17 Jul 2020
Two veterinary professionals urge the regulator to use its £18.7 million reserve to help vets and VNs facing financial hardship due to coronavirus emergency.
John Bonner
Job Title
The RCVS has come under pressure to use its large cash reserves to help vets and VNs facing financial hardship as a result of the coronavirus emergency.
During its first virtual Royal College Day on 10 July, president Niall Connell read two communications from members urging the regulator to use its £18.7 million reserve to help colleagues.
The first, from BVA president Daniella Dos Santos, sought details of the college’s strategy on maintaining a strategic reserve of funds.
She noted that the organisation’s annual report last year revealed the cash reserve was now £10.1 million above the original target of £8.6 million.
That report said that the increase in reserves had been created to provide funding for planned projects and the RCVS estates strategy.
While recognising that some details of the RCVS plans for acquiring a new headquarters building might be confidential, Dr Dos Santos asked how much of the increased reserves were being earmarked for the estates strategy and how much for the planned projects.
Dr Dos Santos also wanted to know whether the effects of the coronavirus lockdown had made RCVS officers review their plans to find larger premises to accommodate a projected increase in staff numbers.
She said the changes in working practices resulting from COVID-19 had demonstrated that many office workers can work well from home: “In the light of this, are you reassessing the need for larger accommodation as part of the estates strategy?”
Her third point reminded RCVS officers that many members had suffered a significant drop in their income since the lockdown was announced in March. She asked: “COVID-19 has put a lot of financial pressures on veterinary professionals – will you consider using the substantial reserves to offer a reduction in annual retention fees?”
Dr Connell responded by pointing out that the RCVS reserves policy was “intended to provide resilience for the organisation in the event of unexpected costs and financial losses, and funding for future activities under the strategic plan”. He acknowledged that the royal college was currently holding reserves “ahead of the usual formula in order to fulfil our estates strategy”.
The president explained that many of the costs associated with the proposed move would be subject to negotiation with other organisations. Details of the estates policy are therefore considered confidential to allow the college to obtain the best possible deal for its members.
On the subject of retention fees, these were fixed by RCVS council as part of its annual budget setting exercise. The fees for next year will not increase, but he said “a reduction was not being considered at the present time because the reserves have been built up for a specific purpose”.
