Firstly, the governors were keen to remember that in spite of all the difficulties, a significant goal has already been achieved through the refurbishment and refitting of the library. This was always the first priority, with the old library having been identified as a weakness by our validating body, the University of Wales. You have probably heard many times already how wonderful the new library is, but it is a fact worth repeating and an achievement to be celebrated.

The other two major aspects of the appeal have been an onsite accommodation block for married students and an atrium to link the two buildings and provide wheelchair access to almost all areas. Both are worthy projects, but as we have been forced to prioritize it has become clear that the block would be a greater need. However, our calculations about the block have always been based on the

assumption that it would be VAT-free because it is a new build providing student accommodation. This assumption had been checked by a VAT expert and the governors had every reason to be confident that the advice was sound. Our new auditors, Mazars, cast doubt on this and HMRC have now confirmed that the block is subject to VAT because spouses of students will not always be students themselves.

 

Coming at a point where we were on the verge of appointing a contractor, this was a major blow. The governors have considered possible options for challenging or getting around HMRC’s view, but are reluctant to spend more

money on pursuing the rather speculative possibilities which are to hand. An emergency appeal to raise the additional £200,000 was also considered, but rejected for two reasons: firstly, because churches and church members are under a lot of financial pressure at this time; and secondly, because this additional money adds nothing to the project: it is purely spent on tax.

 

Beyond this major stumbling block of VAT, there are other factors which make us pause. The financial climate in the nation and indeed worldwide is dramatically different to how it was when the plans were drawn up. Along with many other Christian organisations we have to safeguard our core purpose, which for us is the training of men and women to better minister Christ in the local church and beyond. Nothing must deflect us from performing our evangelical legacy and mandate. Such a major financial investment at this time must be weighed against the need to secure the future of the College. Whilst the accommodation block would have the great virtue of enhancing the College community by bringing married accommodation onsite, it is likely that the block would add little to the value of the site and certainly could not be sold as an asset in times of crisis. What’s more there are pressing needs within the plant of the College that need immediate attention. Fire escapes, wheelchair ramps and replacing the roof on the Lodge may have little cosmetic appeal, but they have to be done and at considerable expense.

There is another consideration which weighs heavily with the governors. Traditionally the College has relied on legacy income for around £100,000 each year, which is about 8% of the budget, but in recent years those legacies have not materialized. We are now resolved to balance the annual budget without relying on legacies - or making extravagant raids on the substantial capital funds we have available. Achieving this end will be a major challenge.

 

The original objective of providing additional accommodation has not been forgotten. The governors have asked the Buildings Group to look at the needs of the College and the money which is available. Among the options to be considered is that of buying property off site. Such a property or properties would not only provide accommodation but also be a fixed and perhaps growing asset that could be drawn upon at some future date. And who knows, one day in the love of God, such a tangible purchase might be a vital asset available for the building of the new block on campus we have so long prayed, hoped and planned for.

by Robert J Amess

Chair of College Governors