Annual Financial Information
Summary of the 2008/09 financial year
The 2008/09 financial year marked a year of steady progress by the Authority, with virtually all of the targets set for the year being effectively achieved.
Key highlights included:
- Action Area Working - 87 projects were funded in the year with a total grant value of £81,700 matched with over £400,000 of partner funding.
- Traditional Boundaries Traditional Skills - after three years the training programme has restored 6,050 metres of drystone walls, created over 20 new micro-businesses in countryside management and resulted in virtually all trainees in employment.
- Northumberland Uplands Local Action Group were supported by the Authority as lead partner and became the first of the 60- plus LEADER action groups in mainland England to provide grants to businesses and community groups. The first grant went to a project to pilot climate change adaption in the Cheviots.
- Sustainable Development Fund supported 40 applications which were completed within the year – all but two were to local community groups and businesses. Over £490,000 of grants were claimed and £2.6m of matched funds attracted in the year.
- ‘Seeding Change’ – this community biodiversity project was successfully completed with: 21 fields treated with seed (60 hectares); seven fields planted (2,000 plants); 9,000 wildflowers grown and planted by volunteers and trainees; 12 school grounds treated; 127 school visits by approximately 35 different schools; 46 community walks and talks; 22 business and tourism walks and talks; 15 national park guided walks; 60 volunteer projects. In total nearly 7,000 people benefited through practical projects, school visits, walks, talks, and training days.
- Local Development Framework – the Authority’s planning strategy was approved by the government’s planning inspector and was adopted by the Authority in March 2009. The new policy will help deliver more sustainable development and ways of living in the Park, whilst safeguarding important local facilities.
- National Park Management Plan – the new Draft Management Plan was developed by key stakeholders. Towards the end of the year the draft plan was subject to public consultation which indicated a high level of support for the future vision and ambition for the Park. This was The revised National Park Management Plan will be adopted in 2009.
The key areas of corporate risk were:
- Local Government Review – with the assistance of Defra, the Authority was able to ensure membership changes were managed so as to ensure a smooth transition. A one-off grant from Defra to purchase the National Park Centre in Rothbury has ensured the future of this important operational base for the Authority; and
- Sub-National Review – engagement with regional partners and joint working through the English National Park Authorities Association has enabled the Authority to ensure a role as one of the strategic planning authorities for the North-East of England as a member of the North East Leaders Board.
Northumberland National Park Authority was unable to avoid the most serious impacts of the financial crisis and the effects of the beginning of a recession. Although income from visitor centres and interest earned on cash balances fell, an increase in the number of people holidaying at home did ensure car park income was maintained and, whilst visitors spent less, numbers held-up. Staff turnover reduced considerably during the year, reflecting a down-turn in the regional jobs market. The budget outturn was on target and the addition of new one-off funds has enabled the Authority to establish an effective Planning Reserve to address issues such as planning enforcement.
The economic downturn did have a dramatic effect on the broader financial profile of the National Park Authority. Northumberland, as the least funded National Park Authority, has experienced years of core grant under-funding leaving the Authority particularly vulnerable to such changes. The Authority has continued to take steps to manage down its core staffing costs. The Authority has embarked on a plan to reduce operating costs by £120,000 (3%), to follow savings of over £350,000 in the previous years. Thus in the short-term the Authority is financial stable.
The main impact of the economic downturn has been the collapse in equity values (stock market investments) which have pushed the deficit on the Authority’s pension fund from £1.5m up to £3.1million. The deficit is higher than the value of the Authority’s capital assets and reserves. Hence the Authority has a negative total reserve value of £0.7m. This is a long-term issue which will rely on long-term solutions such as improvements in stock market performances, additional contributions into the pension scheme and the implementation of the government’s fairer funding formula for those national park authorities, such as Northumberland, who receive below national formula settlements. The level of uncertainty in the future requires the Authority to be cautious with it financial resources, whilst meeting public and partner expectations for providing quality services and addressing new national priorities, such as being an exemplar in climate change, stimulating the rural economy and improving access for all sections of society to the National Park.
Northumberland National Park Authority manages its finances through a medium term financial plan. The key financial indicators are shown below:
