{"alias":"newsItem","byline":"","standfirst":"Last August, we shared with you some of the challenges around the UK HQ finances. A year later, we wanted to update you on where we are today.","content":{"layouts":[{"type":"singleColumn","areas":[{"items":[{"gridType":"RichTextBlock","content":"\u003Cp\u003E\u003Cstrong\u003E\u003Cem\u003EThis news story has been updated on 3 September 2021 to clarify the messaging around the UKHQ membership fee.\u00A0\u003C/em\u003E\u003C/strong\u003E\u003C/p\u003E\n\u003Cp\u003EThe pandemic meant, like many other organisations, we were left in a difficult financial position. This has been clear in many updates and online meetings shared last year, and was the deciding factor to sell Baden-Powell House (BP House) and Scout Adventures Downe campsite. Considering some of the challenges we were set to face, we can update that we finished this financial year in a better position than we had originally predicted.\u003C/p\u003E\n\u003Cp\u003EA big contribution to this was due to the \u00A32.147 million grant UK headquarters received from the Government as part of the Youth COVID-19 Support Fund. This is largely thanks to the lobbying in November 2020 from some Counties, Areas and Regions to release some funding support for the youth sector. It is also due to the difficult financial decisions we took over the past year including making redundancies.\u003C/p\u003E\n\u003Cp\u003EFull details on our finances will be available when we publish our Annual Report in September.\u003C/p\u003E\n\u003Cp\u003ESadly, last year we informed you of our decision to sell BP House. Whilst we know many members have great memories from visiting BP House, we took the decision as the building\u0027s use in recent years was only 2% by Scouts.\u003C/p\u003E\n\u003Cp\u003EThis led to \u00A334 million being added to our reserves, after an external valuation in last year\u2019s market. Following a competitive process the final sale price has added an extra \u00A310 million which will be reflected in the 2020/21 accounts.\u003C/p\u003E\n\u003Cp\u003EWhilst our finances are in a better position than predicted, it was still important that we sold BP House now, as we anticipate further deficits in the coming years. We experienced a significant decline in our 2021 membership figures and we\u2019re not expecting any more support from Government to help balance costs, i.e. the furlough scheme. In addition, the sale of BP House also allow us to place our reserves in a more diversified, flexible range of investments. \u00A0\u003C/p\u003E\n\u003Cp\u003EWe\u2019re aiming to use the money to protect us against any future events which could affect the movement by holding 12 months operating costs in reserve, which amounts to \u00A320 million. We\u2019re then going to use at least \u00A310 million to advance our \u2018Skills for Life\u2019 strategy work and support our volunteers at this critical time in our recovery. We aim to make sure our volunteers are well placed to support the resurgence, especially in the communities hardest hit by the pandemic. That then gives us the remainder to recapitalise Scout Stores and repay our borrowings.\u003C/p\u003E\n\u003Cp\u003EOur priority has always been to retain frontline support for volunteers. We have therefore been maintaining and enhancing services and will continue to do so, as the movement bounces back.\u003C/p\u003E\n\u003Cp\u003EAt the time we announced we would sell BP House, we also announced our intention to sell Downe Activity Centre, due to the investment needed for the site. We\u2019re in discussions with a group called Friends of Downe who are fundraising to buy the site so it can remain accessible to Scouts \u2013 they will be working over the next six months to raise the funds to purchase the site.\u003C/p\u003E\n\u003Cp\u003EFinally, we\u2019re also pleased to say we\u2019ll be reducing next years\u2019 UK HQ membership fee from \u00A336.50 to \u00A335.00 per youth member \u003Cspan\u003E(or \u00A334.50 for prompt payment by 23 April 2022).\u003C/span\u003E\u00A0This fee covers the essential ongoing costs to support the movement, such as helping to cover increasing operating costs to manage safety and safeguarding.\u003C/p\u003E\n\u003Cp\u003EThis cost is just the UK HQ part of the membership fee. Every Nation HQ, County/Area/Region, District and Group will be reviewing their own financial situation to set their own additions to this membership fee to cover the cost of running Scouts at each local level. We\u2019re sure you\u2019ll hear about the membership you have to pay for your area soon.\u003C/p\u003E\n\u003Cp\u003ELast year was difficult for everyone and we had to make difficult and bold decisions. Because of those decisions, we can look to the future with confidence and optimism to ensure even more young people learn skills for life.\u003C/p\u003E","gtmId":"","gtmClass":""}]}],"config":null}]},"searchDescription":null,"pageType":null,"location":null,"versionDate":"03 August 2021","reviewDate":null,"furtherReading":[{"caption":"","title":"Why we need to take action now for a brighter future","url":"https://www.scouts.org.uk/news/2020/november/why-we-need-to-take-action-now-for-a-brighter-future/","newWindow":false},{"caption":"","title":"Scouts announce plan to protect movement\u2019s future","url":"https://www.scouts.org.uk/news/2020/november/scouts-announce-plan-to-protect-movement-s-future/","newWindow":false},{"caption":"","title":"Protecting our movement for a brighter future","url":"https://www.scouts.org.uk/news/2020/august/protecting-our-movement-for-a-brighter-future/","newWindow":false}],"relatedLinks":[{"caption":"","title":"Finances and insurance","url":"https://www.scouts.org.uk/volunteers/running-things-locally/finances-and-insurance/","newWindow":false},{"caption":"","title":"UK Headquarters membership fee","url":"https://www.scouts.org.uk/volunteers/running-things-locally/finances-and-insurance/uk-headquarters-membership-fee/","newWindow":false}],"id":50388,"nodeName":"Update on the UK HQ financial situation","title":"Update on the UK HQ financial situation","type":"newsItem","image":{"url":"/media/12108/fdl-hp.jpg?width=800\u0026height=450\u0026v=1dab8e1b20252a0","caption":"Scouts purple logo","type":"jpg","size":93039,"width":1268,"height":664,"altText":"An image of a purple background showing the white Scouts logo"},"assets":null,"headerOptions":{"headerTitle":"Update on the UK HQ financial situation","headerSubTitle":null,"headerCta":null,"headerCtaText":null,"headerCtaLink":null,"headerBackgroundColour":null,"showSEOImage":false,"headerBackgroundImage":null,"quickLinks":null},"subHeader":"Last August, we shared some of the challenges around the UK HQ finances. A year later, we update where we are today","browserTitle":null,"silktide":"eyJjbXMiOiJVbWJyYWNvIiwiZWRpdG9yVXJsIjoiaHR0cHM6Ly9wcm9kLWNtcy5zY291dHMub3JnLnVrLy91bWJyYWNvIy9jb250ZW50L2NvbnRlbnQvZWRpdC81MDM4OCJ9","canonicalUrl":"https://www.scouts.org.uk/news/2021/august/update-on-the-uk-hq-financial-situation/"}