National Trust Annual Report 2020/21 National Trust Annual Report 2020/21 1 The National Trust in brief Our purpose To look after special places throughout England, Wales and Northern Ireland for everyone, for ever. About us In 1895, our founders, Octavia Hill, Robert Hunter and Hardwicke Rawnsley, pledged to preserve our historical and natural places. Their aim was not only to save important sites, but to open them up for everyone to enjoy. From this trio of environmental pioneers, the National Trust was created – and their original values are still at the heart of everything we do 125 years later. As Europe’s largest conservation charity, we look after special places for the nation to enjoy. We rely on our millions of members, volunteers, staff and supporters. Without your help, we wouldn't be able to protect the miles of coastline, woodland and countryside, and the hundreds of historic buildings, gardens and precious collections that are in our care. The National Trust cares for: • more than 500 historic houses, castles, parks, and gardens • more than one million items in our collections • more than 250,000 hectares of land • more than 780 miles of coastline This Annual Report can also be viewed online at www.nationaltrustannualreport.org.uk The National Trust for Places of Historic Interest or Natural Beauty is a registered charity (no. 205846). It is incorporated and has powers conferred on it by Parliament through the National Trust Acts 1907 to 1971 and under the Charities (National Trust) Order 2005. The Trust is governed by a Board of Trustees whose composition appears on page 48. A brief description of the Trust’s organisation is given on pages 37 to 47. Our bankers, investment advisers and independent auditors are identified on page 88 and the contact details for our principal offices are listed on page 106. This Annual Report has been prepared by the Board of Trustees and covers the period March 2020 to February 2021. 2 National Trust Annual Report 2020/21 Contents Message from the Chair and Director-General 2 Board of Trustees’ report for 2020/21 3 Strategic Report: Nature, beauty, history. For everyone, for ever – our strategy to 2025 5 Our performance 2020/21 6 Looking after 7 Land and nature 9 Experiences 12 Urban places 14 Growing support 16 People and resources 20 Climate and environment 24 Financial review 26 Governance – structure, management and internal control 37 Annual report of the Council 2020/21 50 The financial statements 2020/21: Consolidated statement of financial activities 52 Balance sheet 53 Consolidated cash flow statement 54 Notes to the financial statements 55 Independent auditors’ report to the Trustees of the National Trust 85 The Trust’s advisers 88 Glossary of financial, property and fund terms 89 Operating margin 90 Year on record: Acquisitions of properties, works of art and other objects 91 Visiting figures 93 Grants and donations 95 Supporter groups 96 Legacies 97 Contact details 106 National Trust Annual Report 2020/21 Contents 1 Message from the Chair and Director-General We are pleased to present this report describing how the National Trust responded to the unprecedented challenges which arose due to the Covid-19 pandemic during 2020/21, the Trust’s 125th anniversary year. The kind, energetic and dedicated way that our staff and volunteers have responded to everything that this tumultuous year has thrown at us has been humbling, and we are immensely proud of what we have achieved together. It is therefore with great sadness that we report the passing of both staff and volunteers as a result of Covid-19 and we extend our sincere condolences to their families and friends. Photography © National Trust Images Trust © National Photography John Millar Trust/ ©National Photography 2020 was a year of firsts for the National Trust. Never had every single property been legally obliged to close, and almost the whole organisation was put into hibernation, with the majority of our staff furloughed and most volunteers asked to pause their support. Lockdown made our day-to-day lives unrecognisable. Tim Parker Hilary McGrady Chair Director-General While managing lockdowns and reopenings, we faced difficult 21 July 2021 21 July 2021 decisions as we looked for a way to contend with our significantly reduced visitor income and the resulting financial loss. These decisions meant re-shaping our organisation to make us leaner, A personal message from our outgoing Chair more flexible and more resilient so that we could readily adapt to In October I will step down from my role as Chair. During this the quickly changing environment. We are confident that we will time, I have met wonderful people and visited astonishing emerge from the pandemic with the right resources in place to places. I have learned more than I could ever have imagined implement our strategy. and been inspired by a charity whose knowledge and expertise Octavia Hill, one of the National Trust’s founders, once said that is needed today as much as at any time in its history. without space ‘we cannot reach that sense of quiet in which The last year has been one of the most difficult in the history whispers of better things come to us.’ More than a century later, of the Trust. Having completed two terms, I agreed to stay on her words feel more relevant than ever. as Chair to provide stability during the pandemic. I took the The pandemic has not impacted every person equally, and those decision to stand aside this year in the knowledge that the living without access to nature or culture were particularly affected Trust is well placed for post-pandemic recovery and already by lockdown restrictions. Our legacy from this period of time resuming its work to protect and care for places so that should ensure that everyone can enjoy nature-rich green spaces people and nature can thrive. on their doorstep and access local heritage and the shared cultural The Director-General and her team, the Board of Trustees and spaces that help bring communities together. the Council are strong and determined to deliver a strategy As we recover from the pandemic, we will continue to play our part that meets the conservation challenges of the day. in supporting the nation. The National Trust remains steadfastly I wish them and all involved with the National Trust well and committed to conservation and to helping everyone enjoy the thank you for your support during my time as Chair. special places in our care for the long term. Tim Parker, Chair Your membership and support are the National Trust’s future. Thank you to everyone who has supported our work over this most challenging year. 2 National Trust Annual Report 2020/21 Message from the Chair and Director-General Board of Trustees’ report for 2020/21 The Trustees are pleased to present the 2020/21 Annual Report & Accounts of the National Trust. The financial year began three weeks before the start of the first lockdown in the UK and concluded when the nation was in its third lockdown. A year like no other It was also clear that the fall in membership would result in In the year that marked 125 years since the foundation of the lower revenues in the following years, even if all limitations were National Trust, we expected to hold celebrations, continue or lifted by the end of the year. This necessitated a reduction in complete important and exciting nature and conservation projects costs on an ongoing basis too. In July 2020, having reviewed the and welcome record numbers of visitors to our places. financial forecasts, the Board authorised the Executive Team to launch a consultation on a structural cost reduction programme, The pandemic changed all that, for the National Trust as for so including reductions in staff numbers. This is never easy, but the many others. For the first time ever we were legally required to overarching requirement to avoid a rapid and continued drain on shut down all our houses, our estates and our offices. It was a huge reserves made this an essential step. The restructure led to the shock to all who work or volunteer for the organisation. loss of 1,767 staff, out of an overall headcount of 12,389, made up of 845 voluntary and 922 compulsory redundancies. Emergency structures and decision-making processes were quickly developed: the Board worked very closely with the Executive team These combined actions resulted in an annual reduction in costs to reflect on the implications and to examine and approve action of £94.5 million. While these losses are individually very hard, the plans. The Board met 20 times during the year, adapting to and overall headcount of the Trust after this programme is at levels making the best of virtual working, both to conduct the normal comparable to 2013. business of the Trust and to consider pandemic-related matters ranging from the change in the security needs of our houses to the These decisions were made after much deliberation. We challenging financial picture as it unfolded. remain immensely proud of our dedicated and loyal staff and determined to maximise the amount we continue to spend on our Responding to secure our long-term future conservation work without jeopardising our future sustainability. The pandemic abruptly reversed a long period of growth in We are already seeing the reintroduction of some of our most membership and revenues. It quickly became clear that operating pressing projects. The actions that we took, alongside the signs of income would reduce by more than £200 million in the 2020/21 recovery that we have seen in recent months, give us confidence financial year compared to the budget that we had set, which in the long-term sustainability of the organisation.