporting individuals with autism.

‘Having this opportunity has allowed me to focus on my project and forget about the outside world. Lockdown has been an anxious and stressful time. Volunteering has been a source of relief and relaxation that I am truly grateful for.’

Acknowledgments

We thank our staff and volunteers for their commitment and support during this challenging time.

People engagement

In March 2020 we paused our annual survey to measure staff and volunteer satisfaction and rescheduled it for June 2021. More than 5,500 staff and 17,000 volunteers took time to share their feedback. Overall the results give us confidence that we are doing well and that we have high levels of engagement from both staff and volunteers with scores of 78% and 88% respectively. We’ll use the survey results to define a national action plan that we will deliver in 2021/22.

Staff satisfaction (%)

This indicator measures the number of staff who would 'strongly recommend' the National Trust as a place to work.

----- Start of picture text -----
Suspended Suspended
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
61%
60%
59%
----- End of picture text -----

Safeguarding

We further strengthened our safeguarding polices and processes. Mandatory training was in place to increase confidence in identifying and reporting potential safeguarding issues. Our audit committee continues to oversee our safeguarding plans.

Everyone welcome

We paused many of the planned inclusion activities for 2020 because of the pandemic. These will recommence in 2021, with a focus on building and developing the capability and confidence of our people in inclusive practice.

Our pay policy

We recognise the importance of being transparent and accountable in all aspects of our work, including how we recognise and reward our staff. As a charity, we strive to use the money entrusted to us by our supporters wisely, while ensuring we can retain and recruit great people with the right skills to help us deliver our strategy.

Our reward policy recognises our staff are not motivated or attracted solely by pay. This enables us to build a distinctive employer reputation, which confirms why the National Trust is a special place to work. We reward our staff on their individual performance and contribution to the delivery of the Trust’s strategy. We also ensure that staff who perform well progress through our pay bands within a reasonable timeframe. Every year, we compare our pay scales against those in the public and not-forprofit sectors, and we agree our pay arrangements with our trade union, Prospect, as part of our Partnership Agreement.[6]

6 This is the agreement between the Trust (employer) and the Trade Union (Prospect), which has a strong focus on partnership working. This agreement formally outlines how we will work together.

National Trust Annual Report 2020/21

People and resources

21

Gender pay gap

Our gender pay gap report was published on our website in March 2021 and provides a snapshot as of 5 April 2020. The report shows the balance of men and women at all levels of the organisation and the effect this has on average hourly rates of pay.

In April 2020, the median average of the hourly rate paid to men employed at the Trust was 7.9% higher than the average hourly rate we paid to women employed at the Trust. This is a 3% improvement on the previous year’s gender pay gap and is below the national average of 15.5%.[7]

Our gender pay gap is mainly caused by having a higher proportion of women employed in our lower graded roles and we have a plan in place to close it.

Our gender pay gap was affected by how we calculated furlough payments in April 2020 for staff paid hourly, making it harder to measure the effectiveness of our actions to address it. However, since we started to report our gender pay gap in 2017, we have seen it reduce year-on-year, which gives us confidence our action plan is having a positive impact. With staff still furloughed in April 2021, this will also affect reporting in 2021/22.

Senior manager pay

The pay arrangements for senior managers are determined by the Senior Management Remuneration Committee. The Committee is appointed by the Board of Trustees and oversees the remuneration of the Director-General, the Executive Team and other senior staff. The Committee includes three members of the Board of Trustees and two external independent members. All members of the Committee have the experience and skill to make appropriate remuneration decisions.

In 2020/21, the Committee agreed not to award a pay increase to senior managers.

Each year, the Trust monitors the ‘pay ratio’ – the relationship between the highest salary and the median salary level – to ensure that salaries remain fair and appropriate. In 2020, the DirectorGeneral’s salary was 1:9.3 times the median salary. This pay ratio compares favourably to external benchmark data.

Director-General remuneration

In 2020/21 the Director-General, Hilary McGrady, was paid a salary of £195,700. However, in response to the pandemic, the DirectorGeneral took a voluntary 20% pay cut, receiving 80% of her salary for six months of the year reducing her salary to £176,130. In addition, the Director-General received benefits to the value of £15,165. This comprised £13,699 of employer contributions to the Trust’s Defined Contribution Pension scheme and £1,466 for access to health benefits. The Trust’s Defined Contribution Pension scheme is open to all employees regardless of grade. The scheme matches an employee's pension contribution up to a maximum of 10% of the employee's salary. The Director-General does not receive any bonus or long term incentives.

The Director-General leads a large and complex national organisation, with an annual income of £600 million, and more than 50,000 volunteers and 10,000 staff. The National Trust is one of the highest income-generating charities in the UK. Our pay benchmark data confirms that the Director-General’s salary is comparable to the leaders of other major charities, senior government civil servants and the chief executives of mediumsized private-sector organisations.

7 UK Median Figure – Office of National Statistics.

National Trust Annual Report 2020/21

People and resources

22

Executive Team Remuneration actual February 2021

----- Start of picture text -----
Annual Additional Full Time
Title Brief description of role
base salary [1] staff benefits [2] Equivalent Factor
Accountable for the strategic direction of the National Trust and
Director-General 170 - 179 [3] 10 - 19 1.0
delivering charitable purpose and governance.
Accountable for providing strategic leadership for financial
Chief Financial Officer 140 - 149 10 - 19 1.0
sustainability and executive oversight of the IT function.
Director of
Accountable for developing and implementing strategies for
Communications 110 - 119 10 - 19 1.0
communications, marketing and audience insight.
& Audience Insight
Director of Culture & Accountable for developing and implementing strategies for the
120 - 129 10 - 19 1.0
Engagement key priority of ‘Move, Teach and Inspire’.
Director of Land
& Nature
10 - 19 0 - 9 1.0
(11 Jan 2021 to
28 Feb 2021) Accountable for developing and implementing strategies to
Director of Land restore a healthy and beautiful natural environment.
& Nature
110 - 119 10 - 19 1.0
(1 Mar 2020 to
10 Jan 2021) [4]
Director of Operations
& Consultancy
10 - 19 0 - 9 1.0
(11 Jan 2021 to
Accountable for the operational management of the Trust,
28 Feb 2021) [5]
responsible for delivery of strategy and the organisation’s
Director of Operations
overall performance.
& Consultancy
110 - 119 10 - 19 1.0
(1 Mar 2020 to
10 Jan 2021)
Accountable for developing and implementing strategies to
Director of People ensure our people (both staff and volunteers) can perform their 100 - 109 10 - 19 0.8
roles with confidence and ease.
Director of Support & Accountable for the developing and implementation of an
120 - 129 10 - 19 1.0
Revenue integrated supporter and revenue growth plan.
General Counsel Accountable for providing legal services and leadership on
100 - 109 10 - 19 1.0
& Secretary [6] constitution, governance and regulatory matters.
----- End of picture text -----

Notes

Operations & Consultancy. The table shows the executive remuneration earned by each incumbent in role in the financial year. The annual base salary of the Director of Land & Nature in role from 1 March 2020 to 10 January 2021 was £130 - 139k; the annual base salary of the Director of Land & Nature in role from 11 January 2021 to 28 February 2021 was £120 - 129k.

6 Change in role title from The Solicitor to General Counsel & Secretary.

National Trust Annual Report 2020/21

People and resources

23

Climate and environment

In January 2020, we announced the National Trust’s goal to be net-zero carbon by 2030, committing to emissions cuts across our operations and ensuring our land maximises its potential to capture and store carbon. But it is not just about cutting carbon. We want to become more resilient to climate change and tell our story of change and adaptation in a way that engages and inspires people.

Our carbon account

Our carbon emissions reduced this year by 30% (see table below). This was due in part to the pandemic as we saw reductions in travel, in what we bought and in the services we used. However, we also saw a significant drop of 68% in emissions in our investment portfolio, achieved by moving funds out of fossil fuels and into lower carbon investments.

----- Start of picture text -----
Percentage This year (2020/21) Last year (2019/20)
reduction CO2 equivalent (tonnes) CO2 equivalent (tonnes)
Direct emissions (combustion of fossil fuels for heat, vehicles
13% 14,554 16,803
and machinery, in-hand agriculture)
Electricity – location based 37% 8,007 12,751
Electricity – market based 0 0
Indirect emissions (including tenanted agriculture,
30% 583,190 834,284
investments, supply chain, staff travel and tenanted buildings)
Total 30% 605,751 863,838
----- End of picture text -----

Monitoring our performance

This was the final year of our 10-year energy strategy, aimed at reducing overall energy use and switching half of fossil fuels to renewable sources. We fell short of our targets but will continue our focus in both areas as these actions will play an important part in achieving our net-zero carbon goal by 2030.

----- Start of picture text -----
Energy reduction (% vs baseline)
This measure helps us to monitor performance against our target to
reduce energy consumption by 15% by 2020/21
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
29%
8%
7% 7%
5%
----- End of picture text -----

Reduction of energy use

This year we achieved a significant reduction in energy use of -29% against our baseline year of 2009/10 and so exceeding the target of -15%. However, this outcome was distorted by property closures. We estimate that the actual figure would have been closer to -10% against the baseline, a 3% improvement on last year but 5% below target. We continue to work through our Energy Action Implementation plan introducing measures such as installing LED lighting and improving insulation at properties.

Investing in renewable energy

The Renewable Energy Investment (REI) programme commits the National Trust to:

*This figure was distorted by property closures as detailed under Reduction of energy use.

Climate and environment

National Trust Annual Report 2020/21

24

Waste management

This year we completed four renewable technology projects (which include hydro and biomass) to make a total of 76. Together, these generate more than 19,966,000kWh per year, the equivalent of 6,680 average sized houses.

Our target was for 50% of the energy we use to come from renewable sources by 2020. With some projects suspended during the pandemic, we fell short of our target achieving 44%. With projects resuming we aim to reach our goal by April 2022.

We have met our target of reducing the use of heating oil to less than 10 per cent of our total energy use, further reducing the risk of pollution at our environmentally sensitive locations.

We achieved a 43% reduction in waste compared with 2019/20, though this was largely through closures driven by the pandemic.

Crisis measures taken, such as enhanced hygiene procedures and a much greater reliance on takeaway food packaging, reduced recycling rates by 6%. We took measures to reverse this trend, including sourcing reusable certified cotton facemasks for our staff and reinstating and incentivising the use of reusable coffee cups.

There was an unprecedented rise in the amount of litter, waste and fly-tipping on Trust land this year. This has an impact on nature sites and wildlife, compromised the safety of our staff and is expensive to dispose of. We have provided additional support and training to staff to help manage this.

The Trust has over 100 renewable energy projects up and running including hydropower, solar power, heat pump energy and biomass boilers.

Environmental Management System

Our Environmental Management System helped us to focus on essential tasks and on meeting our environmental compliance obligations. This included ensuring that energy and water usage followed anticipated patterns during lockdown and making sure that we carried out maintenance of our sewage treatment systems.

Glencoyne Hydro scheme, Cumbria

The Lake District has a history of hydro turbines being used to power mills. Due to the number of watercourses and high rainfall, this technology is ideally suited to the area. Hydro turbines have not only shaped our industrial past but have a key role to play in building a greener future. The Renewable Energy Investment programme has completed 13 operational hydro schemes to date with a further four to be completed in 2021/22.

This year saw the completion of the Glencoyne Hydro scheme. It will generate over 415,000kWh hours a year,

equivalent to the electricity use of over 140 homes, saving over 107 tonnes CO2e/ per annum in emissions. The energy generated will be sold to the National Grid and the money raised used to look after our landscapes.

We carry out construction of the turbines in a way that minimises any impact on the surrounding landscapes. During this project an access track needed to be built in a prominent location visible from the Ullswater lakeshore. We have reinstated the topsoil and vegetation layers and are confident that the track will disappear after a full growing season.

Climate and environment

National Trust Annual Report 2020/21

25

Financial review

Financial review

The Covid pandemic is having a very significant financial impact on the National Trust. It abruptly stopped our long period of growth, as well as the Trust’s 125th anniversary celebration. Instead, like many other charities, the Trust has seen its income fall sharply and has had to change its cost structure to ensure the long-term survival of the organisation and enable it to continue to protect special places for ever.

The financial challenge started with a liquidity squeeze, as revenues dropped sharply after the Trust’s sites had to close in March 2020, but it quickly became clear it could pose a threat to our longer-term sustainability. The Executive Team and Board of Trustees took swift action to address the in-year impact, and in May 2020 announced the need to act to address the longer-term impact of the pandemic. This has meant that the reserves of the organisation remain sound and will protect the charity from the uncertainty and risks in the years ahead.

The Trust has placed staff, volunteers and supporters at the heart of its decisions throughout the year. It was therefore with deep regret that we had to announce the restructure of the organisation, after exhausting all other financial options. This means the Trust cannot undertake the same amount of conservation work as it did before, when income was higher, but we are working hard to regrow our revenues over time and restore a higher level of expenditure on our conservation objectives.

This financial review explains the various ways in which the pandemic has had an impact on our finances, and the measures we have taken. The Trust has been able to strengthen its liquidity and has made both immediate and more structural cost savings to sustain its unrestricted reserves to meet the demands of ongoing uncertainty and the need to return to investing confidently in its charitable purposes. Whilst we are seeing growth in our membership base post-year end, we believe it will take several years before our membership base recovers to pre-pandemic levels.

Overall year-on-year comparison

The Trust’s primary measure of financial performance is the Operating Margin, which shows the contribution of our normal operating activities to the funding of projects and acquisitions.[9] The impact of immediate cost savings and government support has resulted in the Trust limiting the year-on-year reduction in its Operating Margin to a fall from £131 million in 2019/20 to £94 million in 2020/21.

The Consolidated Statement of Financial Activities brings together all our financial income and expenditure (both our operating performance and our project expenditure) and is shown on page 52 of the Financial Statements. An aggregated view showing the year-on-year changes is given below:

----- Start of picture text -----
2021 2020 Change
£m £m £m
Income 508 681 (173)
Expenditure (including taxation) (513) (701) 188
Net expenditure before
(5) (20) 15
exceptional items
Exceptional income 116 - 116
-
Exceptional expenditure (26) (26)
Net income/(expenditure)
85 (20) 105
after exceptional items
Net investment gains 93 26 67
Actuarial losses (3) (60) 57
Movement in funds 175 (54) 229
----- End of picture text -----

Operating margin (%)[8]

This is the total ordinary income less total ordinary expenditure, expressed as a percentage of total ordinary income.

----- Start of picture text -----
2016/17 2017/18 2018/19 2019/20 2020/21
Actual Actual Actual Actual Actual
21.4%
20.7%
19.9% 19.7% 19.8%
----- End of picture text -----

8 Although the operating margin % has only fallen modestly, overall operating margin in monetary terms has fallen from £131m to £94.2m. The Financial Review sets out the impact of lost revenues on the Trust’s overall financial position and the actions the Trust has taken to sustain its ability to deliver its charitable purposes.

9 Operating Margin excludes legacy receipts and project-related grants and expenditure on projects and acquisitions. The Operating Margin and how it relates to our net income is set out on page 90 of the financial statements.

National Trust Annual Report 2020/21

Financial review

26

Excluding exceptional income from insurance proceeds and the coronavirus support grants, underlying income fell by £173 million (25.4%) against the previous year. The main reductions were seen in our commercial activities undertaken through our trading subsidiaries and in our direct property income where income fell by a combined £142 million.

Membership income benefited from the introduction of a reduced VAT rate which served to limit the reduction in income to just £2 million year on year.

Legacy income reduced by £17 million after two years of exceptionally high levels. Finally, Investment income was £12 million lower than in 2019/20 due to a decision to shelter a portion of our reserves from market volatility by moving into lower yielding, principal secure asset classes.

We cut our total expenditure (excluding £26 million of exceptional costs associated with our response to the coronavirus crisis) by £188 million. We reduced our spending on projects significantly (by £97 million). Short-term cost controls (both pay and nonpay), coupled with reduced trading volumes in our visitor and commercial activities meant that we reduced our operating expenditure by £91 million.

Net expenditure excluding all exceptional items would have been £5 million. Including the exceptional insurance receipt (see page 30) and government support, the Trust’s net income for the year was £85 million (2019/20: net expenditure of £20 million). This surplus will provide the Trust with some additional resilience as it heads into 2021/22 with significant restrictions on opening still in place.

The impact of lost income

National Trust Income versus original budget 2020-21

----- Start of picture text -----
0.0
-50.0
-50.6
-27.2
-100.0
-150.0
-200.0
-111.8 9.7
-20.8 -213.0
-12.3
-250.0
Membership Admissions F&B & Retail Other Commercial Legacies Other Total
£million
----- End of picture text -----

Shortly after the World Health Organisation declared coronavirus a global pandemic in March 2020, the Trust forecast that the crisis would reduce our income by more than £200 million in the 2020/21 financial year, compared against the budget we had set.

Actual performance for 2020/21 confirms a reduction of £213 million when compared to the budgeted revenues arising in the following key categories (membership income reductions are presented on an underlying basis, before the impact of savings resulting from the Government’s reduction in the VAT rate).

National Trust Annual Report 2020/21

Financial review

27

The impact on liquidity

The opening liquidity of the Trust on 1st March 2021 comprised a small cash position of £3 million and an undrawn credit facility with Barclays of a further £19 million. Within three weeks, the Trust had to close its properties and revenues dried up quickly. We continued to see high levels of cash outflows as conservation works undertaken over the winter months become payable in March and April. Access to the investment portfolio was hindered by the high volatility in the investment markets. The Trust’s investment portfolio declined in value by 15% in late March compared to its peak only a matter of weeks earlier.

Measures taken:

National Trust Annual Report 2020/21

Financial review

28

Responding to the fall in income

This scale of looming income loss threatened the depletion of our unrestricted reserves to unsustainable levels. Faced with this threat, the Executive Team and Board of Trustees took immediate and wide-ranging cost reduction measures. All cost reduction plans prioritised and maximised savings that did not impact our staff. The following were the key impacts on the 2020/21 financials (when compared to original budget):

Cost savings enacted (all benefits shown against original budget)

----- Start of picture text -----
250.0
200.0 41.8 197.0
41.2
150.0
114.0
100.0
50.0
0.0
Project spend reductions Staff cost reductions Non-staff cost reductions Total
£million
----- End of picture text -----

National Trust Annual Report 2020/21

Financial review

29

Government support

The Trust’s main cost savings were internally generated, but we were very grateful for the ability to draw on selected support provided by Government, amounting to £85.3 million in total. Of total Government grant support of £56 million, the main source of support was the Coronavirus Job Retention Scheme (CJRS). A total of £53.7 million was claimed from CJRS (for the charity and its trading subsidiaries) and a further £2.3 million in other support grants for our retail and hospitality activities). The CJRS support was equivalent to around 2.4 months of regular staff payroll costs. The support was essential at the start of the pandemic and as circumstances developed, the Trust continually evaluated whether its use of the CJRS was responsible.

The Government’s VAT rate reduction applicable to visitor attractions and hospitality served to reduce the element of membership subscriptions payable in tax (by £23.9 million) and provided a benefit to our food and beverage and holidays businesses of £5.4 million. This enabled a softening of the impact of the income lost from a near elimination in our ability to recruit new members and the significantly reduced secondary spend at our properties.

Clandon insurance claim

The National Trust and its insurer Zurich have reached an agreed position on the 2015 fire damage at Clandon, the terms of which are confidential between the parties. The National Trust is now in a position to continue with its plans for the future of Clandon and will share more details in due course. This resulted in an inflow of funds of £66.3 million.

Measures taken:

Pensions

To ensure the Trust can continue to care for Clandon Park, Trustees have taken account of likely costs when setting the reserves designations referred to above.

Staying resilient

The unrestricted reserves, comprising of the general fund and other designated reserves, stood at £317.7 million at the start of the financial period. These funds represent the resources that the Trust can use for any of its charitable purposes, including to cover expenditure when unforeseen circumstances affect the organisation’s ability to operate. At the start of the year these reserves represented 5.5 months’ expenditure. Initial forecasts prepared at the start of the pandemic estimated the Trust needing to use in excess of £100 million of its unrestricted reserves in 2020/21 were it to take no action.

At the end of the year the Trust had unrestricted reserves of £410.6 million, reducing to £273.6 million after essential designations of £137 million are accounted for (see below). This represents 6 months’ expenditure (based on expenditure incurred in 2020/21). The difficult decisions taken during the pandemic were swift yet always evidence based and have allowed the charity to maintain strong charitable reserves.

The tri-annual valuation of the Trust defined benefit pension scheme took place in April 2020. The scheme is closed to new entrants and future accrual. The valuation highlighted the impact of the pandemic on the pension investments in the scheme. The valuation reported the scheme was £133 million adrift from its recovery plan. A new recovery plan was agreed between charity and pension trustees and implemented in October 2020.

Measures taken:

National Trust Annual Report 2020/21

Financial review

30

Ongoing impact

While rapid organisational restructuring and government support enabled the Trust’s reserves to be sustained (see the reserves and funds section below), the ongoing effect of the pandemic on National Trust finances will be felt for years to come.

The first national lockdown in March 2020 only had a limited impact on member retention but highlighted the challenge of recruiting members to replace normal levels of membership turnover. Membership recruitment restarted in earnest when our sites opened again but could not reach the levels seen pre-pandemic. This has resulted in a net decline in membership numbers in most months. At the year-end we had 581,000 fewer members (this is the decline from our closing base in FY19/20 to our closing base in FY20/21). This loss of membership, along with any on-property giving or spend those members would have made, will have an impact on the Trust’s future revenues.

The likelihood of this significant long-term financial impact was apparent from April 2020, and the executive team started examining structural cost reduction options. In July 2020 the trustee board reviewed the three-year forecasts and the financial data convincingly showed the need to reduce the Trust’s underlying running costs to ensure its longer-term financial stability. The trustee board authorised the Trust’s executive to consult on a cost reduction plan and the final plan was approved on 1st October 2020. The impact on our staff was minimised by the £41.8 million of non-staff cost savings referred to above, but regrettably staff cost savings were necessary as well. Ongoing staff costs have been reduced by £52.7 million, leading to the loss of 1,767 posts through redundancy (this included 845 staff leaving through voluntary redundancy).

Whilst the decision to reduce costs was taken early in the pandemic, a financial review undertaken post-year end reconfirms that the cost saving measures were necessary to ensure the financial viability of the organisation.

The Trust’s financial projections prepared on the basis of proceeding without these savings and without having limited spending on projects in 2020/21 show that unrestricted reserves would have breached their minimum threshold level (of £186 million) during the middle of the 2021/22 financial year.

Our cause remained central to our decision making

Despite the enormous financial challenge the pandemic posed, the Trust made sure that its charitable purpose and values remained at the heart of all financial decisions taken. In many instances this meant incurring costs when the outlook was still highly uncertain.

Measures taken:

Financial review

National Trust Annual Report 2020/21

31

Looking forward

Even with a robust recovery, it will take several years for our membership to re-attain the level that generated our prepandemic revenue levels. The combination of the measures we have taken to reduce costs and strengthen reserves, alongside rising membership and visits, gives us confidence in the organisation’s ability to remain a strong going concern.

Measures taken :

Investments

Policies and powers

As trustees, we are responsible for the financial policies under which the Trust is managed. We report here on the main policies. Full details are provided in the financial statements.

We invest the majority of our funds in our “General Pool”. (This is a “Common Investment Fund”, a scheme facilitated by a Charities Commission to enable the pooling of trusts.) This is run on a “total return” basis, i.e. targeting both capital gain and investment income. Any permanent endowments included in the General Pool can only distribute part of their capital gain if they are covered by a “total return order” (see also Note 21 to the financial statements).

The largest portion of our funds outside the General Pool is £186 million of the Trust’s unrestricted funds which were withdrawn during the Summer and separately invested into bond funds. These funds have a high degree of principal security albeit at the cost of very low return. The decision to withdraw them was driven by the rapid trading deterioration taking place at the time due to Covid-19 coupled with a concern that this could be compounded by market volatility. This separate investment of £186 million remains in place at year-end.

During the year the investment strategy for the General Pool was updated in conjunction with our new investment advisers Cambridge Associates. As before, the portfolio continues to aim for a return well ahead of inflation, thereby supporting the Trust’s long-term conservation needs, coupled with a high level of diversification to reduce risk but it also now seeks to achieve

a vigorous de-carbonisation target and to have much greater resilience than hitherto so that cash can always be distributed back to the Trust regardless of prevailing market conditions.

In terms of assets it continues to have a large allocation to UK and overseas equities, including emerging markets, an allocation to ‘absolute return’ funds which invest across a wide range of different asset classes and also a long standing and building allocation to private assets/venture capital. In addition, there are now new allocations for ‘illiquid diversifiers’ and for a ‘liquidity reserve’. As with private equity, illiquid diversifiers comprise investments in private companies and will also build over time. They will be heavily slanted towards strategies with environmental overlays such as renewables, sustainable woodland, sustainable agriculture, thereby supporting our decarbonisation agenda. The liquidity reserve will primarily invest in liquid assets such as bonds to support, as noted above, the portfolio’s ability to distribute regardless of market conditions going forward.

The National Trust supports the Principles for Responsible Investment (PRI) and expects all its investment managers to be signatories thereof. In keeping with the spirit of those Principles, we expect our investment managers to take an interest in the management of the companies in which the Trust invests and to exercise voting rights wherever possible. We consider it essential that in making investment decisions our investment managers take account of acceptable codes of management conduct and practice in terms of socially responsible, environmentally aware and ethical management, all of which could affect shareholder value.

Environmental Investment Policy Statement

During the previous year the National Trust adopted an Environmental Investment Policy statement. This was designed, without compromising our financial returns or increasing our financial risks , to align our investment strategy far more closely with the ambitious environmental strategies being adopted by the Trust. It has four pillars:

National Trust Annual Report 2020/21

Financial review

32

Further to this ambition, during the year, a Stewardship and Engagement Working Group was set up as a sub-set of the full Investment Committee. This Working Group met with almost all the Trust’s fund managers to assess current alignment with the Trust’s ESG (Environmental, Social and Governance) goals, with a particular focus on the attitude to climate change, and to encourage improved performance by those funds or support disinvestment by the Trust if appropriate. Under the auspices of this Group the Trust also joined and has played an increasingly active role in the Institutional Investors Group on Climate Change (IIGCC) and ClimateAction 100+.

Private Equity and Illiquid Diversifiers portfolios

We continued to make further investments during the year under our private asset mandate with Cambridge Associates which has a long-term target of 15% of the General Pool. At 28 February 2021 there was a total of 36 investments with a value of £72.7 million, and a total commitment of £159.7 million, (at the year-end dollar/ sterling exchange rate) in a range of US, European and Asian domiciled funds across a broad spread of private asset classes.

Within this 15% allocation we have allocated a portion for impact investing. Investments within this allocation must also target one of seven specific environmental outcomes: reduce CO2 emissions; reduce energy consumption; reduce water use; improve water quality; reduce landfill; increase recycling; and reduce single use plastics. By year end we had made investments into two funds within this portion of the portfolio. These invest in a very diverse range of companies in environmentally beneficial and cutting-edge technologies. Examples include hydrogen fuel cell propulsion systems for aircraft, solar powered community scale grids across Africa, electric ferry providers in Scandinavia and manufacturers of compostable, thermal shippers and coolers.

As noted, we also now have a new illiquid diversifier target allocation. This is also with Cambridge Associates and will build overtime to 10% of the General Pool. We were pleased to make our first investment here during the year in a renewables fund with a particular emphasis on offshore wind around the world.

The Trust will be re-shaping its financial reporting during 202122 and is committed to aligning its annual report and financial statements with the requirements of the Task Force on ClimateRelated Financial Disclosures (TCFD).

Financial review

National Trust Annual Report 2020/21

33

Investment performance

In the year to 28 February 2021, the total value of all non-pension investments increased from £1,307 million to £1,474 million. As noted above, the General Pool comprises the majority of our investments, and its funds under management increased from £1,055 million (excluding the £186m separately invested during the course of the year) to £1,221 million at the end of the financial year.

We are a long-term investor given our commitment to the care of the nation’s heritage in perpetuity – as such we monitor investment performance over the very longterm. The performance of the General Pool overtime is shown below. (Note we measure manager performance against benchmarks over the calendar year rather than our financial year):

Comparison of National Trust Investment Growth versus RPI +4% (December 2010 = 100)

----- Start of picture text -----
250
Total Assets Policy Benchmark RPI + 4%
225
216
200 202
191
175
150
125
100
75
Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20
----- End of picture text -----

Data as at 31st December 2020. Portfolio returns are net of fees.

In terms of the position as at 28th February 2021:

----- Start of picture text -----
Fund Benchmark % of Portfolio Trailing 12-Month Returnw
Fund Benchmark
Numis Smaller Companies ex Investment
Aberforth UK Small Companies Strategy 6.1% (14.2) (4.3)
Trusts Index
LGIM All World TPI Index ex Fossil Fuels Fund LGIM Custom Benchmark 21.6% 9.2 9.7
Longview Global Equity MSCI World Index (Net) 10.5% (1.2) 12.3
Ownership Capital Global Equity MSCI World ex Japan Index (Net) 13.7% 29.5 12.4
Comgest Growth Emerging Markets Plus MSCI Emerging Markets Index (Net) 9.4% 18.7 14.3
Private Equity Private Equity - MSCI ACWI (N) (Lagged) 5.9% - -
50% MSCI Worl Index £-hedged, 40% BB Global
Newton Real Return Strategy 4.3% 8.6 8.5
Agg £-hedged, 10% UK T-Bills
Hedge Fund Research Fund of Funds Conservative
Nordea 1 - Alpha 15 MA Strategy 8.8% 16.1 5.4
Index (Hedged) - GBP
BlackRock London Interbank Bid Rate 19.6% - -
Total Assets 100.0% 5.0 7.0
----- End of picture text -----

Asset allocation as at 28th February 2021. Returns to 31st December 2020 (net of fees). Comgest returns are shown since inception in portfolio on 29th January 2020. Final Private Equity returns data for 2020 not yet available.

Investment management fees were £13.0 million (2019/20: £10.8 million). The fee level the Trust paid in 2020/21 represents 0.9% of the value of the investment portfolio (2019/20: 0.8%).

We consider the fee level appropriate in the context of this longterm strategy, reflecting both the higher return expectations of illiquid asset classes and the active management needed to deliver our objectives.

The selection of our investment managers is determined by the Investment Committee who regularly review performance and the rate of income distribution. A more recent slight deviation from the target of RPI+4% has resulted in a reduction to 3.5% in the portfolio distribution rate.

National Trust Annual Report 2020/21

Financial review

34

Funds and reserves

Why we hold funds and what they represent

The Trust has a unique obligation to conserve places of historic interest or natural beauty in perpetuity for the benefit of the nation. It requires considerable financial resources and extensive long-term planning to protect such a significant part of the nation’s heritage for ever, for everyone. Reliance simply on day-to-day income to fund our work would be an unacceptable, high-risk strategy. Therefore, the Trust holds what might appear to be a large funding level to enable us to fund our work securely and sustainably – these funding levels have been of central importance to the Trust in managing its finances during the coronavirus pandemic.

The Trust has three principal categories of funds:

Strong financial performance that reinforces its reserves position plays a key role in helping the Trust to respond to the need to increase investment in our core conservation purpose.

National Trust funds at 28 February 2021

The funds shown in our consolidated balance sheet on page 53 of the financial statements (and analysed further in Note 17) are as follows:

National Trust Funds

----- Start of picture text -----
700
2021 2020
600
500
400
300
200
100
Pension deficit
0
Endowment Restricted Unrestricted Funds
-100 Funds Funds before pension deficit
-200
£million
----- End of picture text -----

Endowment and restricted funds comprise a very large proportion of our funding - £1,094 million of total funds of £1,467 million. We cannot spend the capital element of endowment funds and are committed to spending restricted funds on particular purposes as defined by donors.

Therefore, to maintain as much flexibility as possible, we endeavour to use restricted funds before unrestricted reserves when funding projects and acquisitions.

The fixed asset reserve and the pension reserve, though included within unrestricted reserves in the balance sheet, are excluded from total unrestricted reserves for reserves policy purposes.

Financial review

National Trust Annual Report 2020/21

35

Our policy for unrestricted reserves

The Trust defines its total unrestricted funds as the general fund plus other designated funds i.e. excluding the fixed asset reserve and the pension fund deficit. These reserves represent the resources that the Trust can use for any of its charitable purposes.

We aim to hold total unrestricted funds of at least £186 million, a threshold that increases annually by inflation as measured by the RPI. This threshold was set by the Board after considering the following needs and was reviewed in the context of the coronavirus pandemic to ensure its continued sufficiency and relevance:

Total unrestricted reserves, comprising the general fund and other designated reserves, stand at £410.6 million (2020: £317.7 million), £224.6 million in excess of our policy threshold (2020: £131.7 million above the threshold). Excluding essential designations of £137million referred to above, the surplus is £87.6million above threshold – this surplus will provide the Trust with some additional financial resilience as the charity begins a new financial year faced with continued uncertainty

The General Fund: £240.5 million (2020: £150.8 million)

The General Fund is the Trust’s central unrestricted reserve. Its purposes are to provide finance for central infrastructure, to provide funding for large projects to properties with insufficient local reserves, and occasionally to fund unforeseen projects and acquisitions if restricted funds are not available. The fund also provides financial protection against income volatility (e.g. from investment markets).

While the Trust recovers from the effects of the coronavirus pandemic, property reserves have been released back to the General Fund (leaving £33.1 million relating to investment property and other designations). The finance model governing the use of the property unrestricted reserves is being reviewed and revised and will be re-launched in 2022/23.

The trustee board reviewed the forecast year-end reserves and agreed on targeted designations to underwrite the financial risk in 2021/22, and ensure adequate funds are set aside for the Trust’s essential work. As mentioned above under the ‘staying resilient’ section, a total of £137 million of designations are being held in designated funds to manage these financial risks.

Designated Funds £170.1 million (2020: £166.9 million)

The remainder of the Trust’s unrestricted reserves are usually held at properties or in funds designated specifically to fund conservation and repair work at properties. Property reserves represent operating surpluses after meeting the costs of conservation repair and improvement work, commercial development and the purchase of plant and equipment.

Financial review

National Trust Annual Report 2020/21

36

Governance Structure, management and internal control

Our structure

----- Start of picture text -----
Key:
Monitoring and
calling to account
Reporting
----- End of picture text -----

The Council Board of Trustees Reporting Audit Committee Nominations Committees Investment Committee Senior Management Remuneration Committee

Non-Executive Executive

Director-General and Executive Team

Directorates

Curation and Experience Land and Nature Support and Revenue People and Legal and Governance Curation and Experience Operations and Consultancy Communications and Marketing Finance and IT

Over 10,000 staff across England, Wales and N. Ireland

Supported by

Over 50,000 volunteers

More than 2.35 million memberships made up of 5.37 million members

Donors, grants, legacies, corporate sponsorship and supporter groups

National Trust Annual Report 2020/21

Governance – Structure, management and internal control

37

Our constitution

The National Trust was first incorporated in 1894 as an Association Not-for-Profit under the Companies Acts 1862-90. The first National Trust Act was passed by Parliament in 1907. Paragraph 4 (1) of that Act describes the general purpose of the Trust. It states:

The National Trust shall be established for the purposes of promoting the permanent preservation for the benefit of the nation of lands and tenements (including buildings) of beauty or historic interest and as regards lands for the preservation (so far as practicable) of their natural aspect features and animal and plant life.

Further Acts of Parliament followed to clarify further the Trust’s purpose and to develop its governance model. The Charities (National Trust) Order 2005 describes our current governance arrangements.

Charity Governance Code

The Trust’s governance arrangements are described in its constitution. The latter is rooted in a series of Acts of Parliament dating from 1907 together with a Parliamentary Scheme introduced in 2005. In addition, the Board of Trustees and the Council have agreed a range of policies and procedures that assist with the practical application of our statutory obligations.

The Trust has ensured that its governance is broadly aligned with the Charity Governance Code and endorsed by the Charity Commission. It also draws on guidance from other appropriate governance codes reflecting the size and complexity of the organisation.

Board of Trustees

Since 1 September 2005, Trustees have been responsible for the administration and management of the Trust.

The Board of Trustees is appointed by the Council (see page 50). It currently has 12 members, who are listed on page 48. It has ultimate responsibility for what the National Trust does, consistent with section 177 of the Charities Act 2011. This states that charity trustees are ‘the persons having the general control and management of the administration of a Charity’.

During the year John Sell and David Smart stood down as Trustees. We thank them for their contributions. We were delighted to welcome Denise Jagger as a Trustee, appointed for an initial threeyear term by Council.

Board diversity

We believe that a Board of Trustees with diversity of perspectives and experience and a balance of age and of gender is fundamental to the effectiveness of our governing body. Our Board recruitment practices aim to attract individuals who will help lead the National Trust in a way that embraces inspiration, diversity and fresh thinking in the delivery of our strategy, and who will champion our work across all communities.

Trustee induction

All Trustees complete a bespoke induction programme designed to inform them about the Trust’s structure, strategy, financial planning arrangements and delegation framework, which shapes the Trust’s decision-making processes and to ensure that they are fully aware of the responsibilities of being a Trustee. The induction takes the form of a combination of meetings, visits and the provision of appropriate reading material.

Statement of the Board’s

responsibilities as Trustees

The Trustees are responsible for preparing the Trustees’ Annual Report and the Financial Statements in accordance with applicable law and GAAP (United Kingdom Generally Accepted Accounting Practice).

The law, applicable to charities in England and Wales, requires the Trustees to prepare Financial Statements for each financial year that give a true and fair view of the Charity and the group and of the incoming resources and application of resources of the Charity/group for that period.

In preparing these Financial Statements, the Trustees are required to:

National Trust Annual Report 2020/21

Governance – Structure, management and internal control

38

Appointment terms

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and group and enable them to ensure that the Financial Statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the National Trust Act 1971. They are also responsible for safeguarding the assets of the Charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees 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 legislation in other jurisdictions.

Council

The Council is the guardian of the spirit of the Trust and of its longterm objectives. It provides a wide range of expertise and a forum for debate about the major issues affecting the Trust. The Council’s report to members on its activities is presented on page 50.

Council members serve for elected or appointed terms of three years, and members can be re-elected or re-appointed. The Council comprises 18 members elected by the Trust’s membership. Elections take place annually to fill any vacancies that arise. The 2020 election was suspended due to the pandemic and all members’ terms were extended by one year. An election is scheduled to take place in 2021.

The remaining 18 members are nominated by organisations which are elected by the Trust’s membership every six years – these organisations are referred to as Appointing Bodies. The Chair and Deputy Chair are also members of the Council. All members are volunteers.

The Council is responsible for appointing Nominations Committees for the appointment of the Chair, Deputy Chair, and Trustees. Nominations Committees also make recommendations for the appointment of non-Trustee members of the Board’s committees, candidates standing for election to the Council, and the six-yearly review of Appointing Bodies.

Procedures for the appointment and election of non-executive volunteers to our various governance groups are consistent, open, fair and robust. There is outside involvement through external, independent members on the Nominations Committees.

Members of the Board of Trustees are normally appointed for two terms of three years, subject to re-appointment.

Members of the Council are normally appointed or elected for up to three terms of three years, subject to re-appointment or re-election.

External members of the Council’s Nominations Committees are appointed for one term of five years.

Independent members of the Board’s committees are appointed for terms determined by individual committees, subject to re-appointment.

Service arrangements

All Trustees, Council and independent and external committee members are unpaid, although expenses are reimbursed.

Code of conduct

All our non-executive volunteers are expected to adhere to our code of conduct which provides clear guidelines on expected standards of behaviour, responsibilities and best practice in fulfilling their obligations to the Trust.

Public benefit

In reviewing our aims and objectives and planning future activities, the Trustees ensure that the activities undertaken are in line with our core purpose of looking after special places for everyone, for ever as demonstrated on pages 6 to 25 of this report.

Modern slavery

The National Trust is committed to ensuring modern slavery is not present in our supply chains. We continue to develop policy and procedures to manage the way we obtain goods and services to ensure the integrity of the supply chains. A full statement can be found at: https://www.nationaltrust.org.uk/features/ modern-slavery-statement

Whistleblowing

The Trust acknowledges that, however strong our commitment to openness, transparency and accountability, we may not always get matters right. We have a clear whistleblowing process in place through which everyone involved with the organisation can raise significant issues.

National Trust Annual Report 2020/21

Governance – Structure, management and internal control

39

Members’ Annual General Meeting

The Trust is one of the largest membership organisations in the UK. Members are entitled, and invited, to attend the Annual General Meeting as part of which they receive the Annual Report and Financial Statements, approve the appointment of the auditor and vote in advance on the election of Council members and Appointing Bodies. Members would normally be given the opportunity to submit resolutions to be taken at the Annual General Meeting (AGM); however, due to the pandemic, in consultation with the Charity Commission the 2020 AGM was cancelled. Resolutions were rolled over to the 2021 AGM.

In lieu of the AGM we hosted a Members’ Broadcast. We were delighted in the level of interest it attracted with more than 1,200 questions being submitted.

Committees of the Board of Trustees

The Audit Committee carries out its work by testing and challenging the assurances it receives on the effectiveness of internal controls and risk management, including the management priorities on which they are based. The Audit Committee may also seek contributions from others when it considers that its work can be enhanced by specialist support. This practice is reinforced by management-led ‘Deep-Dive’ sessions which are held as a standing item on the Audit Committee agenda. The Audit Committee meets formally four times a year and holds a fifth meeting to consider the draft Annual Report. In addition, the Chair of the Committee has regular discussions and liaison with senior management and the Head of Risk and Assurance to ensure standards are maintained and to facilitate open and unfettered risk-focused discussions. Maintaining openness, transparency, a clear line of sight and independence are at the heart of the way the Trust’s Audit Committee operates.

We have three standing committees which help us with our work:

The Audit Committee

The Audit Committee is an advisory committee of the Board of Trustees. The Audit Committee operates in accordance with the agreed Terms of Reference, which are periodically reviewed to maintain alignment with Charity Commission expectations and guidance. The Audit Committee’s role is to help the Trustees meet their responsibilities for risk management, confirming the effectiveness of internal controls and assessing the efficient and effective use of funds. The Audit Committee is part of the overarching governance arrangements of the Trust. As a delegated committee of the Board of Trustees, a clear line of communication to the Board has been established and quarterly updates are provided. Part of the Committee’s remit is to assess and evaluate risk management. Its membership constitutes at least three Trustees and two independent external members with responsibility to:

During the year, the Audit Committee has also undertaken the following:

Audit Committee: Covid-19 Response (Viability and Going Concern)

The Audit Committee have remained alert to the fact that control measures taken to contain the coronavirus (Covid-19) are having an impact on the Trust’s operations and financial reporting. In particular, the Audit Committee has been mindful of the Charities SORP guidance in respect of ‘going concern’ obligations and risks. Audit Committee members and the Board of Trustees have worked to satisfy themselves that the Trust’s financial health can be adequately maintained beyond the end of the 2020/21 reporting period.

National Trust Annual Report 2020/21

Governance – Structure, management and internal control

40

UK Government measures to control the pandemic involve a high degree of social disruption which has an impact on the delivery of, and demand for the activities of the Trust, including the availability of staff for work. Whilst the implications of the crisis have been severe, they have not cast doubt upon the Trust’s overall financial sustainability. However, to achieve this level of sustainability, a number of difficult but informed decisions have needed to be made at pace.

As part of the overall response to the Covid-19 crisis measures, the Audit Committee has considered:

The Committee reviews the performance of the external auditors, discusses this with management and recommends their continued appointment or otherwise.

KPMG LLP were the Trust’s external auditor for 2020/21. They provided the Audit Committee with relevant reports, reviews and information and advice throughout the year in accordance with their engagement letter.

The Audit Committee recognises that the independence of the external auditor is essential to protecting the interests of the Trust. Therefore, the Committee confirms that the external auditor is independent with respect to the audit.

Audit Committee: Internal Audit

The Committee has supported the Board in its assessment of both going concern and viability. Members have considered whether, in the demanding risk scenarios identified, the Trust has adequate liquid resources to meet its obligations as they fall due in the next 12 months and to remain commercially viable into the future. Attention has been given to the available unrestricted reserves, use of restricted funds, liquidity available, credit facilities and other forms of financial assistance open to the Trust.

As a result of the assessments undertaken, and the responses received from management in relation to questioning, the Committee has satisfied itself that the going-concern basis of accounts preparation is appropriate and that the Trust is commercially viable going forward.

Audit Committee: External Audit

The Audit Committee discusses with the external auditors the scope of their audit and makes recommendations before the audit commences. The significant audit risks are appraised and confirmed as both relevant and appropriate. The continued independence and objectivity of the Trust’s external auditors is at the centre of the Committee’s approach and remit. The Audit Committee meets with the external auditor without Executive Directors being present, to facilitate open and frank discussions.

The National Trust has an ‘in-house’ internal audit function which is supplemented using a co-source partner providing external expertise where relevant. The Head of Risk and Assurance reports functionally to the Chair of the Audit Committee who appraises his performance and considers the work done by the team as a whole. Internal Audit assignments are founded and performed on a risk-based assurance plan which is reviewed and approved by the Audit Committee prior to implementation. Throughout the reporting period the rolling plan is regularly evaluated and updated, taking into account the Trust’s evolving risk profile. At each meeting, the Audit Committee receives an update on audit reports completed and assurance opinions provided. This enables the Committee to develop an informed opinion of the system of internal control and the Trust’s ability to manage risk effectively. In addition, there are updates in respect of progress on completion of actions arising from the audits. The Committee maintains oversight of open and overdue recommendations for control and governance improvements, with an ongoing focus on action-owner accountability for delivery.

The Internal Audit work plan was structured to align with the key objectives and risks of the Trust and covered both advisory and assurance-related reviews of operational, financial and IT processes as well as areas of significant change in relation to key projects and programmes. In response to the challenging and changing crisis environment, the Committee has moved to reviewing and approving the scope of the Internal Audit work programme on a six-month rolling basis. To enable this change, the approach to Internal Audit was also adapted to accelerate delivery and insight, e.g. shorter, advisory-type reviews in place of longer, traditional assurance assignments. During the year it was vital for Internal Audit to provide real-time feedback to management. Internal Audit review activity undertaken during the year aligned with the justification for its inclusion in the revised plan. This ensured that coverage was sufficient to provide the necessary assurance and maintain the integrity of the function.

Governance – Structure, management and internal control

National Trust Annual Report 2020/21

41

In addition to agreed audit assignments, the Internal Audit team have also delivered a number of: whistleblowing investigations and reports; investigations of potential fraud; real time input to the Trust’s daily Business Continuity Group; and risk management systems enhancements. Since February 2020, the focus of the Trust has been upon safe operation within a pandemic and surviving through a time of extended closure. Internal Audit ensured that the Executive Board, Audit & Risk Committee, and the Board of Trustees have been kept abreast of significant alterations to the framework of governance, risk management and control throughout this process. A vital part of the Trust’s response to the pandemic has been the wellbeing of staff, volunteers and supporters. We have observed that management’s focus was the maintenance of Covid-Safe operations.

The Audit Committee periodically meets with the Head of Internal Audit without Executive Directors being present, to facilitate open discussions and challenge. This ensures the Internal Audit function can operate with sufficient independence.

The Trust’s Internal Audit function is periodically subject to independent external quality assessment (EQA). The most recent review was delivered in the 2018/19 reporting period. This approach ensures compliance with the Institute of Internal Auditors (IIA) standards, which requires independent EQA every five years.

Audit Committee: Risk Management and Internal Control (including fraud, bribery and whistleblowing)

The Committee monitors and reviews risk management processes and the standards of risk management and internal control, including the processes and procedures for ensuring that material business risks are properly identified and managed. Evaluating and managing risks is a vital part of protecting the Trust’s reputation and complying with Charity Commission standards. It is also recognised by management as a key component to achieving the Trust’s objectives. The scope of the Committee is broad and encompasses both active and longterm risks to the Trust. Following the coronavirus crisis, the Audit Committee considered the Trust’s Strategic Crisis Risk Management approach and mitigation. Due to the significant impact of coronavirus on a global scale, the Audit Committee considered this risk to pose a continued threat and has monitored the impact throughout the reporting period.

In November 2020 David Smart stood down as a member of the Audit Committee. David was thanked for the significant amount of time, involvement and expertise he had given to the Trust.

In January 2021, Denise Jagger joined the Audit Committee and was subsequently confirmed as a member of the Board of Trustees. Denise brings a wealth of legal and risk expertise to the Trust and Audit Committee.

The Investment Committee

This committee reviews the management of our investments. It recommends to the Board of Trustees an appropriate investment strategy, advises on the selection of investment managers, and monitors their performance against agreed benchmarks. Further details on National Trust investments are given in the Financial Review on page 32.

During the year the investment strategy for the General Pool was updated in conjunction with the Trust’s investment advisers Cambridge Associates. The portfolio continues to aim for a return well ahead of inflation, thereby supporting the Trust’s long-term conservation needs, coupled with a high level of diversification to reduce risk but it also now seeks to achieve a vigorous net zero 2030 de-carbonisation target and to have much greater resilience so that cash can always be distributed back to the Trust regardless of prevailing market conditions.

The Committee has established a Stewardship and Engagement Working Group was set up as a sub-set of the full Investment Committee. This Working Group met with almost all the Trust’s fund managers to assess current alignment with the Trust’s ESG (Environmental, Social and Governance) goals, with a particular focus on the attitude to climate change, and to encourage improved performance by those funds or support dis-investment by the Trust if appropriate. Under the auspices of this Group the Trust also joined and has played an increasingly active role in the Institutional Investors Group on Climate Change (IIGCC) and ClimateAction 100+.

The Committee continued to oversee investments under the private asset mandate with Cambridge Associates. Within these investments, the Trust has allocated a portion for impact investing. Investments within this allocation must also target one of seven specific environmental outcomes: reduce CO2 emissions; reduce energy consumption; reduce water use; improve water quality; reduce landfill; increase recycling; and reduce single use plastics.

As equity markets recovered over the summer months, the Committee ensured that the portfolio was rebalanced to hold more cash to be able to be able to guarantee cash distributions for up to three years. Additionally, the Committee took steps to protect the organisation’s minimum unrestricted reserves level by allocating these to liquid instruments with their capital value protected.

The Senior Management Remuneration Committee

This manages the remuneration and terms of employment of senior managers in the National Trust and reviews the Trust’s succession planning and development activities for senior management.

Governance – Structure, management and internal control

National Trust Annual Report 2020/21

42

Subsidiary companies

The National Trust owns five subsidiary companies, two of which, The Porthdinlleyn Harbour Company and Countryside Commons Ltd, are dormant. Details of the three active subsidiary companies are provided below:

Historic House Hotels Limited

Historic House Hotels Limited is a wholly owned subsidiary of the National Trust and runs three hotels held on leases from the National Trust. One of the hotels, Hartwell House, is in turn leased by the National Trust on a long lease from the Ernest Cook Trust. The Board of Directors of Historic House Hotels Limited is responsible for the company’s activities.

The performance of Historic House Hotels Limited during 2019/20 and 2020/21 is set out in Note 5 to the Financial Statements.

The National Trust (Enterprises) Limited

The National Trust (Enterprises) Limited is a company wholly owned by the National Trust. It forms the Trust’s trading arm and is responsible for running its commercial activities such as retail. It transfers its taxable profits to the Trust and Gift Aid is added to this.

The Board of The National Trust (Enterprises) Limited is responsible for the company’s activities. The Board’s members (appointed by the Board of Trustees) include both nonexecutives and senior Trust staff. The Board performs the same role as any company board, overseeing the running of the company, reviewing the major risks facing the company, agreeing and monitoring its budget, approving major expenditure and approving its annual report and financial statements.

The performance of The National Trust (Enterprises) Limited during 2019/20 and 2020/21 is set out in Note 5 to the Financial Statements.

The Board of National Trust (Renewable Energy) Limited is responsible for the company’s activities. The Board’s members (appointed by the Board of Trustees) include both nonexecutives and senior Trust staff. The Board performs the same role as any company board, overseeing the running of the company, reviewing the major risks facing the company, agreeing and monitoring its budget, approving major expenditure and approving its annual report and financial statements.

The performance of National Trust (Renewable Energy) Limited during 2019/20 and 2020/21 is set out in Note 5 to the Financial Statements.

Wider network

We are a founder member of the International National Trusts Organisation (INTO) and we host the INTO Secretariat at our London office, 20 Grosvenor Gardens, London, SW1W 0DH. INTO is a registered charity in the UK (charity number 1128224). INTO exists ‘to promote the conservation and enhancement of the natural and cultural heritage of all nations for the benefit of the people of the world’.

Executive Team

The Executive Team comprises the Director-General and senior Trust staff who support her in fulfilling her responsibilities.

The Board of Trustees delegates various functions to the Executive Team and other staff, through the leadership of the Director-General. These functions are summarised in a Scheme of Delegation.

The Executive Team formulates strategy for the Board of Trustees’ consideration and approval, ensures it is carried out and oversees the day-to-day operation of the Trust.

National Trust

(Renewable Energy) Limited

National Trust (Renewable Energy) Limited is a company wholly owned by the National Trust. The Trust has a Renewable Energy Investment Programme, part of which involves trading the electricity we generate through renewable energy projects by selling it to the National Grid. National Trust (Renewable Energy) Limited carries out this trading. It transfers its taxable profits to the Trust and Gift Aid is added to this.

Meetings during 2020/21

During the pandemic the Board of Trustees, Council, committee and subsidiary meetings have been held virtually to enable members to safely carry out their duties. Recognising the seriousness of the impacts of the pandemic the Board of Trustees met with significantly increased regularity to ensure sufficient oversight at a time of great challenge.

Governance – Structure, management and internal control

National Trust Annual Report 2020/21

43

Risk Management

Our risk management framework seeks to effectively and efficiently mitigate risk to a practical level which is based on the activities and responsibilities the Trust fulfils. This approach is in keeping with Charity Commission guidance. The process identifies the significant risks that apply to the Trust and supports us in making decisions about how to respond to the risks we face. The system of risk management and internal control is designed to minimise the risk of failure to achieve the Trust’s objectives. The approach is measured but cannot eliminate all risks. Therefore, the system does not provide an absolute assurance against risks materialising.

Our risk management processes help us identify and manage the most significant risks to the Trust. By significant we mean those long-term risks that could stop us achieving our strategic objectives or have a significant detrimental impact on the organisation. Therefore, we assess a range of possible impacts which need to be considered such as financial, regulatory, operational, reputational and environmental. The risk management process is embedded within the Trust’s approach to delivery. This allows us to make the most of opportunities and develop them with confidence. In addition, forward and strategic planning are improved.

The Trustees are ultimately responsible for risk management, and we are satisfied the Trust has appropriate risk management processes in place. The Audit Committee supports the Board of Trustees in forming this view by receiving quarterly reports from the Executive Team on the most significant risks and how they are being managed. The Audit Committee is also provided with an annual opinion from Internal Audit on the effectiveness of the Trust’s internal controls and associated risk management processes. In addition to the annual opinion on risk management, our Risk and Assurance Team deliver a strategic rolling programme of risk-based internal audits and will be supported by Pricewaterhouse-Coopers (PwC) LLP going forward. The results of all internal audit work are reported to the Executive Team and Audit Committee each quarter, including progress in implementing any internal audit recommendations.

Risk management is a standing agenda item at each quarterly Audit Committee meeting. This provides an opportunity for members of the Audit Committee to challenge the Executive Team on whether they have identified the key risks, whether they are taking sufficient mitigating actions to manage the risks and the effectiveness of the internal controls.

Identified risks are owned by a member of the Executive Team who has ultimate accountability for ensuring it is managed. The Executive Team will usually delegate responsibility for the actions which need to be taken to a member of their functional or regional team. Owners of the most significant risks are

periodically invited to the Audit Committee to present a ’Deep Dive’. This adds to the Audit Committee’s wider understanding of how risks are being managed and whether that is in keeping with the Trust’s risk tolerance.

As Trustees, we concentrate our efforts on ensuring that the most significant risks are being identified and managed effectively. We participate in risk identification and analysis through our regular review of risk registers and consideration of updates from the Audit Committee.

During 2020/21 the most significant risks to our strategy were identified as follows:

1. Impacts of coronavirus – looking ahead

The longer-term restrictions and associated impacts to operations, fundraising and resourcing caused by the coronavirus (Covid-19) pandemic have been and remain the most critical external risks currently facing the Trust. The scale and force of the crisis has impacted many aspects of the Trust’s operation. This may slow our ability to deliver all of our charitable aims in the short-term. However, we remain confident that in the medium-term our reset and renewal plans will enable a recovery that enables the Trust to deliver on its mission.

The pandemic has impacted the Trust’s overall capacity and capability to maintain the levels of resilience in evidence prior to the crisis. The changes introduced to protect the Trust from the impacts of the pandemic were assessed in a considered manner prior to implementation. Creating experiences and responding to needs and conservation ambitions will present new challenges but also new opportunities as the Trust revisits how it works. Seeking alternative ways to generate experiences that support the organisations environmental aspirations and capitalise on charitable aims will form part of the approach as well as utilising these changes to focus on conservation standards and by applying new techniques afford an opportunity to meet strategic aims whilst using less resource.

Further impacts of the pandemic may see changes to government environmental and planning policy. To protect the Trust’s strategic and charitable objectives, the Trust will be focusing attention on prudent, sustainable, economic and viable models for land use to manage this risk in the longer-term.

There is no clear timeline for the recovery of the UK economy from the pandemic and therefore the on-going financial sustainability in relation to the capacity and capability of the Trust to recover from the significant economic downturn predicted for the foreseeable future has been considered and planned for. Modelling analysis has taken account of a number of potential recovery scenarios. The impact of Covid-19 on investment is monitored to ensure a timely and effective

Governance – Structure, management and internal control

National Trust Annual Report 2020/21

44

response from the Trust where there may be an impact on the Trust’s income. Constant vigilance will be required to mitigate the impact of risks materialising post-pandemic that may have the potential to affect the financial stability of the Trust.

The Trust has responded to the challenges created by the pandemic over 2020/21 in a pragmatic and measured manner. Mitigations are in place for 2021/22 should there be further waves of the virus or if there is a continued challenge to the Trust’s ability to carry out its charitable objectives.

2. Organisational impact of climate change

The risks associated with the impact of climate change are numerous and diverse. In progressing the delivery of our strategy, we are focusing significant time and attention on this unfolding threat to ensure organisational readiness and wider societal influence. The impact of being unable to effectively adapt to climate change would be considerable and could significantly impede the delivery of our wider strategic aims. In particular, there may be implications for our ability to care for places to give them a sustainable future and improve the state of nature in the UK, both now and into the future. Limiting the detrimental impact on our conservation assets, our ability to provide access to these assets, and our business processes are central to the approach we have adopted.

Protecting the range of assets in our care, and the way that our supporters can enjoy them, such as our wildlife, gardens, woodland and buildings, are core elements of the risk management operation we are applying. We have revitalised and refreshed our internal approach to promote understanding and awareness of climate change adaptation. The Executive Team and Trustees have developed and agreed a four-point plan to further improve our ability to respond at pace to climate change. The plan will deliver: low carbon, greener day-to-day working practices, including forming an effective carbon accounting system; optimise carbon sequestration and storage from our extensive land holdings; adapt our places to cope with the change that is inevitable; and telling compelling stories which will allow and encourage our supporters to make their own contributions. We will advocate to Government and with partners, changes to policy (including as part of our work on post-Brexit farming and land management) which will help respond effectively within and beyond our boundaries.

The Board and senior management have increased the emphasis and priority of meeting the climate change challenge and associated threats. Responding positively and in a timely manner to climate change is flagged as one of the top five strategic priorities. This ensures awareness of the need to maintain momentum in risk resolution activity and promoting the Trust’s readiness. We continue to progress our commitment to reduce energy usage and significantly increase renewable sources of energy across our estate, leading by example and demonstrating the benefits of responding constructively to climate change.

National Trust Annual Report 2020/21

Governance – Structure, management and internal control

45

3. Maintaining the relevance of the National Trust

The Trust continues to monitor the changes in society and is aware of the need to remain relevant to all audiences. There is a recognised risk that stakeholders may stop being interested in the work of the Trust if our relevance is not proactively maintained. Without this approach both the current and next generation of stakeholders may stop supporting the conservation and charitable work, which would reduce the Trust’s ability to care for the places in its care in the longer term.

The Trust acknowledges that the behaviour of future visitors and supporters is likely to change in the medium term. The Trust needs to be equipped to deal with this technologically to ensure it can remain relevant to its supporters and deliver charitable aims and objectives. To minimise the potential disruption of this risk, the Trust is currently exploring the required investments in new technology and developing plans to ensure that our content and campaigns cover key segments across traditional and contemporary audiences. The focus is to maintain a broad and inclusive appeal in engaging support, interest and delivery of charitable aims.

Membership remains a significant source of funds for the National Trust. We have retained a core base of members but there remains significant opportunity for growth post-pandemic. We review the future trends of UK audiences and their demography, regional variances and needs/wants in order to continuously adapt our offer to remain relevant to people’s lives and deliver our strategic purpose. Our memberships not only deliver income, but importantly they are our biggest beneficiaries of nature, beauty and history. Members and supporters are the lifeblood of the National Trust.

We recognise that in order to continue to be both appealing and relevant, we need to ensure we keep abreast of changing UK trends and respond to them in an appropriate and sustainable way. There is more we want to do to develop an integrated membership and fundraising offer and to create different types of access products. We are currently working on a project to improve our central membership and fundraising systems to give us the flexibility to do this. In addition, we are improving the Trust website and digital channel to ensure we keep pace with member expectations and ways of engagement.

As we respond and develop to the needs of new audiences and of demographic and social changes, we remain mindful that many of our existing audiences place a high value on our traditional offer, so it is important to balance change with continuity and reassurance for long-standing members. In addition to new work to build our appeal to families and new audiences, we are renewing our commitment to high standards of presentation and programming around our collections and houses.

4. Cyber and digital threats

The Trust takes the protection of all individuals' privacy seriously. As an organisation we recognise the persistent threat from cyber and information security risks. For this reason, we continuously monitor cyber and information risk to maintain focus and vigilance. We take a proactive approach to identifying and managing the risks associated with loss of key staff, member, volunteer or business data, due to a breach of IT or data security and/or failure to protect the integrity and availability of data. Minimising the threat of financial, regulatory, legal and reputational damage, as well as disruption to business operations, forms the basis of our mitigation approach.

We have implemented a Cyber Resilience Task Force to ensure we constantly review and react to new risks. In addition, we have created more robust policies and monitoring processes to confirm compliance with regulatory and good practice standards. Training and awareness sit at the heart of our procedures and ensure that those tasked with handling information or data understand their responsibilities to be aware of threats and maintain security. Security Operations update our response playbooks to review cyber attacks and know what actions to take if further attacks occur. During the year we have continued to improve our infrastructure and ability to effectively manage, monitor and govern our data and information security. In addition, we have made enhancements to our systems and controls to improve resilience. By applying a strategy of ‘cloud’ first, we can better manage business interruption scenarios. The security and resilience of our network is routinely tested, and vulnerabilities addressed. The focus of our risk mitigation activity is preventive rather than reactive. Cyber and Information security are embedded within our change and transformation procedures.

During the reporting period one of the Trust’s third party suppliers of information technology services (Blackbaud) was subject to a ransom attack and data breach. The Information Commissioners Office (ICO) found that the Trust acted appropriately in the use of Blackbaud and that regulatory action was not required in this case against the Trust. Lessons have been learned from this incident which also affected a number of other charities and the education sector. Throughout the year we have continued to make significant improvement gains in relation to cyber and information security and we will continue to build on this going forward.

National Trust Annual Report 2020/21

Governance – Structure, management and internal control

46

Health & Safety and operational risk management

The National Trust takes its health and safety duty of care towards staff, volunteers, visitors and contractors very seriously. We are an active member of the Visitor Safety Group and we apply their guiding principles to proportionately manage risks to visitors. We also have a tripartite agreement with the Health and Safety Executive (HSE) and Swindon Borough Council which helps ensure that our approaches to health and safety throughout our operations are consistent, proportionate and in line with regulatory requirements. During the financial year 2020/21 we have not been subject to any enforcement action taken by the HSE or Local Authorities in relation to health and safety matters.

Fraud, bribery and theft

With information increasingly being held digitally, the Trust recognises that any digital fraud or theft would have a greater impact than it would ever have done in the past. To adequately protect our information, we have invested in both preventive and monitoring controls. We also ensure we remain abreast of cyber developments to ensure we respond swiftly to any changes in the cyber risk landscape.

The Bribery Act came into effect in 2010 and introduces the offences of offering or receiving bribes, bribery of foreign public officials and of failure to prevent a bribe being paid on an organisation’s behalf, all of which apply to charitable organisations. The Trust will not accept illegal payments, allowances or gifts in kind, and staff and volunteers are required to report any bribery proposition made to them in connection with the Trust that may warrant investigation. An independent external whistleblowing hotline is in place for staff and volunteers to report any suspected fraud, bribery or theft with arrangements in place to investigate any reported incidents. A Fraud, Bribery and Theft Instruction has been documented which clearly states the Trust’s position with regard to bribery, fraud and theft and what is expected of staff and volunteers. The Fraud, Bribery and Theft Instruction, use of the whistleblowing hotline and the nature of issues raised is monitored and reviewed annually by the Audit Committee who provide oversight and governance in the event of any significant incidents of suspected fraud as they occur.

Committees of the Board of Trustees: we have three standing committees which help us with our work. Their members are listed on page 49 of this report.

National Trust Annual Report 2020/21

Governance – Structure, management and internal control

47

Membership of the Board of Trustees, the Council, Committees and Executive Team

All correct as of 28 February 2021

Board of Trustees

Board of Trustees Inga Grimsey OBE (elected member) Tim Parker, Chair Dr Ruth Hall CB (appointed by Natural Resources Wales) Orna NiChionna, Deputy Chair Elizabeth Hamilton (appointed by the Campaign to Protect Rural England) Michael Day CVO Dr Marion Harney (appointed by The Gardens Trust) David Fursdon David Heath MA, Dip Arch, GradDipCons(AA), FSA, FRCGP(Hon), IHBC Denise Jagger (appointed by the Society for the Protection of Ancient Buildings) Caroline Kay Sarah Hollingdale (elected member) Aideen McGinley Doug Hulyer (elected member) Sandy Nairne CBE, FSA Robert Hunter (appointed by Historic Houses) Zarin Patel Caroline Kay (elected member) Ade Rawcliffe Deborah Lamb (elected member) Nick Stace Duncan Mackay (elected member) Dr Tom Tew DPhil, FRSA, FRSB, MCIEEM Emma Mee (elected member) Philip Mulligan (appointed by The Conservation Volunteers) Council Tom Platt (appointed by the Ramblers) Tim Parker, Chair Paul Roberts (elected member) Orna NiChionna, Deputy Chair (appointed by the Soil Association) Simon Sansome (elected member) Steve Anderson (elected member) Michael Salter-Church MBE (elected member) Peter Bate (appointed by the Tenants’ Association of the National Trust) Nick Stace (elected member) Austin Brady (appointed by the Woodland Trust) Elizabeth Staples (elected member) Ian Brown (appointed by The Wildlife Trusts) Prof. David Stocker MA(Cantab. & York), DLITT, FSA, MCIfA Prof. Valerie Brown (appointed by RSPB) (appointed by the Council for British Archaeology) Christopher Catling (elected member) Nichola Tasker (appointed by English Heritage) Anne Casement (elected member) Guy Trehane (elected member) Robert Caudwell (appointed by the National Farmers’ Union) Phil Treleven (appointed by the Duke of Edinburgh’s Award)

Tim Parker, Chair Orna NiChionna, Deputy Chair (appointed by the Soil Association) Steve Anderson (elected member) Peter Bate (appointed by the Tenants’ Association of the National Trust) Austin Brady (appointed by the Woodland Trust) Ian Brown (appointed by The Wildlife Trusts) Prof. Valerie Brown (appointed by RSPB) Christopher Catling (elected member) Anne Casement (elected member) Robert Caudwell (appointed by the National Farmers’ Union) Heather Clarke (appointed by the Canal & River Trust) Jane Dean (elected member) Jim Gardiner (appointed by the Royal Horticultural Society) Sarah Green (elected member)

Appointing Body observers to the Council[*] Graham Bathe (appointed by the Open Spaces Society) Alex Bird (appointed by the Museums Association)

National Trust Annual Report 2020/21

Governance – Structure, management and internal control

48

Standing Committees of the Board

as at 28 February 2021

Audit Committee

Zarin Patel, Chair Justin Atkinson Natalie Gammon Denise Jagger Orna NiChionna

Investment Committee

Nicholas Sykes, Chair Alice Bordini Sir Edward Greenwell Tamlyn Nall Orna NiChionna Victoria Sant Dr Tom Tew DPhil, FRSA, FRSB, MCIEEM Richard Williams

Senior Management Remuneration Committee

Tim Parker, Chair Sandy Nairne CBE, FSA Orna NiChionna Elizabeth Spencer Daniel Thompson

Committee of the Council

Nominations Committee for elections to the Council Anne Casement, Chair Liz Hamilton Duncan Mackay Karen McArthur

Subsidiary Companies as at

28 February 2021

Board of Historic House Hotels Limited

Richard Broyd, Chair Lionel Chatard Chris Feeney Matthew Johnson Neil Kenyon (and Company Secretary) Celia Richardson Elgan Roberts Sarah Staniforth Peter Vermeulen

Board of The National Trust (Enterprises) Limited Orna NiChionna, Chair James Bennett Michael Day Tim Moore Tim Parker Sharon Pickford

Jo Cooke FCG (Secretary)

Board of National Trust (Renewable Energy) Limited

Orna NiChionna, Chair James Bennett Michael Day Tim Moore Tim Parker Sharon Pickford

Jo Cooke FCG (Secretary)

Board of Countryside Commons Limited

Nominations Committee for Trustees

Jane Dean, Chair James Bigwood Prof. Valerie Brown Sarah Green Dr Tom Tew DPhil, FRSA, FRSB, MCIEEM

The Trust’s Secretary

The Board of Trustees, the Council and the Executive are supported by Jan Lasik, General Counsel and Secretary to the National Trust.

Jan Lasik Tim Nicholson

Jo Cooke FCG (Secretary)

Executive Team

Hilary McGrady, Director-General Andy Beer, Director of Operations and Consultancy Harry Bowell, Director of Land and Nature Jan Lasik, General Counsel and Secretary Tina Lewis, Director of People and Legal Services John Orna-Ornstein, Director of Culture and Engagement Sharon Pickford, Director of Support and Revenue Celia Richardson, Director of Communications and Audience Insight Peter Vermeulen, Chief Financial Officer

National Trust Annual Report 2020/21

Governance – Structure, management and internal control

49

Annual Report of the Council 2020/21

Introduction

The Board of Trustees is legally responsible for all aspects of the National Trust. Its role is to hold the Director-General and her staff to account for the delivery of the Board’s strategy.

The role of Council is separate but complementary to that of the Board. Its key governance responsibilities are to appoint the Board of Trustees and to hold it to account. Drawing on its members’ broad range of skills, views and experience, it acts as the ‘spirit of the Trust’, ensuring that the Trust’s long-term objectives are being met and that its purposes continue to be carried out for public benefit.

A short report on the Council’s activities during 2020/21 follows.

Council

The Council comprises 36 members made up of 18 elected members and 18 members from Appointing Bodies with the wide range of skills, knowledge and perspectives to offer effective challenge and advice in alignment with the National Trust’s strategy. Members also use their networks to inspire support for the Trust among members and the wider public.

At the start of 2020 a recruitment process was underway to appoint six Council members. As the pandemic unfolded and the scale of its impact on the Trust became clear, the process was suspended. Noting agreement from the Charity Commission, the Council endorsed the Board of Trustees’ decision to cancel the 2020 AGM and replace it with a members’ broadcast and subsequently cancelled the 2020 Council elections. The terms of all elected members were extended for one year to preserve the even stagger of election rotation in future years.

We reappointed Nick Stace for a second three-year term as Trustee from September 2020. We also reappointed Sandy Nairne as a Trustee for an exceptional third term of three years commencing on 1 April 2021 to ensure stability and retain expertise during the pandemic.

Holding the Board to account

Throughout the pandemic the Council has stepped up its role of monitoring the performance of the Board as it responded to new and various challenges. We adapted to meeting virtually and increased our number of formal meetings over the year from three to four. We also conducted an additional three briefing sessions to ensure that Council had the opportunity to question the Trust’s response to the situation as it developed, with priority given to the welfare of visitors, staff and volunteers. Members challenged constructively on pertinent issues relating to sustainability, strategy and risk. Areas of scrutiny included the financial and operational response to the pandemic, the choices made in the Reset programme and reputational risk. These are areas which Council continues to monitor especially closely in the current year.

As Council members we receive Board meeting minutes, performance reports, strategy updates and the Board’s three-year plan as well as a significant amount of operational information to give us an appropriate level of oversight.

The annual cycle of activity continues to be refined by the Council to ensure that it is fully effective in carrying out its responsibilities.

Board of Trustees Changes

The Council appointed one new Trustee. Denise Jagger was appointed for an initial term of three years from 1 January 2021. She was specifically selected for the capabilities and experience which we felt would most benefit the Trust in fulfilling its For Everyone, For Ever strategy having extensive business, legal and governance experience across multiple sectors.

National Trust Annual Report 2020/21

The Annual Report of the Council 2020/21

50

In summary

We are pleased to report that overall, we are satisfied that the Board is fulfilling its role very well in what has been one of the most challenging years in the history of the Trust, and we retain confidence that the Trust is operating fully in accordance with its charitable purpose.

We thank everyone connected with the Trust for their role in supporting the Trust through unprecedented times.

Become involved

If you have read this report, the chances are that you have a serious interest in the work of the National Trust and that you have voted in the annual election of Council members. If so, we would like to thank you very much. What about taking the next step and putting yourself forward as a candidate next year? Information about how to apply can be found on our website with applications usually sought each March: https://www.nationaltrust.org.uk/features/the-council

A full list of Council members is set out on page 48.

Tim Parker Paul Roberts Chair Senior Member of the Council 21 July 2021 21 July 2021

National Trust Annual Report 2020/21

The Annual Report of the Council 2020/21

51

Consolidated Statement of Financial Activities for the year ended 28 February 2021

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
Funds Funds Funds 2021 2020
Income and endowments from: Note(s) £’000 £’000 £’000 £’000 £’000
Donations and legacies
Appeals and gifts 2,767 8,089 5 10,861 12,856
Legacies 32,117 12,139 375 44,631 61,574
Operating grants and contributions 2 - 8,019 - 8,019 7,226
Other trading activities
Enterprise and renewable energy income 5 33,242 - - 33,242 79,295
Hotel income 5 - 4,051 - 4,051 8,808
Investments 21 4,827 5,175 7,253 17,255 29,178
72,953 37,473 7,633 118,059 198,937
Charitable activities
Membership income 3 267,565 - - 267,565 269,690
Project grants and contributions 2 - 12,260 - 12,260 13,545
Direct property income 4 78,279 26,921 - 105,200 196,899
345,844 39,181 - 385,025 480,134
Other
Other income 7 2,860 1,717 - 4,577 1,881
Total income 421,657 78,371 7,633 507,661 680,952
Expenditure on:
Raising funds
Fundraising costs 12 3,556 - - 3,556 4,546
Enterprise and renewable energy costs 5, 12 35,521 - - 35,521 61,345
Hotel costs 5, 12 - 5,525 - 5,525 8,960
Investment management costs 12, 21 3,948 3,457 5,583 12,988 10,447
43,025 8,982 5,583 57,590 85,298
Charitable activities
Property operating costs 12 210,330 53,514 - 263,844 308,150
Expenditure on property projects 12, 13 47,807 36,004 - 83,811 168,778
Acquisitions 12, 20 2,612 - - 2,612 7,407
Internal conservation and advisory services 13 51,225 2,710 - 53,935 64,421
Membership costs 12, 14 52,751 - - 52,751 65,301
364,725 92,228 - 456,953 614,057
Total expenditure 17 407,750 101,210 5,583 514,543 699,355
Net income/(expenditure) before exceptional items 17 13,907 (22,839) 2,050 (6,882) (18,403)
Exceptional items
Coronavirus support grant income 8 50,054 - - 50,054 -
Income from insurance proceeds 8 66,353 - - 66,353 -
Coronavirus costs 8 (6,067) - - (6,067) -
Redundancy costs 8 (19,823) - - (19,823) -
90,517 - - 90,517 -
Net income/(expenditure) before gains on investments 104,424 (22,839) 2,050 83,635 (18,403)
Net gains on investments 17,21 11,441 28,550 52,431 92,422 25,793
Net income before taxation 115,865 5,711 54,481 176,057 7,390
Taxation 16 1,889 - - 1,889 (1,906)
Net income 17 117,754 5,711 54,481 177,946 5,484
Transfers between funds 17 983 20,975 (21,958) - -
Actuarial expenditure on defined benefit pension scheme 17, 27 (2,638) - - (2,638) (59,578)
Net movement in funds 116,099 26,686 32,523 175,308 (54,094)
Fund balances carried forward 17 256,540 452,955 581,796 1,291,291 1,345,385
Fund balances carried forward 17, 18 372,639 479,641 614,319 1,466,599 1,291,291
----- End of picture text -----

The net expenditure of unrestricted funds is analysed between the General Fund, designated funds and pension deficit in Note 17. All amounts above derive from continuing operations and the National Trust has no recognised gains or losses other than those passing through the Consolidated Statement of Financial Activities. There is no material difference between the net expenditure before transfers and their historical cost equivalents.

National Trust Annual Report 2020/21

The Financial Statements 2020/21

52

Balance Sheets as at 28 February 2021

----- Start of picture text -----
Consolidated The Charity
Note(s) 2021 2020 2021 2020
£’000 £’000 £’000 £’000
Fixed assets
Intangible assets 19 3,701 10,619 3,701 10,619
Tangible assets 19 157,868 169,552 155,343 167,034
Investments 21 1,473,798 1,306,945 1,473,798 1,306,945
Investment in subsidiary undertakings 5 - - 19,382 19,382
1,635,367 1,487,116 1,652,224 1,503,980
Current assets
Stocks and work in progress 22 10,253 14,532 1,289 2,146
Debtors: amounts falling due within one year 23 145,096 142,526 149,707 138,982
Cash at bank and in hand 21, 26 2,174 3,244 1,366 1,839
Total current assets 157,523 160,302 152,362 142,967
Current liabilities
Creditors: amounts falling due within one year 24 (107,710) (121,815) (118,384) (129,139)
Net current assets 49,813 38,487 33,978 13,828
Total assets less current liabilities 1,685,180 1,525,603 1,686,202 1,517,808
Creditors: amounts falling due after one year 24 (78,753) (52,329) (78,753) (52,329)
Net assets excluding pension liability 1,606,427 1,473,274 1,607,449 1,465,479
Defined benefit pension liability 27 (139,828) (181,983) (139,828) (181,983)
Net Assets including pension liability 1,466,599 1,291,291 1,467,621 1,283,496
The funds of the group and charity
Endowment funds 17, 18 614,319 581,796 614,319 581,796
Restricted income funds 17, 18 479,641 452,955 480,776 445,160
Total restricted funds 1,093,960 1,034,751 1,095,095 1,026,956
Designated funds 17, 18 271,964 287,689 271,964 287,689
General Fund 17, 18 240,503 150,834 240,390 150,834
Unrestricted income funds excluding pension reserve 512,467 438,523 512,354 438,523
Pension reserve 17, 18 (139,828) (181,983) (139,828) (181,983)
Total unrestricted income funds 372,639 256,540 372,526 256,540
Total group and charity funds 17, 18 1,466,599 1,291,291 1,467,621 1,283,496
----- End of picture text -----

The financial statements on pages 52 to X were approved by the Board of Trustees on 21 July 2021 and signed on its behalf by:

Tim Parker Chair 21 July 2021

Orna NiChionna Deputy Chair

21 July 2021

National Trust Annual Report 2020/21

The Financial Statements 2020/21

53

Consolidated Cash Flow Statement for the year ended 28 February 2021

Note(s) 2021 2020
£’000 £’000
Cash fows from operating activities:
Net cashprovided by/(used in)operatingactivities 26 46,748 (23,259)
Cash fows from investing activities:
Investment income 17,255 29,178
Purchase of investments 21 (1,042,911) (481,073)
Proceeds on sale of investments 21 962,734 499,879
Other movements in investment cash 21 5,746 332
Purchase of tangible fxed assets 19 (16,124) (29,124)
Proceeds on sale of tangible fxed assets 102 398
Net cash(used in)/provided by investing activities (73,198) 19,590
Cash fows from fnancing activities:
Receipt of endowments 380 8,029
Receipt of short-term loans 30,000 -
Repayment of short-term loans (30,000) -
Cash repaid under revolvingcredit facility (25,000) (5,000)
Receipt of long-term loans 50,000 -
Net cashprovided by fnancing activities 25,380 3,029
Change in cash and cash equivalents in the reporting period 26 (1,070) (640)

National Trust Annual Report 2020/21

The Financial Statements 2020/21

54

1 Accounting Policies

The financial statements have been prepared in accordance with the provisions of the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ issued in October 2019 (‘SORP 2019’), the Charities (Accounts and Reports) Regulations (2008), the Charities Act (2011) and applicable accounting standards in the United Kingdom.

Additionally, the National Trust is governed by Acts of Parliament – the National Trust Acts. The National Trust Act (1971) (‘the Act’) lays down legally binding requirements and provisions that are relevant to the way the Trust prepares its annual financial statements. Accordingly, the Trust has prepared its financial statements based upon the requirements and provisions within the Act.

An important provision set out in the Act relates to the Trust’s heritage assets. The Trust considers its inalienable property and other property or personal chattels held in trust, or acquired by the Trust for preservation, to be heritage assets. The Act permits the Trust not to include a value for these assets in the financial statements and hence to depart from the requirements of FRS 102 section 17 – Property, Plant and Equipment and the capitalisation provisions of FRS 102 section 34 – Heritage Assets. Accordingly, no amounts have been included in the Parent Charity or Consolidated Balance Sheets in respect of heritage assets. The Trust has considered this position carefully and has concluded that the inclusion of heritage assets on its balance sheet would not be appropriate, given that any value attributable to these properties would be subjective and would be more than outweighed by the obligation to maintain them in perpetuity.

The Trust has adopted the disclosure requirements set out in FRS 102 section 34. Detailed information concerning the nature, scale and significance of the Trust’s heritage asset holdings and policies for acquisition, management and care of this property are set out in Note 20.

Accounting convention

The financial statements are prepared on a going-concern basis under the historical cost convention (as modified by the revaluation of investment properties and listed investments to market value) and in accordance with applicable accounting standards in the United Kingdom, which have been consistently applied. The goingconcern basis is considered appropriate due to the strength of the Trust’s balance sheet, which would allow the Trust to continue to operate in the event that there was either a significant and

prolonged reduction in income or an unexpected increase in costs, or both.

Going Concern

On 11 March 2020, the World Health Organisation declared Coronavirus Covid-19 a pandemic. The UK government adopted restrictive measures to contain the spread of the virus and the situation is significantly affecting the economy. This has resulted in, among other things, widespread social distancing measures which have had a direct impact on the Trust’s ability to welcome visitors to its properties for a prolonged period.

To mitigate the financial impacts of the pandemic, the Trustees have implemented cost control measures over both operating and project expenditure and are making use of government support mechanisms through the Coronavirus Job Retention Scheme, VAT payment deferral permissions, obtaining rates relief and securing access to the Bank of England’s Covid Corporate Financing Facility.

The Trustees have designated £137m of unrestricted reserves to provide additional financial resilience against a continuation of reduced visitor numbers in 2021-22 and to provide funding for the recovery of the organisation and reinvestment in its core purpose. The charity holds unrestricted reserves in excess of the charity’s reserves policy threshold (see the Board of Trustees Financial Review), these reserves are held in liquid and principal secure investments.

The Trustees note that the major variables affecting the financial risks to the charity are the depth and the duration of the pandemic restrictions. As such, the Trustees have reviewed the principal risks to National Trust operations and a series of financial forecasts that include severe but plausible downside outcomes including:

The Trustees have adopted the going-concern basis for the preparation of these financial statements because throughout a period of 12 months from the date of approving these financial statements, the forecasts reviewed by the Trustees demonstrate that the Trust has access to sufficient liquidity, unrestricted reserves and financial covenant headroom to be able to continue in operation.

Basis of consolidation

The consolidated financial statements consist of the Charity and its subsidiaries: The National Trust (Enterprises) Limited, Historic House Hotels Limited, National Trust (Renewable Energy) Limited and Countryside Commons Limited. The National Trust has taken advantage of the exemption available not to present a Statement of Financial Activities for the Charity. The net income of the Charity is disclosed in Note 17 to the financial statements. The turnover and expenditure of the subsidiaries are included within the Consolidated Statement of Financial Activities. The assets and liabilities of the subsidiaries are included on a line-by-line basis in the Consolidated Balance Sheet in accordance with FRS 102 section 9 – Consolidated and Separate Financial Statements. Uniform accounting policies are adopted throughout the group and any profits or losses arising on intra-group transactions are eliminated in the Consolidated Statement of Financial Activities.

Income

Income is shown within five categories in the Consolidated Statement of Financial Activities:

Income from donations and legacies includes appeals and gifts, legacies, operating grants and contributions. Income from charitable activities includes membership income, project grants and contributions and direct property income. Income from other trading activities includes enterprise, renewable energy and hotel income (activities undertaken by the Trust’s trading subsidiaries). Other income includes the net gains arising on the disposal of alienable operational properties.

Appeals and gifts

Appeals and gifts are recognised when the cash is received. Gift Aid thereon is accounted for on a receivable basis and is added to restricted funds or unrestricted funds as appropriate. Where the use of the income has been restricted in accordance with the donor’s wishes, appeals and gifts income is credited to an appropriate fund until it can be spent for the purpose for which it was given. No value is placed on heritage assets gifted to the Trust in accordance with the National Trust’s policy on heritage assets.

National Trust Annual Report 2020/21

Notes to the Financial Statements

55

1 Accounting Policies (continued)

Legacies

Legacies are accounted for on a receivable basis. Pecuniary legacies are recognised following formal notification from the estate. Residuary legacies are recognised only when the National Trust’s interest can be measured, which is normally on grant of probate. Bequeathed properties awaiting sale are included in legacy income at their probate value when the National Trust takes ownership of the property. Where there are uncertainties surrounding the measurement of the Trust’s entitlement to an estate, or there is a prior or life interest before the legacy comes to the Trust, no income is recognised (see Note 30). No value is placed on heritage assets bequeathed to the Trust.

Grants and contributions

Grants and contributions are accounted for on a receivable basis when the National Trust has probable and measurable entitlement to the income (i.e. the conditions for its award have been satisfied). Operating grants relate to property operating activities, and project grants relate to expenditure on property projects, acquisitions and also fund property development projects (which are capitalised).

Enterprise, hotels and renewable energy income

The National Trust holds 100% of the issued share capital of The National Trust (Enterprises) Limited, Historic House Hotels Limited, National Trust (Renewable Energy) Limited and Countryside Commons Limited. The turnover of The National Trust (Enterprises) Limited is recognised in the period in which a sale is made. Hotel revenue from rooms, food and beverages is recognised on a daily basis. Income from spa membership fees is recognised evenly over the period of the membership. The income of National Trust (Renewable Energy) Limited includes hydro-electric power income which is recognised in the period in which it is generated.

Investment income

Investment income is recorded in the period in which it is earned.

Membership income

Income that is attributable to future visits that members will make to National Trust properties is deferred and released to the Consolidated Statement of Financial Activities over the period to which the membership relates. The portion of life membership subscriptions deemed to be of the nature of a gift is recognised in full in the

year in which it is received, with the remainder deferred and released to income in equal instalments over the average period over which the life membership is expected to be used. Gift Aid and deed of covenant income resulting from membership is matched to the period to which it relates, as is all other income.

Direct property income

Income reported under this heading includes charitable trading activities (catering, holidays and car parks), rents and admission fees, all of which are recognised in the period to which the income relates. Admission fees are included based on the point at which the sale is made.

The contribution of volunteers

In accordance with Charities SORP 2019, no amounts have been included in these financial statements to reflect the value of services provided free of charge to the National Trust by volunteers. Volunteer roles range from house guides and countryside rangers to project management and IT support.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Depending on the nature of the related expenditure, irrecoverable VAT is either charged to the appropriate expenditure heading or it is capitalised.

The Consolidated Statement of Financial Activities defines costs in two specific categories:

Raising funds includes fundraising costs incurred in seeking voluntary contributions. Costs of charitable activities relate to the work carried out on the core purposes of managing our properties, conservation projects, acquisitions, education initiatives and membership services.

Support service costs are allocated to expenditure on raising funds and charitable activities on the basis of staff costs or on the estimated time spent by the support service if this is more appropriate. More detail is provided in Note 15. Governance costs, included within support service costs, are those incurred in connection with the administration of the Charity, compliance with constitutional and statutory requirements and the costs of executive management and strategic governance of the Charity.

Property operating costs

Property operating costs relate to the day-to-day running costs of National Trust properties and are charged to expenditure in the year they are incurred.

Expenditure on property projects

These costs include cyclical repair work to buildings, backlog work, the costs of conservation of contents and conservation improvement work such as restoration or improvements in land condition and biodiversity and are charged to Resources Expended in the year they are incurred.

Recognition of liabilities

Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.

Pension costs

The defined benefit pension scheme, which is closed to new entrants and future accrual, provides benefits based on final pensionable salary. The costs of providing pension benefits under the defined benefit pension scheme have been recognised in accordance with FRS 102 section 34 – Retirement Benefit plans: Financial Statements.

Under FRS 102 section 34, the assets and liabilities of the pension scheme are essentially treated as assets and liabilities of the sponsoring employer – the National Trust. The operating costs of providing retirement benefits to employees are recognised in the period in which they are earned by employees, and finance costs and other changes in the value of pension plan assets and liabilities are recognised in the period in which they arise.

The pension costs for the Trust’s defined contribution scheme, its other money purchase schemes and the defined contribution scheme operated by Historic House Hotels Limited, are charged in the year they are incurred.

Operating leases

Rentals applicable to operating leases are charged to the Consolidated Statement of Financial Activities on a straight-line basis over the life of the lease and to the activity to which the lease charges relate: enterprise costs, hotel costs, property operating costs, internal conservation and advisory services, membership costs and support services.

National Trust Annual Report 2020/21

Notes to the Financial Statements

56

1 Accounting Policies (continued)

Exceptional income and expenditure

The Trust discloses as exceptional any material items of income and expense that are unusual either in their incidence, size or nature. Such disclosures are made to enable the reader to better understand the Trust’s financial performance. The items treated as exceptional are fully described in Note 8 to the financial statements.

Intangible fixed assets and amortisation

Computer software is stated at historic purchase cost less accumulated amortisation and accumulated impairment losses. Software is amortised over its estimated useful life, of between 3–7 years, on a straight-line basis.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at historic purchase cost less accumulated depreciation with the exception of administrative properties. Individual assets costing less than £5,000 are written off in the year of purchase and treated as property operating costs or support services as appropriate.

Properties owned and occupied for

administrative purposes are stated at cost. No material depreciation arises on the administrative properties of the Trust as the significant portion of their cost relates to land (which is not depreciated) and as the lives of the properties are considered to be so long and their residual values based on cost to be high enough to ensure that any annual depreciation is immaterial.

Property Development Projects constitute structural improvements, new buildings and associated fit-out costs incurred at National Trust properties to improve visitor and commercial infrastructure. Associated costs are capitalised and written off over their useful economic lives.

An annual review takes place to establish any permanent diminution in the value of tangible fixed assets. Depreciation has been calculated so as to write off the cost of the assets in equal annual instalments over their useful lives, not exceeding the following:

exceeding the following:
Plant and equipment 4–10 years10
Motor vehicles 3-4 years
IT hardware 3–7 years
IT software 3–7 years
Fit-out costs 5-10 years

Structural improvements 20–30 years and new buildings Renewable energy installations 10–25 years

Depreciation is first charged in the calendar month following acquisition or on the bringing into use of the asset, whichever is the later.

Heritage assets

The Trust does not capitalise heritage assets in accordance with the Act. All costs relating to the acquisition, restoration and ongoing maintenance of heritage assets are charged to Resources Expended in the year in which they are incurred.

Investments

All listed investments (including derivativebased instruments) are stated at market value at the balance sheet date. Unlisted private equity investments are measured at fair value through the Consolidated Statement of Financial Activities, using a selection of valuation methodologies depending upon the nature, facts and circumstances of the underlying holdings.

The movement in valuation of investments is shown in the Consolidated Statement of Financial Activities and comprises both realised and unrealised gains and losses. Investment properties are included at valuation on an open market, existing-use basis. Valuations are carried out on an annual basis and are mainly undertaken by the Trust's own professionally qualified surveyors.

The investments held in the subsidiary undertakings are held at cost or at fair value at acquisition.

Cash held for reinvestment in the General Pool is shown as Investments in the Consolidated and Charity Balance Sheets (see Note 21 to the financial statements).

Interests in joint ventures

The Trust has a joint venture with the Canal & River Trust that is established through an interest in a company limited by guarantee. The Group recognises its interest in the entity’s assets and liabilities using the equity method of accounting in accordance with FRS 102 section 15 ‘Investments in Joint Ventures.’ The name of the joint venture, the nature of its business and details of the interest held by the Trust are disclosed in Note

5 to these financial statements. Intra-group balances and transactions, and any unrealised gains arising from intra-group transactions with the joint venture, are eliminated in preparing the consolidated financial statements.

Stocks

Stocks are stated at the lower standard cost and net realisable value after making due provision for slow-moving and obsolete items. Stocks consist of trading stocks, building materials and other (including livestock and sundry farm stocks).

Creditors and provisions

Short-term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Consolidated Statement of Financial Activities at the same rate as the depreciation of the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Consolidated Statement of Financial Activities in the same period as the related expenditure.

Financial instruments

The charity only has financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Other derivative-based assets included in the investment portfolio are held at their fair value.

Funds

These divide into two distinct categories: unrestricted and restricted.

Unrestricted funds

The use of these funds has not been restricted to a particular purpose by donors or their representatives. They are subdivided into the General Fund and designated funds.

10 Included in Property Development, Plant and equipment in Note 19

National Trust Annual Report 2020/21

Notes to the Financial Statements

57

General Fund

The General Fund is the working fund of the Trust and is available for use at the discretion of the Trustees in furtherance of the Charity’s objectives. Among the uses of the General Fund are the general administration of the Trust, the servicing of membership and publicity. The General Fund also provides funding for property operating and projects expenditure where properties are unable to fund project and repair work using their own reserves.

Designated funds

Designated funds are those which have been allocated by the Trustees for particular purposes. Further information on the nature and basis of the various designated funds used by the Trust is given on pages 68 to 70.

Restricted funds

Restricted income funds

These include gifts and legacies which have been given or bequeathed to the Trust to be used in accordance with the wishes of donors or their representatives. Both the capital and the income may only be applied for the purposes for which the funds were donated.

Endowment funds

Many of the properties held for preservation are supported by endowments. Endowments typically arise when donors or grant-giving bodies provide funds on the condition that they must be retained in order to generate investment income for the long-term needs of a property.

The Trust is in a unique position requiring it to commit to the perpetual upkeep and maintenance of its inalienable property and, as such, it is important that it is able to provide funds for its future as well as its current needs. The Trust has therefore, where it has felt it appropriate, also used its own funds to create endowments or to augment existing donor-provided endowments. The Trust makes these fund transfers after due assessment of the capital requirements of a property over the very long term.

are considered expendable. The approximate value of expendable endowments at 28 February 2021 was £27 million (2020: £26 million).

Income arising on endowment funds is generally expendable and is distributed as income to funds in order to be spent.

Judgements in applying accounting policies and key sources of estimation uncertainty

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 Trust makes estimates and assumptions concerning the future. The resulting accounting estimates 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 addressed below.

(i) Useful economic lives of tangible and intangible assets

The annual depreciation and amortisation charge for assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Stock and work in progress provisioning

The largest component of stock and work in progress comprises retail stock. It is necessary to consider the recoverability of the cost of this stock and the associated provisioning required. When calculating stock provisions, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability. Stock held as raw materials, such as building materials is assessed in terms of its likely usage.

(iii) Impairment of debtors

The Trust makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the Trust considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

(iv) Defined benefit pension scheme

The company has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet with support from independent external actuaries. The assumptions reflect historical experience and current trends.

(v) Valuation of investment properties

The Trust carries its investment properties at fair value, with changes in the fair value being recognised in the Statement of Financial Activities. Fair value is determined by assessing the current market value with reference to independent valuation specialists and internal RICS qualified surveyors.

The funds transferred to create or augment existing endowments are not considered to be legal endowments but they are accounted for as such because the intention is to retain these funds for the very long term. Augmentations to existing funds are accounted for as permanent endowments while transfers to create new funds

National Trust Annual Report 2020/21

Notes to the Financial Statements

58

2 Grants and Contributions

----- Start of picture text -----
2021 2020
£’000 £’000
Natural England 4,603 5,596
Department for Environment, Food and Rural Affairs 4,376 3,517
Department for Digital, Culture, Media & Sport 4,000 -
National Heritage Lottery Fund 2,092 4,299
Metropolitan Borough of Stockport 912 888
CADW 660 250
Department of Agriculture, Environment and Rural Affairs Northern Ireland 381 468
Sport England 325 589
Natural Resources Wales 230 111
Ministry of Housing, Communities & Local Government 209 1,607
Viridor Credits Environmental Company 177 -
Welsh Government 157 259
Department for Communities and Local Government 153 144
Newport City Council 150 150
Others (individually less than £150,000 each in the current year) 1,854 2,893
20,279 20,771
Operating grants and contributions 8,019 7,226
Project grants and contributions 12,260 13,545
20,279 20,771
----- End of picture text -----

3 Membership Income

2021 2020
£’000 £’000
Annual subscriptions
262,235		 264,233
Life membershipincome recognised in theyear (Note 24)
5,330		 5,467
267,565 269,690

4 Direct Property Income

2021 2020
£’000 £’000
Charitable tradingactivities
44,510		 107,980
Rents
46,590		 50,006
Admission fees
8,391		 31,045
Otherpropertyincome
5,709		 7,868
105,200 196,899

Other property income includes produce sales, room hire and amounts the Trust has charged on to third parties for costs it has incurred. Charitable trading activities are analysed further in Note 6.

*Grant givers where a proportion of the amounts received include payments under the Common Agricultural Policy (CAP). In the CAP funding year October 2019 to October 2020 the National Trust received £11,868,000 (2020: £9,441,000) in grants from the CAP. Elements of these grants are made available to National Trust tenants and are not recognised as income in the Consolidated Statement of Financial Activities.

Notes to the Financial Statements

National Trust Annual Report 2020/21

59

5 Enterprise, Hotel and Renewable Energy Contribution

The National Trust owns 100% of the share capital of The National Trust (Enterprises) Limited, Historic House Hotels Limited and National Trust (Renewable Energy) Limited. All companies are accounted for as subsidiary undertakings, are registered in the United Kingdom and each year donate by Gift Aid to the National Trust from their surplus taxable income – subject to available distributable reserves. The National Trust also owns 100% of the share capital of Countryside Commons Limited, which does not currently generate income or incur expenditure but does hold title to common grazing rights.

The initial costs of investment in the Trust’s subsidiaries were as follows:

Company £
The National Trust (Enterprises) Limited 100
National Trust (Renewable Energ) Limited 1
Countryside Commons Limited 100
Historic House Hotels Limited 19,382,000
Total investment in subsidiary undertakings 19,382,201

At 28 February, the reserves of the Trust’s subsidiaries were as follows:

Company Activities 2021 2020
(registered number) £ £
The National Trust (Enterprises) Retailing, events, sponsorship Share capital 100 100
Limited (1083105) income and the national rafe Proft and loss account 112,429 8,170,357
112,529 8,170,457
National Trust Hydro-electricity generation Share capital 1 1
(Renewable Energ) Limited Proft and loss account - -
(08763161)
1 1
Countryside Commons Limited Ownership of commons and Share capital 100 100
(2591470) common rights of grazing Proft and loss account - -
100 100
Historic House Hotels Limited The operation of hotels at Share capital 15,700,000 15,700,000
(1440570) three historic properties in Proft and loss account 2,286,771 3,049,898
England and Wales
17,986,771 18,749,898

The Trust also holds an interest in a dormant subsidiary, Porthdinllaen Harbour Company in which it holds share capital of £600.

The Trust has a joint venture with the Canal & River Trust – Roundhouse Birmingham Limited - which is established through an interest in a company limited by guarantee. The interest in the joint venture relates to loans made from National Trust to Roundhouse Birmingham Limited

of £625,000 (2020: £500,000) and the Trust’s 50% share of the loss of £26,000 (2020: £71,000) generated by the joint venture. The share of income and expenditure of the joint venture is reported in Other Property Income in Note 4. The Trust’s interest in the joint venture is held with the aim of restoring the Roundhouse, a significant piece of Birmingham’s industrial heritage.

Notes to the Financial Statements

National Trust Annual Report 2020/21

60

5 Enterprise, Hotel and Renewable Energy Contribution (continued)

The contribution of subsidiary companies to Trust funds was as follows:

Income Expenditure Expenditure Contribution Contribution
2021 2020 2021 2020 2021 2020
£’000 £’000 £’000 £’000 £’000 £’000
The National Trust (Enterprises) Limited
Retail and catering 16,945 55,996 25,783 47,651 (8,838) 8,345
Events and functions 311 6,366 642 3,273 (331) 3,093
Sponsorshipand licences 2,014 3,261 869 1,276 1,145 1,985
National rafe 427 1,686 132 846 295 840
Other activities 6,921 10,730 8,045 8,245 (1,124) 2,485
Pension costs - - (55) (42) 55 42
Exceptional costs: redundancies - - 1,354 - (1,354) -
Governmentgrants 5,236 - - - 5,236 -
31,854 78,039 36,770 61,249 (4,916) 16,790
National Trust (Renewable Energ) Limited
Electricity generation 1,388 1,256 105 96 1,283 1,160
Historic House Hotels Limited
Hotel activities 2,409 8,808 5,525 8,960 (3,116) (152)
Government supportgrants 1,642 - - - 1,642 -
4,051 8,808 5,525 8,960 (1,474) (152)
37,293 88,103 42,400 70,305 (5,107) 17,798

Other activities include the contribution from film fees and the National Trust Magazine. Government grants are the contributions received towards the employment costs of furloughed staff under the Coronavirus Job Retention Scheme. Countryside Commons Limited did not receive income or incur expenditure in 2020/21 or 2019/20.

6 Charitable and Other Trading Activities

Certain charitable trading activities are undertaken by the National Trust itself. The contribution from these activities was as follows:

Income Expenditure Expenditure Contribution Contribution
2021 2020 2021 2020 2021 2020
£’000 £’000 £’000 £’000 £’000 £’000
Catering 29,589 87,040 38,317 70,057 (8,728) 16,983
Holidays 9,405 14,585 7,037 10,176 2,368 4,409
Other1 5,516 6,354 2,784 3,290 2,732 3,064
Total charitable trading activities 44,510 107,979 48,138 83,523 (3,628) 24,456
Enterprise, renewables and hotel activities (Note 5) 37,293 88,103 42,400 70,305 (5,107) 17,798
Total contribution from charitable trading and subsidiaries 81,803 196,082 90,538 153,828 (8,735) 42,254

1 Includes income from car parks. Charitable trading income is included in Direct Property Income (see Note 4); associated costs are included in Property Operating Costs.

Notes to the Financial Statements

National Trust Annual Report 2020/21

61

7 Other Income

This is analysed as follows:

This is analysed as follows:
2021 2020
£’000 £’000
Net gains on disposal of property and insurance claims
4,577		 1,881
4,577 1,881

8 Exceptional income and exceptional expenditure

2021 2020
£’000 £’000
Exceptional income
Coronavirus Job Retention Scheme 46,826 -
Other coronavirus grants 2,231 -
Government support 49,057 -
National Lottery Heritage Fund coronavirus grants 997 -
Coronavirus support grants 50,054 -
Settlement of fre insurance claim 66,353 -
Insurance proceeds 66,353 -
Exceptional Expenditure
Covid PPE 4,407 -
Visitor booking system fees 804 -
Property security 487 -
Other costs 369 -
Covid 19 costs 6,067 -
Redundancy costs 19,823 -

Income

Coronavirus support grants represent the grants received by the Trust from central government, local government and other sources to provide financial support during the pandemic. The principal grant is the Coronavirus Job Retention Scheme, which reimbursed the Trust for a substantial portion of the wages and salaries paid to furloughed employees. Local government grants were the Retail, Hospitality and Leisure grants which offered business rate relief and lump sum grants to support businesses that were forced to close during lockdown.

The insurance income is the final settlement reached with the Trust’s insurers in respect of a claim for the damage caused to a property by a major fire in 2015.

Expenditure

Covid-19 costs are incremental costs incurred by the Trust to operate its properties in a Covid-safe manner. These costs include personal protective equipment for staff, screening and hand gel in catering and retail outlets, and fees associated with the booking system used to manage reduced visitor capacity at properties.

Exceptional redundancy costs were a regrettable consequence of restructuring of the Trust’s operations in the light of constrained finances due to the long-term impacts of the pandemic, with the Trust having a lower membership base and reduced visitor capacity while social distancing measures are in force.

Notes to the Financial Statements

National Trust Annual Report 2020/21

62

9 Expenditure

Expenditure includes the following charges: 2021 2020
£’000 £’000
Depreciation amortisation and movement in provision for impairment 31,296 30,251
Loss/(proft) on disposal of fxed assets 3,328 (174)
Operating leases:
Land and buildings 3,082 3,540
Motor vehicles 2,182 2,344
Auditor’s fees and expenses:
Audit work 200 200
Other services - -
Irrecoverable Value Added Tax 5,623 8,312

The audit fee for the Charity was £171,000 (2020: £171,000).

10 Remuneration of Trustees

No remuneration was paid to any members of the Board of Trustees. Travel and accommodation expenses were repaid to 13 individuals totalling £2,272 (2020: 11 individuals were repaid £9,480).

Notes to the Financial Statements

National Trust Annual Report 2020/21

63

11 Staff Costs

2021 2020
Regular Seasonal Regular Seasonal
£’000 £’000 £’000 £’000
Wages and salaries
232,331		 25,928 212,542 42,294
Employers’ social security costs
17,325		 411 18,365 593
Employers’ pension contributions
23,974		 356 26,607 401
273,631 26,694 257,514 43,288

Wages and salaries includes redundancy costs of £22.3 million (2020: £1.4 million).

The regular staff pension charge of £23,974,000 (2020: £26,607,000) comprises £1,704,000 (2020: £4,146,000) relating to the final salary scheme and £22,088,000 (2020: £22,252,000) relating to defined contribution schemes and £182,000 (2020: £209,000) of defined benefit contributions to the scheme operated for the staff of Historic House Hotels Limited. Payments of £356,000 (2020: £401,000) were made to the Stakeholder Scheme for seasonal staff.

The total of employers’ pension contributions includes £670,000 (2020: £nil) paid into the National Trust Retirement and Death Benefit Scheme in respect of certain members of staff who sacrificed redundancy payments for payments into their pension. During the course of the year, 386 seasonal staff (2020: 413) were transferred to the regular payroll.

The numbers of regular employees whose pay (including redundancy) and taxable benefits exceeded £60,000 fell within the following bands[11] :

----- Start of picture text -----
2021 2021 2020 2020
(excluding redundancy) (excluding redundancy)
£180,000 - £189,999 - - 1 2
- - - -
£170,000 - £179,999
£160,000 - £169,999 1 2 - -
- - - -
£150,000 - £159,999
- - - -
£140,000 - £149,999
£130,000 - £139,999 2 3 2 2
£120,000 - £129,999 3 6 3 4
£110,000 - £119,999 6 9 4 5
£100,000 - £109,999 4 18 3 4
£90,000 - £99,999 13 27 13 13
£80,000 - £89,999 11 27 13 13
£70,000 - £79,999 21 62 23 24
£60,000 - £69,999 68 115 60 63
----- End of picture text -----

Contributions of £1,175,000 (2020: £775,000) were made in relation to 263 members of staff (2020: 127) earning in excess of £60,000 who participated in the defined contribution pension scheme.

The Executive Team (10 individuals) were paid a total of £1,085,549 (2020: 9 individuals were paid £1,111,000).

The monthly average number of regular employees, including part-time employees and employees on fixed-term contracts on a full-time equivalent basis (but not including seasonal staff), is analysed as follows:

By activity
2021		 2020
Property staf
5,410		 5,806
Regional staf
831		 906
Central services staf12
1,337		 1,303
7,578 8,015

11 Salaries are adjusted for staff benefits received through salary sacrifice arrangements. 12 Includes regional and property-based staff reporting to central services functions.

Notes to the Financial Statements

National Trust Annual Report 2020/21

64

12 Expenditure on Raising Funds and Charitable Activities

Note Staf costs Depreciation Other direct Support Total Total
costs services13 2021 2020
£’000 £’000 £’000 £’000 £’000 £’000
Expenditure on raising funds
Fundraisingcosts 2,264 3 650 639 3,556 4,546
Enterprise and renewable energcosts14
5		 20,114 - 15,407 - 35,521 61,345
Hotel costs
5		 4,014 186 1,325 - 5,525 8,960
Investment management costs
21		 - - 12,988 - 12,988 10,447
Total cost ofgenerating funds 26,392 189 30,370 639 57,590 85,298
Charitable activities
Propertyoperatingcosts 154,547 16,004 51,031 42,262 263,844 308,150
Expenditure onproperty projects
13		 17,816 44 60,463 5,488 83,811 168,778
Acquisitions
20		 41 - 1,881 690 2,612 7,407
Internal conservation and advisoryservices 40,178 312 2,571 10,874 53,935 64,421
Membershipcosts
14		 18,698 2,869 26,108 5,076 52,751 65,301
Total charitable activities 231,280 19,229 142,054 64,390 456,953 614,057
Total expenditure 257,672 19,418 172,424 65,029 514,543 699,355

13 Expenditure on Property Projects

These costs comprise restoration works, long-term cyclical repairs and backlog work on preservation of properties and other major projects of a conservation nature.

The expenditure is analysed as follows: 2021 2020
£’000 £’000
Historic buildings and collections 55,146 118,531
Coast and countryside 22,724 40,185
Gardens 5,941 10,062
83,811 168,778

13 Includes staff costs and depreciation of £23,877,000 and £11,878,000 respectively. 14 Enterprise costs include other renewable energy costs that do not form part of the activities of National Trust (Renewable Energy) Ltd.

Notes to the Financial Statements

National Trust Annual Report 2020/21

65

14 Membership Costs

Membership recruitment and processing

These costs relate to supporter development costs and include three issues of the National Trust Magazine sent to all members, local newsletters, maintaining and processing membership details and the recruitment of new members.

Membership brand, marketing and publicity

These costs relate to brand and marketing and include publicising the National Trust in general and specific activities relating to visitor brand and marketing.

The expenditure is analysed as follows:

Membership Membership Total Total
recruitment and brand, marketing 2021 2020
processing and publicity
£’000 £’000 £’000 £’000
Staf costs 8,479 10,219 18,698 15,549
Depreciation 2,636 233 2,869 3,142
Support costs 5,076 - 5,076 4,500
Membership processing 7,500 - 7,500 9,194
Advertising, marketing and literature 5,078 4,279 9,357 18,888
Postage 6,187 3 6,190 6,564
Other 2,344 717 3,061 7,464
Total 37,300 15,451 52,751 65,301

Membership processing includes costs associated with the operation of the Trust’s Customer Relationship Management (CRM) system. Recruitment includes costs of recruiting new members. Other costs include staff training, occupancy costs and consumables.

Notes to the Financial Statements

National Trust Annual Report 2020/21

66

15 Support Services

Support services have been allocated to the following areas of expenditure. The basis of allocation is either the level of staff costs or the estimated time spent by the support service if more appropriate.

IT and Total Total
Governance HR and Legal administrative costs Finance 2021 2020
Activity £’000 £’000 £’000 £’000 £’000 £’000
Fundraising costs 3 83 407 146 639 759
Property operating costs 237 5,679 27,769 8,577 42,262 45,283
Expenditure on property projects 27 1,306 3,201 954 5,488 6,654
Acquisitions - 653 7 30 690 1,057
Internal conservation and advisory services 62 1,476 7,219 2,117 10,874 12,182
Membership costs 29 687 3,360 1,000 5,076 4,500
Total 358 9,884 41,963 12,824 65,029 70,435
16 Taxation
2021 2020
a) Analysis of charge in period: £’000 £’000
UK corporation tax on profts of the period (1,889) 1,906
Total current tax charge (1,889) 1,906
b) Factors afecting tax charge for period:
The tax assessed for the period is higher (2020: lower) than the standard rate of corporation tax in the UK of 19.0% (2020: 19.0%). The diferences are
explained below:
Income before taxation 174,759 7,390
Income before taxation multiplied by the standard rate of corporation
tax in the UK of 19.0% (2020: 19.0%)		 33,204 1,404
Charity activities not subject to corporation tax (33,145) 374
Expenses not deductible 1 33
Tax losses of subsidiary company carried back (1,073) -
Diferences relating to Gift Aid (876) 95
Total tax charge for the period (1,889) 1,906

Notes to the Financial Statements

National Trust Annual Report 2020/21

67

17 Analysis of Funds

The movements in consolidated funds are analysed as follows:

Balance at Total Total Net income/ Transfers Net Taxation Actuarial Balance at
1 Mar 2020 income expenditure (expenditure) gains on losses 28 Feb 2021
investment
assets
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
General Fund 150,834 537,082 (436,842) 100,240 (22,033) 11,462 - - 240,503
Designated funds:
Fixed Asset Reserve 120,829 - - - (18,950) - - - 101,879
Commercial and
buildings maintenance		 - - - - 137,000 - - - 137,000
Other designated funds 166,860 982 (7,101) (6,119) (127,634) (22) - - 33,085
Total designated funds 287,689 982 (7,101) (6,119) (9,584) (22) - - 271,964
Pension reserve (181,983) - 12,193 12,193 32,600 - - (2,638) (139,828)
Total unrestricted funds 256,540 538,064 (431,750) 106,314 983 11,440 - (2,638) 372,639
Restricted income funds 452,955 78,371 (101,211) (22,840) 20,975 28,551 - - 479,641
Endowment funds 581,796 7,633 (5,583) 2,050 (21,958) 52,431 - - 614,319
Total funds 1,291,291 624,068 (538,544) 85,524 - 92,422 - (2,638) 1,466,599

Transfers between funds are analysed as follows:

General Fixed Commercial Other Total Pension Total Restricted Endowment
Fund Asset and designated designated Defcit Unrestricted funds funds
Reserve buildings funds funds funds
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Release of property reserve a
127,272		 - - (127,272) (127,272) - - - -
designations
To create new designations b
(137,000)		 - 137,000 137,000 - - - -
Fixed Asset Reserve c
18,950		 (18,950) - - (18,950) - - - -
To augment endowments d
(91)		 - - - - - (91) (959) 1,050
To support property expenditure e
1,056		 - - - - - 1,056 (1,056) -
Payment into defned beneft f
(32,600)		 - - - - 32,600 - - -
pension scheme
Investment income reclassifcation g
380		 - - (362) (362) - 18 22,990 (23,008)
Total transfers (22,033) (18,950) 137,000 (127,634) (9,584) 32,600 983 20,975 (21,958)

Notes to the Financial Statements

National Trust Annual Report 2020/21

68

Explanation of transfers:

The total income of the Charity was £594,098,000 (2020: £611,318,000) and its net income was £94,345,000 (2020: net expenditure £28,273,000).

Funds exceeding 5% of the total within their respective class of funds are disclosed separately within the table above. The only other funds exceeding 5% of the total within their respective classes are the Dunham Massey Endowment Fund which amounted to £43,326,000 (2020: £41,151,000) and the Cliveden Endowment Fund of £31,068,000 (2020: £29,508,000).

Other designated funds include £17,644,000 of funding to protect against adverse movements in the Trust’s pension deficit (2020: £25,603,000), £9,909,000 (2020: £9,897,000) of chattels acquisition and countryside support funds and £5,532,000 (2020: £4,621,000) of investment property of fixed assets.

Notes to the Financial Statements

National Trust Annual Report 2020/21

69

18 Analysis of Net Assets by Fund

Net assets are analysed between funds as follows:

Consolidated funds as at 28 February 2021

General Designated Pension Total Restricted Endowment Total
Fund funds reserve unrestricted income funds funds 2020
funds
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Fixed assets 15,258 101,876 - 117,134 44,351 84 161,569
Investments 266,899 170,088 - 436,987 422,794 614,017 1,473,798
Stocks 10,127 - - 10,127 126 - 10,253
Debtors 131,580 - - 131,580 13,298 218 145,096
Cash at bank and in hand 1,949 - - 1,949 225 - 2,174
Current assets 143,656 - - 143,656 13,649 218 157,523
Creditors: amounts falling due
within oneyear		 (106,557) - - (106,557) (1,153) - (107,710)
Net current assets 37,099 - - 37,099 12,496 218 49,813
Creditors: amounts falling due
after oneyear		 (78,753) - - (78,753) - - (78,753)
Defned beneft pension scheme
liability		 - - (139,828) (139,828) - - (139,828)
Total net assets/(liabilities) 240,503 271,964 (139,828) 372,639 479,641 614,319 1,466,599

Consolidated funds as at 29 February 2020

General Designated Pension Total Restricted Endowment Total
Fund funds reserve unrestricted income funds funds 2021
funds
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Fixed assets 10,834 120,828 - 131,662 48,424 85 180,171
Investments 169,838 166,861 - 336,699 392,553 577,693 1,306,945
Stocks 14,361 - - 14,361 171 - 14,532
Debtors 126,434 - - 126,434 12,074 4,018 142,526
Cash at bank and in hand 2,150 - - 2,150 1,094 - 3,244
Current assets 142,945 - - 142,945 13,339 4,018 160,302
Creditors: amounts falling due
within oneyear		 (120,454) - - (120,454) (1,361) - (121,815)
Net current assets 22,491 - - 22,491 11,978 4,018 38,487
Creditors: amounts falling due
after oneyear		 (52,329) - - (52,329) - - (52,329)
Defned beneft pension scheme
liability		 - - (181,983) (181,983) - - (181,983)
Total net assets/(liabilities) 150,834 287,689 (181,983) 256,540 452,955 581,796 1,291,291

Total net assets of the Charity only were £1,467,621,000 (2020: £1,283,496,000).

Notes to the Financial Statements

National Trust Annual Report 2020/21

70

19 Fixed Assets

Consolidated and Charity Intangible Fixed Assets

Software Software assets Total
under construction
£’000 £’000 £’000
Cost as at 1 March 2020 90,633 362 90,995
Additions - - -
Disposals (78) (277) (355)
Transfers 84 (84) -
Cost as at 28 February 2021 90,639 1 90,640
Accumulated provision for amortisation as at 1 March 2020 80,376 - 80,376
Charge for the year 6,641 - 6,641
Disposals (78) - (78)
Accumulated provision for amortisation as at 28 February 2021 86,939 - 86,939
Net book amount as at 28 February 2021 3,700 1 3,701
Net book amount as at 29 February 2020 10,257 362 10,619

Consolidated Tangible Fixed Assets

Freehold Motor vehicles Property Assets under Total
property development, construction
plant and
equipment
£’000 £’000 £’000 £’000 £’000
Cost as at 1 March 2020 7,981 5,766 300,145 24,984 338,876
Additions - 114 2,919 13,091 16,124
Disposals - (232) (12,642) (2,557) (15,431)
Transfers - 108 11,999 (12,107) -
Cost as at 28 February 2021 7,981 5,756 302,421 23,411 339,569
Accumulated provision for depreciation/
impairment as at 1 March 2020		 497 4,692 164,135 - 169,324
Movement in provision for impairment (4) - 1,912 - 1,908
Charge for the year - 495 22,252 - 22,747
Disposals - (239) (12,039) - (12,278)
Accumulated provision for depreciation/
impairment as at 28 February 2021		 493 4,948 176,260 - 181,701
Net book amount as at 28 February 2021 7,488 808 126,161 23,411 157,868
Net book amount as at 29 February 2020 7,484 1,074 136,010 24,984 169,552

Notes to the Financial Statements

National Trust Annual Report 2020/21

71

19 Fixed Assets (continued)

The Charity Tangible Fixed Assets

Freehold Motor Property Assets under Total
property vehicles development, construction
plant and
equipment
£’000 £’000 £’000 £’000 £’000
Cost as at 1 March 2020 7,981 5,765 295,319 24,984 334,049
Additions - 114 2,721 13,091 15,926
Disposals - (232) (12,580) (2,557) (15,369)
Transfers - 108 11,999 (12,107) -
Cost as at 28 February 2021 7,981 5,755 297,459 23,411 334,606
Accumulated provision for depreciation/impairment
as at 1 March 2020		 497 4,690 161,828 - 167,015
Movement in provision for impairment (4) - 1,912 - 1,908
Charge for the year - 494 22,067 - 22,561
Disposals - (239) (11,982) - (12,221)
Accumulated provision for depreciation/impairment
as at 28 February2021		 493 4,945 173,825 - 179,263
Net book amount as at 28 February 2021 7,488 810 123,634 23,411 155,343
Net book amount as at 29 February 2020 7,484 1,075 133,491 24,984 167,034

Assets under construction include Property Development Projects that are still in progress. No depreciation has been charged in respect of these assets.

Freehold properties are included at historical cost; the market value of these properties at 28 February 2021 was £14.0 million (2020: £16.0 million).

Notes to the Financial Statements

National Trust Annual Report 2020/21

72

20 Heritage Assets

Heritage assets are defined as tangible property with historical, artistic, scientific, technological, geophysical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture. The National Trust considers its inalienable properties and other properties and chattels held for preservation to fall within this definition. As explained in Note 1 these assets have been excluded from the balance sheet in accordance with the National Trust Act (1971).

Significance of our heritage assets

Many of the buildings owned by the National Trust are categorised as listed, but even those without formal grading, which relates to the significance of individual buildings, are of significance for the way in which they contribute to the character and appearance of local places.

National Trust countryside property is designated at many levels including National Parks, AONBs (Areas of Outstanding Natural Beauty) and SSSIs (Sites of Special Scientific Interest). The Trust also owns and manages 149 registered gardens of special historic interest.

Objects in National Trust collections vary from those that are of international significance, through those of national and local significance, to the everyday items that are an essential part of the fabric and social history of places.

The Trust’s acquisition policy

The National Trust acquires historic buildings, coast and countryside in accordance with a statement of principles which requires that, inter alia:

The Trust seeks to secure or acquire collections in the following categories:

The Trust’s heritage assets comprise nationally significant holdings of historic buildings, coast and countryside, and collections. The nature and scale of these holdings are as follows:

Coast and countryside

The National Trust protects and preserves over 780 miles (1,255 kilometres) of coastline and approximately 248,741 hectares (614,638 acres) of land, much of outstanding natural beauty. This can be divided into let land and land in-hand:

----- Start of picture text -----
|||| |---|---|---| |Area|Area| |(Ha)|(Ac)| |Let estate|138,202|341,496| |In-hand|110,539|273,142|

----- End of picture text -----

Trust land can be classified as follows (these categories are not mutually exclusive of one another and the categories overlap):

Classification

----- Start of picture text -----
|||| |---|---|---| |Area|Area| |(ha)|(ac)| |National Trust managed agricultural land*|14,688|36,293| |Common land|48,534|119,928| |Woodland|33,187|82,005| |Moorland|98,231|242,729| |Bodies of water|3,737|9,235| |Parks and gardens|19,798|48,920|

----- End of picture text -----

Collections

Cataloguing the Trust’s collections is a continuing process. So far just over one million objects have been recorded electronically. The largest broad categories are as follows:

----- Start of picture text -----
||| |---|---| |Quantity| |(’000)| |Books and manuscripts|236| |Ceramics and glass|71| |Metalwork|61| |Photographs|48| |Textiles|46| |Furniture|45| |Prints and drawings|45| |Costumes and jewellery|30| |Painting and sculpture|22|

----- End of picture text -----

Historic buildings

The Trust protects over 200 historic houses, 47 industrial monuments and mills, 9 lighthouses, 39 pubs, the sites of many factories and mines, 41 castles and chapels, 56 villages and 25 medieval barns.

The total insurance reinstatement value of our historic buildings is approximately £9 billion.

Notes to the Financial Statements

National Trust Annual Report 2020/21

73

20 Heritage Assets (continued)

The Trust continues to acquire new properties and chattels in accordance with its acquisitions policy. In the last five years, acquisitions have been made as follows:

2021 2020 2019 2018 2017
£’000 £’000 £’000 £’000 £’000
Historic buildings
493		 2,417 3,187 767 218
Coast and countryside
1,574		 4,140 4,732 6,775 7,244
Collections
545		 850 3,718 3,923 2,568
2,612 7,407 11,637 11,465 10,030

This expenditure is shown in Acquisitions under Expenditure in the Consolidated Statement of Financial Activities. Details of amounts spent on the cyclical repair and renovation of heritage property are given in Note 13. As stated in Note 1 the 1971 Act permits the Trust not to include a value in its balance sheet for heritage assets and this includes assets received via donation.

21 Investments and Cash at Bank and in Hand

Returns from investments

The National Trust maintains a highly diversified portfolio of different classes of assets to achieve a relatively high return target at an acceptable risk level.

The Trust operates a policy of total return whereby investment managers are given the flexibility to achieve maximum returns on investments, whether this is through generating interest and dividends or capital growth. To ensure any permanent endowments can distribute part of the capital gain, the necessary authorities have to be put in place with the Charities Commission or under the Charities Act 2011.

Whilst the total return comprises income and capital, only actual income earned in the form of interest and dividends is reported as investment income in the Consolidated Statement of Financial Activities.

Actual income Capital gains Movements to Less investment Total available
earned available to income reserves management to properties
properties and costs
funds
£’000 £’000 £’000 £’000 £’000
Endowment funds invested on a total return basis
aspart of the CharityCommission Scheme		 5,751 17,169 - (4,339) 18,581
Other endowment funds invested on a total
return basis		 1,817 4,176 - (1,434) 4,559
Other endowment funds (60) - - (4) (64)
Total endowment funds 7,508 21,345 - (5,777) 23,076
Other funds invested on a total return basis 9,453 26,661 - (7,211) 28,903
Other funds 294 64 1,336 - 1,694
Total funds 17,255 48,070 1,336 (12,988) 53,673

Notes to the Financial Statements

National Trust Annual Report 2020/21

74

21 Investments and Cash at Bank and in Hand (continued)

In the year to 28 February 2021, the movement in the value of stored-up capital growth on the Charity Commission Scheme was as follows:

£m
Unapplied total return at 1 March 2020 280.1
Decrease in value due to capital losses inyear 51.7
Amounts distributed toproperties (total return applied inyear) (17.2)
Unapplied total return at 28 February2021 314.6

The National Trust controls the level of distribution of capital on both the permanent endowments, with the Charity Commission or Charities Act approval, and other funds in line with long-term investment growth assumptions that are subject to regular review by the Trustees following advice from the Investment Committee and other external experts.

Under the rules of the Charity Commission, an endowment subject to a total return order but with no unapplied total return cannot make a distribution. All funds included in the total return policy had a positive unapplied total return at 28 February 2021.

The value of the General Investment Pool would have to fall though by just under 4.7% from its level as at 28 February 2021 before one endowment (recently added to our total return order) reached a nil unapplied total return balance and was thereby unable to make a distribution. The vast majority of funds would require a fall of greater than 40%.

It should be noted that, in determining whether an endowment has a negative unapplied total return when making an income distribution, the Trust takes into account the average value of the fund over the year in question.

Analysis of consolidated investments

Investments and working cash balances are analysed as follows:

Market Value Income
As at 28 Feb As at 29 Feb
2021 2020 2021 2020
Analysis by type of investment
£’000		 £’000 £’000 £’000
British Government stocks
1,300		 - 24 269
United Kingdom fxed and variable interest stocks
7,755		 6,009 1,928 140
Overseas fxed and variable interest stocks
36,727		 73,861 1,012 4,158
United Kingdom equities
106,442		 166,067 1,497 8,493
Propertyunit trusts
310		 389 11 16
Overseas equities
709,721		 766,852 9,363 13,014
Commodityand hedge funds
3,960		 5,925 13 17
Private equityfunds
64,353		 40,479 2,250 15
Illiquid diversifers
1,627		 - - -
Multi asset funds
-		 121,126 - 2,478
Deposits and cash
474,687		 60,880 923 285
Investmentproperties
66,916		 65,357 219 266
1,473,798 1,306,945 17,240 29,151
Cash at bank and in hand
2,174		 3,244 14 27
1,475,972 1,310,189 17,254 29,178

Included within the total investments, the following asset categories contain unlisted securities as follows: UK and overseas fixed and variable interest stocks, overseas property funds and private equity funds.

The historic cost of investments held at 28 February 2021 was £1,383,000,000 (2020: £1,214,000,000).

The cash at bank and in hand represents the deposits and cash used to finance the National Trust on a day-to-day basis.

The investments held by the Charity were as stated above with the exception of the investment properties and cash at bank and in hand. Cash held by the Charity amounted to £1,366,000 (2020: £1,839,000). Investment properties held by the Charity amounted to £66,916,000 (2020: £65,327,000).

National Trust Annual Report 2020/21

Notes to the Financial Statements

75

21 Investments and Cash at Bank and in Hand (continued)

There is no single investment representing more than 5% of total investments. The Trust’s principal investment funds are as follows:

There is no single investment representing more than 5% of total investments. The Trust’s principal investment funds are as follows:
2021 2020
£m £m
BlackRock SterlingLiquidityFund (under Cash) - NT Reserves
186.0		 -
BlackRock SterlingLiquidityFund (under Cash)
153.1		 -
Comgest
115.8		 93.6
Nordea
107.7		 106.9
BlackRock LiquidityEnvironmentallyAware Fund (under Cash)
87.4		 -
AQR
-		 121.1
Capital International
-		 74.2

The Trust has initiated a private asset mandate under the discretionary management of Cambridge Associates. As at 28 February 2021, investments held were as follows:

2021 2020
£’000 £’000
Private assets and illiquid diversifers 65,980 40,479
Cash held byfund managers and not called 6,730 3,236
Total 72,710 43,715

The Trust’s objective is that an eventual target allocation of 15% of General Pool assets, or around £183 million at the February 2021 valuation of the Pool, should be represented by this mandate. Cambridge Associates has been set a return target of outperforming the MSCI All Countries World Index in sterling terms by 3% annualised over a rolling ten-year period. Furthermore, the Trust's objective is to have a further 10% target allocation of General Pool assets, or around £122 million, allocated to a private diversifier mandate, also with Cambridge Associates.

At the year-end the Trust has undrawn commitments to private equity/debt funds and illiquid diversifiers of £159.7 million which are expected to be called at various dates between 2021 and 2022. The funds to invest in these positions will be made available from the Trust's wider General Pool investments during the course of this period. Over a similar period the current investments in private assets are to be realised by a return of capital. It is not possible for the Trust to liquidate these investments prior to the future return of capital.

The carrying value of the private assets and illiquid diversifier investments represents the latest valuations of the funds at or prior to 28 February 2021 as provided by Cambridge Associates.

2021 2020
Movement in market value of investments £’000 £’000
Market value at 1 March 1,310,189 1,304,174
Additions at cost 1,042,911 481,073
Transfers from fxed assets - -
Disposals at market value (962,734) (499,879)
Other movements in Investment cash (5,746) (332)
Additions at market value (arisingfrom legacies andgifts) - -
(Decrease) in cash at bank and in hand (1,070) (640)
Netgains on investment assets 92,422 25,793
Market value at 28 February 1,475,972 1,310,189

Notes to the Financial Statements

National Trust Annual Report 2020/21

76

22 Stocks and Work in Progress

22 Stocks and Work in Progress
Consolidated The Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Tradingstocks
8,404		 12,545 620 1,097
Buildingmaterials
104		 250 104 250
Other
1,745		 1,737 565 799
10,253 14,532 1,289 2,146

Other stocks include livestock and sundry farm stocks.

23 Debtors

23 Debtors
Consolidated The Charity
2021 2020 2021 2020
Amounts falling due within oneyear:
£’000		 £’000 £’000 £’000
Rents
2,661		 2,945 2,661 2,945
Grants
11,096		 11,830 10,708 11,102
Amounts owed bysubsidiaryundertakings
-		 - 7,572 1,365
Other debtors
26,652		 23,371 25,115 20,579
Legacies receivable
50,768		 58,173 50,768 58,173
Prepayments and accrued income
33,968		 36,847 33,037 35,458
Tax recoverable
19,951		 9,360 19,846 9,360
145,096 142,526 149,707 138,982

The amounts owed by subsidiary undertaking The National Trust (Enterprises) Limited are secured by a floating charge over the assets of the company. Interest is charged at 2% over Barclays’ base rate on the outstanding balance. Other debtors include trade debtors, VAT recoverable and investment debtors.

24 Creditors

24 Creditors
Consolidated The Charity
2021 2020 2021 2020
Amounts falling due within oneyear:
£’000		 £’000 £’000 £’000
Amounts owed to subsidiaryundertaking
-		 - 16,508 16,338
Bank overdrafts
8,337		 15,989 8,337 15,989
Taxation and social security
4,634		 7,212 4,327 5,149
Other creditors
20,642		 33,313 19,968 30,623
Deferred income
36,010		 32,820 36,011 32,820
Accruals
38,087		 32,481 33,233 28,220
107,710 121,815 118,384 129,139
Amounts falling due after more than oneyear:
Amounts drawn down on the revolvingcredit facility
-		 25,000 - 25,000
Life membershipequalisation account
28,753		 27,329 28,753 27,329
Long-term loan
50,000		 - - -
78,753 52,329 28,753 52,329
186,463 174,144 147,137 181,468

The revolving credit facility funds the Trust’s seasonal working capital requirements and matures in March 2022. Interest is payable at the relevant LIBOR rate plus 1.05%.

The amounts owed to subsidiary undertaking Historic House Hotels Limited incur interest at 2% over the London inter-bank interest rate on the outstanding balance.

The portion of life membership subscriptions deemed to be of the nature of a gift is recognised in full in the year in which it is received, with the remainder deferred and released to income in equal instalments over the average period over which the life membership is expected to be used; £5.3 million was transferred to income in 2021 (2020: £5.5 million).

Notes to the Financial Statements

National Trust Annual Report 2020/21

77

24 Creditors (continued)

The long-term loan was drawn down in March 2020 at a fixed rate of 2.662% and will mature in March 2058.

Consolidated deferred income is analysed as follows:

Membership Holiday Other deferred Total Total
income cottage income income 2021 2020
£’000 £’000 £’000 £’000 £’000
Deferred income as at 1 March 22,886 4,498 5,436 32,820 30,023
Amounts released duringtheyear (22,886) (4,498) (5,436) (32,820) (30,023)
Amounts deferred duringtheyear 22,795 8,225 4,990 36,010 32,820
Deferred income as at 28 February 22,795 8,225 4,990 36,010 32,820

Membership income is deferred and released to the Consolidated Statement of Financial Activities (SoFA) over the period to which the membership relates. Holiday cottage deferred income relates to deposits and payments received in advance of bookings and is released to the SoFA in the period to which it relates.

Other deferrals mainly relate to grants and sponsorship income which are released to the SoFA in the period entitlement occurs, and premiums received on the undertaking of leases and rent-free periods which are released to the SoFA over the period until the relevant contractual lease break point.

25 Financial Instruments

Consolidated The Charity
2021 2020 2021 2020
Financial assets that are debt instruments measured at amortised cost:
£’000		 £’000 £’000 £’000
Rents
2,661		 2,945 2,661 2,945
Amounts owed bysubsidiaryundertakings
-		 - 7,572 1,365
Other debtors
26,652		 23,371 25,115 20,579
29,313 26,316 35,348 24,889
Financial liabilities measured at amortised cost:
Bank overdrafts
8,337		 15,989 8,337 15,989
Amounts owed to subsidiaryundertaking
-		 - 16,508 16,338
Other creditors
20,642		 33,313 19,968 30,623
Accruals
38,087		 32,481 33,233 28,220
Revolvingcredit facility
-		 25,000 - 25,000
Long-term loans
50,000		 - - -
117,066 106,783 78,046 116,170

Notes to the Financial Statements

National Trust Annual Report 2020/21

78

26 Consolidated Cash Flow

Net cash flows from operating activities

Net cash fows from operating activities
2021 2020
£’000 £’000
Net expenditure for the reporting period (asper the Statement of Financial Activities) 83,635 (18,403)
Adjustments for:
Investment income (17,255) (29,178)
Depreciation, amortisation and movement inprovision for impairment 31,296 30,251
Receipt of investments arisingfrom legacies - -
Loss on disposal of fxed assets 3,328 (174)
Net income – endowments (380) (8,029)
Movement in workingcapital (10,507) 9,539
Increase in life membershipequalisation account 1,424 2,113
FRS 102pension adjustment (44,793) (9,378)
Net cashprovided by/(used in) operatingactivities 46,748 (23,259)

Change in net debt

Change in net debt
Balances at Cash fows Balances at 28
1 March 2020 February 2021
£’000 £’000 £’000
Cash at bank and in hand 3,244 (1,070) 2,174
Overdraft facilityrepayable on demand (15,989) 7,652 (8,337)
Loans fallingdue after more than oneyear (25,000) (25,000) (50,000)
Total (37,745) (18,418) (56,163)

Reconciliation of net cash inflow to movements in investments

Cash at bank and in hand Investments Total
£’000 £’000 £’000
Balance at 1 March 2020 3,244 1,306,945 1,310,189
Net cash outfow (1,070) - (1,070)
Net sales of investments - 74,431 74,431
Non-cash changes:
Realised/unrealised gains on investments - 92,422 92,422
Balance at 28 February2021 2,174 1,473,798 1,475,972

Notes to the Financial Statements

National Trust Annual Report 2020/21

79

27 The National Trust Retirement and Death Benefits Scheme

The Trust operates a funded group pension scheme, established under trust, providing defined benefits based on final salary. The National Trust Retirement and Death Benefit Scheme (‘the Scheme’) was closed to new members on 1 June 2003 and closed to future accrual on 1 April 2016. The Scheme uses the following investment managers: CQS, Legal and General Investment Management, M&G Investments, Man Risk Premia SPS, Partners Capital LLP, Schroder Investment Management Limited and Systematica. The last funding valuation of the Scheme was carried out by a qualified actuary as at 5 April 2020 and showed a deficit of £240.4m. .

The Trust is committed to making deficit elimination contributions of £13.5 million per annum (running until 2029 and rising annually at 1% over CPI). During the year, the Trust made an additional contribution to the scheme of £32.6 million to settle the outstanding value of a Conditional Funding Deed which, under certain circumstances, could have resulted in the Trust paying an additional contribution into the Scheme. The CFD was intended to provide in extremis protection to the Scheme in the event that the Trust’s assets suffered a significant fall and/or the pension deficit rose significantly.

A defined contribution scheme has been offered to regular staff from 1 June 2003. This is a Stakeholder Scheme with Legal & General. In addition to this, a subsidiary, Historic House Hotels Limited, operates a defined contribution scheme. The assets of the schemes are held separately from those of the Trust.

The actuary has valued the liability in respect of deferred pensions using consumer price inflation (CPI) as the inflation measure from 2011 rather than retail price inflation (RPI). This was following a UK government change in the measure of price inflation for the statutory minimum rates at which pensions must increase for defined benefit pension plans.

The financial assumptions used by the actuary to calculate the scheme liabilities under FRS 102 section 34 were as follows:

2021 2020
% %
Rate of increase inpensionable salaries
3.3		 2.8
Rate of increase in pensions pre-April 1997
2.5		 2.0
Rate of increase inpensions inpaymentpost-April 1997
3.0		 2.8
Rate of increase inpensions inpaymentpost-March 2007
2.5		 2.2
Discount rate
2.0		 1.7
RPI infation
3.1		 2.9
CPI infation
2.5		 2.0

The mortality assumptions have been updated and are based on standard mortality tables which allow for future mortality improvements. The assumptions are that the average life expectancy, at retirement age, of a male is currently 88 and a female 90. By 2041, this is expected to increase to 89 and 91 respectively.

It should be noted that the pension deficit calculation can be sensitive to the specific assumptions selected. For example, the impact of the reduction in the assumed long-term differential between RPI and CPI inflation by 30 basis points is to increase the defined benefit pension obligation by £25.3 million. The Trust has also assumed that RPI inflation should be measured in line with market break-even expectations, less an inflation risk premium (IRP). The IRP has been set at 0.3% for 2020-21 (compared to 0.2% for 2019-20). The impact of the increase in IRP is to decrease the defined benefit pension obligation by £9 million.

The market value of the assets of the Scheme was:

The market value of the assets of the Scheme was:
2021 2020 2019
£’000 £’000 £’000
Equities 508,522 480,628 382,908
Government bonds 202,916 197,458 222,536
Derivatives and swaps 2,614 22,626 22,436
Other 12,325 1,471 (4,878)
Total market value of assets 726,377 702,183 623,002

None of the Scheme assets are invested in the National Trust’s financial instruments or in property occupied by, or other assets used by, the National Trust.

The following table provides the reconciliation of funded status to the Consolidated Balance Sheet:

2021 2020
£’000 £’000
Fair value of Scheme assets 726,377 702,183
Present value of funded Scheme liabilities (866,205) (884,166)
Netpension liability (139,828) (181,983)

National Trust Annual Report 2020/21

Notes to the Financial Statements

80

27 The National Trust Retirement and Death Benefits Scheme (continued)

Changes to the present value of Scheme liabilities during the year: 2021 2020
£’000 £’000
Present value of Scheme liabilities at 1 March 884,166 754,785
Current service cost - -
Past service cost (1,925) -
Interest cost 14,803 20,769
Contributions bySchemeparticipants - -
Actuarial (gains)/losses on Scheme liabilities (3,705) 135,485
Net beneftspaid out (27,134) (26,873)
Present value of Scheme liabilities at 28 February 866,205 884,166
Changes to the fair value of Scheme assets during the year: 2021 2020
£’000 £’000
Fair value of Scheme assets at 1 March 702,183 623,002
Interest income on Scheme assets 12,004 17,256
Actuarial (loss)/gain on Scheme assets (6,343) 75,907
Contributions bythe employer* 46,497 13,524
Contributions bySchemeparticipants - -
Administration costs (830) (633)
Net beneftspaid out (27,134) (26,873)
Fair value of Scheme assets at 28 February 726,377 702,183

*Includes a one-off additional contribution of £32.6 million to settle the Conditional Funding Deed.

The amounts recognised in net expenditure are as follows: 2021 2020
£’000 £’000
Current service cost - -
Past service cost (1,925) -
Administration expenses 830 633
Interest cost 2,799 3,513
Expense recognised in net expenditure 1,704 4,146
Actual return on Scheme assets: 2021 2020
£’000 £’000
Interest income on Scheme assets 12,004 17,256
Actuarial (loss)/gain on Scheme assets (6,343) 75,907
Actual return on Scheme assets 5,661 93,163

National Trust Annual Report 2020/21

Notes to the Financial Statements

81

28 Financial Commitments

The Trust's total commitments for operating lease payments are due as follows:

2021 2021 2020 2020
Consolidated Land and Motor vehicles Land and Motor vehicles
buildings buildings
£’000 £’000 £’000 £’000
Within oneyear 3,078 1,313 3,017 1,612
Between one and fveyears 10,065 1,658 10,673 2,358
After fveyears 59,224 2 55,345 -
72,367 2,973 69,035 3,970
2021 2021 2020 2020
The Charity Land and Motor vehicles Land and Motor vehicles
buildings buildings
£’000 £’000 £’000 £’000
Within oneyear 2,883 1,290 2,818 1,578
Between one and fveyears 10,049 1,626 10,461 2,320
After fve years 59,224 2 55,345 -
72,156 2,918 68,624 3,898

29 Taxation

30 Legacies

The National Trust is a registered charity and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried out in furtherance of the Charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

At 28 February 2021, the National Trust had been notified of 106 legacies with an approximate aggregate value of £6.7 million (2020: 80 legacies, approximate value £5.65 million) that had not been included in income as uncertainties exist over the measurement of the Trust's entitlement.

The National Trust, The National Trust (Enterprises) Limited, National Trust (Renewable Energy) Limited and Historic House Hotels Limited are registered for VAT. Any irrecoverable VAT on expenditure is charged to the appropriate heading in the Consolidated Statement of Financial Activities or is capitalised as appropriate. The National Trust (Enterprises) Limited, National Trust (Renewable Energy) Limited and Historic House Hotels Limited give all of their taxable profits to the Charity (subject to available distributable reserves), normally resulting in no liability to corporation tax.

31 Commitment to Long-term Borrowing

In July 2019, the National Trust entered into a binding agreement to borrow £100 million to finance a programme of investment in its visitor and commercial infrastructure and its let estate. £50 million was drawn down in March 2020 at a fixed rate of 2.662% and will mature in March 2058. A further £50 million will be drawn down in March 2022 at a fixed rate of 2.651% and will mature in March 2063. Repayment is at the end of the loan terms.

Notes to the Financial Statements

National Trust Annual Report 2020/21

82

32 Related Party Transactions

The Trust has considered the disclosure requirements of SORP 2020 and of FRS 102 section 33 – Related Party Disclosures and believes that the following related party transactions, all of which were made on an arm’s length basis, require disclosure.

Related party transactions involving Trustees are fully disclosed here. For all other individuals, only transactions in excess of £10,000 are disclosed. Other individuals are those the Trust considers to have ‘control and influence’ or are historic donors of land to the Trust. The Trust’s Audit Committee has undertaken a review of all other related party transactions disclosed by individuals considered to have control and influence within the Trust.

The contribution to the Trust’s funds by its wholly-owned subsidiaries, The National Trust (Enterprises) Limited, Historic House Hotels Limited and National Trust (Renewable Energy) Limited, are disclosed in Note 5.

There are no other related party transactions which require disclosure.

Transactions with Trustees

Other Transactions

Transactions involving historic donors of land

Notes to the Financial Statements

National Trust Annual Report 2020/21

83

33 Prior Year Consolidated Statement of Financial Activities

----- Start of picture text -----
Note(s) Unrestricted Restricted Endowment Total Total
funds funds funds 2020 2019
Income and endowments from: £’000 £’000 £’000 £’000
Donations and legacies
Appeals and gifts 3,139 9,046 671 12,856 10,268
Legacies 42,213 12,003 7,358 61,574 66,494
Operating grants and contributions 2 - 7,226 - 7,226 7,420
Other trading activities
Enterprise and renewable energy income 5 79,295 - - 79,295 72,492
Hotel income 5 - 8,808 - 8,808 8,597
Investments 21 7,759 8,485 12,934 29,178 26,842
132,406 45,568 20,963 198,937 192,113
Charitable activities
Membership income 3 269,690 - - 269,690 243,425
Project grants and contributions 2 - 13,545 - 13,545 10,170
Direct property income 4 142,580 54,319 - 196,899 186,411
412,270 67,864 - 480,134 440,006
Other
Other income 7 414 1,467 - 1,881 2,220
Total income 545,090 114,899 20,963 680,952 634,339
Expenditure on:
Raising funds
Fundraising costs 12 4,546 - - 4,546 4,243
Enterprise and renewable energy costs 5, 12 61,345 - - 61,345 56,589
Hotel costs 5, 12 - 8,960 - 8,960 8,419
Investment management costs 12, 21 2,934 2,881 4,632 10,447 10,440
68,825 11,841 4,632 85,298 79,691
Charitable activities
Property operating costs 12 231,406 76,744 - 308,150 296,442
Expenditure on property projects 12, 13 107,534 61,244 - 168,778 148,392
Acquisitions 12, 20 5,944 1,463 - 7,407 11,637
Internal conservation and advisory services 12 61,599 2,822 - 64,421 59,706
Membership costs 12, 14 65,301 - - 65,301 57,231
471,784 142,273 - 614,057 573,408
Total expenditure 17 540,609 154,114 4,632 699,355 653,099
Net expenditure before gains/(losses) on investments 17 4,481 (39,215) 16,331 (18,403) (18,760)
Net gains/(losses) on investments 17, 21 14,057 6,355 5,381 25,793 (3,760)
Net income/(expenditure) before taxation 18,538 (32,860) 21,712 7,390 (22,520)
Taxation 16 (1,906) - - (1,906) -
Net income/(expenditure) 17 16,632 (32,860) 21,712 5,484 (22,520)
Transfers between funds 17 (1,142) 23,900 (22,758) - -
Other recognised expenditure
Actuarial expenditure on defined benefit pension scheme 17, 27 (59,578) - - (59,578) (13,060)
Net movement in funds (44,088) (8,960) (1,046) (54,094) (35,580)
Fund balances brought forward 17 300,628 461,915 582,842 1,345,385 1,380,965
Fund balances carried forward 17, 18 256,540 452,955 581,796 1,291,291 1,345,385
----- End of picture text -----

All amounts above derived from continuing operations and the National Trust had no recognised gains or losses other than those passing through the Consolidated Statement of Financial Activities. There was no material difference between the net income before transfers and the historical cost equivalents.

National Trust Annual Report 2020/21

Notes to the Financial Statements

84

Independent Auditors’ Report to the Trustees of the National Trust

We have audited the financial statements of the National Trust (“the Charity”) for the year ended 28 February 2021 which comprise consolidated statement of financial activities, balance sheets, consolidated cash flow statement and related notes, including the accounting policies in note 1.

In our opinion the financial statements:

Basis for opinion

We have been appointed as auditor under section 145 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the Charity in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

The trustees have prepared the financial statements on the going concern basis as they do not intend to liquidate the group or the charity or to cease their operations, and as they have concluded that the group and charity’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the trustees’ conclusions, we considered the inherent risks to the Charity’s business model and analysed how those risks might affect the Charity’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Charity will continue in operation.

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud.

Our risk assessment procedures included:

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, the risk that Group management maybe in a position to make inappropriate accounting entries, and the risk of bias in accounting estimates and judgements such as the valuation of the defined pension benefits liability.

We did not identify any additional fraud risks.

National Trust Annual Report 2020/21

Independent auditors’ report to the Trustees of the National Trust

85

In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of some of the Group-wide fraud risk management controls.

We also performed procedures including:

Identifying and responding to risks of material misstatement due to noncompliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations.

As the Group is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity’s procedures for complying with regulatory requirements.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation for the subsidiaries and charities legislation for the Charity), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, employment law, and certain aspects of company and charity legislation recognising the financial and regulated nature of the Group’s activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

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 have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations 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 nondetection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Other information

The trustees are responsible for the other information, which comprises the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge.

We are required to report to you if:

We have nothing to report in these respects.

National Trust Annual Report 2020/21

Independent auditors’ report to the Trustees of the National Trust

86

Matters on which we are required to report by exception

Under the Charities Act 2011 we are required to report to you if, in our opinion:

We have nothing to report in these respects.

Trustees’ responsibilities

As explained more fully in their statement set out on page 38, the trustees are responsible for: the preparation of financial statements which give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities

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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the Charity’s trustees as a body, in accordance with section 145 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity’s trustees 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Campbell-Orde

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

66 Queen Square Bristol BS1 4BE

22 July 2021

KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities .

National Trust Annual Report 2020/21

Independent auditors’ report to the Trustees of the National Trust

87

The Trust’s Advisers

Bankers

Barclays Bank Plc, 1 Churchill Place, London E14 5HP

Longview Partners LLP, Thames Court, 1 Queenhithe, London EC4V 3RL

Investment Advisers

Aberforth Partners LLP, 14 Melville Street, Edinburgh EH3 7NS

AQR Capital Management Europe, 5-11 Regent Street, London SW1Y 4LR

BlackRock Investment Management (UK) Ltd, 12 Throgmorton Avenue, London EC2N 2DL

Newton Investment Management Ltd, 160 Queen Victoria Street, London EC4V 4LA

Nordea Asset Management UK Limited, 6th Floor, 5 Aldermanbury Square, London EC2V 7AZ

Ownership Capital B.V, Herengracht 105-107, 1015 BE Amsterdam, The Netherlands

Cambridge Associates, 80 Victoria Street, London SW1E 5JL

Capital Group, 40 Grosvenor Place, London SW1X 7GG

J P Morgan Asset Management Ltd, 20 Finsbury Street, London EC2Y 9AQ

Legal and General Investment Management, One Coleman Street, London EC2R 5AA

Rothschild & Co, New Court, St Swithin’s Lane, London EC4N 8AL

Independent Auditors

KPMG LLP Chartered Accountants and Statutory Auditors 66 Queen Square Bristol BS1 4BE

National Trust Annual Report 2020/21

The Trust's advisers

88

Glossary of financial, property and fund terms

----- Start of picture text -----
Term Where Used Explanation
Actuarial Valuation Pensions The three-yearly valuation of our pension scheme by a qualified actuary.
Current Service Costs Pensions The cost of pension benefits earned by employees over the year.
Designated Funds Funds Unrestricted funds allocated by the Trustees for particular purposes.
Discount Rate Pensions The interest rate assumed on the scheme liabilities.
Endowment Funds Funds Investment funds established for properties to provide income over the long term to fund
their maintenance – these funds may have been received as a gift or established by the
Trustees from the Trust’s own funds. The general policy for new properties acquired is to set
up an endowment fund at the point of acquisition.
Fixed Asset Reserve Funds Reflects the Trust’s investment in offices, plant, machinery and equipment to enable it to carry
out its charitable activities.
General Fund Funds This is the working fund of the Trust. It pays for the general administration of the Trust and
supports properties which have insufficient funds of their own.
Heritage Assets Assets Assets which have historic, artistic or environmental qualities and are held or maintained
principally for their contribution to knowledge and culture.
Inalienable Assets Cannot be sold or mortgaged – the Trust has the power under its Act to declare property
inalienable. This also means the property cannot be compulsorily purchased against the Trust’s
wishes without invoking a special parliamentary procedure.
Internal conservation Properties Research and advisory services provided by the Trust in relation to conservation of its historic
and advisory services buildings and contents, and its coast, countryside and garden properties. These costs are vital
to the delivery of the Trust’s projects. These costs also include internal consultancy resource
relating to the visitor experience.
Operating Margin Board of Trustees’ Operating Margin % is total operating income, less total operating expenditure expressed as
Report –Financial Review a percentage of total operating income. Achieving a margin of 20% means that for every 80
pence we spend on operating activities we aim to generate at least £1 of income so that at
least 20 pence is available to fund capital projects, maintenance and conservation tasks at our
properties, implement our strategy and strengthen our reserves
Past Service Costs Pensions The cost of any additional benefits granted to members over the year.
Expenditure on property Properties These costs include long-term cyclical repair costs, backlog work and conservation
projects improvement work.
Property Development Properties Structural improvements, new buildings and associated fit-out costs incurred at National Trust
Project properties to improve visitor and commercial infrastructure.
Property reserves Properties and Funds Many National Trust properties operate with their own financial reserves that are accumulated
to help fund projects and capital expenditure. These reserves are part of restricted funds
where they represent surplus investment income arising from donor-provided endowments
or where properties have been acquired under legal trust to apply the whole income of the
property only at that property. All other property reserves are part of designated funds.
Designated property reserves were transferred back to the General Fund in March 2020 when
the Trust instituted spending controls in response to the coronavirus pandemic.
Related Party Financial statements A related party is someone who can act individually or in concert with others to control the
financial or operating activities of the National Trust, The National Trust (Enterprises) Limited,
National Trust (Renewable Energ) Limited or Historic House Hotels Limited.
Restricted Income Funds Funds Gifts and legacies where the donor has placed a restriction on their use.
Total Return Investments The income and capital growth on our investments – the Trust operates a total return policy
on certain of its endowments.
Unapplied Total Return Investments That part of the total return over time that has not been spent on charitable purposes.
Unrestricted Funds Funds Unrestricted funds are free from any legal restriction on their application other than they must
be spent on the Trust’s charitable purposes; they include the General and designated funds.
The financial surpluses of properties are transferred to unrestricted funds unless they relate
to endowment investment income, specific gifts or where there are legal trusts to apply the
whole of the income of a property only at that property.
Unrestricted Legacy Legacies Legacy receipts which can be applied to any charitable purpose of the Trust other than
Receipts administration.
----- End of picture text -----

Glossary of financial, property and fund terms

National Trust Annual Report 2020/21

89

Operating Margin

As explained in the Financial Review on page 26, Operating Margin is the principal financial target we use for management purposes. The table below shows how this was calculated for the last five years:

----- Start of picture text -----
Note 2017 2018 2019 2020 2021
£m £m £m £m £m
Membership income 3 200.7 219.8 243.5 269.7 267.6
Rents received 4 45.9 47.5 48.6 50.0 46.6
Admission fees 4 28.4 30.5 30.2 31.0 8.4
Investment income 21 48.2 46.9 49.7 50.7 53.7
Enterprise, Renewables and Charitable trading income 5,6 161.6 167.4 172.6 186.8 73.3
Hotel contribution 5,6 0.1 0.1 0.2 - (1.3)
Appeals and gifts 11.5 13.2 10.3 12.4 10.9
Operating grants and contributions 2 6.1 5.8 7.4 7.2 8.0
Other operating income [4] 4 6.5 4.7 5.1 5.6 3.1
Exceptional income [3] - - 1.9 - 3.2
Total ordinary income 509.0 535.9 569.5 613.4 473.5
Fundraising costs [2] 12 2.8 3.1 3.5 3.8 2.9
Property operating costs [1,2] 12 216.1 236.4 251.7 263.1 221.8
Enterprise and renewable energy costs 5 53.8 52.2 56.6 61.9 29.6
Internal consultancy costs [2] 12 37.2 42.4 48.7 52.2 43.1
Membership costs [2] 12,14 42.7 49.8 53.6 60.8 47.7
Support service costs 15 57.7 62.4 67.0 70.4 65.0
FRS 17/102 pension costs adjustment 4.0 (2.2) 6.5 9.4 12.2
Other project costs [5] (6.4) (20.2) (29.1) (39.2) (27.5)
Exceptional income [3] - - - - (41.4)
Exceptional costs [6] - 0.9 (1.0) - 25.9
Total ordinary expenditure 407.9 424.8 457.5 482.4 379.3
Operating margin £ 101.1 111.1 112.0 131.0 94.2
Operating margin % 19.9% 20.7% 19.7% 21.4% 19.9%
Operating margin 101.1 111.1 112.0 131.0 94.2
Less investment income under total return 21 (28.2) (25.0) (33.3) (32.0) (49.4)
Legacies 61.7 51.9 66.5 61.6 44.6
Project grants and contributions 2 11.8 12.2 10.2 13.5 12.3
Gains on disposal of property and insurance claims 7 1.9 1.2 2.2 1.9 4.6
Long lease buy out 7 20.5 - - - -
Other project income 1.4 3.0 2.3 3.2 1.8
Expenditure on property projects [1,2] 12,13 (134.2) (133.1) (142.6) (161.3) (79.0)
Acquisitions [2] 20 (9.2) (10.4) (10.5) (6.3) (1.9)
Other project costs [5] (6.5) (20.2) (29.1) (39.2) (27.5)
Exceptional income [3] - - - - 71.7
Other costs [7] 4.0 (1.3) 3.6 9.2 12.2
Net (expenditure)/income per SOFA 24.3 (10.6) (18.7) (18.4) 83.6
----- End of picture text -----

Notes

1 2017 restated for short-term cyclical repair costs and small works reported within property project expenditure from 2018 onwards

2 Exclude allocated support costs

3 Exceptional income includes Coronavirus Job Retention Scheme grants, other Covid-related grants and insurance claim proceeds

4 Excludes income attributable to project activity

5 Project costs shown under headings other than expenditure on property projects

6 Exceptional costs include redundancy costs and Covid related costs

7 2017 onwards relates to pension costs adjustments under FRS 102

National Trust Annual Report 2020/21

Operating Margin

90

Year on record

Acquisitions of properties, works of art and other objects

London and South East

Works of art and other

historical objects

Ham House, Richmond upon Thames

Hendrick van Steenwyck the Younger (c. 1580–1649), Cathedral Interior, 1621. Oil on copper, 16.5 cm. diam. This small ‘cabinet’ painting was first recorded in a 1683 Ham House inventory, but it may have been at Ham even earlier, possibly in the collection of William Murray, 1st Earl of Dysart (c. 1600–55), who created the Green Closet cabinet room in the house. The practice of painting on copper added luminosity to the pigments and allowed for the application of fine details. As a meditation on space, light and shadow, this work is also particularly resonant in relation to the modulated light in the 17th-century interiors at Ham. This painting and a number of others left Ham in the mid-20th century and were inherited by a branch of the Tollemache family – some of those pictures have since been acquired by the Trust through the Acceptance in Lieu Scheme and by purchase. This painting was bought from the art dealers Agnews in March 2020, funded by a contribution from the Monument 1985 Fund (endowed by the late Simon Sainsbury), a grant from the Art Fund, a gift from John Maynard and further gifts from Arthur Drysdale, Johnny van Haeften, the Helmingham, Buckminster and Roundel branches of Tollemache family, the Richmond National Trust Association and the Reading National Trust Association. NT 1140914

Osterley Park, Hounslow

Paulus Moreelse (1571–1638), pair of portraits of an unknown man and woman aged 34 and 26 (probably husband and wife, most likely Dutch), 1632. Oil on canvas, one measures 112 x 104 cm and the other about 107 x 94 cm sight size. These portraits do not have a provenance from Osterley, but paintings of similar type and quality are known to have hung there, as part of the Child family art collection, most of which was lost in a warehouse fire in the late 1940s. Although the identity of the man and woman shown in these paintings is unknown, their self-presentation as a wealthy, respectable and sophisticated couple resonates with the history of the Child family of Osterley, who similarly made their fortune through trade and finance in the 17th century and expressed their new-found status and confidence through the collecting of art. This pair of paintings had been on loan at Osterley since 2004. Donated to the National Trust under the terms of the will of George Richard Pinto (1929–2018). NT 773346 and NT 773347

Midlands

Property

Sandilands, Lincolnshire coast: Sandilands Golf Course

(BNG: TF536793 XY: 553639 379399)

Hartwell House, Buckinghamshire

Jonathan Richardson the Elder (1667–1745), two oval half-length portraits of Elizabeth Sandys (d. 1728) and Judith Sandys (d. 1720), oil on canvas, both 76 by 63 cm. Elizabeth Sandys was a daughter of the London merchant Thomas Sandys and became the wife of Sir Thomas Lee, 3rd Bt (1687–1749) of Hartwell. Judith Sandys was also a daughter of Thomas Sandys and became the wife of Humphry Morice, MP (c. 1671–1731). Their second daughter, Judith (1710–43), married Sir George Lee, MP, PC (c. 1700–58), youngest brother of Sir Thomas Lee, 3rd Bt. The portraits were sold in an auction of the contents of Hartwell House on 26 April 1938, but were recently accepted by HM Government under the Cultural Gifts Scheme from Mr Harold Killingback, in memory of his first wife Monica and her uncle David Melville, and allocated to the National Trust for display at Hartwell. NT 2900387 and NT 2900388

The acquisition of 76.60 acres (31 hectares) of land, a Club House and small car park which will provide the opportunity to create priority habitat (sand dunes, lowland wet grassland/coastal grazing marsh, reedbeds and associated habitats, e.g. ponds, scrapes, ditches). The acquisition was funded from the National Trust Neptune fund and a legacy from Mr A Oliver.

Northern Ireland

Property

Murlough Nature Reserve, County Down

(ING: J 403 340 XY: 340264 334035)

The acquisition of a 1.01-acre plot (0.41 hectares) of land within the curtilage of the NT's existing 700-acre ownership at Murlough Nature Reserve. Acquisition will bring an area already effectively cared for by the Trust into ownership and add to an area already designated an Area of Special Scientific Interest (ASSI).

This acquisition was gifted to the Trust as a 10,000-year lease by the 9th Marquis of Downshire.

Year on record

National Trust Annual Report 2020/21

91

Acquisitions of properties, works of art and other objects (continued)

South West

Property

Talland Barton, Porthallow, Cornwall

(BNG: SX231514 XY: 223100 051400)

The acquisition of 44 acres (18 hectares) of coastal land, part of which is a Site of Special Scientific Interest. This acquisition will provide the opportunity to enhance conservation, significantly improve existing grazing areas, and widen the coastal corridor. The acquisition was funded by a gift from Colonel and Mrs R Hayne.

Lorna Doone and Cloud Farm, Exmoor

For Lorna Doone Farm: (BNG: SS791477 XY: 279180 147784)

For Cloud Farm:

(BNG: SS794467 XY: 279424 146752)

This acquisition comprises a freehold campsite offering a varied accommodation mix of 104 camping pitches, 8 holiday cottages, car park, tearoom with bar and kitchens, gift shop and 12 caravan pitches.

This acquisition will provide a more diverse sustainable revenue stream to protect and look after this land along with our existing ownership within Exmoor. The purchase will provide a great touch point for engaging people on our West Exmoor and the Holnicote estates.

Wales

Property

Land at Porth Swtan, Cemaes, Holyhead, Anglesey

(BNG: SH300891 XY: 230089 389131)

The acquisition of a triangular parcel of land of 9 square meters (0.009 hectares) from Anglesey County Council.

Acquisition will allow the National Trust to carry out improvements to the entrance to Swtan Cottage required as part of lease negotiations for the lease of Swtan Cottage to Cyfeillion Swtan (Friends of Swtan Charity).

The acquisition was funded using property reserves.

Land at Southwood Estate, Roch, Haverfordwest, Pembrokeshire

(BNG: SM867216 XY:186748 221607)

The acquisition of 136.67 square metres (0.0067 hectares) of Southwood Bungalow's garden adjoining Southwood Estate. Acquisition will benefit public access by connecting the existing footpath on the Southwood Estate with the local village of Roch and Newgale beach.

The acquisition was funded using property reserves.

The acquisition was partially funded from the National Trust Neptune fund and a legacy from Mrs M L Chappell.

Bow Tie Field, Stonehenge, Wiltshire

(BNG: SU140421 XY: 414027 142151)

The acquisition of 52.28 acres (21.16 hectares) of land within the Stonehenge, Avebury and Associated Sites World Heritage Site will allow us to protect significant archaeology and benefit biodiversity.

The acquisition was funded by a grant from the National Heritage Memorial Fund.

Year on record

National Trust Annual Report 2020/21

92

Visiting figures

Properties open at a charge with more than 50,000 visitors in 2020/21:

----- Start of picture text -----
Property 2020/21 2019/20
Attingham Park 518,863 540,561
Cliveden 441,133 525,903
Dunham Massey 439,767 329,681
Clumber Park 350,188 655,251
Calke Abbey 315,150 459,262
Polesden Lacey 287,837 401,748
Anglesey Abbey 269,029 386,909
Fountains Abbey Estate 264,542 400,328
Sheffield Park 256,822 292,866
Belton House 245,228 442,447
Wimpole Estate 235,239 324,925
Kingston Lacy 234,307 409,106
Nymans 228,929 378,216
Stourhead 222,283 386,458
Lyme 220,390 129,040
Stowe 213,721 227,928
Ickworth 203,967 282,106
Tyntesfield 199,170 355,307
Mottisfont 192,901 381,835
Gibside 192,771 297,946
Shugborough Estate 181,541 244,049
Croome 175,270 278,745
Mount Stewart 170,366 235,389
Dyrham Park 159,349 268,510
Quarry Bank 157,678 281,728
Wallington 155,618 240,555
Kedleston Hall 154,396 207,181
Chartwell 154,364 249,440
Hardwick 141,643 288,799
The Vyne 140,610 216,590
Charlecote Park 140,504 248,385
Cragside Estate 137,255 251,733
Baddesley Clinton 135,135 227,190
Hanbury Hall 134,206 225,367
Claremont Garden 130,672 184,073
Winkworth Arboretum 128,950 154,590
Packwood House 125,718 213,885
Corfe Castle 117,581 255,400
Killerton 116,135 276,716
Blickling Estate 115,535 216,293
----- End of picture text -----

----- Start of picture text -----
Scotney Castle 115,202 187,764
Basildon Park 113,514 157,306
Hatchlands 113,512 173,816
Sissinghurst Castle Garden 111,723 201,072
Hughenden 104,938 170,721
Rowallane Garden 100,709 127,410
Hinton Ampner 99,340 167,477
St.Michael's Mount 99,133 351,362
Speke Hall 97,388 219,207
Standen House 95,142 161,692
Hidcote 93,815 178,287
Emmetts Garden 91,955 129,628
Bodnant Garden 91,133 264,390
Petworth 88,600 185,963
Lacock 86,995 207,813
Ham House 82,948 128,445
Greys Court 79,160 145,806
Felbrigg Hall 78,187 129,627
Wentworth Castle Gardens 77,448 78,534
Coughton Court 77,165 118,428
Biddulph Grange Garden 75,269 129,272
Castle Ward 74,925 134,826
Dunster Castle 74,738 205,835
Beningbrough Hall 74,247 147,773
Knightshayes Court 74,073 175,796
Osterley Park 74,064 93,488
Montacute House 70,704 183,486
Trelissick 68,966 224,716
Ightham Mote 67,413 154,776
Bodiam Castle 66,757 161,817
Dudmaston 64,290 100,424
Giant’s Causeway 62,643 685,229
Dyffryn Gardens 61,574 167,274
Wightwick Manor 59,030 113,538
Upton House 58,256 107,108
Croft Castle 53,967 112,174
Sizergh 53,045 125,193
Erddig 52,108 176,236
Powis Castle 50,821 185,039
Sutton Hoo 50,775 121,797
----- End of picture text -----

National Trust Annual Report 2020/21

Year on record

93

Individuals, Charitable Trusts and Foundations

We would like to thank all our donors for their generous support, which helps us to protect the places in our care and conserve them far into the future.

Individuals, £2,500–£4,999

Mr Jeremy Boughton in memory of Mrs Elaine Boughton Elizabeth and John Brightwell Wendy and David Clegg Carolyn Copping in memory of John Ilott Colin Crawford Mrs Joan Dinham Charles Glanville Anthony Greenwood in memory of Raymond Greenwood Richard and Jenny Hardie Mr and Mrs Haslewood Mr and Mrs Hender Mark Howard in memory of Elizabeth Jenks Mr Norman Jones Peter Law in joyful celebration of Dad Bernard and Mum Veronica In memory of Alfie In memory of Ellen Cooper

Mr M O'Callaghan Martin Ogden in memory of Andrew John Clough Mr Alan Parfett David Paul Mr Peter Scott Peter and Cherry Smith Mr Keith Southern Mr R Steinbeis and Ms C Pierard Mrs Valerie Taylor Mr Timothy Wheildon-Brown Mr John S B White Mr Richard Wilkins Andrew Wilson in memory of Denise Wilson Professor Tadahiro Yotsumoto

Individuals, £5,000+

Mr Richard Allan and Mrs Diana Allan QC Ms Pat Aste Mr Humphrey and Mrs Ginny Battcock Sir Michael Bibby, Bt and Lady Bibby Martin Burke in memory of Barbara G Burke Mr M P Byles

Jane Coker from the estate of my father, Bob White Michael Collier in memory of Harry and Emily Collier

Tim Compton Steve Edge Richard and Joanna Godden Mr Stephen Hale Mr Robert Hall Davina Hodson Mr and Mrs Anders Johansson Dr Colin Johnson Dr King Mr Ian Lennox Mr Matthew and Mrs Frances Lindsey-Clark

Philippe Lintern Dr Frank Lowes Dr Helen Lumley in memory of Dr Philip Lumley Sir Laurie and Lady Magnus Mr John Maynard Mr and Mrs J B McGrath Heather Merrett in memory of the late Bryan Merrett Ken Moody and Jean Bacon Mr and Mrs Timothy Parker Mr and Mrs Richard Pym CBE J W Reed Dr Alison Rimmer Patrick and Susan Russell Mr and Mrs Anthony Shoults Mr and Mrs David Simmonds Tony Teague The late Mr J Thomason Richard and Jacqueline Worswick

Charitable Trusts, £2,500–£4,999

The Ardbarron Trust The George Dudley Herbert Charitable Trust Langdale Trust The Helen Isabella McMorran Charitable Foundation Mrs I H E M Robertson Deceased Charitable Trust The Linley Shaw Foundation

Charitable Trusts, £5,000+

The Anglesey 2001 Trust The Art Fund The Charlotte Bonham-Carter Charitable Trust Brownsea Island Scout and Guide Heritage Trust

The Joyce Lomax Bullock Charitable Trust The George Cadbury Fund

The Ellen Mavis Chalk Charitable Trust Miss Rene Ethel Checkland Charitable Trust Cumbria Community Foundation and English Lakes Hotels Trust Sustainability Fund Derwent Trust in memory of A P Gammie The Lord Faringdon Charitable Trust The Golden Bottle Trust

Mrs Margaret Guido's Charitable Trust The Daphne Hamilton Trust

Sir John and Lady Heathcoat Amory's Charitable Trust The Ada Hillard Charitable Trust Historic Houses Foundation The Houghton Dunn Charitable Trust The Icthius Charitable Trust The Robert Kiln Charitable Trust The Lidbury Family Trust The London Marathon Charitable Trust The McCorquodale Charitable Trust The Northwick Trust

The Ofenheim Charitable Trust The Oglesby Charitable Trust The Pell Charitable Trust Players of People's Postcode Lottery The Rowlands Trust The Royal Oak Foundation The Kathleen Smith Foundation The Tanner Trust The Susan Thomson Charitable Trust Wellcome Trust Garfield Weston Foundation The Wolfson Foundation

Year on record

National Trust Annual Report 2020/21

94

Grant-making bodies, landfill operators and environmental trusts

We thank the following funders for their support which is crucial to conservation work across the Trust.

Cadw

Cadw Ministry of Housing, Communities Department for Communities and & Local Government Local Government (DCLG) National Lottery Heritage Fund Department for Digital, Culture, Natural England Media & Sport Natural Resources Wales Department for Environment, Newport City Council Food & Rural Affairs Sport England Department for Environment, Food and Rural Affairs (EU) Stockport County Council Viridor Credits Environmental Department of Agriculture, Environment and Rural Affairs (NI) Company Welsh Government Highways England Welsh Government (EU) INTERREG LIFE

Corporate Donors and Partners

We would like to thank the following for their support in helping to grow the impact of the Trust’s work beyond what we can deliver with our own limited resources.

J Barbour & Sons Ltd Clarity Environmental Cotswold Outdoor Enterprise Holdings Foundation Forthglade Gardiner & Theobald Sky Zilch Technology Limited

National Trust Annual Report 2020/21

Year on record

95

Supporter groups

Under the umbrella of active Supporter Groups for 2020/21 are:

Like most people last year, our supporter groups were unable to get out to do the things they love – visiting our properties, volunteering and coming together in support of the National Trust. The impact of coronavirus meant that their overall donations and volunteer hours were down significantly from the year before and yet despite the difficult circumstances these incredible groups still gave generously where they could.

When the crisis struck, many of our groups gave unrestricted donations to their local properties and to our General Fund. We were enormously thankful for this as we were able to direct the funds to the areas of greatest need across the Trust.

In addition 63 of our groups donated a total of £154,731.63 in support of our conservation work.

These donations have helped support our strategy by:

Supporter groups bring like-minded people closer to our cause. As well as fundraising and volunteering, they run activities for their members such as talks with guest speakers, holidays and access all-areas property visits. The contribution that these groups make is widely recognised throughout the Trust but it is especially valued by the properties that directly benefit.

We would like to acknowledge and thank in particular the supporter group committee members who found ways to keep their group members connected and engaged throughout this year despite the challenges they faced.

National Trust Annual Report 2020/21

Year on record

96

Legacies

The National Trust is extremely grateful for the gifts in wills received during the year from the estates of the following people.

Without their generous support it would not be possible to look after the special places in our care, nor to respond to opportunities to purchase land and properties to be safeguarded for the nation.

Figures in brackets show the cumulative total received to the end of the 2020/21 financial year where gifts have been included in previous Annual Reports or Accounts.

£2,500 and above

----- Start of picture text -----
Miss R I Abbott £9,933.33 (£49,933.33)
Miss W R Abbott £59,400.00
Mr L Acton £10,000.00
Mrs M B Adam £5,000.00
Mr M Addicott £75,000.00
Miss D Airey £8,463.51
Mr R S Akerman £24,000.00
Mr W S H Alexander £228,349.61
Mr T R Almond £21,959.79 (£31,959.79)
Miss A B Ambrose £13,255.91 (£148,255.91)
Ms J Anderson £20,000.00
Mrs M K Anderson £5,933.75 (£62,089.83)
Mrs J Andrews £72,000.00
Ms J M Antcliff £5,000.00
Miss B S Applegate £45,000.00
Mrs A T A Arkell £10,000.00 (£49,000.00)
Miss P M Armitage-Smith £74,150.00
Mrs A K H Aschenagi £350,000.00 (£472,500.00)
Miss M A N Ashton £356,855.98
Mr G W Attwood £62,286.40
Mr R J Avery £13,907.51
Mr J Ayton £5,000.00
Miss J Badrocke £5,000.00
Miss J A Badrocke £10,000.00
Mrs D Bailey £34,000.00
Mrs J B Baines £3,157.63 (£361,090.48)
Mrs O L Baldock £5,992.50 (£49,737.74)
Miss M G Ball £36,332.65
Mrs O A Ball £8,582.34 (£63,582.34)
Mrs D G Ballard £100,000.00
Mrs C Barnard £45,661.04
Miss I E Barnes £26,233.26
Mr K A Barratt £5,000.00
Miss H L Barron £333,167.00
Mrs S J Bastable £102,170.66
Miss J L Batey £11,988.21
Mr D J Batten £30,000.00
Ms P F Batten £5,000.00
----- End of picture text -----

----- Start of picture text -----
Professor A R Battersby £30,000.00
Dr S E Beare £4,487.31 (£141,998.96)
Mr D R Bell £80,548.09
Ms E Bennett £5,000.00
Mr L Best £52,326.80
Mrs L M Bevil £53,000.00
Mr A W Bibby £41,978.09
Miss J Biddulph £17,395.53
Dr S P Bidey £56,000.00
Mr A S Bilton £235,000.00
Miss S Bird £5,917.52
Mr R S Black £10,000.00
Miss M Blomfield £25,000.00
Mrs J M Board £5,000.00
Mr L L Boreham £38,421.34
Mrs M B A Bowell £73,776.00
Mr R J Bradburn £10,000.00
Mr N C Bradbury £5,000.00
Mr P A Bradley £160,000.00
Miss Z E Bremer £50,000.00 (£190,000.00)
Miss B Brewster £8,588.91 (£87,201.79)
Miss E M Briggs £5,000.00
Mrs F I Briggs £33,826.26
Mrs P D Brindley £20,475.71
Mr G Britton £5,000.00
Mrs M S H Brock £174,894.30 (£432,894.30)
Mr M C Broker £14,417.14 (£471,797.45)
Ms P J Brookes £36,100.00
Mr W T Brookes £2,500.00
Miss P I Brooking £56,500.00
Mr G R Brooks £28,646.78
Mr A L Brown £122,873.05
Mr B D Brown £5,000.00
Mrs B J Brown £10,000.00
Mrs E M Brown £60,000.00
Dr J M Brown £50,000.00
Mrs M A S Brown £3,606.86 (£36,382.42)
Mr M D S Brown £38,092.75 (£73,092.75)
Mrs M M Brown £4,752.85 (£204,752.85)
Miss P D Brown £247,945.39
Mrs S M Brown £941,050.39 (£2,191,050.39)
Mr K G Bruce £53,031.85
Mr V C Bryant £132,575.81
Mr A J Bryer £10,000.00 (£200,000.00)
Mrs J R Buckingham £8,333.59 (£93,333.59)
Mr W G Buckley £46,513.41 (£51,513.41)
Miss C F Bunch £7,200.00
Dr A M C Burgess £20,000.00
Mr J M Burgess £26,250.00
----- End of picture text -----

National Trust Annual Report 2020/21

Year on record

97

Legacies (continued)

----- Start of picture text -----
Ms B G Burke £5,000.00 Mr W G Dallaway £25,000.00
Ms E Burton £5,000.00 Miss D H Danks £2,500.00
Mrs J Burton £4,367.79 (£38,367.79) Miss P E Darvill £39,747.35
Mr R Burwell £53,438.67 Mr A N Davenport £13,473.81 (£249,148.44)
Miss D E Bushby £156,504.77 (£383,299.71) Mrs B M Davenport £5,000.00 (£400,254.89)
Miss J M Butler £15,000.00 Miss J F Davenport £15,176.04 (£259,176.04)
Mr G D Caine £24,318.75 Miss L Davies £2,695.41 (£24,975.79)
Miss D R Cains £85,964.00 (£380,964.00) Mrs P N Davies £35,000.00
Mrs B Callaghan £82,237.47 Miss B Davis £10,000.00
Miss L Cantrell £295,544.65 Mr K C Davis £96,681.92
Mrs J A Caton £23,000.00 Ms T Davis £50,000.00
Mrs F J Cazaux £48,000.00 Miss M L Dawson £50,000.00
Mrs B Chambers £102,077.53 (£201,127.80) Mr M G Day £12,000.00
Mrs B Chant £3,000.00 Mr D W Daymond £23,000.00 (£23,994.30)
Miss E Chapman £60,000.00 Mrs H A Dean £48,503.73
Mrs H D Chapman £5,000.00 Mrs H L R Dean £2,663.32
Dr R P T Chen £33,114.70 (£87,155.11) Mr K R J Deary £98,956.53
Mr P G Chidzey £337,028.33 Mrs J Diggins £83,727.01
Mr A W Chisholm £15,000.00 Mr F Diggon £5,000.00
Mr M C Churly £25,004.45 Mrs E D S Diplacito £7,000.00
Miss A J Clare £10,000.00 Miss J Donkin £50,000.00
Miss F M Clark £10,000.00 Mrs D D Doran £25,000.00
Miss G M Clarke £8,305.59 (£108,376.59) Miss S Dove £50,198.31
Mr M W Cleaver £30,017.01 Miss E A Dowman £84,667.90
Mr R H E Cleeves £10,000.00 Mr G D Downing £91,000.00
Mr C K Clifford £10,000.00 Mr C Drayner £10,000.00 (£620,000.00)
Mr J W Clitherow £3,500.00 Mr T I Dudley £5,000.00
Mr D Clough £88,086.66 (£1,088,086.66) Mr F Dunn £10,000.00
Mrs P Coates £5,000.00 Ms N M Dunning £3,836.11 (£338,836.11)
Mrs H Coffey £450,000.00 Mrs A Edmonds £40,373.01 (£227,873.01)
Mrs R J Collier £389,613.66 Mrs V H Edwards £21,000.00
Miss S G Comins £10,000.00 Mr R Ellacott £100,000.00 (£150,000.00)
Miss M E C G Cook £60,881.43 Mr B C Elliott £10,000.00
Miss J M Cooper £11,871.22 Mr C A Elliott £150,000.00
Ms M J Corbett £35,849.05 Miss K A G Elliott £7,167.89
Mrs J M Corway £5,678.01 Mr P J G Ennion £20,000.00 (£65,000.00)
Miss B S Cottam £19,208.52 Dr B A Enoch £150,000.00
Ms D V Cotton £44,899.29 Mrs O A Entwistle £115,774.46
Mr N Crabtree £83,461.14 Miss M Evans £437,955.64
Dr K P E Crawford £4,545.45 Mrs M Exley £7,212.38 (£42,212.38)
Mrs R E Crawford £10,000.00 Mr R A Fairweather £8,500.00
Mrs M J Crawshaw £450,000.00 Mr D A Faulkner £59,280.00 (£103,730.95)
Miss M M Croft £8,332.17 Dr G V Feldman £24,457.89 (£45,057.89)
Mr J B Cudmore £4,711.54 Mr M G E Finnikin £500,000.00
Miss M Curwen £31,000.00 Mrs S Fisher £3,000.00
Miss V E Dadds £5,234.78 (£77,971.75) Miss S M Fisher £5,779.08
Mr D J Dale £931,198.93 (£1,222,917.95) Mr A C Flint £10,000.00
Miss M M Dale £31,020.18 Ms J M Fluck £5,000.00
----- End of picture text -----

National Trust Annual Report 2020/21

Year on record

98

Legacies (continued)

----- Start of picture text -----
Mrs D M Foulkes £7,919.80 Mrs S E D Harley £67,031.30
Mrs H E R B Fowle £10,342.02 Mr C H Harris £2,712.59
Mr R L Fox £57,673.10 Miss J L Harris £25,000.00
Mrs F M Francis-Clare £54,472.09 Miss R A Harris £120,612.52
Mrs G Furber £7,528.99 (£15,028.99) Miss S D Harris £8,855.61
Mr N B Gallagher £11,672.09 Mr S A Harrison £26,911.02 (£66,911.02)
Mrs M A Gardner £16,249.17 Miss S H Harrison £5,994.30 (£50,994.30)
Mr M C Gaskin £5,000.00 Miss U M Harrison £23,310.65
Mrs P M Gentry £15,000.00 Mr R K Harsant £25,000.00
Mr T H George £14,263.20 Mrs M V Hart £14,185.20 (£198,063.79)
Mr P A Gill £23,852.72 (£123,852.72) Mrs V M Haselden £100,000.00
Mrs V M Gilmer £5,000.00 Mrs J Hassell £2,500.00
Miss J E Glanvill £7,466.67 Mrs M F Hawthorne £185,071.35
Mrs B Godbert £101,305.48 Mrs B L Hayllar £3,174.49
Mrs J E Godsmark £5,000.00 Mrs M L Hayne £3,240.00 (£286,289.98)
Mr D W Golothan £48,625.98 (£168,625.98) Mrs C Haynes £10,000.00
Mr J R D Goodricke £13,792.00 Mr D Hazledine £27,378.11 (£51,378.11)
Mrs A I Goreham £30,000.00 (£380,000.00) Miss M L Heard £4,462.49
Miss R M Gorman £8,998.80 (£529,656.97) Mrs P L Hedley £24,813.98
Mrs E M Gough £23,206.26 Mrs M B Helliwell £4,000.00
Mr J A Gould £139,377.11 Mrs M C Hemming £41,210.78
Miss M D Govan £75,964.00 Miss M J Henshaw £55,000.00
Mr J E Grant £38,120.00 Mrs G E Hepburn £13,406.20 (£47,020.20)
Mr R H R Green £549,234.40 (£749,234.40) Mr C H Hewer £50,000.00
Mr R P Green £63,000.00 Mr P F Hewitt £150,000.00
Mr J Greensides £4,022.34 Mr R W J Hewson £30,000.00 (£2,151,885.91)
Mrs J G Greer £335,000.00 Dr J R Hibbert £240,944.80 (£534,643.49)
Mrs D Gregory £10,000.00 Mrs B E Hickman £55,000.00
Mr C R Gregson £3,333.00 Mr B J High £52,854.70
Mrs M Griffiths £21,485.52 Miss P J Hill £4,965.48
Miss M I M Griffiths £30,000.00 Mrs A R A Hirschfeld £50,000.00
Mrs S M Griffiths £229,832.85 Mrs D Hodges £176,000.00
Mr B W Gudgeon £523,626.50 Miss M R Hogg £5,000.00
Mr E G Guy £4,000.00 Mr D J Hollingworth £70,710.29
Mrs N Hackett £10,000.00 Ms G Y W Holmes £12,292.00
Mr D H Hadley £50,000.00 (£300,000.00) Mr M H Hopcraft £5,000.00
Mr A B Hailes £24,215.21 Mr N C Horbury £49,829.25
Mr B H Hall £3,260.00 (£163,779.88) Miss G Horrocks £12,500.00
Mrs C D Hall £14,031.88 (£134,031.88) Miss J Hotham £20,828.09
Miss R Hall £8,750.00 (£98,750.00) Mrs G E Howard £8,629.67
Miss A M Hamilton £26,600.00 Mrs J A Hubbard £180,000.00 (£210,000.00)
Miss D E J Hammond £100,000.00 Mr J P Hubbard £125,000.00
Mrs J W Hanna £24,750.00 Mrs P M Huffam £329,788.29 (£679,788.29)
Mrs W L Hansford £49,802.83 Mrs C M Hughes £21,750.00
Ms A Hardcastle £92,131.12 Mrs R B M Hughes £30,000.00 (£280,000.00)
Miss P A Harding £141,906.94 Mrs P Hughston £100,000.00
Dr R O F Hardwick £4,000.00 Dr J R Hulett £46,375.00 (£352,375.00)
Miss J M Hare £13,688.64 (£21,688.64) Mr A M Hulme £20,000.00
Mrs Y Harland £20,000.00 (£50,000.00) Miss C E Hulme £4,504.74 (£104,504.74)
----- End of picture text -----

National Trust Annual Report 2020/21

99

Year on record

Legacies (continued)

----- Start of picture text -----
Mr W M Hulme £10,000.00 Mrs I Lodge £400,000.00
Miss R H Hunter £15,716.00 (£165,716.00) Mrs D B Logan £15,000.00
Mr D B Huntley £123,689.59 (£473,647.59) Mr P M Lord £2,500.00
Mr D R Hutcherson £4,359.06 (£87,905.36) Mr R Lord £4,000.00
Miss S M Ingram £50,000.00 Miss J A Lovelace £8,235.88
Ms J Ireland £5,000.00 Mr C Lucas £134,919.13 (£145,919.13)
Miss K E Ireland £22,172.46 (£122,172.46) Mr J G Lucas £152,000.00 (£798,000.00)
Mrs M E Jagelman £4,159.70 (£504,159.70) Mr J H Lucas £11,789.32
Miss P Jamblin £9,206.31 (£82,806.31) Miss A L Luckham £4,121.89 (£46,038.14)
Mrs M O James £48,473.51 (£82,223.51) Miss P MacCallum £5,000.00
Mrs B Jebb £14,000.00 (£122,296.85) Miss R M Macgillivray £34,000.00
Miss J A Jeffs £10,000.00 Mr L E H Maggs £224,489.37
Miss T I Jeffs £5,007.11 (£15,007.11) Mr R E Malins £5,000.00
Mr S N Jenkin £250,000.00 Mrs M G Mann £8,000.00
Mr R W Jenkins £14,901.95 (£17,901.95) Mrs S M L Manning £417,937.58 (£3,065,943.51)
Mr G H B Johnson £40,064.11 (£185,897.45) Mrs S O Marks £80,000.00
Mr K A Johnson £100,000.00 Ms C Marriott £19,472.97
Ms L Johnson £10,000.00 Ms D F C Marsden £276,129.10
Mrs M A Johnson £5,000.00 Mr C Marsh £54,033.76 (£334,374.54)
Mrs B Jolly £200,063.96 Miss S J Marston £51,390.13
Mrs B A Jones £200,000.00 (£450,000.00) Miss R E Mason £58,730.40
Mr J K Jones £9,736.69 (£104,236.69) Mrs D Mayfield £100,000.00
Mr L A Jones £187,970.22 Mrs E McAllister £7,000.00
Miss L M Jones £6,250.00 Mr D H McCann £39,331.00
Miss M M Jones £17,594.91 (£42,594.91) Ms D E McConnell £5,000.00
Mr N T Jones £109,346.91 (£809,346.91) Miss J S McGuinness £27,500.00
Ms P Jones £4,994.00 Mr G & Mrs J McNeil £6,098.04 (£427,098.04)
Mr P E Jones £53,193.73 Mr D Melnyczuk £8,213.92 (£13,213.92)
Miss C P A Jukes £322,457.22 Mrs E M Mercer £150,000.00
Miss P M Keats £79,529.20 Miss J M Merchant £41,713.05
Miss A A Kelly £50,250.00 (£1,024,624.16) Dr J W Millbank £133,494.78 (£300,918.89)
Mrs E Kelly £140,519.89 Mr V G Miller £22,713.08
Mr R S Kennedy £32,696.20 Miss G J Mills £83,092.13
Mrs B M Kipling £5,000.00 Miss M L Mills £3,000.00
Miss H Kirkbride £17,647.00 Mrs J M Mintern £8,901.55 (£13,801.55)
Miss S E Ladyman £85,289.86 Mrs I P Minton £75,000.00
Mr D W Lambert £18,782.70 Mrs R M Misa £6,250.00
Mr H R Lambert £5,000.00 Mr A D Mitchell £27,186.22
Miss D L Lamport £4,875.00 (£115,375.00) Miss H G Mitchell £13,743.03
Mrs C A Lane £13,625.00 Miss P M Mitchell £12,661.77
Mr J M Lapworth £17,500.00 Miss I E Moll £5,000.00
Miss S J Larby £21,093.67 (£63,093.67) Mr H W Moore £249,304.47 (£299,304.47)
Miss M M Last £5,000.00 Mrs R J Morley £458,000.00
Miss G M Law £5,000.00 Mr J H Morphet £35,086.65 (£581,435.50)
Mrs J M Lea £86,663.90 (£161,663.90) Mr G Morrell £649,134.14
Mr P A Liddiard £3,000.00 Mr L Moseley £9,630.22
Mrs J K Lindsay £10,000.00 Mr D R Mountford £150,000.00
Mrs G B Lloyd £210,302.65 Mr D H Muff £400,000.00
Mr P B Lockwood £10,000.00 Miss S V Munby £7,966.46
----- End of picture text -----

100[National Trust Annual Report 2020/21]

Year on record

Legacies (continued)

----- Start of picture text -----
Mr K Murton £97,500.00 Miss J A Pinney £25,000.00
Mr J N H Nesbitt £3,000.00 Mrs M E Poolman £65,000.00
Mrs S M R Neville £16,941.50 (£246,941.50) Miss B G Pope £21,000.00
Mr D V Newbold £325,000.00 (£900,000.00) Miss B Powell £10,000.00
Mr D C Newton £750,000.00 Miss C R Pratt £50,000.00 (£150,000.00)
Mrs G B Nicholl £6,250.00 Mr R Prebble £5,000.00
Mrs J F Nicholls £5,000.00 Mrs E R Preece £17,783.21
Mr P J Nicholson £7,723.01 Mr C D Prest £55,000.00 (£90,000.00)
Mrs S P Nixon £11,939.97 (£24,439.97) Mr J D Prest £599,532.00 (£629,532.00)
Miss J A Norris £5,000.00 Mr J Pringle £20,000.00
Miss J M Norwood £112,735.56 Miss J M Proud £61,139.82
Mr D J Notley £180,372.93 Mr G D G Pursey £25,000.00
Mr A J Nuttall £14,000.00 Miss B M Purvis £30,000.00 (£1,080,000.00)
Mr B M O'Brien £3,000.00 Mr P F Pyrah £9,952.00
Professor P H Oliver £13,023.59 (£38,896.31) Mr A A Ramus £5,000.00
Mr C T Oman £3,549.64 (£142,213.53) Ms A Rawlence £4,600.00
Miss B O'Neill £10,000.00 Miss T M Read £10,000.00
Mr J T Osborne £84,338.09 (£554,338.09) Mrs M O Reay £40,000.00
Mrs B E Oughton £200,000.00 Mr R D Revill £10,000.00
Ms P P Owen £178,449.75 Mrs B Reynolds £5,000.00
Mrs F C Page £53,000.00 Mrs D Reynolds £22,665.09
Mr I W Pamphilon £55,000.00 Mr D Reynolds £100,496.29
Miss S Pape £3,974.93 (£48,974.93) Miss E M H Rice £5,270.82 (£15,270.82)
Mrs G Parker £5,000.00 Miss A M Richards £3,884.75 (£28,884.75)
Mr J S Parker £30,000.00 Mrs B M Richards £98,858.85
Ms M E Parker £9,103.68 Mr G H Riley £50,000.00
Mr D M Parkinson £4,000.00 Mrs J E Riley £173,000.00
Mr D J Parsons £2,500.00 Miss M W Riley £30,000.00
Mrs M Patrick £71,514.61 Mr D P Ritch £42,308.19 (£1,917,692.19)
Mrs M R Patterson £470,000.00 Ms A O Roberts £35,000.00
Mr B J Peacock £190,861.89 (£1,540,861.89) Mrs H M Roberts £64,370.73
Miss S M Peadon £79,328.26 Mrs J Roberts £15,000.00
Mrs M W Pearce £20,000.00 Miss N M Roberts £3,000.00
Mrs E Pearson £50,073.97 Mr R C Roberts £93,660.81
Mr N S Pearson £160,000.00 Mrs A Robertshaw £26,102.12
Mr A W Peeke £101,220.84 Miss A S Robertson £171,894.36
Ms G E B Penfold £110,000.00 Professor A R Robinson £40,000.00
Mrs S M Periam £20,000.00 Mr C D Robinson £22,321.98
Mrs J Perkins £15,681.58 (£35,681.58) Mrs V Robinson £240,000.00
Mrs S M Perkins £10,015.61 Mr M A H Roe £9,072.61
Miss M Perks £10,000.00 Miss R C M Roe £1,000,000.00
Mr J W Perrin £400,000.00 Miss S P Roe £20,000.00
Mr C A Peters £75,000.00 (£100,000.00) Mrs B Rogers £425,000.00
Miss B F Pettigrew £27,000.00 (£61,000.00) Mrs F L Rogers £141,883.71
Mr H G Phipps £44,267.91 Miss P A Rogers £30,996.46
Mr J M Pickard £225,000.00 (£300,000.00) Mr J F Rose £16,202.70 (£182,902.70)
Mr F Pill £110,170.15 (£126,088.29) Mrs J P Rose £75,000.00
Mr A W Pinchbeck £29,663.22 (£79,663.22) Mrs S B D Rosenthal £261,394.28
Mrs D S Pinion £59,625.60 (£885,469.86) Mr D N Rosling £2,500.00
----- End of picture text -----

National Trust Annual Report 2020/21

Year on record

101

Legacies (continued)

----- Start of picture text -----
Miss S M Rowe £204,302.90 Mr H E H Strudwick £2,892.24 (£181,434.29)
Mr J Rowett £26,509.05 Miss M A Sturton £74,000.00
Mr M J Rumsey £125,000.00 Miss R E Sullivan £200,000.00
Mrs L J Runes £4,618.85 (£7,118.85) Ms S D Sutcliffe £790,000.00
Mrs D M H Salmon £20,872.73 Mr J B Sutton £19,975.24 (£315,225.81)
Mr G Sanders £80,000.00 Mr R L Sutton £320,000.00
Mr I B Sardharwalla £50,000.00 Miss A B Swayne £10,000.00
Mr R W Saunders £5,000.00 Mr A R Tanner £15,000.00
Mrs J M Sawtell £585,000.00 (£1,395,000.00) Miss M Tattersall £7,479.29 (£42,479.29)
Miss A Sayer £17,174.07 Mr A Taylor £3,300.00
Miss A R Sayer £44,200.00 Mrs B D Taylor £5,484.80 (£19,312.98)
Mr I Schraibman £46,223.50 (£126,223.50) Ms B E Taylor £12,815.66 (£62,815.66)
Mrs S A A Scorer £24,128.25 (£44,128.25) Mr G L Taylor £49,500.00
Mr L E Scott £55,000.00 Reverend N Taylor £2,693.00
Miss A Scrivener £370,000.00 Mr B V Teece £37,503.89 (£307,503.89)
Mrs K M Seager £5,000.00 (£19,551.66) Miss D F Temlett £149,195.56
Mr L A F Searle £23,436.34 Mr B Thomas £140,000.00
Mr D Secker £50,000.00 Miss P J Thomas £5,000.00
Mrs H K Sefton-Smith £20,000.00 Miss M M Thompson £558,273.69 (£597,349.96)
Miss C Severn £10,000.00 (£185,000.00) Mr R L Thornton £80,000.00
Mr B J Seyer £5,000.00 Miss L Threlfall £52,259.95 (£62,259.95)
Mr P E Shaw £90,000.00 Miss K A M Tilley £7,500.00 (£18,750.00)
Miss E M Sheen £80,000.00 (£100,000.00) Mr J C Tipping £225,000.00
Miss A C Sheppard £5,000.00 Mr D J A Todd £18,000.00 (£18,250.00)
Mr F J Sherwin £6,000.00 Mr L H Toft £9,842.24
Mr Z A Shuaib £935,262.34 (£1,935,262.34) Mrs R M Toler £100,000.00
Mrs M Sigrist £103,512.99 (£253,512.99) Mrs J Tolley £56,000.00
Mrs M L Simmonds £26,720.07 Mr H W Tompkin £10,000.00
Mrs M J Skoumal £280,000.00 Miss V M Tompkinson £17,487.29
Mrs F C M Smart £20,000.00 Mr J A Tooth £50,600.00
Miss H R Smith £91,046.32 Lady Trethowan £13,149.90 (£58,149.90)
Miss M B Smith £123,200.00 Miss S E Triggs £11,070.00
Mrs P J Smith £50,000.00 Mr R L F Trimen £65,700.00
Mr R S Smith £215,338.63 Mr E W Tullett £5,000.00
Miss W R Smith £232,213.83 Mr B Turner £174,497.55
Mrs V W H Smyth £6,612.33 (£240,250.08) Misss E Turner £5,500.00
Miss P V Softley £12,096.90 (£212,054.90) Mrs S V Turner £259,000.00
Mr A J Southgate £26,200.00 Mr C S Twigge £6,642.19 (£122,242.19)
Miss M D Southon £7,218.51 Mr N Urwin £38,020.48
Miss B M Spence £3,918.25 (£6,598.09) Mrs S A Veal £178,474.12
Mr K Stacey £37,192.98 Miss E M Wadham £5,613.86 (£448,014.30)
Mrs J E Stedman £5,000.00 Miss B K Wadsworth £80,924.87
Mr I V Stemson £25,000.00 (£165,000.00) Mrs S E Wagstaff £280,206.02
Mrs D E Stenson £14,299.58 Mrs J M Waites £21,276.20 (£106,276.20)
Mrs E Stewart £230,000.00 Mrs B Walker £2,500.00
Mrs G M Stewart £11,631.51 (£111,631.51) Mr V D Walker £143,073.48
Mrs A H Stone £5,000.00 Mr M Wallace £41,484.20 (£141,484.20)
Mrs T P Stott £94,000.00 Mr R A Walters £30,000.00
----- End of picture text -----

National Trust Annual Report 2020/21

102

Year on record

Legacies (continued)

----- Start of picture text -----
Miss A Ward £24,000.00
Miss B D Watkins £6,640.17 (£81,640.17)
Mr H B J Watson £8,766.94 (£435,421.62)
Mrs H F Watson £100,000.00 (£175,000.00)
Mr A C W Weaver £18,576.62
Mr R H G Webster £84,311.13
Miss A C Western £15,000.00 (£55,000.00)
Mrs J M Westlake £8,000.00
Miss N I Weston £100,000.00
Mr R S Weston £12,600.00 (£24,120.00)
Mrs M M Wheeler £74,110.32 (£324,110.32)
Mr A F White £6,184.50 (£72,035.99)
Mr A J White £600,000.00
Dr C M White £130,000.00
Mr J D White £264,086.15 (£464,086.15)
Mr J Whitehead £5,263.37 (£153,249.07)
Mrs D Whitney-Wood £519,361.75
Mr E Wilcock £19,926.49
Miss M K Wild £7,500.00 (£107,500.00)
Mr I D Wildbore £10,000.00
Mrs P Wilkie £225,000.00
Mr K F Wilkinson £14,285.72
Mrs C M Williams £15,709.72
Mr J A Williams £260,000.00 (£920,000.00)
Mr R H Williams £327,037.74
Mrs H J Williamson £97,256.11
Miss E M Willingale £83,000.00
Mrs B F Wills £114,163.93
Mr B R Wilson £4,945.83 (£175,945.83)
Miss E C Wilson £5,065.21
Miss J M Wilson £50,000.00
Mrs L P Winteringham £5,000.00
Mr J K R Wood £25,000.00
Mrs M K Wood £10,000.25
Mr C T P Woodfield £10,000.00
Mr B G Woodward £50,000.00
Mrs M E Woodyer £350,000.00
Miss J M Wright £103,000.00 (£143,000.00)
Mr R C M Wright £10,000.00
Miss I J F Wyatt £350,000.00
Mr R G Wyatt £60,000.00 (£90,000.00)
Mr J R Wynne £35,000.00
Miss R N Yale £2,500.00
Mrs F E Yandell £118,030.70
Mrs M E Yaxley £335,084.57
Mr N B Yeadon £10,586.41
Miss D J B Young £53,771.19 (£803,771.19)
----- End of picture text -----

National Trust Annual Report 2020/21

Year on record 103

Legacies (continued)

£1,000 - £2,499.99

----- Start of picture text -----
Mrs A Y Ames £1,215.16
Mr E T Badham £1,976.63
Mrs M F Bailey £1,001.00
Mrs J C Balding £1,000.00
Mrs B O Ballard £2,000.00
Mrs J A F Banham £1,000.00
Miss E Barraclough £2,000.00
Miss I M Bellamy £1,000.00
Mr D L Berger £1,000.00
Mrs J Blackett £1,500.00
Miss P M Bonser £1,700.46
Mr J G Bottomley £1,000.00
Mr P J D Bridger £1,000.00
Mr H Brighouse £2,485.78
Mr R K Burgess £2,000.00
Mrs J L Burgoyne £2,320.63
Mr A A Butler £1,000.00
Mrs J R C Chapman £1,500.00
Mrs A M Choat £1,000.00
Mrs D M Clarke £2,452.49
Miss A M Coburn £2,000.00
Mrs E A Colborne £1,000.00
Mr C E Cook £1,000.00
Mr W C Cook £2,000.00
Mr E J Cornish £1,000.00
Mrs E M Crombie £2,000.00
Mrs P A Danton £2,000.00
Mrs P A Darch £1,000.00
Mr P E Davie £1,000.00
Mrs E Dawson £1,100.00
Mrs C M Dewis £1,000.00
Mrs W J Dodd £1,000.00
Miss C J Donovan £1,000.00
Miss K W Duncalf £1,000.00
Mrs J E Dyer £1,000.00
Mrs E E Dyson £2,000.00
Mr A Elliott £1,000.00
Mrs M Elphick £1,000.00
Mr J G Entwisle £1,000.00
Mrs C A Evans £1,000.00
Mr D E Evans £1,000.00
Ms J E Fairbrother £1,000.00
Mrs K M Faulconbridge £1,404.47
Mrs J D Fitzpatrick £1,000.00
----- End of picture text -----

----- Start of picture text -----
Mr K J Flemons £1,000.00
Mrs P A M Fox £1,000.00
Mr N V Franklin Taylor £1,000.00
Miss R M Freeman £2,323.85
Mrs M E Furniss £1,000.00
Ms J V Gill £1,000.00
Mr P J W Goodwin £1,000.00
Miss B K Grace £1,000.00
Mr M Greenhill £2,000.00
Miss H E Grinyer £1,426.27
Mrs M E Hannam-Clark £1,000.00
Mrs E G Heap £1,000.00
Mrs G E Hemsley £1,000.00
Mrs J A Heron £2,000.00
Mrs R C A Hewetson £2,000.00
Miss R M Higham £1,464.86
Ms Y Hinton £2,000.00
Miss A E Hogston £2,108.58
Miss R M Hore £2,000.00
Miss P M E Horner £1,000.00
Mrs J F Hugman £1,625.63
Miss D Jaynes £1,000.00
Mr J E Julier £1,000.00
Miss B L Keeble £2,000.00
Mrs J A Keele £1,191.65
Professor B R Kemp £1,000.00
Mr J Kent £2,000.00
Miss J M King £2,000.00
Miss S M Knight £2,000.00
Mr J G Koch £1,001.62
Mrs R M Lancaster £1,000.00
Miss M A Lawrence £2,002.00
Mrs J D Lea-Whitaker £1,006.50
Miss C A Lewer £1,046.00
Mrs B B I Lewis £1,000.00
Miss O Long £1,000.00
Ms M I Lucas £1,000.00
Mr J H Lucy £2,000.00
Mrs M A Mahoney £1,000.00
Mrs J J Malcolm £2,000.00
Mr K Manson £1,939.48
Mrs P L Marsden £1,000.00
Mr D W Marsh £1,000.21
Mrs H Marsh £1,000.00
----- End of picture text -----

National Trust Annual Report 2020/21

Year on record

104

Legacies (continued)

----- Start of picture text -----
Mrs G R Marshall £1,260.92 Mrs P M Stephen £1,000.00
Miss D G B Martin £1,405.97 Mr S G Stock £1,000.00
Mr R A & Mrs J W Maslen £2,000.00 Mrs A Stott £1,000.00
Miss J Mason £1,000.00 Mr P V F Sumner £2,000.00
Ms S Mazonas £1,000.00 Mrs E M Taylor £1,000.00
Mrs K G McDonnell £2,003.40 Mrs J Taylor £1,819.31
Miss D Mead £1,000.00 Mrs D I F Thompson £2,015.47
Mrs J R Morris £1,000.00 Miss F Thynne £1,006.90
Mr J T Morris £2,000.00 Mrs P A Tiller £1,000.00
Mrs S B Morrison £1,000.00 Mrs A N M Tonkin £2,000.00
Mrs M Morton £2,000.00 Mr R Topham £1,000.00
Ms V Musgrove £1,000.00 Mr R H C Tyler £1,000.00
Mrs P Norman £1,000.00 Mrs D A Uren £1,000.00
Mr H R L Palk £1,000.00 Ms D Urquhart £2,000.00
Ms J E Panter £1,000.00 Mrs A J Uttley £1,000.00
Miss E Parker £1,000.00 Mr H J Watkinson £1,000.66
The Hon. N G Parker £1,000.00 Miss B P Weller £1,000.00
Mr R E Parr £1,000.00 Mr L Wheeldon £1,540.84
Miss J Pickett £1,733.30 Mrs G T Wild £1,000.00
Mr D Potter £1,000.00 Ms M Williams £1,000.00
Mr C G A L Potts £1,000.00 Mr A M Wilson £1,913.28
Mrs B Powter £1,000.00 Mrs M E I Wilson £1,963.56
Mr D R S Pratt £1,000.00 Miss D M Woodrow £2,000.00
Mr J C Pritchard £1,000.00 Mr M G Wright £2,000.00
Mr J D Purdy £1,000.00
We are also very grateful for the 158 legacies under £1,000 and to
Mr L G Reilly £2,000.00
those people who asked to remain anonymous.
Mrs E M Richards £1,652.16
Mr J G Richards £1,000.00
Dr J Roper £1,000.00
Ms A J Round £2,000.00
Miss E Sankey £1,330.31
Mrs M E Sayer £1,207.70
Mr I W Scantlebury £2,000.00
Mrs S M M Scrivens £1,000.00
Mr R G Selley £2,436.32
Mrs U Shearring £2,000.00
Mr C Sim £2,000.00
Miss E D Skinner £1,000.00
Mrs M C Slater £1,000.00
Mr C A Smith £1,000.00
Mrs G M T Smith £1,000.00
Miss P J Spooner £2,000.00
Mr J L Stacey £1,829.88
Mrs E M Staley £1,000.00
----- End of picture text -----

National Trust Annual Report 2020/21

Year on record

105

2020/21 was a year like no other. The generosity of our supporters was a lifeline as our places provided solace for the nation. Together we can continue to care for nature, beauty and history, for everyone, for ever. nationaltrust.org.uk/donate

Contact details

Central office Heelis Kemble Drive Swindon Wiltshire SN2 2NA Tel: 01793 817400 Fax: 01793 817401

London office 20 Grosvenor Gardens London SW1W 0DH Tel: 020 7824 7190 Fax: 020 7824 7198

Membership enquiries

PO Box 574 Manvers Rotherham S63 3FH Tel: 0344 800 1895 enquiries@nationaltrust.org.uk

Website www.nationaltrust.org.uk

Information on Country and Regional offices can be found on our website or by contacting the central office.

106 National Trust Annual Report 2020/21

The Annual Report is available at www.nationaltrustannualreport.org.uk

Alternative formats are also available on request from annualreport@nationaltrust.org.uk or telephone 01793 817400 www.nationaltrust.org.uk/annualreport

© 2021 National Trust Registered charity no. 205846

Heelis Kemble Drive Swindon Wiltshire SN2 2NA

www.nationaltrust.org.uk

National Trust Annual Report 2020/21

107