2025-12-31-accounts - The London Diocesan Fund

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

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Trustees’ report and financial statements for the year ended 31 December 2025

Docusign EnvelopÈ ID." EEF4EC8C-778C-863D-83A>E984E04F9DAF

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Supporting the mission and growth of the Church of England in the Diocese of London

Trustees’ Annual Report At a glance 4 Strategic report 6 Achievements and performance 26 Financial review 30
Governance, structure & management 35 Statement of trustees’responsibilites 38 Appendices: commitee membership and administratve details 39 Independent Auditors’Report to the Members of the London Diocesan Fund 42

	Financial statements Statement of fnancial actvites 46 Balance sheet 47
Summary	income and expenditure account 48 Cash fow statement 48 Notes to the fnancial statements 49

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

INCOME
GAP
£6,320
2.13
8.44
58.13
49.73
10.11
18.43
5.80
13.89
23.83
4.54
4.97
%
%

INCOME FROM SOFA (GF+DF)
£M
1 COMMON FUND
24.3
2 PARISH REIMBURSEMENTS
FOR CLERGY COSTS
4.2
3 GRANTS AND DONATIONS
2.4
4 RENTAL INCOME & DIVIDENDS
10
5 OTHER INCOME
0.9
TOTAL 41.8
FROM COST ALLOCATION
WORKING (GF+DF)
£M
1 STIPENDIARY CLERGY COSTS
23.9
(INCL GRANTS…)
2 CLERGY HOUSING COSTS
8.9
3 SUPPORT FOR PARISH
MINISTRY (INCL EDUCATION)
6.7
4 FUNDING FOR THE
NATIONAL CHURCH
2.2
5 RENTAL PROPERTY COSTS
2.4
6 DIOCESAN SUPPORT COSTS
4.0
TOTAL 48.1

Docusign Envelope ID". EEF4EC8C-778C-863D-83A>E984E04F9DAF DIOCESE OF- LONDON PROJECTS FUNDED THROUGH FUNDING OF OVER RESTRICTED GRANTS IN 5. THE GROW COURSE £10.7M ,, PARISHES COMPLETED -TO HELP THEM GROW IN NUMBER. DEPTH AND IMPACT. FROM THE NATIONAL CHURCH, AND 2025 ;, THE FOLLOWING PROJECTS.. I. YOUTH APPRENTICES 2025 6. IMPRINT CHURCH ADDITIONAL APPRENTICES YOUTH RECRUITED, TRAINED AND DEPLOYED ACROSS THE DIOCESE. 50 /%• 750 95 ADDITIONAL INTERN5 TRAINED MUSICALATTENDEES WHO HEARD THE GOSPEL THROUGH THEATRICAL PERFORMANCE CREATIVES EQUIPPED 2. YOUTH MINISTRY IN COMMUNION 7. PERSIAN ANGLICAN COMMUNITY DEVELOPMENT 12,50,22 11 13 82 NEW LEADERS IDENTIFIED AND BEGAN TRAINING NEW WORSHIPPING COMMUNITIES PARISHES INVOLVED YOUNG PEOPLE CONFIRMED NEW LEADERS PEOPLE HEARD THE GOOD NEWS 3. TRANSFORMING SOUTHALL & HOUNSLOW 8. ESTATES APPRENTICES EXISTING APPRENTICES COMPLETED THEIR FIRST YEARAND BEGAN THEIR SECOND YEAR, PILOTING THE SECOND-YEAR CURRICULUM NEW INTERCULTURAL LEADERS NEW CHRISTIANS 4. HACKNEY & ISLINGTON PROGRAMME 9. TOWER HAMLETS NEW WORSHIPPING COMMUNITIES 20 80 NEW LAY LEADERS INCREASE IN AVERAGE WEEKLY ATTENDANCE NEW CHRISTIANS NEW WORSHIPPING COMMUNITIES

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

he Church of England in London is vibrant and at the heart of communities within our diocese. The trustees believe that by promoting the work of the Church of England in the Diocese of London,

the London Diocesan Fund (LDF) helps to promote the whole mission of the Church, including its pastoral, evangelistic, social and ecumenical aspects more effectively, both in the Diocese as a whole and in its individual parishes. In doing so, it provides a benefit to the public throughout the LDF’s activities. These activities are set out in more detail in the following report, and public benefit is considered in more detail on page 30.

The London Diocesan Fund helps to promote the whole mission of the Church, including its pastoral, evangelistic, social and ecumenical aspects more effectively

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

he London Diocesan Fund (LDF) exists to support, serve and resource all parts of the Diocese of London so that every Londoner may encounter the love of God in Christ.

Achievements & Performance

The LDF’s activities are guided by the Diocese’s 2030 Vision. Parishes, worshipping communities and chaplaincies are encouraged to work towards three Ambitions and focus on three Priorities:

In common with other dioceses, the LDF has responsibility for paying and housing parish clergy and providing training and mission and ministry support services. It also provides mission support and training and generates investment into parishes through fundraising activities for mission and building sustainability. Parishes contribute to the cost of these services through the Common Fund, a collaborative funding approach that enables ministry and support to be provided across the Diocese. The LDF generates further funding through grants, investment and other operational income.

These ambitions and priorities are enabled by the wise stewardship of the LDF as an organisation and its resources, namely people, buildings and finances.

The Bishops of Fulham, Kensington, Willesden and Edmonton at the Confirmation of Election service of the new Archbishop of Canterbury.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

his ministry is primarily led by ordained and lay leaders at a local level. The LDF provides support and resources to help encourage and strengthen these Ambitions.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

onfident Disciples is a movement of churches and groups deepening faith through communal practices, discerning a shared Way of Life, and living out discipleship together in everyday life. Over 2025, 177 clergy and 85 lay leaders took part in workshops to discern a church Way of Life (based around imitating the life of Christ) and explored “Communal Practices” to bring connection with God into every day.

125 churches (25%) took part in our Diocesan Lent Offering exploring discipleship and climate justice, while our Way of Life newsletter grew to 816 subscribers, reflecting a growing hunger for discipleship that connects faith and justice.

As we continue to place discipleship at the heart of church mission and ministry, a new “Discipleship Pathway” is being developed to help churches nurture faith from first encounters to deep, active discipleship. We hope to trial this with interested churches next year.

‘Exploring our shared Way of Life as a church has been one of the most significant things we’ve done over the years and is already starting to have a deep impact on the culture of the church’ – Revd Richard Young, St Peter & St Paul Church Harlington.

----- Start of picture text -----
Congregation members
at St Matthew’s Yiewsley
----- End of picture text -----

“Way of Life” are practices putting discipleship at the heart of church life, leading to ‘unexpected fruit’

St Matthew’s Yiewsley began forming its “Way of Life”, seeing itself as a tree needing deeper roots in scripture and prayer. The church adopted shared rhythms like Dwelling in the Word, daily prayer, and listening groups, leading to a whole-church commitment to attentive, Spirit-led discipleship. As these practices grew - shaping decisions, inspiring new preachers, and strengthening links with schools, families, and even the local pub - the church experienced renewed growth through baptisms, confirmations, and new partnerships.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

n 2025, churches responded with creativity and compassion to growing community needs, as rising living costs left 26% of Londoners in poverty after housing costs. With support from the Compassionate Communities Team, churches are meeting urgent needs through the likes of foodbanks, community meals, pantries, and clothing and baby banks. Support for people seeking asylum has also grown, offering food and clothing as well as advocacy, English classes, cooking sessions, and fun activities such as regular football clubs.

Churches are stepping up in caring for God’s creation, with over half now registered with Eco Church and Gold Awards rising from two to six - one of the highest achievements nationally.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Key numbers:

Caring for God’s Creation: 257 churches (54%) in Eco Church; 96 Bronze, 34 Silver, 6 Gold

Mental Health & Isolation: 174 churches (36%) running support ministries

Refugees & Asylum:

145 churches (30%) actively welcome refugees and survivors of modern slavery

Money, Debt & Food Insecurity: 138 churches (28%) offer practical help; 76 food projects; 20 provide debt advice; 20 pay the Real Living Wage

Housing & Homelessness: 89 churches (18%) involved in night shelters or similar ministries

Safer Communities for all Young People: 84 churches (17%) offering youth provision (e.g. youth clubs, homework clubs, mentoring and estates work) for their wider community

At St Luke’s, Millwall, a partnership between the church, its school, and the homelessness charity GrowTH led to the creation of a winter night shelter that drew the whole community together. School children played an active role, helping to prepare the space and welcoming guests. This is Compassionate Communities in action: people of all ages sharing in service, hospitality, prayer, and an encounter with God’s love

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

he latest mission data available from 2024 shows encouraging signs of renewal across the Diocese of London over the past two years. Average Weekly Attendance (AWA) has grown significantly since 2022: adult attendance has risen by 17%, while children and youth attendance has increased by 10%. Although both demographics remain lower than 10 years ago, the post pandemic recovery indicates widening church engagement. Nearly a quarter of parishes now have 120 or more in weekly attendance, and almost half have 75 or more, signalling strengthened congregational life in many contexts.

Hope Street Church

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

At Saint Church Hackney (pictured), a faith exploration group saw attendance rise from 24 to 67 young people between May and July.

he LDF has coordinated successful funding applications to the Church of England’s National Church Institutions, which, at the end of 2025, came to just under £40m.

Where the Diocese has received this additional mission funding, healthy growth has followed, with multi-parish projects showing emerging stories of creativity, collaboration and local renewal.

The Hackney and Islington Programme (HIP) , in its first full year of funding from the Archbishop’s Council, has already brought tangible growth across 28 parishes. Four new Worshipping Communities have launched, and 24 lay leaders are being equipped for the mission field. Average Weekly Attendance has risen by 347, with Common Fund giving up 17% across the two deaneries.

Partnership lies at the heart of this renewal: Youth Ministers have increased youth engagement across both deaneries, with monthly gatherings at St John’s Hoxton growing from 34 to 78, and faith exploration groups at Saint Hackney rising from 24 to 67. New parish partnerships and innovative estate-based ministry are revitalising local mission, while catholic renewal is drawing new seekers through prayerful, creative outreach such as the Night Light Mass.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Innovation Fund projects

(which received up to £250K of NCI funding) also strengthened local leadership:

The Estates

The Punjabi women’s fellowship at Holy Trinity Southall

The Transforming Southall and Hounslow Project is strengthening intercultural mission across 13 parishes through lay leadership, new worshipping communities, and flourishing youth outreach. Over 30 lay leaders have been trained, new Farsi, Hindi, Telugu and Punjabi congregations have formed, and more than 100 new Christians welcomed.

The Punjabi women’s fellowship at Holy Trinity Southall is a growing group whose regular Bible study reflects the church’s intercultural mission. Holy Trinity is one of 13 churches involved in this intercultural mission project.

Apprenticeship Scheme is forming confident young leaders rooted in their communities, helping to spark new youth groups and missional activity.

The Persian Anglican Community

Development project has grown rapidly, training leaders across ten churches and creating culturally tailored discipleship resources.

IMPRINT Church continues to nurture a diverse cohort of young leaders, with 40 baptisms, 26 interns trained, major creative evangelism initiatives reaching over 1,000 people, and expanding pathways into ministry and church planting.

Estates Apprentice, Katie overcame through the scheme’s support.

Persian Anglican Community gathered for a Bible-study session.

Youth gathering at IMPRINT Church

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

The Diocese aims for long-term fruitfulness and sustainability as it supports every parish in their local mission

Looking ahead to 2030 , the Diocese is planning more programmes for mission development and revitalisation, with a particular focus on youth and children, estates, and multicultural mission. Underpinned by our strategic principles of being Christ-centred, inclusive of all people and traditions, and fostering interdependence, the Diocese aims for long-term fruitfulness and sustainability as it supports every parish in their local mission.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

ur work is shaped by three strategic priorities, which focus our efforts on areas that will have the greatest impact across the Diocese. These priorities - Growing Younger, Safer Churches and Racial Justice - are designed to strengthen mission and ministry, ensure the safety and wellbeing of all, and promote fairness and inclusion. Together, they help us respond to the needs of our communities and deliver the Diocese’s 2030 Vision.

xxxxxx Together, they help us respond to the needs of our communities

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

hildren and Youth average weekly attendance has been rising since 2022, but has significantly declined overall since 2014. Around a fifth of parishes (21%) have 25 or more children and young people attending weekly, but most have much smaller groups, with 61% hosting 14 or fewer and nearly a third only five or fewer.

In 2025, the Trustees agreed a Diocesan approach to Growing Younger that includes five key levers that we know lead to growth in numbers of children and young people engaging with our churches:

Every parish working to its own Growing Younger plan

Clergy who understand and are trained in ministry among children, young people and families

A commitment to grow the numbers of paid youth, children and family workers in our churches

A new investment in volunteering with support from the Diocese leading to a rise in the number of volunteers in our churches

Every young person to have access to a Church running excellent, missional youth work as we resource Youth Minsters

Impact stories across three programmes, supported by NCI funding, demonstrate significant growth in youth engagement when we are intentional about it.

One West worship and evangelistic events regularly attract up to 60 young people - drawing from parishes across Hillingdon

which is run The Youth Apprentice Programme by the diocese’s Children and Youth team, is developing much-needed young leaders through hands-on ministry and certified study, creating a vital pipeline of children’s and youth workers. Apprentices now reach 1,150 children and young people each week, with 400 regularly involved in Christian groups.

One Apprentice launched One West, a termly youth-led worship event in Hillingdon that brings up to 60 young people together for games, worship and prayer. This is strengthening unity across local youth groups from three different churches that have worked together – with more churches joining.

One West worship and evangelistic events regularly attract up to 60 young people drawing from parishes across Hillingdon

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Tower Hamlets Mission Project is making inroads in one of the UK’s least reached and youngest boroughs. The third-year impact is leading to growth, with 89 people having come to faith, and close to 9,000 having been engaged. Four new worshipping communities have been planted with a focus on attracting youth and young families. Innovative initiatives like the youth van outreach, discipleship programmes, and Tower Tots are building trust and equipping young people to share their faith.

Messy church session

Youth Ministry in Communion

(YMIC) is proving that sacramental worship is a vibrant context for youth ministry, exceeding expectations and more than doubling youth engagement. Of the 14 participating parishes in the Kensington Area, St George’s Campden Hill grew from just three to over 50 young people after hiring a part-time youth worker. Events regularly attract over 100 attendees, with a third from nonfaith backgrounds. The model is challenging assumptions about the ability of more traditional or contemplative based worship to reach young people, and is offering a replicable growth strategy for London and beyond.

A youth group at St Luke’s Church (Chelsea) Summer Festival 2025 – part of the Youth Ministry in Communion network

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Churches across London strengthened safeguarding practice in line with the five National Safeguarding Standards.

In 2025, 95% of parishes actively use the Parish Safeguarding Dashboard which supports and helps track improvement in parish safeguarding practice. Parishes operating at level two (out of three) or above increased from 67% in 2024 to 89%. Over 700 ordained and lay leaders participated in safeguarding leadership training. Referral levels to the Diocesan Safeguarding Team increased again slightly showing good levels of local awareness and engagement with diocesan advisers when there may be a concern.

The London Diocesan Fund and St Paul’s Cathedral participated in an independent audit of their safeguarding arrangements by the INEQE safeguarding group. The audit report will be published after the approval of the Annual Report and the LDF will respond to findings and recommendations as part of its plans for 2026.

Congregation of Holy Trinity Hounslow, a South Asian and Black majority intercultural church, where Safeguarding practices have been adapted to reflect the cultural context.

Transforming Southall and Hounslow: developing culturally adapted safeguarding

This part-funded project aims to grow intercultural missional churches across thirteen parishes, planting 15 congregations, discipling 500 new Christians and equipping 60 leaders, particularly from Global Majority Heritage backgrounds. As these communities form, culturally appropriate safeguarding is vital.

After noticing gaps in safeguarding awareness, the Diocesan Safeguarding Team provided tailored training that suited each group’s context, including:

Contextualised Training : Reflecting language, culture and theology while aligned with UK law and Church of England practice.
Knowledge Growth : Participants self-rated knowledge at 1/4 initially, improving to 4/4 by the end, showing strong learning and confidence.
Action Planning : Each group developed a safeguarding action plan to embed safe practice in community life.

This work is helping to build a culture of safety, accountability and care, making safeguarding a natural and central expression of discipleship and mission.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

he Racial Justice priority supports the Diocese’s commitment to challenging racism within our structures, systems and communities, working toward a Under fairer future for all communities. the Bishop of Edmonton’s leadership, a new Head of Racial Justice Priority was appointed in February to build on 2024’s progress. We were granted £731K of funding from the National Racial Justice Unit to strengthen capacity, support inclusion, equity and the flourishing of all communities.

In 2025, we launched the Racial Justice Steering Group, including representatives from the London Diocesan Board for Schools and St Paul’s Cathedral, and developed a new 2025–2028 strategy focusing on education, representation and participation, governance, and advocacy.

The Head of Racial Justice Priority played an active role across the Diocese – speaking at the Ubuntu Celebration in Stepney and visiting Hackney and Two Cities deanery synods to hear how parishes are engaging with racial justice, from diversifying liturgy and PCCs to supporting refugee, asylum-seeker and multilingual worshipping communities.

Intercultural mission work continues with the West Hounslow Project and the Paddington Mission Corridor, exploring the best ways to reach diaspora communities. We also hosted gatherings for clergy of global majority heritage, creating safe spaces for listening.

LDF staff on the Racial Justice Pilgrimage across London.

Black History month

Black History Month was marked through collaborative church events, including a pilgrimage walk from Westminster to Notting Hill celebrating the contribution of Black communities to London. The Head of Racial Justice Priority also preached at St John of Jerusalem, Hackney, and at the Churches of the Annunciation and St Cuthbert’s in Wembley.

----- Start of picture text -----
Clergy ordination at
St Paul’s Cathedral.
----- End of picture text -----

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

he Diocese of London is sustained by a rich mix of ministerial leadership: 114 Licensed Lay Ministers, 540 stipendiary clergy, and 204 self supporting ministers, including 68 training curates. Together they offer faithful pastoral care, preach the gospel, and lead worshipping communities across our 403 parishes, 33 Bishop’s Mission Orders, and many chaplaincies.

Stipendiary ministry is funded through a blend of Common Fund, Locally Supported Ministry agreements, targeted grants, and other diocesan income. Of these posts, 350 are incumbent equivalent roles, with others serving as BMO ministers, Associate Ministers, stipendiary training curates, and chaplains.

During 2025, we welcomed 44 new clergy, including 14 from other dioceses. Over the same period, 19 clergy moved on to ministries elsewhere and 13 retired, reflecting the normal rhythm of transition in diocesan life.

Formation continues to be a major strength of this diocese. Of the 113 ordinands in training, 53 were ordained deacon in 2025 – 13 via the Caleb Stream, supporting older candidates – and 51 were ordained priest. London also contributed curates to seven other dioceses, from Durham to Exeter, reflecting the quality and breadth of our training pathways. The Ministry Team supported 143 candidates entering discernment, nurturing future leaders for both the Diocese of London and the wider Church of England.

----- Start of picture text -----
A group of newly
ordained clergy at St
Mellitus
Ordinands in training at
St Mellitus College
----- End of picture text -----

This year, the Ministry Team initiated a comprehensive review of Continuing Ministerial Development and clergy wellbeing provision. These reviews will shape a renewed approach to how we support, resource, and accompany ministers as they serve Christ and the communities of London in the years ahead.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

he Housing Team maintains around 500 clergy homes, managing reactive repairs, maintenance, and ingoing works. Through a programme of inspections and testing, the team ensures that all clergy housing is safe to occupy and also generates income from letting operational housing to reduce pressure on Common Fund.

In 2025, the team managed around 2,064 reactive repairs, 1,170 planned maintenance events, 26 quinquennial maintenance projects, 9 window replacement projects and 57 ingoing works projects. Of the 363 feedback forms completed by clergy on how we managed repairs to their housing, 89% rated ‘5’ or excellent and 98% rated either ‘4’ or ‘5’, which shows very high levels of satisfaction.

44 King Henry Road - major improvements in energy performance.

44 King Henrys Road – a retrofitting project during vacancy The project set out to show what can be achieved with a mid-nineteenth century building by improving thermal efficiency, reducing running costs and contributing to the Diocese’s commitment to reach Net Zero Carbon by 2030. As this property reflects much of the wider clergy housing stock, the learning will inform our broader Housing Strategy.

The work delivered major improvements in energy performance, comfort and running costs through external wall insulation, highquality double-glazed sash windows and electric underfloor heating in the kitchen and bathrooms. Solar panels and an air source heat pump now provide power, heating and hot water. The ten-month programme was completed in time for the arrival of the new Incumbent, Father Phil Ritchie, and his family.

The Vicarage has moved from an Energy Performance Certificate (EPC) rating of E to C, marking a significant improvement in energy efficiency.

Through our continued letting of operational housing to reduce pressure on Common Fund giving, the team also generated around £2.87 million of income for the Diocese.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

St Martin-in-the-Fields Church London

he Diocese of London has 462 church buildings across 403 parishes, alongside around 1,500 additional PCC-owned properties. However, more than 140

churches - around one-third - are in poor condition, and over half require £1m or more in repairs. Overall repair needs total approximately £700m. This creates a significant financial challenge, particularly where PCC capacity is already low, and limits the ability of buildings to support mission, growth and community use.

Despite these pressures, the Diocese has seen a major uplift in fundraising for buildings to support mission: around £46m has been secured by the LDF over the past five years, including significant 2025 awards through the Heritage Fund, Department for Culture, Media and Sport, and other partners, enabling urgent repairs and project development across dozens of priority parishes.

In 2025, support for buildings has focused on two groups:

Group 1 (Need) – 47 high-need parishes, with 38 actively engaged and 10 major projects now in development.
Group 2 (Missional Opportunity) – parishes identified in Area Plans and Investment Projects.

Support has included officer time, technical advice, major grant development, emergency interventions through the Diocesan Finance Committee (DFC), and capacity-building for PCCs.

Next steps include agreeing diocesan investment principles, prioritising key buildings in Area Plans, targeting all funding streams strategically, and ensuring every parish has a combined mission and buildings plan to guide long-term sustainability.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

the Diocese has seen a major uplift in fundraising for buildings to support mission with around £46m being secured by the LDF over the last five years

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

ast year, we set the following strategic aims for 2025:

xxxxxx mapping population growth, church health indicators, youth reach, estate deprivation, and opportunities for revitalisation.

Identify major mission programmes in larger geographical areas where ministry and mission most need strengthening.

action

Working with Episcopal Areas and the Vision and Strategy team, we completed a diocese wide assessment of mission needs with Area Deans, mapping population growth, church health indicators, youth reach, estate deprivation, and opportunities for revitalisation. This resulted in the identification of four strategic mission zones which now form the backbone of the Diocese’s Diocesan Investment Programme (DIP) preparation for 2026 and the following Triennium of funding which begins in 2029.

----- Start of picture text -----
Children at messy church
----- End of picture text -----

This resulted in the identification of wide assessment of mission needs, mapping population growth, church health indicators, youth reach, estate deprivation, and opportunities for revitalisation.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Develop supporting programmes for mission in: (a) youth and children,

----- Start of picture text -----
St Mary’s Isleworth clay
sessions
Renew the approach to London
Ministry Cost and recommunicate
its purpose and value.
----- End of picture text -----

(b) estates and lower
income communities, and
(c) multicultural settings, forming inputs into the 2026 DIP application.

action

Significant progress has been made through cross team collaboration:

Youth & Children: The Children & Youth Team delivered a diocese-wide Growing Younger strategy which was agreed by the Bishop’s Council and seeks to significantly increase the number of churches with 25 or more under 18s.

Renew the approach to London Ministry Cost and recommunicate its purpose and value.

action

• Estates & Low Income Communities: A strategic framework for mission on London’s estates was drafted and continues to shape thinking in the four identified mission zones where there is potential to plant worshipping communities in estates or engage better with people living in estate parishes (those with 500+ social housing units).

In 2025 we undertook a major review of the London Ministry Cost. This included:

Designing a new communications approach for clergy, PCCs and lay leaders, explaining the collaborative nature of ministry funding and helping them consider a bespoke offer according to parish means
Multicultural Ministry : Multicultural
Embedding the revised approach in wider financial planning (including implementation of the 2025 Financial Plan)
mission proposals were scoped within four mission zones identified for investment and revitalisation. Learnings from where we are doing intercultural mission well (for example in the Southall and Hounslow Mission Project and the Tower Hamlets project) are feeding into the mission design of each new zone.

This work laid the foundations for the 2026–2027 Common Fund renewal, which will support long-term financial sustainability and a Generosity Campaign for churches in 2026, to help clergy engender a culture and practice of generous giving in their worshipping communities.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Detailed planning for implementation of the Housing Strategy to renew the clergy housing portfolio.

action

Prepare and participate in the Independent Audit of the Diocese’s Safeguarding 5. arrangements by INEQE (September 2025).

action

Preparation took place across Q1–Q2, as outlined in the 2025 workstreams, including evidence gathering, staff readiness, communications preparation, and process documentation. Participation in the INEQE audit was completed in September with strong engagement from diocesan teams. Outcomes and recommendations to be revealed in early 2026 will feed directly into the “Safer Churches” priority under the 2030 Vision.

Develop a new Racial Justice Action Plan with the Head of Racial Justice Priority and Racial Justice Steering Group.

action

Following the appointment of the Head of Racial Justice Priority, a renewed Racial Justice Strategy was developed through 2025, supported by the Steering Group. This aligns with the diocesan Racial Justice Priority under the 2030 Vision and contributes to organisational improvements in representation, ministry pathways, governance, and parish engagement.

At the end of the year, we were pleased to secure £731k of funding to expand and deepen our racial justice work over the next three years. This funding will strengthen our capacity for learning, inclusion, accountability, and advocacy. It will expand training and resources - especially antiracism, cultural competency, and new school curriculum - and open clearer pathways into leadership through listening and barrier removal. Stronger governance will ensure lived experience shapes decisions, while partnerships will advance advocacy on youth safety, health inequalities, and the rights of refugees and asylum seekers.

Receive and implement the outcomes of the Clergy Ministerial Development Review (CMD Review).

action

During 2025, LDF received the findings of the CMD Review and worked jointly across Strategy, HR, and Ministry teams to begin implementation. Actions were integrated with broader clergy HR development milestones and People Plan elements scheduled for Q1–Q2. Feedback from 58 respondents in the LDF survey to parishes characterised CMD as high quality, professionally run, and practically useful. It also provided feedback on what needs improvement and what other topics participants would find useful – all of which will be integrated into an improved offer.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

ollowing the appointment of the Bishop of London as Archbishop of Canterbury, 2026 will be a year of transition as it focuses on existing priorities and prepares the ground for new leadership. Our context is financially and operationally challenging, with some areas requiring immediate attention, and resources stretched thin in key areas. The LDF focus in 2026 will therefore be on strengthening the foundations, by addressing risks, issues and its financial position, driving overall efficiency of our service and further developing existing priorities:

Key priorities:

Implement Safeguarding changes

A comprehensive independent audit by INEQE Safeguarding Group was undertaken in 2025. This will set out findings and recommendations and the Diocese will respond to and address these throughout 2026.

Manage the Bishop of London vacancy

The See of London became vacant on 28 January 2026 and we expect there to be an episcopal vacancy for the rest of the year. The LDF will seek to support the Vacancy in See Committee, maintain momentum in our existing activities and support the Diocesan leadership during the interim period.

Update our mission plan

Develop further the diocesan mission plan and consider an application for Diocesan Investment Programme funding to support that.

Develop a long term financial plan

Our financial context is challenging. During 2026, we will develop a financial plan to ensure that LDF has a long term plan that is financially sustainable and directs our resources in the most efficient manner.

Enhance digital working

Take advantage of digital technology to make changes to our ways of working and improve efficiency and quality of our work.

Risk management review

As part of strengthening corporate governance, implement the outcomes of the risk management review. We will adopt a new framework for risk management including stronger management oversight of key risks. This will ensure that we are more resilient and prepared for external and internal shocks and uncertainty.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Financial summar y

Financial summary

The London Diocesan Fund (LDF) has continued to invest in sustaining and developing parish ministry and supporting parishes and worshipping communities across the Diocese over 2025. Parishes, Bishop’s Mission Orders, grant funders and the stewardship of the LDF’s assets have together funded the range of the LDF’s activity. The LDF is extremely grateful to all parishes and partners who contributed through Common Fund, payments and grants to enable ministry and mission in the Diocese of London.

Across all funds, total income decreased by £0.3m from £47.3m in 2024 to £47.0m in 2025 while total expenditure increased by £3.3m from £51.5m in 2024 to £54.8m in 2025, leading to an operating deficit of £7.8m before transfers and gains (2024: deficit £4.2m). In 2026 LDF Trustees will work on a new Financial Plan to address the structural deficit.

Net losses on investments during the year amounted to £0.7m (2024: gain £2.8m). The LDF recognised £13.1m of realised gains (2024: £3.0m) on tangible fixed assets, resulting from good progress in reshaping of the operational property portfolio. Operational properties are held at cost in the accounts and so the gains on sale represent the increase in value of the asset over time. Investment property values increased in 2025 with £3.9m in unrealised gains and revaluations (2024: gain of £6.5m). Therefore, the accounts show an overall increase in the value of all funds of £8.5m for the year to £520.3m (2024: £511.9m).

All Funds 2025 2024	All Funds 2025 2024	All Funds 2025 2024
	£m	£m
Operatng Defcit*	(6.5)	(4.2)
Other recognised gains and losses:

Net gains/(losses) on investments	(0.7)	2.8
Realised gains on tangible fxed assets	13.1	3.0
Unrealised gains/(losses) on tangible fxed assets	3.9	6.5
*Net movement in funds for the year*	9.8	8.1

General Fund

The LDF has maintained a planned general fund deficit since 2020 to support parishes following the impact of the Covid-19 pandemic and to allow time for recovery and readjustment of resources to local missional need. In 2025 there was a deficit before year-end adjustments of £2.7m (2024: £3.4m deficit).

Income increased by £0.8m from £40.6m to £41.4m.

Contributions from parishes through the Common Fund increased by £1.1m (4%) to £24.3m (2024: £23.2m) with financial and missional health of parishes continuing to improve.

The LDF is grateful to the Trust for London who, through the City Church Fund, continue to provide distributions towards ministry and support in the Diocese. This was £1.7m in 2025 (2024: £1.8m). Other sources of income, including rental and investment income, showed a decrease of 1% to reach £15.4m (2024: £15.5m). This was partly due to a reduction in Operational Property income of £375k and Other Income of £270k while investment property income rose by £444k.

Expenditure increased by £1.9m from £42.2m to £44.1m.

The primary expenditure streams are Resourcing Ministry & Mission costs of £33.8m (2024: £31.9m) and Support for Parish Ministry £5.1m (2024 £5.1m). Resourcing Ministry & Mission costs include clergy housing and property costs of £7.6m (2024: £7.2m).

*Net income/(expenditure) line in SOFA, p. 46

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Policies

Reserves policy and management

At the end of the year to 31 December 2025 the LDF held net assets of £520.3m (2024: £511.9m), split between the various funds as shown in the table below:

Fund categories	2025 £m	2024 £m
General	5.4	5.7
Designated	169.3	158.2
Restricted	7.4	9.3
Endowment	338.2	338.7
Total Funds	520.3	511.9

General reserves are held to finance working capital requirements (principally stipends, salaries and property costs) not matched by simultaneous receipt of Common Fund and investment income. The policy was revised in 2020 in response to the greater financial volatility and uncertainty caused by the Covid-19 pandemic. Previously the policy was that General Fund reserves equivalent to approximately one month’s expenditure should be held in cash or near cash. The policy from July 2020 is to hold General Fund reserves of c.£5.1m, which was calculated by reference to the expected deficits and the need for greater resilience over the next few years.

General reserves as at 31 December 2025 were £5.4m (2024: £5.7m). This level of reserves is considered to be appropriate for the time-being due to the ongoing economic uncertainty and the expected operating deficits. The level is kept under review.

Designated reserves to the value of £169.3m (2024: £158.2m) include the following key funds:

LDF Property Funds represent both operational and investment property that are not covered by Measures that govern Stipends Capital and Parsonages. Operational Property of £93.1m (2024: £94.5m) represents Diocesan offices and over 160 units of property including those used to house clergy who are not housed in Parsonages.

The investment property fund of £87.5m (2024: £84.5m) is used to generate income for the following purposes:

To mitigate financial risk, such as significant changes in the environment in which the LDF operates and to protect the LDF from insolvency or serious disruption to its work.
To aid an equitable balance of expenditure between generations. Many of the assets used by the LDF today were provided by past generations and there is a need to preserve these assets for future generations.
To supplement the Common Fund in furtherance of the LDF’s charitable objectives.

Restricted reserves with a value of £7.5m (2024: £9.3m) are restricted in their application in accordance with conditions specified by the donors, the main reserves being Sole Trust Expendable Fund. The funds include those managed on behalf of the Angola, London and Mozambique Association (ALMA) of £0.6m (2024: £1.0m).

Endowment reserves with a value of £338.2m (2024: £338.6m) mainly comprise of restricted expendable endowment funds. These include glebe assets, consisting of historic endowment land given to provide stipends for parochial clergy, now owned and managed by LDF, and Parsonage House capital, representing the net book value of freehold and leasehold benefice houses.

Investment policy

Policy

The investments managed by the LDF are in two clear classes: a) Investment Property and b) Investment Funds (Equities and Bonds). The LDF regularly reviews its investment policy and receives periodic guidance from its Non-Property Investment Guidance Group and from the Property Guidance Group, two Diocesan Finance Committee’s advisory subcommittees.

The LDF acts within its powers as a charity and is mindful of the approaches taken by the wider Church of England, and in particular the advice of the Ethical Investment Advisory Group (EIAG). The LDF believes that incorporating ethical considerations into our Investment Process is in the best interests

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

of the organisation and consistent with both our Memorandum and Articles of Association and the values of our stakeholders. The LDF aims to be a responsible and ethical investor across all assets.

The following policy relates to investment funds.

Investment Funds (Equities and Bonds)

a) The LDF invests in investment funds rather than directly in a segregated portfolio of shares, in order to achieve an acceptable level of risk and fees whilst achieving diversification with a relatively modest amount of funds invested (c£47m as at December 2025, 2024: £48.3m).
b) The LDF will choose funds that meet the returns target set and meet our Ethical, Social and Governance (ESG) criteria.
c) The LDF invests in Funds that sign-up to the UN-backed Principles for Responsible Investment (UNPRI) and/or the UK’s Stewardship Code, and this informs discussions with fund managers. We therefore expect that fund managers will engage effectively to ensure companies are incentivised to act justly.

However, there are certain areas of activity in which we do not wish to invest. This is generally because to do so would be in conflict with the missional aims and objectives of the Church.

The LDF has an ethical investment policy that applies primarily to its non-property investments. The policy was reviewed and revised in 2022 and in January 2023 the Bishops’ Council agreed to the exclusion of Fossil Fuel Extraction. This change in policy was implemented in 2023.

The policy states that the LDF will invest only in investment funds that have exclusions as set out in the table below. In instances where fund managers have such exclusions by practice rather than by policy, the LDF will continue to engage regularly with the fund managers and review the portfolio.

LDF Exclusions* *and Requirements*	*Investment type/* *Requirements*
LDF excludes investment in the following sectors:	Arms
	Pornography
	Tobacco
	Gambling
	Fossil Fuel Extracton
	High Interest Lending
LDF requirement of Fund Managers	Be signatories to UNPRI and/or UK Stewardship Code

*Revenue exclusions prohibit individual underlying holdings which generate revenue in excess of 5% of the stated rate from the specified investment category.

Investment returns

Investment property

The strategic work to reshape the investment property portfolio continues as we look to increase the level of income generated from the asset base. This work commenced in 2013, when net income of £1.3m per year was generated. There were no purchases and no sales agreed in the year ended 31 December 2025. In total the investment property portfolio generated net income of £4.64m in 2025 (2024: £4.35m). The portfolio has seen significant capital growth since inception, the overall portfolio revaluation was a positive £3.6m (2024: £9.2m), leaving a value of £117.3m, after sales of £7.3m (2024: £120.7m).

Equity Investments

Investments in equities, fixed interest securities and other quoted securities amounted to £47.1m (2024: £48.3m). The holding noted losses of £0.3m in 2025 (2024: gains of £2.7m) and investment income of £1.1m (2024: £1.1m), the net movement in sales/ purchases in the year was a disposal of £1m.

Historical gains/(losses) on LDF investments (%)	2025	2024	2023	2022	2021	2020	2019 19.9
	(0.6)	8.5	8.8	(9.8)	14.9	1.3
Historical gains/(losses) on FTSE all-share index (%)	18.7	5.9	2.4	(4.1)	14.5	(12.5)	14.0

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Valuation of operational property

The majority of the operational property assets are held for long-term use by the LDF rather than for resale and are valued in the accounts at their deemed cost in accordance with the provisions of FRS 102.

Pension schemes

Church of England Funded Pension Scheme – Clergy: The Pension Scheme valuation as at December 2025 showed no deficit. The overall contribution rate for scheme members has reduced a number of times from 36% of National Minimum Stipend to 21 % from April 2026.

As of 31 December 2025, the pensions liability was valued at NIL (2024: £NIL), therefore, it has been agreed there will be no deficit contributions made towards the clergy pension scheme for the foreseeable future.

Lay Church Workers’ Pension Fund: The final salary section was closed to future accrual on 31 December 2021 with all members transferring to the PB14 section, a cash balance scheme, from 1 January 2022. This is the default for new members of staff alongside a defined contribution pension scheme which is managed by Aviva.

assets

The risk management framework was reviewed during 2025 and a new framework was agreed by the Bishop’s Council in January 2026. Management have identified the four main risks as:

Failures in safeguarding arrangements result in harm to children or vulnerable adults, undermine confidence in a safer Church with negative missional impact, and legal and financial consequences for the Diocese. Mitigations: A Safer Churches Programme which is reviewed, planned and implemented in line with the five National Safeguarding Standards; prioritisation of resourcing of the Diocesan Safeguarding Team, ensuring a multi-disciplinary team with a mix of statutory experience; ongoing monitoring of implementation of safeguarding policies and procedures, safer recruitment practices, mandatory safeguarding training by the Diocesan Safeguarding Team, senior leadership and in depth scrutiny by the Diocesan Safeguarding Advisory Panel; an annual case quality assurance report and a comprehensive independent audit by INEQE Safeguarding Group in late 2025 that will set out strengths, areas for improvement and recommendations; and regular reporting to the Trustees.

Risk management

The Senior Management Group regularly consider, evaluate and record the major areas of risk to which the LDF is exposed, assessing both the likelihood and impact of those risks crystallising, together with measures to manage and mitigate such risks.

The process of identification and assessment of risk, the risks identified and the measures for mitigation are reviewed annually and updated by the Audit and Risk Committee. The risk register is available for inspection by all directors and trustees. As part of new directors’ and trustees’ induction, details of the risk management process are provided. A formal report on risk management is considered by the Bishop’s Council annually.

Inability to sustain income or lack of control of costs results in rapid, unplanned reduction in resources for the LDF and the wider diocese. Global turmoil and a worsening macroeconomic climate contribute significantly to this risk. Were we to then take enforced action to maintain the short term position, this would also create ongoing challenges around sustainability in the long term. Mitigation in the short term includes strengthening engagement with parishes to grow Common Fund contributions, regular review of financial position with targeted interventions as necessary. During 2026, the diocese aims to review and agree its long term plan for financial sustainability.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Risk Management: continued

Reduced capacity and organisational strain leads to operational oversight gaps, slower decision-making, and risks burnout throughout the organisation, disrupting operations and holding up change. The Diocese is undergoing a period of significant episcopal transition, with the Bishop of London and two Area Bishops departing in 2025–26. Parallel transitions in senior staff roles compounds the risk. Mitigation includes clear interim arrangements for Londonwide leadership, and senior staff investing time early in this period to prioritise core activities.
Complex governance and inadequate ways of working results in the above risks being exacerbated. Historical underinvestment in systems, combined with processes and governance that is no longer fit for purpose risks adding to capacity gaps and compliance risks in additional to current backlogs and inefficiencies. Mitigation includes completing changes to governance and corporate processes (including risk management), investment in tools for efficient ways of working (including IT modernisation), and focus on the most important changes to avoid overload and allow new ways of working to embed.

Funds held as custodian trustee

The LDF is custodian trustee for trust assets of £18.7m (2024: £19.3m). Most of these trusts are held on behalf of parishes whose charitable purposes are broadly parallel to those of the LDF. Assets held under these trusts are held separately from those of the LDF. Detailed certificates of holdings as at 31 December 2025 have been sent to parishes and other managing trustees.

Other matters

The LDF also supports connected charities, one of which is the London Diocesan Board for Schools, to which we grant the use of facilities at London Diocesan House to the value of £520k (2024: £448k), and to whom a cash grant of £171k was made in 2025 (2024: £171k).

Other support is provided to parishes in the form of grants and loans. In 2025 grants to London parishes totalled £8.0m (2024: £2.1m). This includes funds from National Church Strategic Development Funds (SDF) and, for the first time) City Churches Grant Committee (CCGC) grants (£5.3m).

Going concern

The trustees have reviewed the charity’s financial position, particularly in light of the recent developments around LLF and financial challenges for parishes. The LDF is has a planned General Fund budget deficit of £4.2m in 2026, with a small cash deficit of £1m. LDF cash flows and forecasts are monitored closely to ensure that the LDF has sufficient cash levels to operate successfully for the foreseeable future. Therefore, taking account of the satisfactory levels of reserves and cash, the annual budget and the monitoring and ongoing review of the five-year financial plan, and our systems of financial and risk management, it is the trustees’ opinion that the charity is well placed to manage operational and financial risks successfully.

Accordingly, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and do not believe that there are any material uncertainties as to the going concern of the charity. Therefore, the trustees are content that the charity continues to adopt the going concern basis of

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Governance, structure and management

The Diocese of London

The Diocese of London was founded in Roman times and was re-founded in 604 by St Mellitus. In its current form, it includes most of Greater London north of the River Thames and west of the River Lea, covering 17 London Boroughs and the Spelthorne District in Surrey. It serves over four million people in 277 square miles.

The London Diocesan Fund

The LDF is a company limited by guarantee and registered in England & Wales (150856). It is also a registered charity (241083). Its registered and principal office is at London Diocesan House, 36 Causton Street, London SW1P 4AU. The LDF was incorporated in England & Wales on 29 June 1918.

During 2025 the Diocese was led by the Bishop of London, the Rt Revd and Rt Hon Dame Sarah Mullally. Bishop Sarah left to become the Archbishop of Canterbury in January 2026. The Bishop of London has delegated certain powers to four area bishops, the Bishops of Edmonton, Kensington, Stepney and Willesden, and two suffragan bishops, the Bishops of Fulham and Islington.

There is an archdeacon for each of the episcopal areas with two archdeacons for the Two Cities area which is led by the Bishop of London.

There are 21 deaneries within the Diocese. Each deanery consists of between 10 and 26 parishes; there are approximately 400 parishes in the Diocese, each of which is governed by a Parochial Church Council (PCC). The PCC is made up of the incumbent as chair, the churchwardens and a number of other ex officio, elected and possibly also, co-opted members. Each PCC is a corporate body and a separate charity. PCCs are responsible for, inter alia, the maintenance of churches and certain other buildings. Except where shown, the transactions of PCCs do not form part of these financial statements.

The statutory governing body of the Diocese is its Synod, which is a largely elected body with representation from all parts of the Diocese. The Diocese conducts its financial and operational affairs through a number of corporate bodies, the main ones being the London Diocesan Fund (LDF) – relating to churches - and the London Diocesan Board for Schools (LDBS), an independent registered charity – relating to schools.

All members of the Bishop’s Council are directors of the company for the purposes of the Companies Act 2006 and are trustees under charity law.

Management and senior staff

While the bishops and archdeacons exercise day to day oversight of the Diocese as a whole, the General Secretary is the Chief Executive Officer of the London Diocesan Fund and works alongside them to support the wider work of the Diocese through the functions of the LDF.

The Senior Management Group (SMG) leads and manages the work of the LDF. Some members have the title Director in their job titles, but they are not directors of the LDF for the purposes of company law nor are they trustees of the charity. The SMG comprises:

General Secretary

Mr Oliver Home

Chief Operating Officer

Dr William Garrood (joined 09/03/26)

Director of Housing and Investment Property Mr Jeremy Lock

Director of People Mrs Poli Shajko

Director of Finance and Operations Mr Christopher Harris (left 27/02/26)

Director of Parish Property and Fundraising Mr Kevin Rogers

Director of Strategy and Communications Mr Angus Stephenson

Director of Ministry

Revd Canon Miles Baker

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Governance, Structure and management: continued

Remuneration

The HR Committee (formerly named the Remuneration Committee) meets twice a year to provide assurance to the Trustees that the LDF has appropriate remuneration procedures in place and to oversee issues relating to the remuneration of all LDF employees. It makes recommendations to the DFC regarding the LDF’s remuneration policy and pay increases. Additional meetings may be called as required

Statutory functions

The LDF has a statutory responsibility for management of glebe assets (historic endowment land given to provide stipends for parochial clergy, now owned and managed by LDF), to generate income to support the cost of stipends. It is the Diocesan authority for parochial and other trusts, and also discharges the responsibilities of the Diocesan Parsonages Board.

Charity Governance Code

The LDF has incorporated the ‘Charity Governance Code’ as a key tool in its governance framework. The aim is to develop and embed the Code’s principles and practices in the organisation’s operations. An update on the Governance Code action plan is provided to each meeting of the Audit and Risk Committee. A review was started in late 2025 of LDF’s application of the updated Code. An overview of the Charity Governance Code 2025 and LDF practices will be discussed at least once each year.

Principal activities

The principal activity of the LDF is to serve and support the parishes and people within the Diocese of London in their mission of proclaiming the Gospel of Jesus Christ.

It does this operationally through the provision of stipend and housing to parish clergy and chaplains and supporting their ministry as well as that of the parishes and other worshipping communities.

Ministry and associated costs, including property, account for the majority of the LDF’s expenditure. This is financed principally by the collection of voluntary income from the parishes, termed ‘Common Fund’, supplemented by rental, investment and grant income.

Grants are awarded to parishes by the Area Councils and to mission initiatives by the Bishop of London’s Mission Fund (BLMF), which is a designated fund within the LDF.

The LDF also acts as custodian trustee and as agent to other boards, committees and trusts within the London Diocese.

Fundraising

The LDF fundraising plan incorporates three streams:

To provide parishes with advice and guidance to encourage them to adhere to best practise in their fundraising activities.
To drive campaigns around specific and strategic fundraising needs.
To support and enable strategic relationship management.

The LDF does not engage with any direct marketing activities, nor does it share or purchase any donor data with or from third parties. The LDF occasionally engages with independent professional fundraisers and if so will always ensure there is an appropriate contract in place. The LDF has signed up to the regulation scheme established by the Fundraising Regulator. No complaints regarding fundraising have been received.

Public benefit of activities

The trustees have a statutory duty under the Charities Act 2011 to have regard to the public benefit guidance issued from time to time by the Charity Commission. The trustees have noted the Charity Commission’s guidance Charities and Public Benefit and have regard to this in making relevant decisions. Guidance was included in the Trustee Induction material distributed to the Diocesan Bishop’s Council in February 2025. The trustees believe that this report, taken as a whole, provides evidence of the public benefit of the charity’s work.

The trustees believe that, by promoting the work of the Church of England in the Diocese of London, the LDF helps to promote the whole mission of the Church, including its pastoral, evangelistic, social and ecumenical aspects more effectively, both in the Diocese as a whole and in its individual parishes.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

public benefit of activities: continued

The principal public benefits of the LDF are the advancement of the Christian religion by supporting ministers of religion and others who lead, encourage and support members of the various and diverse communities of the world city of London by and in:

the provision of public worship and ceremonies
the moral and spiritual improvement of the public
the provision of comfort to the bereaved and distressed
contributing towards a better society, by promoting social cohesion and social capital
contributing to the spiritual and moral education of children
carrying out, as a practical expression of religious belief, other activities to meet needs
contributing to good mental and physical health
the provision and maintenance of sacred spaces, principally churches (many of which are listed buildings) and churchyards, open to the public and
the provision of public spaces, such as church halls, as an expression of faith.

Parishes are independent registered charities, and therefore legally distinct from the LDF. However, the support provided to parishes by the LDF directly contributes towards their mission and ministry, and therefore how they provide public benefit. Parishes across the Diocese carry out diverse activities, including provision of night shelter work, debt advice, specialised ministries and numerous community projects.

Committees

The Diocesan Synod has appointed the Bishop’s Council as the Diocesan Mission and Pastoral Committee. The Council has delegated certain powers to Area Councils and to the Diocesan Finance Committee (DFC). Additional members may be co-opted by these committees and councils or nominated by the Diocesan Bishop.

Diocesan Finance Committee (DFC)

The DFC is a committee of the Bishop’s Council. Its membership comprises laity and clergy. The committee meets at least six times each year. The Bishop of London, the archdeacons, and the clerical and lay vice chairs of the Bishop’s Council are ex officio members.

The DFC makes recommendations to the Bishop’s Council on matters in connection with finance, property and staff business of the LDF.

Audit and Risk Committee

The Audit and Risk Committee (ARC) is a committee of the Bishop’s Council. Members are appointed by the Bishop’s Council for three years. Its membership is drawn from the Council, the Diocesan Synod, the DFC, and from outside of the LDF governance structure. The ARC meets four times a year.

The ARC ensures that the LDF’s financial control and regulatory and statutory reporting are effective, that their accounts are appropriately audited; that risks are appropriately identified, assessed and managed; and that incidences of actual or alleged malpractice and fraud are reported, and necessary action taken on them.

Trustee training

The trustees periodically review their knowledge, skills and experience. Appropriate training sessions are designed to address any gaps in skills and knowledge.

New trustees are provided with documentation outlining their main responsibilities and new trustee induction sessions are conducted each triennium.

Disclosure of information to auditors

Each trustee who held office at the date of approval of this trustees’ report confirms that, so far as he or she is aware, there is no relevant audit information of which the LDF’s auditors are unaware, and that he or she has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the LDF’s auditors are aware of that information.

‘Relevant audit information’ means information needed by the LDF’s auditors in connection with the preparation of their report. In doing so, the trustees have made enquiries of their fellow directors and of the LDF’s auditors and have taken such other steps (if any) for that purpose, as are required by their duty as directors of the LDF to exercise reasonable care, skill and diligence.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Statement of trustees’ and directors’ responsibilities in respect of the Trustees’ Report and the Financial Statements

The trustees are responsible for preparing the Directors’ and Trustees’ Report, incorporating the Strategic Report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice).

The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for that financial year. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In approving this trustees’ report, the trustees are also approving the Strategic Report included here, in their capacity as company directors.

Jacquie Driver Chair of the Diocesan Finance Committee 5 May 2026

prepare the financial statements on the ‘going concern’ basis unless it is inappropriate to presume that the charity will continue in its activities; and
observe the methods and principles in the Charities Statement of Recommended Practice.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that its financial statements comply with the Companies Act 2006.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

A ppendices – committee membership and administrative details

Directors, Trustees and Members of the Diocesan Bishop’s Council

All members of the Bishop’s Council are directors and members of the company for the purposes of the Companies Acts and are trustees under charity law. The following members served during the period from 1 January 2025 until 5 May 2026, the date of approval of this report:

The Archdeacon of Hampstead, the Ven John E I Hawkins

The Archdeacon of Northolt, the Ven Catherine R Pickford The Archdeacon of Charing Cross, the Ven Katherine Hedderly The Dean of St Paul’s Cathedral, the Very Revd Andrew Tremlett

Chair

The Rt Revd and Rt Hon Dame Sarah E Mullally DBE BSc MSc DSc (Hon) Bishop of London (until 28/01/26)

The Rt Revd Dr Emma Ineson, Acting Bishop of London (from 28/01/26)

Elected by the House of Laity, Diocesan Synod

Mr David Banks Mr Jonty Bayliss Ms Jacquie Driver Mrs Sarah Finch Mr Jonathan Wolstenholme

Lay & Clerical Vice Chairs

Mr Ade Adebajo Diocesan Synod House of Laity The Revd Christopher Trundle Diocesan Synod House of Clergy

Ex Officio

The Bishop of Stepney,

the Rt Revd Joanne Woolway Grenfell (until 5/09/25) Acting Bishop of Stepney,

The Rt Revd Karen Gorham (from 01/01/26) The Bishop of Kensington, the Rt Revd Dr Emma Ineson The Bishop of Edmonton, the Rt Revd Dr Anderson Jeremiah The Bishop of Willesden, the Rt Revd Lusa Nsenga-Ngoy The Bishop of Fulham, the Rt Revd Jonathan M R Baker The Bishop of Islington, the Rt Revd Ric C Thorpe (until 31/10/25) The Archdeacon of London, the Ven Luke J Miller The Archdeacon of Hackney, the Ven Peter Farley-Moore The Archdeacon of Middlesex, the Ven Richard Frank

Nominated by the Bishop of London

Mr Paul Nicholas (until 31/12/25) Ms Liz Curran

The following members were elected by the Diocesan Synod members of the respective areas:

Two Cities

The Revd Thomas Wright Mr Brian O’Donoghue Mrs Sarah Tett Mr Zi Ken Toh Mr Nathan Van Sittert

Stepney

The Revd Graham Hunter The Revd Aidan Bartlett Dr Phillip Rice Mr Duncan McAndrew Ms Josile Munro Mr Peter Sinclair

Kensington

The Revd Samuel Follett (until 07/12/25) The Revd Mike Neville Mr David Hurst Mr Stephen Garside Mr Robin Field-Smith

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Directors, Trustees and Members of the Diocesan Bishop’s Council continued

Edmonton

The Revd Ian Chandler The Revd Thomas Watts Mr Julian Desborough Ms Sue Johnson Dr Christopher R M Ward Miss Amanda McIntyre

Willesden

Mrs Monica Bolley Mr Mervyn Hogg Mr Clive R Scowen

(not Members of the Bishop’s Council)

Mr Andrew Garwood-Watkins (until 19/03/25) Mr Anthony Dixon (until 19/03/25) Mr Michael Bithell Mr Noel Manns Mr Rich Spens Mr Richard Myers Ms Juliet Maggs (until 19/03/25) Mrs Elizabeth Marshall (until 31/12/25) Ms Jane Templeman (from 20/03/25) Ms Cathy Butcher (from 20/03/25) Mr Nigel Wildish (from 16/09/25)

Members are shown in the categories in which they are currently elected. They may previously have served as members in a different capacity.

Members of the Diocesan Finance Committee as at 5 May 2026

Members of the Audit and Risk Committee as at 5 May 2026 (also Members of the Bishop’s Council)

Ms Liz Curran (Chair) Dr Phillip Rice Stephen Garside

(also Members of the Bishop’s Council)

The Archdeacon of London, the Ven Luke J Miller The Archdeacon of Hackney, the Ven Peter Farley-Moore The Archdeacon of Middlesex, the Ven Richard Frank The Archdeacon of Hampstead, the Ven John E I Hawkins The Archdeacon of Northolt, the Ven Catherine R Pickford The Archdeacon of Charing Cross, the Ven Katherine Hedderly The Revd Christopher Trundle The Revd Graham Hunter Mr Ade Adebajo Ms Jacquie Driver (Chair) Mr Paul Nicholas (until 31/12/25) Mr Inigo R M Woolf (until 19/03/25) Mr David Hurst Ms Josile Munro Mr Clive Scowen Mr Stephen Garside Mr Jonty Bayliss (from 20/03/25) Mr Julian Desborough

(not Members of the Bishop’s Council) Mr Mohan Yogendran The Revd Owen Higgs Mr Christopher Longden Mr Gerard Hargreaves

The Bishop of London’s Fund

Patron: The Rt Revd and Rt Hon the Lord Bishop of London Dame Sarah E Mullally DBE BSc MSc DSc President: The Rt Revd Dr Emma Ineson (acting) (from 28/01/26) Treasurer: Mr Inigo R M Woolf The president and treasurer are ex officio trustees.

Other trustees of the Bishop of London’s Fund The Ven Luke J Miller Mr David Roberts Secretary: Mr Oliver Home

The Bishop of London’s Fund (BLF) was established in 1863 and was incorporated by the Board of the Charity Commissioners for England and Wales under the Charitable Trustees Incorporation Act 1872 (since replaced by other legislation) on 7 July 1882.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

The Bishop of London’s Fund continued

The BLF is a registered charity (249021). The Finance Committee of the LDF constitutes its Executive Committee. Certain title and trust deeds are in the name of the BLF.

For day-to-day purposes and in accordance with a special resolution of 29 October 1918, its activities are subsumed into the LDF, with which it shares common objectives. The majority of the BLF’s assets were transferred to the LDF in the last century.

Professional Advisers

Auditors

Moore Kingston Smith LLP 6th Floor, 9 Appold Street, London EC2A 2AP

Bankers

Barclays Bank PLC 1 Churchill Place London E14 5HP

The London Diocesan Board of Finance

President and Chair:

The Rt Revd and Rt Hon the Lord Bishop of London The Rt Revd and Rt Hon Dame Sarah E Mullally DBE BSc MSc DSc (until 28/01/2026)

The Rt Revd Dr Emma Ineson, Acting Bishop of London (from 28/01/26) Trustees:

The Trustees of the LDF Secretary: Mr Oliver Home

The London Diocesan Board of Finance (LDBF) was registered in England as a company limited by guarantee on 30 April 1914. The Diocesan Boards of Finance Measure 1925 provides that every Diocese in the Church of England should have a DBF. It stipulates however that those Dioceses with existing trust bodies (provided they are incorporated under the Companies Acts) are allowed to use these bodies to carry out the functions of the DBF.

Insurers

Ecclesiastical Insurance Group PLC Beaufort House Brunswick Road Gloucester GL1 1JZ

Solicitors

Birketts LLP 106 Leadenhall Street London EC3A 4AA

Communications Consultants

Luther Pendragon Limited 3 Priory Court Pilgrim Street London EC4V 6DR

Clause 3(c) of the Memorandum of Association of the LDF (company number 150856) formed in 1918 specifically empowers the LDF to carry out (inter alia) all of the functions of the LDBF. The Articles of Association of the LDBF were amended on 7 June 1926 to amalgamate the functions of the DBF into the LDF, except anything which was unable to be amalgamated because of statutory provisions.

The LDBF is a registered charity (249022) and a company limited by guarantee (135519).

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Independent Auditors’ Report to the Members of the London Diocesan Fund

Opinion

We have audited the financial statements of The London Diocesan Fund (‘the company’) for the year ended 31 December 2025 which comprise of the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 December 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the strategic report and the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the trustees’ annual report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

TRUSTEES’ REPORT FOR THE YEAR ENDING 31 DECEMBER 2025

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members 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 any party other than the charitable company and charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

James Cross (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

9 Appold Street London EC2A 2AP

Date: 15/06/2026

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

**R$I$"-"$:+=:4FI*GFI0:SG$FOF$F"#:T:=+%:$O":L"I%:$+:?B:2"G"-Q"%:6768**

		U%"#$%FG$"(45(#	U%"#$%FG$"(45(#	!"#$%FG$"(	*)(+,-"$*	.+$I0 .+$I0
		*1""%I0**	*2"#F3I$"(**	*45(#**	*45(#**	6768 6769
		;777	;777	;777	;777	;777 ;777
*<G+-"I("(+,-"$#=%+-*	!"#$%
!"#$%&"#'(+,$-&+'.,I$#%'*
'"((")*+),		-.I012	3 3 369>?7@ 6?>677
4567%86$7(9+6%$($)#%J"6;<$6=>;"%#%		.I--?	3 3 39>66A 9>6?6
@")5#7")%5),<$=5;7$%		A2-	-.	BI.C-	36>BCD 6>??@
'8+6;8'"((7%%7")$6%M		N	3	0I022	3?>97A ?>AB6
'7#>'8+6;8*+),		BI?10	3 3 3B>A7? B>DA8
01$I&%$2+$-%&3&%&+'*
FG$65#7")56$)#5<7);"($		-IN00 001		3 3?>BC? ?>99C
456";875<J$$%		.1B	3 3 397B ?9C
4#3+'%5+#%4#-"5+
@7H7,$),%5),7)#$6$%#6$;$7H59<$	BB5	BI-?.	0C	B??	3B>9DC B>8@C
I)H$%#($)#G6"G$6#>6$)#5<%	BB9	CI.2B	3 3 38>9@B 8>C86
6%1+I&#-"5+		.0?	C0	B2.	3CD9 @B?
**"#$%&'()#+***		9B>?A8 996		8>666	N9A>7?@ 9A>?7@
)FG"(F$5%"+
7$&'&#,89#:'
4#3+'%5+#%5$#$,+5+#%-"'%'
J$)#5<G"6#J"<7";"%#%35=$)#J$$%	C5	B.A	3 320			6?@ 677
I)H$%#($)#G6"G$6#>6$G576%5), (57)#$)5);$	C5	?.C -0?		3-10		B>BD8 B>6DC
01$I&%$2+$-%&3&%&+'*
'")#679+#7")%#"O6;897%8"GL%'"+);7<	C9	-IBNC	3 3 36>BD8 B>D77
J$%"+6;7)=M7)7%#6>5),M7%%7")	C;	00IN.B	BI200	BI12A	0-N	?A>B@D ?9>??8
'"%#"JFG$65#7")5<46"G$6#>J$)#5<%	C,	BI.C?	3 3 3B>98A B>DDB
N+GG"6#J"64567%8(7)7%#6>	C$	CIBBA	BINCB	.I2CN	B1	BB>@?8 BB>?AB
OPG$),7#+6$")O,+;5#7")	CJ	A-A	3 3 3C6C CB@
6%1+I+;<+#:&%9I+		3	3	3	3	N N
*"#$%&+,-+(.'$/0+*	C	99>BBC	9>76B	C>789	C?9	89>D68 8B>9@6
!$#Q$PG$),7#+6$RS7);"($9$J"6$7)H$%#($)#=57)%		Q-I?.BR	Q0IC?2R	QN0-R	QA0.R	HA>ADCI H9>BD?I
J$5<7%$,=57)%")#5)=79<$J7P$,5%%$#%		3.I.20		3NIA-N		B?>B6B 6>@@C
!$#Q<"%%$%RS=57)%")7)H$%#($)#%	N	3	QAAR	Q-1?R	Q.A-R	HA?8I 6>AD6
J"$FG+-F3%"#+5%G"#=+%$O"L"I%		H6>A9BI D9D		HB>7?@I	A>8?6	9>C77 B>8@8
T65)%J$6%9$#U$$)J+),%	B0,	-I0?0	AI2.2	Q?NBR	QNIC.BR	3 N
M$O"%%"G+3F#"(H0+##"#IN3IF#
4$)%7"),$J7;7#("H$($)#		3	3	3	3	N N
V)6$5<7%$,=57)%")#5)=79<$J7P$,5%%$#%	?5P ?9	3	0I-?2	3	CN?	?>DCC C>9@7
*J"$-+O"-"$F=5(#=+%$O"L"I%**		H?CDI	BB>7AC	HB>D67I	H966I	D>9CC D>7D8
*!"G+GF0FI$F++==5(#P**
*+),%5#BX5)+56>-1-C		CI?0?	BCNIBN2	2I00.	00NIABC	8BB>DA8 87?>A@7
*45(#I$?B2"G"-Q"%6768**		8>?C@	BC@>6C8	A>8B9	??D>B@?	867>?9B 8BB>DA8

The financial statements on pages 46 to 75 were approved, and authorised for issue, by the Diocesan Bishop’s Council on 05 May 2026.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

!L010+(#!MN##%!H!0$!0%!>B!3#(#.O#F!7879!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!E,.P0+J!+6.O#FQ!B98?9D!

		R+F#$%FG(%#)56+)$	R+F#$%FG(%#)56+)$	*"#$%FG(%#) +),-.#+% /,%01 /,%01**
		2#+#F01	3#$G4+0%#)	56+)$ 56+)$ 7879 787:
		;888	;888	;888 ;888 ;888 ;888
	"#$%F
5G<#)=$$#%$
G(%)$+#,-()#(%)$.	I*	0123412		05673II1 >9?@?A7 >97@?:A
8,9%F$:%,$()#(%)$.	I;	0<I375I		0513I1= BBA@>B? B78@9CA
"#,0()#(%)$.+,9%F$:%,$F	<	0=364>		73167 213>1= :A@8D8 :?@>>C
?+@$A)%F*,BC+$$+,DF		=45	0 0 0B87 B7?
		B87	B?7@77:	9@CD9 >>9@8DB 97>@>97 97B@CBB
E6FF#+%=$$#%$
N%;$#)F	=4*	>35>I	=3555	=3I5= 5I7 A@:D9 ?@:>:
FFG$;*,H		736>5	I=3I1<J	<3461 2371I B9@9B8 :@>BA
		13<<1	I7I6J	13I14 23<I5 77@CA9 B7@A9B
EF#)G%,F$
O:#A,$FC--+,DBA%L+$G+,#,%.%)	=5	I>3655J	I=3212J	I<35>=J II>=J FB:@CCAG FBB@>>9G
"%$FA))%,$OFF%$F		7356I	I=3161J	=37>1 23=25 A@CA? B@:BD
M#$-FF%$F-%FFNA))%,$-+*;+-+$+%F		9@>DC	B?8@799	A@9B: >>?@BC> 9>B@>>8 97>@>7A
EF#)G%,F$H0.,6+%$I011G+4)6#0I%#F,+#
J#0F
O%,F+#,FNG%:%-+*;+-+$+%F	=7	0	0 0 0 K K
G$G%)N)%B+$#)F	=5	0	I=43114J	0 0 FB8@CC8G FBB@:97G
"%$OFF%$F		73261	=613567	I37=> 22<3=12 978@>:8 9BB@?A9
56+)$
P%,%)*-		73261	0 0 09@>DC 9@A>D
N%F+D,*$%B	=2*	0=613567		0 0BDC@7D9 B9?@BC8
Q%F$)+N$%B	=2;	0	0I37=> 0A@9B: C@>>:
R,B#L:%,$	=2N	0	0 022<3=12 >>?@BC> >>?@DB9
M#$*-?A,BF		9@>DC	BDC@7D9	A@9B: >>?@BC> 978@>:B 9BB@?A9

Jacquie Driver The Revd Christopher Trundle Chair of the Diocesan Finance Committee Clerical Vice-Chair of Bishop’s Council

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

Summary income and expenditure account – for the year to 31 December 2025

Income Expenditure Net (expenditure) before investment gains Net gains on investments Realised gains on property assets Net (expenditure) for the year Other comprehensive income: Unrealised gains/(losses) on property assets Net movement on defined benefit pension schemes Total comprehensive income/(expenditure)	2025 £000 47,040 ( 54,191) ( 7,151) ( 273) 4,493 ( 2,931) 3,279 - 348	2024 £000 47,309 ( 51,223)
		( 3,914) 384 2,376
		( 1,154) (315) -
		(1,469)

All incoming and expended resources relate to continuing operations.

The Summary Income and Expenditure Account is derived from the Statement of Financial Activities on page 35 with movements in endowment funds excluded to comply with company law.

Cash flow statement – for the year 31 December 2025 Notes Net cash (outflow) from operating activities 14a Net cash inflows/(outflows) from investing activities 14b Net cash (outflows)/inflows from financing activities 14c Increase/(reduction) in cash in the year Cash and cash equivalents As at 1 January As at 31 December	2025 £’000 ( 5,538) 21,731 ( 5,000) 11,193 4,317 15,510	2024 £’000 ( 12,611) ( 5,499) 5,000
		( 13,110)
		17,426
		4,317

The notes on pages 49 to 75 form part of these financial statements.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

Notes to the financial statements

1 Principal accounting policies

The financial statements have been prepared in accordance with applicable Accounting Standards in the United Kingdom, the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2015) (Second Edition, effective 1 January 2019) and with regard to the Diocesan Annual Report and Financial Statements Guide (v5. 2015).

The accounts comply with the Charities Act 2011 and the Companies Act 2006. A summary of the principal accounting policies, which have been applied consistently except as stated, is set out below.

1.1 Basis of preparation

The LDF prepares its annual financial statements on the historical cost basis of accounting as adjusted for the revaluation of investments and investment properties. The financial statements are prepared on a going concern basis (see page 16).

1.2 Key judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

non-depreciation of fixed assets as per accounting policy (see note 1.7)

pension scheme liabilities (see note 15)

1.3 Funds

The LDF has various types of fund for which it is responsible and which require separate disclosure. Note 13 shows the balances and movements on each fund together with details of their uses. The directors’ and trustees’ report gives an overview of the LDF’s Reserves Policy.

Unrestricted Funds

Unrestricted funds arise from all the accumulated surpluses and deficits in the provision of general charitable activities:

General Funds

Designated Funds (note 13a)

The latter are funds earmarked by the LDF trustees for a specific purpose. The trustees have discretion over the purpose and use of the funds. They can be re-allocated or otherwise undesignated without reference to outside agencies.

Restricted Funds (note 13b)

These are funds subject to specific conditions imposed by the donor or by the specific terms of a trust deed or other legal measure. Income and expenditure on restricted funds are taken directly to those in the Statement of Financial Activities except to the extent that income is freely available for the general purpose of the LDF.

Endowment Funds (note 13c)

Permanent endowment capital must be held permanently, whereas expendable endowment capital can be used in certain circumstances. Income arising is included in general or restricted funds depending on the terms of the trust instrument.

1.4 Taxation status

The LDF is a registered charity and as such is able to take advantage of exemptions granted under the relevant tax legislation including the Corporation Taxes Act 2010. It is not liable to corporation tax on charitable income or income from charitable activities.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

1.5 Pensions

The LDF participates in two defined benefit pension schemes: the Church of England Defined Benefit Scheme (DBS), for some of its lay employees but now closed to new joiners and future accrual, and the Church of England Pensions Scheme, for clergy. The schemes are considered to be multi-employer schemes as described in Section 28 of FRS 102. This means that it is not possible to attribute the schemes’ assets and liabilities to specific employers and that contributions are accounted for as if the schemes were a defined contribution scheme. The pensions costs charged to the SOFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of the deficit contributions. Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability.

1.6 Statement of Financial Activities

All material income and expenditure is accounted for on an accruals basis.

Income
Donations, legacies and grants
Common Fund
Parish reimbursements for clergy
costs
Donations
Church Commissioners
City Church Fund
Charitable Activities
Operational property rental
income
Parochial fees
Investment Income
Dividends and interest
receivable
Investment property rental
income

Explanation
Contributions paid by the churches in the Diocese of London to the LDF
Amounts received in respect of clergy involved in largely local initiatives,
financed directly by parishes or other institutions
Gifts from external organisations and individuals
Grant income from the Church Commissioners
Grant income from the City Church Fund
Operational property is usually held to house clergy. Where property is not
used for this purpose in the short-term, it is let out at market rates to
generate additional income. Designated and glebe operational rental income
is receivable within general funds.
Parochial fees are statutory charges for weddings and funerals, of which part
is due to the local PCC, and part is due to the LDF. The LDF element is used to
help fund the overall stipends bill.
Income arising is credited to the relevant funds on a receipts basis for
dividends, and on an accruals basis for interest income.
Investment property is let out at the market rate. Designated and glebe
investment rental income is receivable within general funds.

Raising funds – investment management costs

Rental portfolio costs: agent fees Agent fees paid in relation to the management of the property portfolio.

Investment property repairs and Repairs and maintenance relating to the investment property portfolio. maintenance

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

Charitable activities National Church The LDF’s contribution to the National Church’s costs. Resourcing ministry and mission This cost of clergy stipends, national insurance, and pension contributions for both parish and other clergy, their housing costs, clergy grants and other nonstipendiary expenditure Cost of functional property Repairs and maintenance relating to the functional let property portfolio. rentals Support for Parish Ministry This represents costs of supporting the parishes in delivery of their mission through area and deanery activities, supporting activities in children’s ministry, community ministry and social justice, selection and education of future clergy, support in maintaining the fabric of church buildings and safeguarding. Expenditure on education Annual cash grant to the London Diocesan Board for Schools and support cost allocation for the use of Causton Street Offices.

1.7 Tangible Fixed Assets

Property

Operational property is generally held at deemed historic cost and investment property at market value. Assets in the course of construction are held at cost.

(a) Benefice Houses

The LDF has adhered to the requirements of FRS 102 in its accounting treatment of benefice houses in following the substance of arrangements rather than their strict legal form. Although the LDF is formally responsible for the maintenance and repair of such properties and has some jurisdiction over future use, the legal title and right to beneficial occupation is vested in the incumbent. The trustees therefore consider the most suitable accounting policy is to capitalise such properties as expendable endowment assets and, in line with the transitional arrangements under FRS 102, value such properties at deemed historic cost being the net book value as at 1 January 2015.

Depreciation

In accordance with the implementation of FRS 102, annual depreciation is not charged on benefice and operational, freehold properties. Until 2015, fixed assets were depreciated over their useful economic life as follows:

Benefice Houses 150 years Other freehold properties 50 years Leasehold properties Lease term

(b) Burial Grounds

Burial grounds owned by the LDF are held at £nil value as the trustees believe that the cost of a practical valuation is onerous compared to any additional benefits to be gained. The LDF is unable to sell or change the use of any of these assets without reference to external organisations such as the Church Commissioners. These restrictions, together with the inherent difficulties of applying conventional property valuation methods, are all significant factors in the adoption of the valuation approach for this class of assets.

(c) Closed Church Buildings

Church buildings closed for regular public worship (referred to as ‘Closed Church Buildings’, and formerly known as ‘Redundant Churches’) are valued at suitable multiples of annual rental income where this is significant. Where this approach is not applicable, the asset is held at £nil value.

(d) Properties purchased using Church Commissioners’ value linked loans

Properties purchased using Church Commissioners’ value linked loans are valued at fair value at the balance sheet date, being estimated market value.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

(e) Assets in the course of construction and major capital projects

All costs incurred for assets in the course of construction are capitalised. Major capital project costs in total over £75,000 per property are capitalised. Property costs over £10,000 are capitalised where there has been significant enhancement to the underlying assets.

(f) Fixtures, fittings and equipment

Fixtures, fittings and equipment additions under £10,000 are written off fully in the year of purchase. Items over £10,000 are capitalised.

(g) Lease extensions

Leaseholds extensions on LDF freehold properties for more than 25 years are treated as capital sale income in the year. Leasehold extensions for less than 25 years are treated as other income in the SOFA.

Depreciation

Depreciation is charged on fixtures, fittings and equipment over four years, being their expected useful life.

1.8 Financial instruments

Financial assets measured at fair value comprise listed investments. Financial assets measured at amortised cost comprise contributions to the Common Fund, rent receivable, loans to parishes, loans to individuals and other debtors. Financial liabilities measured at amortised cost comprise parish loans payable, grants payable and other creditors. Financial liabilities measured at fair value comprise Church Commissioners’ value linked loans.

1.9 Investments

Investment Property

The trustees’ policy is that freehold and long leasehold properties held for investment purposes have been included at the trustees’ best estimate of market value. In 2025 a detailed review of the LDF’s investment property resulted in all of the investment property portfolio being professionally valued externally. Future external valuations will take place as required, in accordance with relevant accounting standards. Interim valuations for the top 30 value properties are undertaken in intervening years by external valuers, the rest of the portfolio is to be valued by a suitably qualified officer of the LDF.

Investment property is not depreciated. Realised gains and losses on investment property are taken to the Statement of Financial Activities under the heading of realised gains/(losses) on tangible fixed assets.

Other Investments

Non-property investments are stated at fair value calculated by reference to the bid market value at 31 December. Realised gains or losses on disposal are calculated as the difference between disposal proceeds and carrying value.

1.10 Custodian Trusts

Trusts where the LDF acts as custodian trustee with no control over the management or use of the funds are not included in the Balance sheet or Statement of Financial Activities of the LDF. A separate Balance sheet and Statement of Financial Activities is set out on page 78 with supporting notes on pages 79 to 82. The custodian trustee funds have been subject to a non-statutory audit and the audit report thereon covering pages 61 to 64 is to be found on page 65.

2. Post balance sheet events

There have been no material events to report since 31 December 2025 which affect the values stated in these accounts.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

3. Net incoming resources for the financial year

The net incoming resources for the financial year is stated after charging Depreciation – fixtures, fittings and equipment Auditors’ Remuneration (including VAT) Statutory audit Non-Audit Services: Non-statutory advice (RCF & tax) Non-statutory review of Custodian Trusts 4. Clergy and Staff Costs Clergy costs Clergy holding parochial or archidiaconal posts (including Common Fund clergy, off-Common Fund clergy and chaplains.) Gross stipends Employer’s National Insurance contributions Employer’s pension contributions Average number of total stipendiary clergy posts Number of total stipendiary clergy posts at 31 December	The net incoming resources for the financial year is stated after charging Depreciation – fixtures, fittings and equipment Auditors’ Remuneration (including VAT) Statutory audit Non-Audit Services: Non-statutory advice (RCF & tax) Non-statutory review of Custodian Trusts 4. Clergy and Staff Costs Clergy costs Clergy holding parochial or archidiaconal posts (including Common Fund clergy, off-Common Fund clergy and chaplains.) Gross stipends Employer’s National Insurance contributions Employer’s pension contributions Average number of total stipendiary clergy posts Number of total stipendiary clergy posts at 31 December	2025 £’000 56		2024 £’000 63
		56		63
		42 6 3		40 8 3
		51		51
		2025 £’000 17,530 1,981 3,482 22,993 530 528		2024 £’000 16,689 1,494 3,716 21,899 531 532

Church measures state that income from Glebe assets, both property and investments, should be applied to the cost of stipends. The value of this income in 2025 was £2,599k (2024: £2,589k).

Costs of lay staff Wages and Salaries Employer’s National Insurance Employer’s Pension contributions	2025 £’000 6,595 812 953 8,360	2024 £’000 5,645 590 813
		7,048

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

4. Clergy and Staff Costs (continued)

The Full Time Equivalent average number of lay people employed on diocesan business, and funded out of unrestricted general funds, was 89 (2024: 87). A further 45 Full Time Equivalent lay employees (2024: 36) were funded from restricted or designated funds. Therefore, the Full Time Equivalent average number of people employed was 134 (2024: 123).

The Headcount of lay staff the LDF was 170 (2024: 167).

The number of employees whose emoluments for the year exceeded £60,000 are as follows

	2025	2024
	No	No
£130,001 - £140,000	1	0
£120,001 - £130,000	0	1
£110,001 - £120,000	1	1
£100,001 - £110,000	2	1
£90,001 - £100,000	1	1
£80,001 - £90,000	2	3
£70,001 - £80,000	4	5
£60,001 - £70,000	13	3
Emoluments, above, is defined as gross salary.

Aggregate employer normal pension contributions for all the higher-paid employees were £295,269 (2024: £198,517) payable to various pension schemes, of which £290,563 (2024 £198,517) was payable to defined contribution pension schemes.

Remuneration of key management personnel

Key management personnel are deemed to be those having authority and responsibility delegated to them by the trustees for planning, directing and controlling the activities of the diocese. For these purposes, key management are deemed to be the senior management group (see page 35) and the trustees.

Remuneration for the Senior Management Group amounted to salary of £722,269 (2024: £640,252), Employer's NI £97,665 (2024: £77,096), and Employer's pension contributions of £110,707 (2024: £101,007). Expenses reimbursed amounted to £4,367 (2024: £6,564)

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

5. Governance costs and the allocation of Support Costs between Charitable Activities

Resources Expended Raising funds Investment management costs Rental portfolio costs - agent fees Investment Property repairs & maintenance 5a Charitable activities National Church Training for Ministry National Church Responsibilities Mission agency pension costs Retired clergy housing Pooling of ordinands maintenance grants 5b Resourcing Ministry and Mission Parish Ministry Stipends, NI and associated costs Parish Ministry pension contributions Other Clergy Stipends, NI and associated costs Other Clergy pension Contributions Clergy Housing costs Removal, resettlement and grants Other non- stipendiary costs 5c Cost of Functional Property Rentals 5d Support for Parish Ministry Parish and area support servicesincl. Vision incl. Vision 2030 Resourcing ministerial education Grants to Parishes & Overseas Care of churches Safeguarding 5e Expenditure on Education Support for Schools and parishes 5f Total Charitable Activities Other resources expended Total Resources Expended	Before allocation of support costs Support costs Total Total 2025 2024 £’000 £’000 £’000 £’000 239 - 239 200 1,120 65 1,185 1,287
	1,359 65 1,424 1,487 1,428 - 1,428 1,396 1,003 - 1,003 977 49 - 49 - 622 - 622 581 (917) - (917) (1,154)
	2,185 - 2,185 1,800 18,585 1,718 20,303 18,919 3,193 306 3,499 3,835 941 74 1,015 905 307 15 322 209 9,201 680 9,881 8,646 756 73 829 759 1,246 103 1,349 1,062
	34,229 2,969 37,198 34,335 1,329 128 1,457 1,881 3,269 165 3,434 3,313 1,558 130 1,688 1,881 2,686 3 2,689 2,091 3,129 72 3,201 3,281 844 79 923 804
	11,486 449 11,935 11,370 171 455 626 619
	49,402 4,000 53,402 50,005 - - - -
	50,761 4,065 54,825 51,492

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

5. Governance costs and the allocation of Support Costs between Charitable Activities - continued

For all the expenditure lines, apart from Education the support costs are being allocated based on resources expended on directly on the activities, as in prior years. In accordance with SORP 2015, governance costs of £381,000 (2024: £354,000) have been allocated on the same basis.

For the Expenditure on Education, the allocation is based on an estimated cost of their use of the offices at Diocesan House, Causton Street (please see Note 10b. Related parties p. 60).

6. Grants to Parishes and Overseas

. Grants to Parishes and Overseas
Funding source: Grants to Parishes from: Archbishops' Council Core funds Area pastoral funds Funds held for parish benefit Overseas: Angola and Mozambique (ALMA) and Lent projects Grant administration allocation	General funds Designated funds Restricted funds Endowment funds Total Total 2025 2024 £’000 £’000 £’000 £’000 £’000 £’000 - - 1,385 - 1,385 1,244 1 24 68 - 93 75 24 258 13 - 295 357 - 7 426 4 437 201
	25 289 1,892 4 2,210 1,877 5 - 470 - 475 206 3 - - - 3 8
	33 289 2,362 4 2,688 2,091

Grants from core funds represent funds awarded from primarily general fund sources such as Archdeacons Discretionary funds and other monies held to support parishes. The above monies funded grant awards to 175 institutions (2024: 183).

7a. Tangible Fixed Assets – Operational Property

Properties are valued in accordance with the accounting policies set out in note 1.

In accordance with transitional arrangements upon the implementation of FRS 102, first adopted in 2015, the LDF took advantage of the concession whereby benefice and operational houses, previously valued under UK GAAP at depreciated insurance value, are carried forward at deemed historical cost being the book value of these assets at 1 January 2015, with the exception of properties purchased using value linked loans (see page 63).

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

	Grand Total	£'000	381,112	11,431 - (5,835) 100	386,808		28,265	- - - (329) -	27,936		358,872		352,847


Endowment Funds	Sub-total	£'000	277,920	10,971 - (3,646) -	285,245		19,561	- - - (95) -	19,466		265,779		258,359
	Glebe Property										30,544		26,997
		£'000	29,400	4,443 - (896) -	32,947		2,403	- - - - -	2,403

	Freehold Benefice Houses	£'000	243,681	6,528 - (2,750) -	247,459		16,732	- - - (95) -	16,637		230,822		226,949
	Leasehold Benefice Houses	£'000	4,839	- - - -	4,839		426	- - - - -	426		4,413		4,413


Restricted Funds	Closed Churches	£'000	-	- - - -	-		-	- - - - -	-		-		-


Designated Funds	Sub-total	£'000	103,192	460 - (2,189) 100	101,563		8,704	- - - (234) -	8,470		93,093		94,488
	Closed Churches	£'000	2,343	- - (4) -	2,339		-	- - - - -	-		2,339		2,343
	Long Leasehold Property	£'000	6,845	- - (320) -	6,525		378	- - - - -	378		6,147		6,467
	Freehold Property	£'000	94,004	460 - (1,865) 100	92,699		8,326	- - - (234) -	8,092		84,607		85,678
		At cost or valuation	At 1 January 2025	Additions Transfers Disposals Revaluation	At 31st December 2025	Depreciation	At 1 January 2025	Charge for the year Additions Transfers Disposals Revaluation	At 31 December 2025	Net Book Value	At 31 December 2025	Net Book Value	At 31 December 2024

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

7a. Tangible Fixed Assets – Operational Property (continued)

Properties purchased using Church Commissioners’ value linked loans are valued at fair value at the balance sheet date, being estimated market value. As at 31 December 2025, the value of these properties was £8,888,000 (2024: £8,800,000). The valuation as at 31 December 2025 was undertaken by a suitably qualified officer of the LDF, based on knowledge of the properties (such as refurbishment levels and general condition) with reference to available market data for similar properties in similar locations. Future external valuations will take place as required. The carrying amount on a cost basis of the revalued properties is £3,627,000.

Capital Commitments

As at 31 December 2025, the LDF had £698k of capital commitments (2024: £605k) in relation to capital work on major developments planned for 2026 and onwards.

7b. Fixed Assets – Investment Property

	Designated Funds	Restricted Funds	Expendable Endowment Funds
	Long
	Freehold Leasehold Closed	Closed	Glebe	Grand
	Property Property Churches Sub- Total	Churches	Property	Total
	£'000 £'000 £'000 £'000	£'000	£'000	£'000
At cost or
valuation

At 1 January2025	70,921 5,650 7,956 84,527	-	36,070	120,597
Additions	22 - - 22 - - - - - - (4) (4)	- - -	44 - (6,910)	66
Transfers				-
Disposals				(6,914)
Revaluation	3,588 (15) (591) 2,982	-	587	3,569
At 31 December
2025	74,531 5,635 7,361 87,527	-	29,791	117,318

Fair Value
At 31 December 2024	70,921 5,650 7,956 84,527	-	36,070	120,597

The trustees’ policy is that freehold properties held for investment purposes are included at the trustees’ best estimate of market value. In 2025 a detailed review of the LDF’s investment property resulted in all of the investment property portfolio being professionally valued externally. The next triennial review will take place in 2028, in accordance with relevant accounting standards. In 2025, all properties were valued externally by either Colliers or Savills Plc.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

8. Non-Property Investments

Market value at 1 January 2025 Additions (at cost) Transfers Disposals Net (losses)/gains on revaluations Market value at 31 December 2025	General funds Designated funds Restricted funds Endowment funds Total Total 2024 2025 £’000 £’000 £’000 £’000 £’000 £’000 - 1,670 6,678 39,991 48,339 38,131 - 94 3,979 4,829 8,902 7,498 - - - - - - - (101) (4,727) (5,070) (9,898) (43) - (59) 35 (259) (283) 2,753
	- 1,604 5,965 39,491 47,060 48,339

Non-property investments are represented by:

CBF Global Equity Income Fund CBF Investment Fund Newton BNY Mellon Fund Sarasin Responsible Global Equity	2025 £’000 19,092 9,568 12,122 6,280 47,060	2024 £’000 20,221 9,009 11,140 7,969
		48,339

CBF investments are valued by the CCLA.

The historic cost of the investments held at 31 December 2025 was £32,293,000 (2024: £32,676,000).

Most of the additions and disposals (£7.5m) in the year relate to the conversion of the Sarasin Responsible Global Equity holding from ‘i share class’ into ‘z share class’ units. The Sarasin units were sold and repurchased at nil gain/loss.

9. Investments in subsidiary undertakings

The LDF owns 100% of the issued share capital of a subsidiary undertaking, Causton Street Farms Limited (registered company number 2768104). The company has been dormant since 1 January 2005. The subsidiary is excluded from consolidation because it is not material to the financial statements of the LDF.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

10a. Debtors

General funds £’000 1,227 546	Designated funds Restricted funds Endowment funds Total Total 2025 2024 £’000 £’000 £’000 £’000 £’000 106 20 225 1,578 2,098 266 976 104 1,892 2,212	Designated funds Restricted funds Endowment funds Total Total 2025 2024 £’000 £’000 £’000 £’000 £’000 106 20 225 1,578 2,098 266 976 104 1,892 2,212
1,773 1,428 368	372 996 329 3,470 4,310 - - - 1,428 934 637 - - 1,005 961
1,796 95 582	637 - - 2,433 1,894 121 - - 216 253 92 725 (54) 1,345 1,976
4,247	1,222 1,721 275 7,465 8,434
	2025 £’000 1,895 1,106 (569) 2,432	2024 £’000 1,980 361 (446) 1,895

During the year, interest on Diocesan Bishop’s Council (Finance Committee) loans to parishes was charged, depending upon the rules in force when the loan was awarded, at rates of 1% above the Central Board of Finance (CBF) rate, or 2% above the Bank of England base rate depending on the balance of an individual loan. No interest was charged on other loans.

Certain loans to parishes and individuals fall due after more than one year, and the total of these at 31 December 2025 was £2,038,181 (2024: £1,520,000).

10b. Related Parties

London Diocesan Board for Schools (LDBS)

The LDBS is a charitable company (charity registration no. 313000, company registration no. 00198131). The LDF and the LDBS are separate charities, but the members of various Diocesan bodies appoint or elect the majority of the trustees/directors of the two organisations

The LDF makes an annual grant to the work of the LDBS accounting to £171,000 (2024: £171,000) and a contribution towards the cost of staff time of £NIL (£2024: £NIL). At 31 December 2025 other creditors included £66,652 for payroll items relating to the LDBS (2024: £71,237).

In addition to the grant described above, the LDF makes the following donations in kind to the LDBS. These relate to office space and provision of house services including reception, cleaning, utilities, IT and payroll support. The estimated value of such services is:

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

10b. Related Parties (continued)

Accommodation - rent House services and meeting rooms	2025 £’000 103 417 520	2024 £’000 103 345
		448

The Gregory Centre for Church Multiplication (CCX)

The CCX is a charitable company (charity registration no. 1201506, company registration no. 14429617). The CCX working on the Church growth and multiplication in London and beyond was part of the LDF undertakings until 31 March 2023, when they started operating as a new, independent charity. The move out of the LDF much better reflects the geographical reach of their activities. The LDF continues the pursuit of some of its Church growth ambitions through the programmes run by CCX. A number of members are trustees/directors of both charities:

The Bishop of Islington, the Rt Revd Ric C Thorpe, trustee of the LDF became a trustee of CCX on 1 April 2023 Rt Revd Ric C Thorpe has now left the Bishop of Islington post and is no longer an employee of LDF but remains as a Trustee of CCX.

Ms Jacquie Driver, trustee of the LDF became a trustee of CCX on 1 April 2023.

In 2024 the LDF paid £198,874 (2024: £503,088) in grants to CCX towards the operational cost of LDF Vision2030 programmes. There was £70,000 balance outstanding at year end.

Trustees’ expenses and remuneration

In 2025 the LDF reimbursed a total of £22,524 to 10 members of the Bishop’s Council (2024: £19,095 to 12 members). The vast majority of these expenses related to working expenses, for example as Archdeacons, Area Dean or other ecclesiastical roles, rather than as expenses reimbursed in their role as trustees. In 2025, a further £1,858 (2024: £2,170) was paid to 3 (2024: 3) trustees, representing grants to clergy from 3[rd] party funders and discretionary grants from Archdeacon’s budget allocation. These amounts are in line with the LDF’s usual practice regarding clergy expenses and are not related to their roles as trustees.

The LDF is responsible for a substantial part of the stipend of the clerical members of the Bishop’s Council by virtue of their clerical office, along with National Insurance and costs associated with housing. The stipends, National Insurance and pensions of Bishops are borne and funded by the Church Commissioners.

The following was paid to 14 (full time equivalent: 13.78) other members of the clergy in 2025 who were members of the Bishop’s Council (2023: 18 members; full time equivalent: 13).

Gross Stipends Employer’s National Insurance contributions Employer’s pension contribution & App Levy	2025 £’000 510 53 104 667	2024 £’000 437 41 97
		575

Under the Repair of Benefice Buildings Measure 1972 the Diocese is responsible for the upkeep of parsonages. The LDF was housing 7 members of Bishop’s Council during the year (2024: 8) in parsonages by virtue of their clerical office.

A further 10 members of Bishop’s Council and Diocesan Finance Committee (2024: 11) and 16 (2024: 12) employees who are also clergy, including chaplains, were housed in properties owned by the London Diocesan Fund). Finally, 3 chaplains (2024: 3) do not live in properties owned by the London Diocesan Fund but receive a housing allowance in addition to their stipend instead.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

10b. Related Parties (continued)

In the year ending 31 December 2025, two family members of the Trustees received a total of £67,000 as stipends and another two family members received a total of £78,000 in remuneration as officers of the LDF. There was also a family member who invoiced £1,850 for the services rendered as a consultant in one of the restricted programmes.

For the purpose of this disclosure note transactions with Parochial Church Councils, where there may be a relationship because members of Bishop’s Council are also trustees of those bodies, have not been included.

Other

the Archbishops’ Council (Charity No 1074857), from which the LDF receives grants and to which the LDF pays a donation based on an apportionment system for funding national training of ordinands and the activities of the various national boards and councils, including General Synod. The Archdeacon of London is a trustee.
the Church Commissioners for England (Charity No 1140097), from which the LDF receives grants and which acts on behalf of clergy with HM Revenue and Customs. The LDF pays for clergy stipends through the Church Commissioners.
the Church of England Pensions Board (Charity No 236627), to which the LDF pays contributions for clergy and employees and makes contributions towards the provision of housing for clergy in retirement.
Trust for London (Charity No 205629). The Bishop of London is required to approve the disbursement of income from part of the City Church Fund which is held by Trust for London, an independent charity. The Bishop of London receives recommendations on the allocation of the fund by the City Churches Grants Committee, comprising the Archdeacon of London, the General Secretary and the Chair of the Finance Committee of the LDF, the Area Dean and the Lay Chair of the City Deanery. The fund can only be used to support churches within the City of London. From 2025, all the CCGC expenditure has been administered by the LDF with any unallocated or undrawn balance being included in creditors within the restricted funds Balance Sheet.
PCCs and deaneries where the Diocese of London holds a custodian responsibility. The LDF is required to be a custodian trustee in relation to PCC property, but the LDF has no control over PCCs, which are independent charities. PCCs and deaneries are able to influence the decision-making within the LDF and at Diocesan Synod level through representations to those bodies and through the input of their Deanery Synods.

11a. Dividends and Interest Receivable

Dividends Cash and deposit interest Loan interest	General funds Designated funds Restricted funds Endowment funds Total Total 2025 2024 £’000 £’000 £’000 £’000 £’000 £’000 938 8 139 - 1,085 1,068 260 20 38 - 318 419 76 7 - - 83 109
	1,274 35 177 - 1,486 1,596

11b. Investment Property Rentals

Investment Property Rentals	General funds Designated funds Restricted funds Endowment funds Total Total 2025 2024 £’000 £’000 £’000 £’000 £’000 £’000
	5,491 - - - 5,491 5,651

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

12. Creditors

2. Creditors
Amounts falling due within one year: Parish Loans Payable Grants Payable Other Creditors CCGC Creditor (Grants Unallocated) Revolving Credit Facility Accruals and deferred income Amounts falling due after one year: Closed Churches Liability Church Commissioners Value Linked Loans	General funds Designated funds Restricted funds Endowment funds Total Total 2025 2024 £’000 £’000 £’000 £’000 £’000 £’000 535 138 - - 673 541 - 842 4,725 - 5,567 820 2,400 325 2,200 488 5,413 2,011 - - 1,316 - 1,316 - - - - - - 5,000 1,687 88 - 253 2,028 2,963
	4,622 1,393 8,241 741 14,997 11,335
	- 2,454 - - 2,454 2,652 - 8,536 - - 8,536 8,800
	10,990 10,990 11,452

To support LDF operational cashflow needs, the Charity has taken out a Revolving Credit Facility at 1.95% + BoE rate of £5m with Barclays during 2024. The balance was repaid in full in 2025(2024: £5m).

13a(i).Designated Funds Capital Strategy Fund LDF Property Operational LDF Property Investment LDF Maintenance Fund Designated Trusts Mission Opportunity Diocesan Church Building Fund (DF) Area Church Building Fund (DF) Bishop of London’s Mission Fund Clergy Training and Support Area Pastoral Funds Strategic Development Reserve Closed Churches Operational Closed Churches Investment Parish Property Asset Management Diocesan Pastoral Account Total Designated Funds Income includes realised gains/(losses)*	At 1 January 2025 Income Expenditure Unrealised Gains/(Losses) Transfers At 31 December 2025 £’000 £’000 £’000 £’000 £’000 £’000 1,937 - (727) - 5,541 6,751 78,990 3,000 (67) 100 (2,998) 79,025 59,196 - - 3,573 - 62,769 - - (1,209) - 3,648 2,439 379 2 (7) ( 7) - 367 145 - (145) - - - - - - - ( 81) ( 81) - - - - 680 680 63 19 ( 55) - - 27 192 5 ( 82) - - 115 1,188 - ( 257) - 186 1,117 136 - ( 52) - - 84 1,676 441 ( 493) - 711 2.335 9,818 34 16 ( 393) - 9,475 2,396 90 ( 881) ( 53) 171 1,723 2,074 1,337 ( 64) - (909) 2,438*
	158,190 4,928 ( 4,021) 3,220 6,949 169,265
	Note 13d

13a(i).Designated Funds
Capital Strategy Fund
LDF Property Operational
LDF Property Investment
LDF Maintenance Fund
Designated Trusts
Mission Opportunity
Diocesan Church Building Fund (DF)
Area Church Building Fund (DF)
Bishop of London’s Mission Fund
Clergy Training and Support
Area Pastoral Funds
Strategic Development Reserve
Closed Churches Operational
Closed Churches Investment
Parish Property Asset Management
Diocesan Pastoral Account
Total Designated Funds
*Income includes realised
gains/(losses)

At 1
January
2025
Income
Expenditure
Unrealised
Gains/(Losses)
Transfers
At 31
December
2025
£’000
£’000
£’000
£’000
£’000
£’000
1,937
-
(727)
- 5,541
6,751
78,990
3,000
(67)
100
(2,998)
79,025
59,196
-
-
3,573
-
62,769
-
-
(1,209)
- 3,648
2,439
379
2
(7)
( 7)
-
367
145
-
(145)
- -
-
-
-
-
-
( 81)
( 81)
-
-
-
- 680
680
63
19
( 55)
- -
27
192
5
( 82)
- -
115
1,188
-
( 257)
- 186
1,117
136
-
( 52)
- -
84
1,676
441
( 493)
- 711
2.335
9,818
34
16
( 393)
-
9,475
2,396
90
( 881)
( 53)
171
1,723
2,074
1,337
( 64)
-
(909)
2,438*

158,190
4,928
( 4,021)
3,220
6,949
169,265

Note 13d

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

13a. Designated Funds (continued)

Prior Year Designated Funds	At 1 January 2024	Income*	Expenditure Unrealised Gains/(Losses)	Expenditure Unrealised Gains/(Losses)	Expenditure Unrealised Gains/(Losses)	Transfers	At 31 December 2024
Total Designated Funds 2024	141,699	484		( 2,553)	2,749	15,811	158,190
*Income includes realised gains/(losses)
13a(ii). Designated Funds	Fixed Asset Tangible	Investments		Current Assets	Creditors	Net Assets
	£’000	£’000		£’000	£’000	£’000
Capital Strategy Fund	-		-	6,751	-	6,751
LDF Property Operational	90,753		-	( 3,186)	( 8,541)	79,026
LDF Property Investment	80,166		-	( 17,417)	20	62,769
LDF Maintenance Fund	-		-	2,496	( 58)	2,438
Designated Trusts	-		338	29	-	367
Mission Opportunity	-		-	48	( 48)	-
Diocesan Church Building Fund (DF)	-		-	( 81)	-	(81)
Area Church Building Fund (DF)	-		-	1,136	( 456)	680
Bishop of London’s Mission Fund	-		-	32	( 5)	27
Clergy Training and Support	-		-	115	-	115
Area Pastoral Funds	-		-	1,635	( 519)	1,116
Strategic Development Reserve	-		-	76	8	84
Closed Churches Operational	2,340		-	( 5)	-	2,335
Closed Churches Investment	7,361		-	4,569	( 2,454)	9,476
Parish Property Asset Management	-	1,266		502	( 44)	1,724
Diocesan Pastoral Account	-		-	2,724	( 286)	2,438
Total Designated Funds	180,620	1,604		( 576)	( 12,383)	169,265
Prior Year Designated Funds	Fixed Asset Tangible	Investments		Current Assets	Creditors	Net Assets
Total Designated Funds 2024	179,015	1,669		( 9,730)	( 12,765)	158,189

Capital Strategy Fund

The Capital Strategy fund holds the net capital proceeds from the sale of assets that have been identified as appropriate sites for development. The proceeds from such developments release capital to be redeployed elsewhere in the Diocese, as part of the LDF’s Capital Strategy.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

13a. Designated Funds (continued)

LDF Property

This fund represents both operational and investment property that are not covered by Measures that govern Stipends Capital and Parsonages. Operational property includes the Diocesan offices and over 100 units of property generally used to house clergy who are not housed in parsonages. Investment property comprises over 50 freehold and leasehold properties, held to generate income and capital growth, which helps fund stipends and other charitable activities.

The LDF Property fund is inclusive of the Inspection & Maintenance Fund, benefitting from the budgeted general fund contribution to ingoing and quinquennial costs (2025: £3.65m, 2024: £3.48m). Works are either expensed or capitalised in the year, leaving a year-end balance of £2.44m (2024: £nil).

Designated Trusts

These funds represent proceeds arising from the sale of parish-based properties that were in use by those parishes but were legally owned by the Diocese. Each sale of such property is assessed on a case-by-case basis and where there is a compelling reason the sale proceeds may be designated for parish purposes, usually to fund a parish-based development or replacement facility. These funds are expected to be held on an on-going basis.

Mission Opportunity

This fund was established to meet a range of specific clergy and related costs that are necessary in implementing Diocesan mission and ministry policy. This fund has now been fully spent.

Diocesan Church Building Fund

This fund comprises net funds released after the sale of closed churches. It was set up in 2022. The fund is used to reinvest in open or new church buildings, to help repair, develop and create church buildings that support mission and ministry across the Diocese. As at 31 December 2025, the balance is negative, while we are waiting to alter the policy for the distribution of the proceeds from the Closed Churches sales to allow those to cover the cost if this activity. The transfer will take place in 2026.

Area Church Building Funds

This reserve comprises net funds released after the sales of closed churches, having been set up in 2019. The fund will be used to reinvest in open or new church buildings to help repair, develop and create church buildings that support mission and ministry across the Diocese. Within this fund, funds are allocated to specific Episcopal areas.

Bishop of London’s Mission Fund (BLMF)

This fund is used for new local mission initiatives (not capital projects) throughout the Diocese. The balance remaining in this fund is supporting the Apprenticeship Schemes.

Clergy Training and Support

This fund is for providing general clergy training and support leadership courses and individual coaching and mentoring sessions. The designated budget holder for the fund is the Director of Ministry.

Area Pastoral Funds

These are funds for each of the five episcopal areas which can be used for loans and grants for specific projects in each area. Decisions on the use of the funds are taken by Area Councils. Loans and grants are awarded each year and the fund is replenished from general funds to ensure the fund is not depleted. It is anticipated that this will continue into the foreseeable future.

Strategic Development Reserve

This reserve funds the remainder of the 2020 Vision Strategic Development team work, which supported our work in several major areas of regeneration. This includes the Genesis Barge project. Previously funded from the designated Capital Strategy Fund and a contribution from the general fund, expenditure is now for direct project costs only.

Churches Capital Strategy

The Churches Capital Strategy holds the net capital proceeds from the sale of assets, specifically closed churches. The proceeds are to be redeployed for use to benefit other church buildings. This fund has been reorganised to improve clarity and funds been transferred to the new Parish Property Asset Management Fund.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

13a. Designated Funds (continued)

Closed Churches Property

These funds were previously recognised under restricted funds. They represent fixed assets, both operational and investment closed church buildings, governed by the Mission and Pastoral Measure 2011. Use of the fund is decided in accordance with this Measure and future maintenance cost estimates for these buildings. Income from these closed churches, which is not required for closed church maintenance, may be used toward stipend and clergy housing maintenance costs.

Parish Property Asset Management

This fund is new in the year, designed to capture the Parish Property Support & Fundraising work, replacing the Churches Capital Strategy fund.

Diocesan Pastoral Account (DPA)

This is a designated fund for the purposes defined in the Mission and Pastoral Measure 2011. It represents capital receipts released from the sale of benefice houses (parsonages) and redundant churches. To the extent that any remaining funds are not required, or not likely to be required, for these purposes then the funds may be applied to any general purpose of the LDF. The balance represents net funds from the sale of St James West Ealing and LDF share of the proceeds the sale of land at St Botolph’s.

13b(i). Restricted Funds		At 1 January 2025	At 1 January 2025	Income*	Income*	Expenditure	Expenditure	Unrealised Gains/(Losses)	Unrealised Gains/(Losses)	Transfers	At 31 December 2025
		£’000		£’000		£’000		£’000		£’000	£’000
Sole Trust Expendable Funds (inc. ALMA)		7,884			3	(	921)		33	( 1)	6,998
Area Church Building Fund			697		-		( 17)		-	( 680)	-
Diocesan Church Building Fund		(	81)		-		-		-	81	-
Net Carbon Zero Strategy			-		370	(	217)		-	-	153
Strategic Development funds			-		530	(	491)		-	( 39)	-
Strategic Capacity Funding			9		436	(	406)		-	( 39)	-
Diocesan Investment Programme			-	1,161		( 1,121)			-	( 40)	-
Ordinands Training Fund			835	(	633)	(	251)		-	-	( 49)
Strategic Ministry Fund			45	1,119		(	993)		-	( 63)	108
The Gregory Centre for Church Multiplication (CCX)			-		66		( 63)		-	( 4)	-
Projects restricted fund		(	55)	1,579		( 1,202)			-	4	325
St Mark's Hamilton Terrace			-		150	(	173)		-	-	( 23)
Bishops’ secretaries fund			-		201	(	199)		-	-	2
Total Restricted Funds		9,334		4,982		( 6,054)			33	( 781)	7,514
*Income includes realised
gains/(losses)								Note	13d
Prior Year Restricted Funds	At 1 January 2024			Income*	Expenditure		Unrealised Gains/(Losses)			Transfers	At 31 December 2024
Total Restricted Funds 2024		28,108		8,609		( 6,444)		(2,709)		(18,229)	9,334

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

13b(ii). Restricted Funds Sole Trust Expendable Funds (inc. ALMA) Net Carbon Zero Strategy Ordinands Training Fund Strategic Ministry Fund Projects restricted fund CCGC St Mark's Hamilton Terrace Bishops’ secretaries fund Prior Year Restricted Funds Total Restricted Funds 2024	Fixed Asset Tangible Investments Current Assets Creditors Net Assets £’000 £’000 £’000 £’000 £’000 - 5,965 3,283 ( 2,250) 6,998 - - 159 ( 6) 153 - - ( 60) 11 (49) - - 108 - 108 - - 267 58 325 - - 6,041 (6,041) - - - ( 10) ( 13) (23) - - 2 - 2
	0 5,965 9,790 ( 8,241) 7,514
	Fixed Asset Tangible Investments Current Assets Creditors Net Assets - 6,678 3,176 ( 520) 9,334

Sole Trust Expendable Funds

This fund comprises over 30 restricted trusts which are held for specific parish or Diocesan purposes. These trusts are consolidated with the main LDF accounts as the LDF acts as sole trustee and therefore has control. The permanent endowment element is disclosed in note 13c. Each Trust is governed by its own trust instrument which may be in the form of a Charity Commission scheme. The activity of the Angola, London and Mozambique Association (ALMA) is consolidated under this heading, comprising funds of £0.6m at 31 December 2025 (2024: £1m).

Area Church Building Funds

These funds are now transferred from the restricted to designated funds. Please see Note 13.d Transfers between funds p70.

Diocesan Church Building Fund

These funds are now transferred from the restricted to designated funds. Please see Note 13.d Transfers between funds p70.

Net Carbon Zero Strategy

This fund comprises the income and expenditure relating to two restricted grants from Archbishop’s Council to build capacity to carry Net Carbon Zero works.

The Net Carbon Zero capacity grant was agreed in December 2023 for a total of £165,000 over two years for employment and equipment costs. The Buildings for Mission Grant was agreed in February 2024 for a total of £95,360 over two years for employment and equipment costs. Both grants are for a two year period.

Strategic Development Funds

This fund comprises the income and expenditure relating to the restricted funding received from the Church Commissioners towards Church Planting, Church Growth and Youth Strategies and Transforming Tower Hamlets, Southall & Hounslow. Each grant has been awarded for six years, the earliest awarded in 2015, with the final project due to end in 2028.

Strategic Capacity Fund

The fund comprises of income and expenditure relating to restricted funding received from Church Commissioners towards Growing Younger Apprentice Scheme and the Ministry Development Team. These grants were awarded in 2023 and are for 5 years.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

13b. Restricted Funds (continued)

Diocesan Investment Programme Fund

The fund comprises of income and expenditure relating to restricted funding form the Archbishops Council to revitalise the Church.

The Youth Apprentice Grant is for a total of £1,503,871 and commenced in Autumn 2023 and will run for 5 years. The programme is to employ Youth Apprentice’s within Parishes to grow Youth capacity across the Diocese.

The Hackney & Islington Grant is for a total of £9,413,835 and commenced in Summer 2024 and will run for 5 years. The programme has 4 work streams covering Planting & Partnerships, Catholic Renewal, Estates and Youth across the Hackney & Islington Area.

Ordinands Training Fund

This fund is for training Ordinands covering college and some grants to Ordinands received from Church Commissioners. From September 2023 Church Commissioner pay Colleges directly. The unused funds are being repaid, with final balance being settled in early 2026. The negative balance represents costs allocated to the activity but not covered by the restricted funding. The transfer from the general fund to close this activity will be processed in 2026.

Strategic Ministry Fund

This fund is used to cover 50% of costs of additional Curacy placements across the Diocese. The programme has been running since 2021 and each cohort lasts for 3 years. The last Cohort of Curates were placed in July 2025 and no further Cohorts are planned.

The Gregory Centre for Church Multiplication (CCX)

These funds are grants that were raised by CCX and the fund balances have transferred to them as they now operate as a separate charity.

Projects Restricted Fund

This fund comprises a small number of projects for which the LDF receives restricted funding. Income sometimes relates to the aggregate match funding received in relation to a number of projects.

CCGC – City Churches Grant Committee

In 2025, as a final step coming out the review and recommendations following the fraud case involving CCGC funds, it was decided, that all CCGC transactions will be administered as a restricted fund within the LDF.

Prior to October 2025 Trust for London managed the payment of these grants to the individual Churches based on information supplied by the CCGC Team. It was agreed that Trust for London would transfer the whole allocation of grant funding to LDF and LDF would manage the grant payment process using all the policies and controls we have in place.

A balance of £6.8m was received in October 2025 with £4.5m committed to be paid out as grants and leaving £2.3m for future project applications. CCGC income and expenditure is accounted outside of the LDF SOFA and it is expressed as a restricted cash coming in and an equal restricted creditor. As the funds are being distributed to the City Churches, both the cash and creditor balance is being reduced each year, until the next round of funding from the Trust for London.

St Mark’s Hamilton Terrace

This fund is for the restoration of the St Mark’s Hamilton Terrace church following a fire in January 2023. The Parish is about to start the restoration project with the payout of the insurance funds. However, due to the scale and complexity of the project, the LDF will be providing support during the project. As such, the LDF will be holding onto the funds for administrative and supportive purposes only, in a custodian and advisory role.

Bishops’ Secretaries Fund

This shows the restricted funding received from the Church Commissioners as a contribution towards the cost of the Bishops’ secretaries.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

13c(i). Endowment Funds	At 1 January 2025	Income*	Expenditure	Unrealised Gains/(Losses)	Transfers	At 31 December 2025
	£’000	£’000	£’000	£’000	£’000	£’000
Expendable Endowment
Glebe property (investment)	50,806	-	( 263)	587	-	51,130
Glebe property (operational)	46,333	91	( 36)	( 222)	( 4,396)	41,770
Parsonage House Fund	235,520	8,538	( 331)	-	( 4,145)	239,582
Permanent Endowment
Sole Trust Permanent Endowment	5,956	( 203)	( 4)	( 38)	-	5,711
Total Endowment Funds	338,615	8,426	( 634)	327	( 8,541)	338,193
*Income includes realised	gains.				Note 13d
Prior Year Endowment Funds	At 1 January 2024	Income*	Expenditure	Unrealised Gains/(Losses)	Transfers	At 31 December 2024
Total Endowment Funds 2024	325,950	619	( 269)	9,204	3,111	338,615

*Income includes realised gains.

13c(ii). Endowment Funds Expendable Endowment Glebe property (investment) Glebe property (operational) Parsonage House Fund Permanent Endowment Sole Trust Permanent Endowment Total Endowment Funds Prior Year Endowment Funds Total Endowment Funds 2024		Fixed Asset Tangible Investments Current Assets Creditors Net Assets £’000 £’000 £’000 £’000 £’000 29,791 - 21,335 4 51,130 30,544 33,780 ( 22,516) ( 39) 41,769 235,235 - 5,054 ( 706) 239,583 - 5,711 - - 5,711 295,570 39,491 3,873 ( 741) 338,193 Fixed Asset Tangible Investments Current Assets Creditors Net Assets
		294,429 39,991 5,058 ( 863) 338,615

Glebe Property Funds

This represents the net book value of glebe property with movements shown in note 7. Rental income from glebe property is credited to general funds where it is used to fund clergy stipend payments. This fund also represents the carrying value of glebe investments and cash, which is used for the purchase and refurbishment of glebe operational and investment properties. When a property is sold, the sale proceeds are credited to these funds. The use of glebe assets is governed by the Diocesan Stipends Funds Measure 1953 and the Endowments and Glebe Measure 1976.

Parsonage House Fund

These funds are used for the purchase and refurbishment of freehold and leasehold benefice houses (see note 7), as well as cash and investments used for the purchase and refurbishment of houses that form part of this fund.

Sole Trust Permanent Endowment

This fund represents those amounts held under the LDF’s sole trusteeship where the capital is not expendable.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

13d. Transfer between funds – detailed breakdown of movements

Transfers relating to first call on realised gains being funding the general fund deficit Designation of Diocesan and Area Building Funds Transfer of budgeted items in the General Fund to various designated funds Net transfers (to)/from designated funds at year-end Net transfers (to)/from restricted funds at year-end	General Designated Restricted Endowment Total *Reference* £’000 £’000 £’000 £’000 £’000 5,999 2,542 - ( 8,541) -i - 600 ( 600) - - ii ( 3,648) 3,648 - - - iii ( 186) 186 - --iv 208 ( 27) ( 181) - - v 2,373 6,949 ( 781) ( 8,541) -

Note 13a Note 13b Note 13c

i. The LDF set a deficit budget for the General Fund for 2025 which made clear that the deficit would be funded by sales of surplus property. These sales can originate in Endowment (Parsonage) or Designated (corporate) funds. Proceeds of sales of Parsonages have to go to the Diocesan Pastoral Account (DPA) first and then can be redistributed based on choices set by the Church Property Measures. Sales of corporate property do not need to go through the DPA.
ii. Transfer to move all Building Funds to Designated Funds, to improve the compliance with measures and accounting guidance
iii. The LDF budget included a number of transfers between the funds – these were mainly relating to the property expenditure. The agreed annual contribution from the Housing Strategy Fund to the Clergy Housing Maintenance Budget which helps to pay for the costs incurred in the general fund, the transfer of budgeted quinquennial and ingoing expenditure from the general fund to the designated maintenance fund allows for better smoothing of lumpy costs and the unpredictable split between maintenance and capital expenditure. Finally, the Area Pastoral Funds transfer represents General Fund annual budget to fund area grants supporting parishes.
iv. These relate to transfers agreed at the year-end between the General Fund and specific designated funds in normal course of the business.
v. These relate to transfers agreed at the year-end between the General Fund and specific restricted funds in normal course of the business.

In addition to the transfers listed above, there is several year end transfers netting each other off within the same fund, hence not visible in the note 13d. These are included in notes 13a(i) and 13c(i).

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

14. Notes to the cash flow statement

Notes to the cash flow statement

4. Notes to the cash flow statement Notes to the cash flow statement
		2025		2024
		Total		Total
		£’000		£’000
14a. Reconciliation of operating (deficit) to
operating cash flows
Operating (deficit)		(7,785)		(4,183)
Depreciation release		56		63
(Increase)/decrease in debtors		969		538
Increase/(decrease) in creditors		8,199		(1,781)
Non-cash movement in pension liability		-		-
Investment and rental income		(6,977)		(7,248)
Net cash (outflow) from operating activities		(5,538)		(12,611)
		2025		2024
		Total		Total
14b. Gross cash flows		£’000		£’000
Cash flows from investing activities
Dividends and interest received		1,486		1,596
Rental Income		5,491		5,651
Sale of property		25,288		5,928
Purchase of property		(11,498)		(11,273)
Other fixed asset purchases		(30)		(18)
Sale of investments		9,898		116
Purchase of investments		(8,902)		(7,498)
Net cash (outflow)/inflow from investing activities		21,731		(5,499)
		2025		2024
		Total		Total
14c. Cash flows from financing activities		£’000		£’000
Revolving Credit Facility		(5,000)		5,000
Net cash inflow from financing activities		(5,000)		5,000

Increase/(Reduction) in cash in the year		11,193		(13,110)
14d. Analysis of changes in net funds
	At 01			At 31
	January	Cash		December
	2025	flows	Other	2025
Funds	£’000	£’000	£’000	£’000
Cash at bank and in hand	4,317	11,193		15,510
Value linked loans and Closed Churches Liability due after one year	(11,452)	-	462	(10,990)
	(7,135)	11,193	462	4,520

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

15. Pensions

5. Pensions
Pension liabilities Lay staff pensions (see note a below) Clergy pensions (see note b below)	2025 Total £’000 - - -	2024 Total £’000 - -
		-

15(a). Lay staff pensions

The LDF participates in the Defined Benefits Scheme section of the Church Workers Pension Fund (CWPF) for lay staff. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers.

CWPF has two sections:

the Defined Benefits Scheme
the Pension Builder Scheme, which has two subsections:
a. a deferred annuity section known as Pension Builder Classic, and,
b. a cash balance section known as Pension Builder 2014.

Defined Benefits Scheme

The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries.

For funding purposes, DBS is divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the General Reserve (formerly the Life Risk Section). The General Reserve exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns.

The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. This does not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers’ sub-pools to the General Reserve and all pensions and death benefits are paid from the General Reserve.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the General Reserve, is exposed to actuarial risks associated with the current and former employees of other entities participating in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pensions costs charged to the SoFA during the year are contributions payable towards benefits and expenses accrued in that year (2025: £NIL, 2024: £NIL) plus the figures in relation to the DBS deficit highlighted in the table below as being recognised in the SoFA, giving a total charge of £NIL for 2025 (2024: £NIL).

If, following an actuarial valuation of the General Reserve, there is a surplus or deficit in that reserve, further transfers may be made from the General Reserve to the employers’ sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be settled by the Church of England Pensions Board having taken advice from the Actuary.

A valuation of DBS is carried out once every three years. At the most recent valuation at 31 December 2022 there was a surplus of £73.6m.

The next actuarial valuation is due at 31 December 2025.

In 2024, the Board entered into a full buy-in agreement with Aviva to insure all accrued benefits within the DBS of the CWPF. It was also agreed that some employers could use assets in the DBS in lieu of contributions to Pension Builder Classic and/or Pension Builder 2014.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

15(a). Lay staff pensions (continued)

Over the year to 31 December 2025, £305,177 of surplus assets from the DBS has been used to fund contributions in Pensions Builder for the LDF

The Church of England Pensions Board agreed that deficit contributions should cease with effect from 31 December 2022 for employers whose pools were estimated to be materially in surplus. As a result, there is no obligation recognised as a liability within the Employer’s financial statements as at 31 December 2024 or 31 December 2025.

	2025	2024
Balance sheet liability at 1 January	-	-
Deficit contribution paid	-	-
Interest cost (recognised in SoFA)	-	-
Remaining change to the balance sheet liability (recognised in SoFA)	-	-
Balance sheet liability at 31 December	-	-

The legal structure of the scheme is such that if another employer fails, the employer could become responsible for paying a share of that employer’s pension liabilities.

Pension Builder Scheme

Both sections of the Pension Builder Scheme are classed as defined benefit schemes.

Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable (2025: £305,177, 2024: £136.677).

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2022.

For the Pension Builder Classic section, the valuation revealed a surplus of £34.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2026, the Board chose to grant a discretionary bonus of 10% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 1997 service so that the pension increase was also 10% (where usually it would be calculated based on inflation up to an annual cap of 5% for pensions in payment in respect of service prior to April 2006 and 2.5% for pensions in payment in respect of service post April 2006 ). This followed improvements in the funding position over 2025. There is no requirement for deficit payments at the current time.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

15(a). Lay staff pensions (continued)

For the Pension Builder 2014 section, the valuation revealed a surplus of £8.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The next valuation is being carried out as at 31 December 2025.

The legal structure of the scheme is such that if another employer fails, employer could become responsible for paying a share of the failed employer’s pension liabilities.

15(b). Clergy pensions

From 1 January 1998, Diocesan clergy became members of the Church of England Pensions Scheme (CEFPS). This non-contributory Scheme provides benefits based on national minimum stipend. The Church of England Pensions Board is the trustee and administers the Pension Scheme. The Scheme provides pensions that relate to pensionable service from 1 January 1998. The Scheme’s assets are held separately from those of the LDF. Past service clergy pensions for service before 1 January 1998 are paid by the Church Commissioners at no cost to the LDF.

The LDF is the sponsoring employer for 557 members (2024: 564) of the Scheme out of a total membership of approximately 7,268 active members.

Each participating Responsible Body in the Church of England Funded Pensions Scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, which were £3,482k in 2025 (2024: £3,716k), plus any figures arising from contributions in respect of the Scheme’s deficit (see below).

A valuation of the Scheme is carried out once every three years. The 2021 valuation showed the Scheme to be fully funded. The most recent Scheme valuation completed was carried out at as 31 December 2024, and also showed the Scheme to be fully funded; as such in 2025, the deficit contributions paid were £0 (2024: £0 ).

The December 2024 valuation revealed a surplus of £560m, based on assets of £2,570m and a funding target of £2,010m, assessed using the following assumptions:

An average discount rate of 6.0% pa;
RPI inflation of 3.4% pa (and pension increases consistent with this);
CPIH inflation in line with RPI less 0.7% pa pre 2030 moving to RPI with no adjustment from 2030 onwards;
Increases in pensionable stipends in line with CPIH;
Mortality in accordance with 90% of the S4NA_L tables, with allowance for improvements in mortality rates from 2017 in line with the CMI2023 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7, an initial addition to mortality improvements of 0.5% pa and an allowance for 2020 and 2021 data of 20% (i.e. w = 20%).

The 2024 valuation reflects the benefit improvements that the General Synod agreed in principle in July 2025 (and confirmed in February 2026).

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there were no deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2024 and 31 December 2025 is nil.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund: Financial Statements for the year ended 31 December 2025

15(b). Clergy pensions (continued)

The movement in the balance sheet liability over 2024 and over 2025 is set out in the table below.

Balance sheet liability at 1 January Deficit contribution paid Interest cost (recognised in SOFA) Remaining charge to the balance sheet liability* (recognised in SoFA) Balance sheet liability at 31 December	2025 £’000 - - - - -	2024 £’000 - - - -
		-

comprises change in agreed deficit recovery plan and change in discount rate between year ends.

The legal structure of the scheme is such that if another Responsible Body fails, the LDF could become responsible for paying a share of that Responsible Body’s pension liabilities.

16. Members’ Liability

The London Diocesan Fund is a company registered in England as a company limited by guarantee, having no share capital. At 31 December 2025 there were 42 members (2024: 41) who were liable to contribute £1 each in the event of the company being wound up.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Custodian Trusts – Custodian Trustee Report and Non-Statutory Financial Statements for the year ended 31 December 2025

The following pages do not form part of the statutory financial statements of the London Diocesan Fund for the year ended 31 December 2025

Contents		Page
Report of the Custodian Trustee		77
Non-Statutory Financial Statements		78
Notes to the Custodian Trusts Financial Statements		79
Independent Auditors’ Report to the Custodian Trustee of	the Funds	82

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Report of the Custodian Trustee

The council of the London Diocesan Fund, usually acting as Custodian Trustee under ecclesiastical and UK law, presents the report and non-statutory financial statements for the year ended 31 December 2025.

Legal Status

Under the Parochial Church Councils (Powers) Measure 1956, the London Diocesan Fund acts as Diocesan Authority (in effect, custodian trustee) of parish buildings and land. It also acts as custodian trustee for monies held on specific trust. These pages report the specific trust holdings only and provide an aggregation of the financial assets of some 88 separate trusts (89 in 2024). Land and building assets held by the London Diocesan Fund as Diocesan Authority are not shown.

Certain title and trust deeds are held in the name of the Bishop of London’s Fund. This is a corporate body that pre-dated the formation of the London Diocesan Fund in 1918 and in which some property and capital were vested. For day-to-day purposes, its activities have been subsumed into the London Diocesan Fund since 1 January 1918.

Review of the Year

Total incoming resources from interest and dividends for the period was £0.6m (2024: £0.6m)

Funds continue to be expended in line with the purposes for which they were intended, with £0.6m expended for charitable purposes during 2025 (2024: £0.6m). The funds expended vary year on year in line with the specific needs of the managing trustee bodies.

The overall value of funds held by the London Diocesan Fund as custodian trustee at 31 December 2025 was £18.7m (2024: £19.3m). The decrease of £0.6m from the prior year is attributable to unrealised losses on investments of £0.6m.

Statement of Custodian Trustee’s responsibilities

The Charities Act 2022 requires managing trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the funds and of their incoming resources and application of resources, including their income and expenditure.

The Custodian Trustee has chosen to prepare these statements in accordance with the Charities Act 2022. In preparing these financial statements in accordance with the Charities Act 2022, the Custodian Trustee is required to:

select suitable accounting policies and then apply them consistently,
make judgements and estimates that are reasonable and prudent, and
state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements.

The Custodian Trustee is responsible for keeping proper accounting records with respect to the transactions and the financial position of the funds and to enable them to ensure that the financial statements comply with the Charities Act 2022. The Custodian Trustee has general responsibility for taking such steps as are reasonably open to it to safeguard the assets of the funds and to prevent and detect fraud and other irregularities.

Jacquie Driver

Chair of the Diocesan Finance Committee and Lay Vice-Chair of Bishop’s Council 5 May 2026

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Non-Statutory Financial Statements of the Custodian Trusts Statement of Financial Activities – for the year ended 31 December 2025

	Permanent	Restricted	Restricted	Total	Total
	Endowment	Capital	Unexpended	2025	2024
	Fund	Fund	Income
	£m	£m	£m	£m	£m
Income and endowments from:
Investment income	-	-	0.6	0.6	0.6
Total income	-	-	0.6	0.6	0.6
Expenditure on:
Income paid to beneficiaries	-	-	(0.4)	(0.4)	(0.4)
Objects of the trusts	-	(0.2)	-	(0.2)	(0.2)
Total expenditure	-	(0.2)	(0.4)	(0.6)	(0.6)
Net (expenditure) before investment gains	-	(0.2)	0.2	-	-
Net (losses)/gains on investment assets	(0.4)	(0.1)	(0.1)	(0.6)	0.4
Net (resources expended)/incoming resources	(0.4)	(0.3)	0.1	(0.6)	0.4
for the year
Additional new resources	-	-	-	-	0.2
Net movement in funds for the year	(0.4)	(0.3)	0.1	(0.6)	0.6
Reconciliation of funds:
Funds at 1 January 2025	15.4	2.8	1.1	19.3	18.7
Funds at 31 December 2025	15.0	2.5	1.2	18.7	19.3

Custodian Trusts Balance Sheet – as at 31 December 2025

		Total	Total
	Notes	2025	2024
Assets		£m	£m
Fixed Asset Investments	2	17.5	18.2
Current Asset Investments	3	1.2	1.1
Net Assets		18.7	19.3
Funds
Permanent Endowment	2	15.0	15.4
Restricted - Capital	2	2.5	2.8
Restricted – Unexpended Income	3	1.2	1.1
		18.7	19.3

The notes on pages 79-81 form part of these non-statutory financial statements. The non-statutory financial statements of the custodian trustee were approved by the Diocesan Bishop’s Council acting as custodian trustee on 5 May 2026.

Jacquie Driver The Revd Christopher Trundle Chair of the Diocesan Finance Committee Clerical Vice-Chair of Bishop’s Council

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Notes to the Custodian Trusts Financial Statements – for the year ended 31 December 2025

1. Accounting policies

These non-statutory financial statements have been prepared in accordance with applicable accounting standards in the United Kingdom and the Statement of Recommended Practice, ‘Accounting and Reporting by Charities’. A summary of the principal accounting policies, which have been applied consistently except as stated, is set out below.

a. Basis of Preparation

Under the Parochial Church Councils (Powers) Measure 1956, the London Diocesan Fund acts as custodian trustee of parish buildings and land. The London Diocesan Fund also acts as custodian trustee for monies held on trust. These pages report the specific trust holdings only and provide an aggregation of the transactions and balances of the financial assets of some 88 trusts (89 in 2024).

The Balance Sheet as at 31 December 2025 has been prepared, together with a Statement of Financial Activities, which analyses the movement in funds. Comparative figures for 2024 have been provided.

The non-statutory financial statements have been prepared on a basis consistent with figures included in the LDF’s Balance Sheet. As custodian trustee, the LDF prepares these non-statutory financial statements on the historical cost basis of accounting, adjusted for the revaluation of investment.

As the LDF has no day to day control over their disposition, custodian trusts are not included within the LDF’s main figures.

A cash flow statement has not been prepared as the custodian trustee considers that each custodian trust meets the criterion of a ‘small’ company for this purpose.

A specific trust bank account is maintained for trust transactions. Each trust has its own designated investment ledger and account codes.

It is the LDF’s policy that where possible all income should go directly to the beneficiaries.

b. Fund Balances

All funds are subject to the specific conditions imposed by the donor or by the terms of the trust deed or other applicable legal instrument. The expendable capital funds and unexpended income are classified as restricted funds. Endowment funds are funds subject to the condition that they be held as permanent capital.

Income and expenditure on restricted funds are taken directly to the appropriate fund except to the extent that income is freely available to the managing trustees; and unexpended income from endowment assets is carried forward as a restricted fund.

c. Investment Income

Dividend and interest income is accounted for on a receipts basis. Rental income is accounted for on an accruals basis.

d. Other Income and Expenditure

Additional capital represents capital introduced to an existing custodian trust, or the creation of a new trust. Expenditure on objects of the trusts represents the spending of capital and income in line with the terms of the trust deed or other applicable governing instrument.

e. Investments

Investments are stated at market value, calculated by reference to the mid-market value at 31 December. Realised and unrealised gains or losses on investments in the year are credited to the appropriate funds.

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Notes to the Custodian Trusts Financial Statements ( continued )

2. Fixed Asset Investments represented by Permanent Endowment Capital

M&G Charifund Sarasin Responsible Global Equity Fund Investments held by CCLA: CBF Short Duration Bond CBF Investment Fund CBF Global Equity Fund COIF Investment Fund CBF Property Fund Deposits held by CCLA: CBF Deposit Fund	1 January Unrealised Other Movements 31 December 2025 Additions Disposals Gains/(Losses) and Transfers 2025 £’000 £’000 £’000 £’000 £’000 £’000 812 - - 140 - 952 32 - - 1 (2) 31 17 - - - - 17 11,984 - - (478) - 11,506 68 - - (4) - 64 706 108 - - - - (31) 2 - - 675 110 1,705 - - - - 1,705
	15,432 - - (370) (2) 15,060

M&G Charifund
Sarasin Responsible
Global Equity Fund
Investments held by
CCLA:
CBF Short Duration Bond
CBF Investment Fund
CBF Global Equity Fund
COIF Investment Fund
CBF Property Fund
Deposits held by CCLA:
CBF Deposit Fund

1
January
Unrealised
Other
Movements
31
December
2025
Additions
Disposals
Gains/(Losses)
and Transfers
2025
£’000
£’000
£’000
£’000
£’000
£’000
812
-
-
140
-
952
32
-
-
1
(2)
31
17
-
-
-
-
17
11,984
-
-
(478)
-
11,506
68
-
-
(4)
-
64
706
108
-
-
-
-
(31)
2
-
-
675
110
1,705
-
-
-
-
1,705

15,432
-
-
(370)
(2)
15,060

Fixed Asset Investments represented by Expendable Capital

Investments held by CCLA: CBF Short Duration Bond CBF Global Equity Fund CBF Investment Fund Deposits held by CCLA: CBF Deposit Fund Total Fixed Assets	1 January Unrealised Other Movements 31 December 2025 Additions Disposals Gains/(Losses) and Transfers 2025 £’000 £’000 £’000 £’000 £’000 £’000 148 - - 4 - 152 229 - - (13) - 216 1,801 - (193) (64) - 1,544 604 18 (46) - - 576
	2,782 18 (239) (73) - 2,488

	18,214 18 (239) (443) (2) 17,548

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Notes to the Custodian Trusts Financial Statements ( continued )

3. Current Asset Investments represented by Unexpended Income from Permanent Endowment Assets

Investments held by CCLA: CBF Investment Fund Deposits held by CCLA: CBF Deposit Fund	1 January Unrealised Other Movements 31 December 2025 Additions Disposals Gains/(Losses) and Transfers 2025 £’000 £’000 £’000 £’000 £’000 £’000 286 4 - (12) - 278 685 185 (46) - (10) 814
	971 189 (46) (12) (10) 1,092

Current Asset Investments represented by Unexpended Income from Expendable Capital Assets

Investments held by CCLA: CBF Investment Fund Deposits held by CCLA: CBF Deposit Fund Other Assets/(Liabilities) Total Current Assets TOTAL	1 January Unrealised Other Movements 31 December 2025 Additions Disposals Gains/(Losses) and Transfers 2025 £’000 £’000 £’000 £’000 £’000 £’000 2 - - - - 2 45 5 - - 10 60
	47 5 - - 10 62
	27 - - - (3) 24
	1,045 194 (46) (12) (3) 1,178

	19,259 212 (285) (455) (5) 18,726

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

Independent Auditors’ Report to the Custodian Trustee of the Funds

We have audited the non-statutory financial statements of Custodian Funds for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the Custodian Trustee as a body. Our audit work has been undertaken so that we might state to the Custodian Trustee 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 Custodian Trustee as a body for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors

As explained more fully in the Statement of Custodian Trustee’s Responsibilities set out on page 61, the Custodian Trustee is responsible for the preparation of the non-statutory financial statements which give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate.

Opinion on the non-statutory financial statements

In our opinion the non-statutory financial statements give a true and fair view of the financial position of the Custodian Funds as at 31 December 2025 and of their incoming resources and application of resources for the year then ended.

Moore Kingston Smith LLP Statutory Auditor 6th Floor, 9 Appold Street, London EC2A 2AP

Date: 15/06/2026

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

Docusign EnvelopÈ ID." EEF4EC8C-778C-863D-83A&E984E04F9DAF li iu Jiiiiii 11 1.1 +++,1

Docusign Envelope ID: EEF4EC8C-778C-863D-83A5-E984E04F9DAF

London Diocesan Fund London Diocesan House 36 Causton Street London SW1P 4AU

www.london.anglican.org 020 7932 1100

The London Diocesan Fund includes the Bishop of London’s Fund and Associated Organisations. The London Diocesan Fund is a Company Limited by Guarantee, registered in England Number 150856, Charity Registration Number 241083. Registered Office as above