Corporate report

Financial statements

Published 18 July 2025

Applies to England and Wales

Departmental financial statements

Statement of Comprehensive Net Expenditure for the period ended 31 March 2025

	Note	2024-25 £’000	2023-24 £’000
Other operating income	3.1	(412)	(777)
Total operating income		(412)	(777)
Staff costs	4.1	330,683	320,228
Purchase of goods and services	3.2	72,575	80,641
Depreciation, amortisation and impairment charges	3.2	29,529	27,213
Provision movements and payments	3.2	5,610	(9,904)
Total operating expenditure		438,397	418,178
Net operating expenditure		437,985	417,401
Finance income: Interest	5	(22)	(26)
Finance expense: Finance leases	6	1,947	1,036
(Profit)/Loss on disposal of non-current assets		20	(44)
Net expenditure for the year		439,930	418,367
Other comprehensive net expenditure
Items which will not be reclassified to net operating expenditure
Net (gain)/ loss on revaluation of property, plant and equipment		–	(21)
Comprehensive net expenditure for the year		439,930	418,346

Statement of Financial Position as at 31 March 2025

	Note	2024-25 £’000	2023-24 *Restated £’000
Non-current assets
Intangible assets	8	89,554	91,486
Assets under construction	9	71,999	46,904
Right-of-use assets	10	39,541	60,938
Property, plant and equipment	7	18,126	18,634
Trade and other receivables	12	4,533	3,273
Total non-current assets		223,753	221,235
Current assets
Trade and other receivables	12	15,714	12,516
Cash	11	13,008	22,871
Total current assets		28,722	35,387
Total assets		252,475	256,621
Current liabilities
Short-term provisions	14.1	667	636
Lease obligations	10	3,215	5,074
Indemnity Fund	14.2	43,400	43,800
Trade and other payables	13	64,792	74,228
Total current liabilities		112,074	123,738
Non-current assets plus net current (liabilities)/assets		140,401	132,883
Non-current liabilities
Lease obligations	10	38,538	57,342
Total non-current liabilities		38,538	57,342
Net (liabilities)/assets		101,863	75,541
Taxpayers’ Equity
General Fund	SoCTE	101,863	75,541
Total Equity		101,863	75,541

*Late notification of asset creation has resulted in the restated figures in the prior year, an increase of Intangible assets and corresponding decrease of Assets under construction of £8.4m, as shown in Notes 8 and 9.

The notes on pages 91 to 109 are an integral part of these accounts.

Simon Hayes
Chief Executive and Chief Land Registrar
7 July 2025

Statement of cash flows for the period ended 31 March 2025

	Note	2024-25 £’000	2023-24 £’000
Cash flows from operating activities
Net operating income/ (expenditure)	SoCNE	(437,985)	(417,401)
Adjustments for non-cash transactions:
Depreciation of property, plant and equipment	3.2	10,110	11,378
Amortisation of intangible assets	3.2	18,479	15,730
Impairment of non-current assets		940	518
(Increase)/ decrease in trade and other receivables		(4,666)	(1,769)
Increase/ (decrease) in trade and other payables		427	8,359
Release from general fund	14	–	845
Less movements not passing through the SoCNE		(198)	21
Auditor’s remuneration	3.2	200	127
Change in Indemnity Fund	14.2	5,610	(10,882)
Change in Early Release and Other provisions	14.1	32	(412)
Use of Indemnity Fund Provision	14.2	(6,010)	(2,318)
Use of other provisions	14.1	–	(845)
Net cash inflow/ (outflow) from operating activities		(413,061)	(396,649)
Cash flows from investing activities
Purchase of tangible assets	7	(5,495)	(5,189)
Purchase of intangible assets	8, 9	(42,582)	(41,974)
Net cash inflow/ (outflow) from investing activities		(48,077)	(47,163)
Cash flows from financing activities
From the Consolidated Fund (Supply) – current year	SoCTE	456,599	451,332
Repayments of capital element of obligations under finance leases	10	(3,196)	(5,524)
Interest element of obligations under finance leases	6	(1,947)	(1,036)
Capital repayment of lessor leases in year	10	207	208
Interest received	5	22	26
Net financing		451,685	445,006
Net increase/ (decrease) in cash and cash equivalents in the period before adjustment for payments to the Consolidated Fund		(9,453)	1,194
Payments of amounts due to the Consolidated Fund		(410)	(633)
Net increase/ (decrease) in cash and cash equivalents in the period after adjustment for receipts and payments to the Consolidated Fund		(9,863)	561
Cash and cash equivalents at the beginning of the period	11	22,871	22,310
Cash and cash equivalents at the end of the period	11	13,008	22,871

Statement of changes in Taxpayers’ Equity for the period ended 31 March 2025

	Note	General Fund £’000	Total reserves £’000
Balance at 31 March 2023		39,147	39,147
Deemed Supply		22,310	22,310
Net Parliamentary Fund – drawn down		451,332	451,332
Comprehensive net expenditure for the year	SoCNE	(418,367)	(418,367)
Amounts paid to the Consolidated Fund	SoCF	(633)	(633)
Auditor’s remuneration	3.3	127	127
Reversal of Asset Impairment		3,179	3,179
Provision utilised/written back against AME		1,317	1,317
Income payable to the Consolidated Fund	13	(44)	(44)
Amounts payable to the Consolidated Fund for year	13	(22,827)	(22,827)
Balance at 31 March 2024		75,541	75,541
Balance b/f		75,541	75,541
Deemed Supply	11	22,871	22,871
Net Parliamentary Fund – drawn down		456,599	456,599
Comprehensive net expenditure for the year	SoCNE	(439,930)	(439,930)
Amounts paid to the Consolidated Fund	SoCF	(410)	(410)
Auditor’s remuneration	3.3	200	200
Income payable to the Consolidated Fund	13	(45)	(45)
Amounts payable to the Consolidated Fund for the year	13	(12,963)	(12,963)
Taxpayers’ Equity at 31 March 2025		101,863	101,863

Notes to departmental accounts

1. Statement of accounting policies

1.1 Basis of preparation

These financial statements have been prepared in accordance with the Government Financial Reporting Manual (FReM) 2024-25 and comply with the Accounts Direction given by HM Treasury. The accounting policies contained in the FReM follow International Financial Reporting Standards (IFRS), as adapted or interpreted for the public sector context. Where the FReM permits achoice of accounting policy, the accounting policy that has been judged to be the most appropriate to the particular circumstances of HM Land Registry for the purposesof giving a true and fair view has been selected. HM Land Registry’s accounting policies have been applied consistently in dealing with items considered material in relation to the financial statements.

In addition to the primary statements prepared under IFRS, the FReM also requires the Department to prepare a Statement of Parliamentary Supply and supporting notes to show Outturn against Estimate in terms of net resource requirement and net cash requirement.

The Department is legally obliged under the Land Registration Act 2002 to provide statutory services relating to land registration and there are sufficient reserves to support the Department going forward. In common with other government departments, the future financing of the Department’s liabilities is to be met by future grants of Supply and the application of future income, both to be approved annually by Parliament.It is therefore considered appropriate to prepare these accounts on a going concern basis.

These accounts have been prepared under the Government Resource and Accounts Act 2000.

Accounting standards issued but not yet effective IFRS 17 Insurance Contracts replaces IFRS 4 (of the same name) and is effective in the FReM from 1 April 2025. FReM 2025-26 interprets IFRS 17 for use in the public sector. That interpretation states that ‘legislation and regulations, in isolation, are not the equivalent to insurance contracts’. Therefore, as anticipated, there is no accounting impact for HM Land Registry as a result of IFRS 17.

1. 2. Accounting convention

The financial statements have been prepared on an accruals basis under the historical cost convention modified for the revaluation of Property, Plant and Equipment, Investment Properties, Assets Held for Sale and Intangible assets, where material, are to be measured at fair value in accordance with the relevant accounting standards.

1.3. Areas of significant estimate and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believedto be reasonable under the circumstances. The estimates and judgements that had a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the accounting period are:

• Note 8 - The valuation and useful economic life (UEL) of the intangible assets. The valuation is the direct replacement cost of the register and the data that is currently in use. The replacement cost includes all costs that are reliably measured and the remaining UEL is reviewed each financial year to determine whether events and circumstances continue to support the remaining life chosen for that asset.

• Note 14.2 - estimation of the provision required to settle all known and Incurred But Not Reported(IBNR) indemnity claims - where uncertainty exists for the proportion of outstanding claims that will ultimately be paid, the value of those payments and the effect of any legal judgements. For IBNR claims, the number of unreported claims is unknown, asis the point at which an error is discovered and the value of any potential claim.

1.4 Income from contracts with customers

IFRS 15 Revenue from Contracts with Customers has been adopted. The income recognition criteria within IFRS 15 are consistent with HM Land Registry accounting policy. All Statutory fees and charges are held in a separate HM Land RegistryTrust Statement. Income in the Statement of Net Expenditure relates to property rental income which is recognised as the amounts fall due.

1.5 Operating segments

HM Land Registry’s operating segments are the directorates which are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The six reportable business segments are: Chief Executive and Chief Land Registrar’s Directorate, Corporate Services, Customer and Strategy, Data and Register Integrity, Service Delivery Group, and Transformation & Technology.

This is based on the group’s internal organisation and management structure, and is the primary way inwhich the CODM is provided with financial information. The CODM of HM Land Registry is Simon Hayes, Chief Executive and Chief Land Registrar.

1.6 Employee benefits

The cost of providing employee benefits is recognised in the period in which HM Land Registry receives services from its employees, rather than when it is paid or payable. Short-term employee benefits are recognised as an expense in the period in which the employee renders the service. Performance payments are recognised only when there is a legal or constructive obligation to pay them and the costs can be reliably estimated. Termination benefits are recognised when it can be demonstrated that there is an irreversible agreement to terminate the employment of employee(s) before the schemes’ retirement date or as a result of an offer to encourage voluntary redundancy.

1.7 Pensions

HM Land Registry employees are civil servants who are entitled to be members of the Principal Civil Service Pension Scheme (PCSPS) or the Civil Servant and Other Pension Scheme (CSOPS) - known as ‘Alpha’. Theseare unfunded multi-employer defined benefit schemes, but HM Land Registry is unable to identify its share of the underlying assets and liabilities on a reasonable and consistent basis. HM Land Registry has therefore accounted for contributions and payments to these schemes under International Accounting Standard (IAS)19 Employee Benefits as if they were defined contribution schemes. Liability for the payment of future benefits is a charge on the PCSPS or Alpha scheme.

Employees can alternatively opt to open a partnership pension account, which is a stakeholder pension with an employer contribution.

1.8 Property, plant and equipment

HM Land Registry is required by the FReM to disclose non-current assets in the Statement of Financial Position at fair value. For assets in use the FReM requires operational assets to be measured at fair value using current value in existing use, rather than market value as required by IAS 16 Property Plant and Equipment. Details of FReM adaptations which continue to apply for 2024- 25 can be found on GOV.UK (search ‘Financial Reporting Manual 2024-25’).

For short-life non-property assets, historical cost is used as an approximation to the fair value of the asset.

All other tangible non-current assets are included at historical cost less accumulated depreciation and impairment losses.

Assets in the course of construction are not depreciated. For other assets the depreciation charge is calculated so as to allocate the cost or revalued amount, lessthe estimated residual value, of non-current assets systematically over their remaining useful lives using the straight-line method.

Other property, plant and equipment includes IT and office equipment and machinery. HM Land Registry capitalises expenditure over £2,500 for an individual asset. Where appropriate, individual assets falling below the minimum value for capitalisation are grouped. It is HM Land Registry’s policy not to capitalise expenditure on fixtures or fittings, principally office furniture, as they are not considered material.

Asset lives are reviewed at the end of each financial year.

The following asset depreciation rates are used:

Leasehold buildings	Period of the lease or estimated useful life
Telecommunications equipment	5 years
Office equipment	5 years
Computers: Mainframe	3 to 10 years
Computers: PCs/Laptops	5 years
Structured cabling	10 years
Plant and heavy machinery	10 years

1.9 Leases

HM Land Registry accounts for the majority of its leases under IFRS 16 Leases, with the costs, depreciation and other associated disclosure described in Note 10.

These assets and liabilities exclude those that have a lease with a short-life (less than 12 months), or areconsidered ‘low-value’ under IFRS 16. HM Land Registry holds a single lease which it defines as low value, currently valued at £6k. For this particular lease, the low value criteria is appropriate as it relates to a very small sub-lease within a much larger government property.

Initial recognition

At the commencement of the lease, HM Land Registry recognises a right-of-use asset and a lease liability.

The lease liability is measured at the payment forthe remaining lease term (as defined above), net of irrecoverable value added tax, discounted either by the rate implicit in the lease, or (where this cannot be determined), HM Land Registry’s central internal rateof borrowing. The payments included in the liability are those that are fixed, or in substance fixed, excluding charges arising (from future rent reviews or indexation). The right-of-use asset is measured at the value of the liability, adjusted for: any payments made or amounts accrued before the commencement date; lease incentives received; incremental costs in obtaining the lease; and any disposal costs at the end of the lease.

Subsequent measurement

Following changes to a lease, such as modification to thearea leased, rent payable or length of lease, the right- of-use assets are measured using the cost model. The liability is adjusted for interest repayments. These updates use the borrowing rate correct at the time of modification.

Lease expenditure

Expenditure includes interest, straight-line depreciation and any asset impairments and any changes in variable lease payments not included in the measurement of the liability during the period in which the triggering event occurred. Lease payments are debited against the liability. Rental payments for leases where the term is 12 months or less, or where the lease is classified as low value, are expensed.

Borrowing rate

HM Land Registry uses a HM Treasury discount rate as its incremental borrowing rate. HM Treasury’s PES (2024) 10 paper states that the incremental borrowing rate (a nominal rate) for leases commencing after December 2024 is 4.81% (2023: 4.72%).

1.10 Intangible assets

Intangible assets are stated at historical cost less accumulated amortisation and accumulated impairment losses as a proxy for fair value, since no active market exists for the department’s intangible assets.

Annual review of Useful Economic Life (UEL) of IntangibleAssets

In 2023-24, HM Land Registry performed its annual review of the UELs of Intangible Assets in accordance with IAS 38 Intangible Assets. HM Land Registry’s review used both internal indicators and also benchmarked its UELs against those used in comparable organisations within the public sector. No changes were made to HM Land Registry’s UELs in 2024-25.

Bespoke internally developed software	10 years
Data assets	15 years

Local Land Charges

HM Land Registry completed the building and development of a computerised register to hold the Local Land Charges data in July 2018. As of 31 March 2025, the data relating to 125 Local Authorities have been added to the register and are in use (2023-24: 96 Local Authorities).

Under IAS 38, development costs have been capitalised for two separate assets: a database to hold the information; and the data itself, which needs to be cleansed, digitised and migrated to this database.Following commencement of the register service, these components are amortised over their respective useful lives of:

Local Land Charges register	10 years
Local Land Charges data	15 years

Software and software licences

Separately acquired intangible assets are shown at historical cost. The costs incurred to acquire and bring these assets to use are capitalised. These include contractors’ charges, materials, directly attributable labour and directly attributable overhead costs.Software licences are included at cost less accumulated amortisation. They are amortised on a straight-line basis at a rate of:

Mainframe software	5 years
Software system	10 years
Software licences	As per licence agreements

HM Land Registry’s approach to software development is set-out in Note 1.12.

E-security, portal and Business Gateway

The e-security, portal and Business Gateway assets had all been fully amortised by the start of the financial year, but are included in the accounts as they are still in use.

1.11 Assets Under Construction

All Assets Under Construction (AUC) are held at cost. HM Land Registry recognises four categories of AUC: Tangible – Other, Intangible – Local Land Charges, Intangible – Transformation Digital, and Intangible – Other. These classes of asset relate to the capitalisation of LocalLand Charges costs during the year, case management improvements, mainframe to cloud-based migration and digital mortgage. More details about digital mortgage can be found on GOV.UK (search ‘HM Land Registry Digital Mortgage Service Contingent Liability’).

Intangibles other – Software development costs

In accordance with IAS 38, expenditure incurred on developing new IT infrastructure (covering third-party costs and the direct costs of in-house staff effort)are capitalised. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by HM Land Registry are recognised as intangible assets when the requirements of IAS 38 are met.

Directly attributable costs that are capitalised as part of the software product include the software development employee costs and an appropriate portion of relevant overheads. Other development expenditure that does not meet these criteria is recognised as an expense as incurred. Development costs previously expensed are not recognised as an asset in a subsequent period.

All research expenditure is written off as incurred.

Expenditure incurred in software development is recorded as an intangible asset under construction and is then transferred into use as an intangible asset once that software and associated data is made available by HM Land Registry to its customers (either as part of the Local Land Charges Programme or Other).

Software development costs are categorised as ‘assets under construction’ within Note 9.

Intangibles – Local Land Charges

HM Land Registry is working with various local authorities to transfer their land charges data to HM Land Registry’s digital platform.

Transformation Digital Assets

Digital software assets developed from work within HM Land Registry’s Corporate Services.

Tangible – other

This area reflects other HM Land Registry workstreamsincluding the development of IT infrastructure.

1.12 Impairment of non-current assets

Impairment reviews are undertaken at each year-end and if there are indications that the asset has suffered an impairment loss a charge is reflected in the Statement of Comprehensive Net Expenditure in the year in whichit occurs. If the asset is carried at a revalued amount, the impairment loss is treated as a revaluation decrease, to the extent of the revaluation reserve that relates to the asset, with any excess in the Statement of Comprehensive Net Expenditure. Currently, HM Land Registry has £0.0m in its revaluation reserve. If any such indication exists,the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Therecoverable amount is the higher of fair value less costs to sell and value in use.

For assets under construction, an annual review is undertaken to confirm that these assets still meet the measurement criteria within IAS 38 Intangible Assets.

1.13 Trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for irrecoverable amounts. These impairment provisions are recorded in administrative expenses within the Statement of Comprehensive Net Expenditure. The carrying amount of trade receivables is deemed to be an approximation of fair value.

If collection of amounts receivable is expected in one year or less they are classified as current assets. If not, they are presented as non-current assets.

1.14 Cash and cash equivalents

Cash represents cash-in-hand and cash held with the Government Banking Service (GBS).

1.15 Trade payables

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are stated at nominal value. The carrying amount of trade payables is deemed to be an approximation of fair value.

Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

1.16 Provisions

HM Land Registry provides for legal and constructive obligations that are of uncertain timing or amount at the Statement of Financial Position date, on the basis of management’s best estimate at that date of the expenditure required to settle the obligation. As the effect of discounting is immaterial, it is included as part of the revaluation to that provision in year, rather than disclosed on a separate line. Provisions are charged to the Statement of Comprehensive Net Expenditure and recorded as liabilities in the Statement of Financial Position. (Further details, including sensitivities, are given in Note 14.)

1.17 Indemnity Fund

Schedule 8 to the Land Registration Act 2002 requires HM Land Registry to indemnify third parties against loss caused by mistakes in the register, mistakes in search results and loss of documents by HM Land Registry. Most of HM Land Registry’s indemnity claims arise as a result of mistakes in the register, and some of thesemistakes are the result of forgery of documents such as charges. Indeed fraud/forgery usually accounts for the largest share of indemnity payments, and this year is no exception. Under Schedule 8 to the Act, HM Land Registry has statutory rights to recover these payments fromthird parties, where it is the case that third parties are responsible, either wholly or partly for the loss.

As at the current accounting date, future claim payments are uncertain in timing and amount. The Indemnity Fund is established on the basis of the best estimate of the expenditure required to settle the obligation. The Indemnity Fund is determined after considering actuarial estimates of the cost of claims reported but not settled, as well as claims incurred but not reported. The estimated cost of claims includes expenses incurred in settling these claims.

The carrying amount of the Indemnity Fund is derived from critical judgements, estimates and assumptions based upon historical experience and other factors which are considered to be relevant. These estimates and underlying assumptions are reviewed on a quarterlybasis by HM Land Registry, supported by its independent actuary, the Government Actuary’s Department (GAD).

After the accounting date, a further review of claims received by HM Land Registry (up to the date the Accounting Officer approves the Annual Report and Accounts) is made to see if the Indemnity Fund is still appropriately valued. Provided in these accounts are the likely settlement values of current and future claims against the Indemnity Fund. Further details of the Indemnity Fund are shown in Note 14.2 of this report.

1.18 Contingent liabilities

Where appropriate, liabilities that have only a possible chance of crystallising and do not meet the provisions criteria have been classified as contingent liabilities. This includes, but is not limited to, claims for losses arising from errors, or fraud in relation to HM Land Registry’s statutory responsibilities as insurer of titles in England and Wales (see Note 15).

1.19 VAT

HM Land Registry accounts for VAT on its statutory activities under HM Treasury’s Taxing and Contracting Out of Services Directions. For non-statutory activities, which are business activitivies, VAT is charged and recovered according to commercial VAT rules. Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase costs of non-current assets.Where output tax is charged or input tax is recoverablethe amounts are stated net of VAT.

2. Operating segments

2.1 Statement of Operating Expenditure by Operating Segment

2024-25	Business as usual £’000	Central costs £’000	Projects £’000	Total expenditure £’000
Chief Executive & Chief Land Registrar’s Directorate	3,784	–	–	3,784
Corporate Services	35,761	37,888	10,027	83,676
Customer & Strategy Group	8,249	–	–	8,249
Data & Register Integrity Group	9,680	6,011	–	15,691
Service Delivery Group	259,714	3	2,377	262,094
Transformation & Technology	51,832	–	14,604	66,436
Total	369,020	43,902	27,008	439,930
2023-24
Chief Executive & Chief Land Registrar’s Directorate	3,928	–	–	3,928
Corporate Services (restated)	21,910	30,145	10,648	62,703
Customer & Strategy Group	10,219	–	–	10,219
Data & Register Integrity Group	23,563	2,281	–	25,844
Service Delivery Group	247,241	–	2,453	249,694
Transformation & Technology (restated)	49,534	–	16,447	65,981
Total	356,395	32,426	29,548	418,369

Operating segments are determined in accordance with IFRS 8 Operating Segments based on what information is presented for decision making purposes to the Chief Operating Decision Maker (CODM). The CODM for HM Land Registry is the Accounting Officer.

The structure of HM Land Registry means that materially all of the assets included in the Statement of Financial Position are used for general administration and benefit of HM Land Registry as a whole. Consequently, they are not apportioned to operating segments in the table above.

The reportable segments changed in 2024-25; Transformation & Technology was previously 100% included within Corporate Services, it is now shown separately, and the 2023-24 figures have been restated on that basis.

The description for each operating segment is stated below:

Chief Executive and Chief Land Registrar’s Directorate

We protect the reputation of HM Land Registry on behalf of the Chief Executive and Chief Land Registrar, building relationships with our stakeholders, including other parts of government.

Corporate Services

Corporate Services is made up of the following segments:

• Finance and Business Services: The Finance and Business Services directorate includes Facilities Management, Finance, Internal Audit, Commercial Group, Strategic Planning and Performance, and Insight, Data, Evidence and Analytical Support.

• Human Resources & Organisation Development: Human Resources & Organisation Development works to help HM Land Registry deliver its operational and organisational priorities, and build organisational capacity and capability to meet new challenges.

Customer & Strategy Group

The purpose of the Customer and Strategy Group is to help set the direction of the organisation and represent the voice of the customer, bringing together customer insight and knowledge of our external environment to shape and adjust our direction as needed.

Data & Register Integrity Group

We protect the integrity of the register, ensuring we have the rules, orders, directions and notices in place to operate effectively.

Service Delivery Group

The Service Delivery Group’s main function is to register land and provide a high quality and sustainable level of service to our customers, measured against a set of key performance indicators.

Transformation & Technology

We are responsible for providing high quality, resilient and secure services and systems, alongside delivering effective changes across HM Land Registry – from transformational programmes such as Local Land Charges and Automation to small day-to-day improvements.

Expenditure streams

The expenditure streams are split into three categories:business as usual (BAU); central costs; and projects. This division is designed to show the costs of running the directorate (BAU), additional tasks being completed by directorate (projects), and to separate out the central running costs for HM Land Registry (central costs).

Central costs

This category includes items such as staff leave accruals, property costs, depreciation, amortisation, provisions and impairments which are monitored by a single directorate but could be apportioned across the organisation. Below are explanations relating to the most significant variances arising in the central costs category.

Variance between Note 2. Operating Segments and Statement of Net Comprehensive Expenditure

The operating segments shown above are presented net of revenue (see Note 3).

3. Goods and services

3.1 Operating Income

	Note	2024-25 £’000	2023-24 £’000
Income from sale of goods and services		(412)	(777)
Total operating income		(412)	(777)

3.2 Other costs

Cash items	Note	2024-25 £’000	2023-24 £’000
IT and professional services		29,455	29,870
Accommodation costs		12,370	14,040
Other staff costs including training		10,332	11,089
Survey and scanning costs		5,339	4,597
File store costs		4,852	4,533
Local Land Charges transition and burden payments		3,378	3,473
Hire of machinery		3,276	2,989
First-tier Tribunal costs		3,551	3,250
Postage and printing costs		1,946	1,793
Office maintenance		903	1,552
Telecommunication costs		1,116	1,438
Advertising and marketing		750	879
Charge for operating leases – buildings	10	19	5
Other costs and unwinding of accruals		(4,892)	962
Total cash expenditure		72,395	80,470
Non-cash items
Amortisation of intangible assets	8	18,479	15,730
Depreciation of tangible non-current assets – owned	7	5,983	5,853
Depreciation of tangible non-current assets – leased	10	4,127	5,525
Impairment in value of non-current assets		940	106
Indemnity provision and payments for Indemnity including legal costs	14	5,610	(10,882)
Auditor’s remuneration – audit fee	3.3	200	127
Other provision movements		–	978
Total non-cash expenditure		35,339	17,437
Total other costs		107,734	97,907

Explanatory Note: Other costs and reversal of Accruals

In 2024-25, management undertook an in-depth review of all accrued expenditure, to verify if a future economic outflow remained probable. Where it was deemedthat insufficient appropriate evidence was available to demonstrate this, management reversed the accrual, which has been presented with other costs and totalled £2.5m.

3.3 Auditor’s Remuneration

Auditor’s remuneration is a notional fee in both financial years paid through the Supply Process, which is broken down as follows:

	2024-25 £’000	2023-24 £’000
Audit of Resource Accounts	175	100
Audit of Trust Statement Accounts	25	27
Total notional fee	200	127

4. Employee information

4.1. Staff costs

			2024-25			2023-24
	Permanent staff £’000	Others £’000	Total £’000	Permanent staff £’000	Others £’000	Total £’000
Salaries	237,051	2,931	239,982	235,408	1,463	236,871
Social security costs	26,074	276	26,350	25,915	141	26,056
Other pension costs	63,643	708	64,351	56,973	328	57,301
	326,768	3,915	330,683	318,296	1,932	320,228

4.2 Staff numbers

The average number of persons employed (full-time equivalent) by HM Land Registry during the year was made up as follows:

			2024-25			2023-24
	Permanent staff	Others	Total	Permanent staff	Others	Total
Senior management	7	–	7	6	–	6
Operations	4,868	14	4,882	4,946	4	4,950
Head Office	545	3	548	537	7	544
Transformation and Technology	738	57	795	739	25	764
	6,158	74	6,232	6,228	36	6,264

4.3

The salary and pension entitlements of the Chief Executive and the Directors of HM Land Registry are included in the Remuneration and Staff Report on pages 69 to 71.

The staff costs in Note 4.1 do not include those staff costs capitalised as part of the building of intangible assets.During 2024-25 £17.3m (2023-24: £12.7m) of staff costs was capitalised in the construction of these intangible assets.

4.4 Pensions

The Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and Other Pension Scheme (CSOPS)– known as “alpha” – are unfunded multi-employer defined benefit schemes but HM Land Registry is unable to identify its share of the underlying assets and liabilities. The scheme actuary, the Government Actuary’s Department (GAD), valued the PCSPS as at 31 March 2024, with the report published on 17 December 2024. You can find details in the resource accounts of the Cabinet Office: Civil Superannuation.

For 2024-25, employers’ contributions of £63.97m were payable to the PCSPS (2023-24 £57.0m) at the rate of 28.97% of pensionable earnings, based on salary bands.

The Scheme Actuary reviews employer contributions usually every four years following a full scheme valuation. The contribution rates are set to meet the cost of the benefits accruing during 2024-25 to be paid when the member retires and not the benefits paid during this period to existing pensioners.

Employees can opt to open a partnership pension account, a stakeholder pension with an employer contribution. Employers’ contributions of £0.3m were paid to one appointed stakeholder pension provider. Employer contributions are age-related and ranged from 8.0% to 14.75%.

Employers also match employee contributions up to 3.0% of pensionable earnings. In addition, employer contributions of £9,920, 0.5% of pensionable pay, were payable to the PCSPS to cover the cost of the future provision of lump sum benefits on death in service or ill- health retirement of these employees.

Contributions due to the partnership pension provider at the balance sheet date were £0.04m. Contributions prepaid at that date were £0.

Eight individuals retired early on ill-health grounds; the total additional accrued pension liabilities in the year amounted to £83,060.77 (2023-24: £51,461).

Further information relating to pension arrangements can be found in the Remuneration and Staff Report on pages 71 to 72 and Note 1.7.

5. Finance income

	2024-25 £’000	2023-24 £’000
Interest received on leases	22	26
	22	26

6. Finance expense: Finance leases

	2024-25 £’000	2023-24 £’000
Interest on obligations under finance leases	1,947	1,036
	1,947	1,036

7. Property, plant and equipment

7.1 2024-25

	Plant and equipment
Cost or valuation	IT-related assets £’000	Other plant and equipment £’000	Total £’000
At 1 April 2024	91,054	3,143	94,197
Additions	5,495	–	5,495
Disposals	(457)	–	(457)
At 31 March 2025	96,092	3,143	99,235
Accumulated depreciation
At 1 April 2024	73,376	2,187	75,563
Charged in year	5,980	3	5,983
Disposals	(437)	–	(437)
At 31 March 2025	78,919	2,190	81,109
Carrying amount at 31 March 2025	17,173	953	18,126
Asset financing
Owned	17,173	953	18,126
Carrying amount at 31 March 2025	17,173	953	18,126

7.2 2023-24

	Plant and equipment
Cost or valuation	IT-related assets £’000	Other plant and equipment £’000	Total £’000
At 1 April 2023	87,754	2,320	90,074
Additions	5,189	–	5,189
Assets brought into use	–	823	823
Disposals	(1,889)	–	(1,889)
At 31 March 2024	91,054	3,143	94,197
Accumulated depreciation
At 1 April 2023	70,055	2,183	72,238
Charged in year	5,849	4	5,853
Reclassification of assets	(655)	–	(655)
Disposals	(1,873)	–	(1,873)
At 31 March 2024	73,376	2,187	75,563
Carrying amount at 31 March 2024	17,678	956	18,634
Asset financing
Owned	17,678	956	18,634
Carrying amount at 31 March 2024	17,678	956	18,634

See Note 1.8 for details of the property, plant and equipment accounting policy.

See Note 1.12 for details of the impairment accounting policy.

8. Intangible assets

8.1 2024-25

Cost or valuation	E-security, portal and Business Gateway £’000	Local Land Charges £’000	Software and software licences £’000	Total £’000
At 1 April 2024	27,424	36,854	125,658	189,936
Additions	–	–	363	363
Assets brought into use	–	7,806	8,378	16,184
At 31 March 2025	27,424	44,660	134,399	206,483
Amortisation
At 1 April 2024	27,424	15,124	55,902	98,450
Charged in year	–	130	18,349	18,479
At 31 March 2025	27,424	15,254	74,251	116,929
Carrying amount at 31 March 2025	–	29,406	60,148	89,554
Asset financing:
Owned	–	29,406	60,148	89,554
Carrying amount at 31 March 2025	–	29,406	60,148	89,554

8.2 2023-24

Cost or valuation	E-security, portal and Business Gateway £’000	Local Land Charges £’000	Software and software licences £’000	* Restated Total £’000
At 1 April 2023	27,424	32,258	92,203	151,885
Additions	–	1	2,155	2,156
Assets brought into use	–	4,595	32,707	37,302
Disposals	–	–	(1,407)	(1,407)
At 31 March 2024	27,424	36,854	125,658	189,936
Amortisation
At 1 April 2023	27,424	13,246	42,774	83,444
Charged in year	–	1,878	13,852	15,730
Reclassification of assets	–	–	655	655
Disposals	–	–	(1,379)	(1,379)
At 31 March 2024	27,424	15,124	55,902	98,450
Carrying amount at 31 March 2024	–	21,730	69,756	91,486
Asset financing:
Owned	–	21,730	69,756	91,486
Carrying amount at 31 March 2024	–	21,730	69,756	91,486

See Note 1.10 for details of the intangible assets accounting policy. Late notification of asset creation has resulted in the restated figures in the prior year, as shown below.

2023-24 Assets brought into use	E-security, portal and Business Gateway £’000	Local Land Charges £’000	Software and software licences £’000	* Restated Total £’000
Original	–	4,595	24,292	28,887
Late notification adjustment	–	–	8,415	8,415
Restated amount	–	4,595	32,707	37,302

9. Assets under construction

	Tangibles	Intangibles
	Other assets £’000	Local Land Charges £’000	Restated: Transformation Digital Assets £’000	Total £’000
2024-25
At 1 April 2024	473	33,107	13,324	46,904
Additions	–	23,184	19,035	42,219
Brought into use	–	(7,806)	(8,378)	(16,184)
Impairment	–	–	(940)	(940)
Reclassification of assets	(415)	2,379	(1,964)	–
Carrying amount at 31 March 2025	58	50,864	21,077	71,999
2023-24			*Restated	*Restated
At 1 April 2023	1,247	20,159	23,850	45,256
Additions	30	17,588	22,200	39,818
Brought into use	(823)	(4,595)	(32,707)	(38,125)
Impairment	–	(45)	–	(45)
Reclassification of assets	19	–	(19)	–
Carrying amount at 31 March 2024	473	33,107	13,324	46,904

See Note 1.12 for details of the impairment accounting policy. Late notification of asset creation has resulted in the restated figures in the prior year, as shown below.

	Tangibles	Intangibles
	Other assets £’000	Local Land Charges £’000	Restated: Transformation Digital Assets £’000	Total £’000
2023-24
Assets brought into use			*Restated	*Restated
Original	(823)	(4,595)	(24,292)	(29,710)
Late notification adjustment	–	–	(8,415)	(8,415)
Restated amount	(823)	(4,595)	(32,707)	(38,125)

10. Leases

10.1 Quantitative disclosures around right-of-use assets

	Buildings 2024-25 £’000	Buildings 2023-24 £’000
Right-of-use assets: Buildings cost
At 1 April	78,472	79,374
Additions	2,366	1,532
Remeasurement	(8,454)	21
Derecognition	(14,314)	(2,455)
At 31 March	58,070	78,472
Right-of-use assets: Buildings depreciation
At 1 April	(16,641)	(11,719)
Depreciation expense	(4,339)	(5,740)
Derecognition	3,124	818
At 31 March	(17,856)	(16,641)
Carrying amount at 31 March	40,214	61,831

The value of HM Land Registry’s right-of-use assets and depreciation charge are offset by its lessor accounting as follows:

	£’000	£’000
Reduction in asset value due to lessor accounting
Opening balance	(893)	(2,576)
Additions	–	(12)
Derecognition	8	1,865
Remeasurement	–	28
Depreciation offset – current year	212	215
Accumulated depreciation on disposals	–	(413)
Closing asset value	(673)	(893)
Total value of HM Land Registry’s right-of-use assets	39,541	60,938

10.2 Quantitative disclosures around lease liabilities

Maturity analysis		2024-25 £’000	2023-24 £’000
Buildings - Right of use
Within one year		3,215	5,074
In the second to fifth years inclusive		12,691	19,712
After five years		25,847	37,630
Total minimum lease payments		41,753	62,416
Current		3,215	5,074
Non-current		38,538	57,342
Total		41,753	62,416

10.3 Quantitative disclosures around elements in the Statement of Comprehensive Net Expenditure

Amounts recognised in the Statement of Comprehensive Net Expenditure	2024-25 £’000	2023-24 £’000
Finance income: Interest received on leases	(22)	(26)
Depreciation	4,339	5,740
Finance charges: Interest on obligations under finance leases	1,947	1,036
Low value and short term leases	19	5
	6,283	6,755

10.4 Quantitative disclosures around cash outflow for leases

Amounts recognised in the Statement of Cash Flows	2024-25 £’000	2023-24 £’000
Repayment of leases in year – Lessor	(3,196)	(5,524)
Finance charges: Interest on obligations under finance leases	(1,947)	(1,036)
Repayment of leases in year – Lessee	207	208
Finance income: Interest received on leases	22	26

10.5 HM Land Registry as lessor

At 31 March the future minimum lease payments under non- cancellable leases are receivable as follows:

	2024-25 £’000	2023-24 £’000
Within one year	223	269
In the second to fifth years inclusive	257	445
After five years	318	315
	798	1,029

10. 6 Net lease liability reconciliation - Lessee

	2024-25 £’000	2023-24 £’000
At 1 April	62,416	67,939
Additions	2,366	1,532
Disposals	(11,379)	(1,552)
Revaluation	(8,454)	21
Payments	(5,143)	(6,560)
Interest	1,947	1,036
Carrying amount at 31 March	41,753	62,416

11 Cash at bank and in hand

	2024-25 £’000	2023-24 £’000
Balance at 1 April	22,871	22,310
Net change in cash balances	(9,863)	561
Balance at 31 March	13,008	22,871

HM Land Registry’s bank balances are held with the Government Banking Service.

12. Trade and other receivables

12.1 Current assets

	2024-25 £’000	2023-24 £’000
Other receivables	4,068	1,694
Right-to-use: Repayment in year	(207)	(207)
Prepayments and accrued income	11,439	10,608
	15,300	12,095
Right-to-use: Debtors	414	421
	15,714	12,516

The ‘Right-to-use: Repayment in year’ is correctly included in the ‘Receivables’ note. This is because when the lessees make payment, this balance decreases, which off-set against the ‘Right-to-use: Debtors’, so these should be presented together to provide a complete understanding of the underlying transactions.

The average credit period taken on provision of services is 2.7 days (2023-24: 3.1 days). No interest is charged on the receivables.

12.2 Non-current assets

	2024-25 £’000	2023-24 £’000
Right-to-use debtors	492	701
Other receivables	24	37
Prepayments and accrued income	4,017	2,535
	4,533	3,273

13. Trade and other payables

13.1 Current

		2024-25 £’000	2023-24 £’000
	Notes
Trade payables		4,678	3,287
Taxation and social security		6,229	6,339
Other payables		6,410	9,279
Accruals		34,467	32,452
Consolidated Fund Extra Receipts (CFER) Income due to the Consolidated Fund	11	45	44
Amounts issued from the Consolidated Fund for Supply but not spent at 31 March	11	12,963	22,827
		64,792	74,228
Lease obligations	10	3,215	5,074
		68,007	79,302

The average credit period taken for trade purchases is 8.2 days (2023-24: 5.7 days). The carrying amounts of trade payables are deemed to be an approximation of their fair values.

13.2 Non-current

	Notes	2024-25 ’000	2023-24 ’000
Lease obligations	10	38,538	57,342
		38,538	57,342

14. Provisions for liabilities and charges

14.1 Early release schemes and other

			2024-25				2023-24
	Early retirement & other £’000	Dilapidations £’000	Total £’000		Early retirement & other £’000	Dilapidations £’000	Total £’000
At 1 April	51	584	635		53	1,840	1,893
Provided during the year	32	–	32		–	61	61
Provision utilised in the year	–	–	–		(2)	(843)	(845)
Provision written back unused	–	–	–		-	(473)	(473)
At 31 March	83	584	667		51	585	636
Included in current liabilities	83	584	667		51	585	636
Included in non-current liabilities	–	–	–		–	–	–
	83	584	667		51	585	636

The early retirement provision (ERP) gives retirement benefits to certain employees. These benefits conform to the rules of the Principal Civil Service Pension Scheme (PCSPS). HM Land Registry bears the cost of thesebenefits until the normal retirement age of the employeesretired under the scheme. The total pension liability up to normal retiring age in respect of each employee ischarged to the Statement of Comprehensive Income in the year in which the employee takes early retirement and a provision for future pension payments is created. Pension and related benefit payments to the retired employee until normal retiring age are then charged annually against the provision.

Total payments in the year amounted to £0.0m, and£0.0m had been provided for within the ERP provision in the 2024-25 accounts (2023-24: payments £0.0m and provision of £0.0m).

Dilapidation provision

Dilapidation provisions are recognised where HM Land Registry has sufficient assurance that it will have to undertake works at the end of a lease to return the building to the state it was in when the lease commenced.

Early retirement and other provisions

Early retirement and other provisions reflect future costs which HM Land Registry is liable, where the obligating event has already occurred, but for which the timing and value remain uncertain.

14.2 Indemnity Fund

The Land Registration Act 2002 places a legal liability on HM Land Registry to indemnify for losses resulting from errors or omissions on the register of title. This includes errors resulting from frauds perpetrated by third parties. As a statutory insurer of titles in England and Wales, indemnity payments are not confined to mistakes made by HM Land Registry. HM Land Registry provides for these claims under its Indemnity Fund both for known claims and claims incurred but not reported (IBNR).

		2024-25			2023-24
	Outstanding Provision £’000	IBNR Provision £’000	Total £’000	Outstanding Provision £’000	IBNR Provision £’000	Total £’000
At 1 April	8,800	35,000	43,800	12,200	44,800	57,000
Provided in the year	6,010	–	6,010	2,318	–	2,318
Provisions utilised in the year	(6,010)	–	(6,010)	(2,318)	–	(2,318)
Claims revaluation	(700)	–	(700)	(3,400)	–	(3,400)
IBNR revaluation	–	300	300	–	(9,800)	(9,800)
At 31 March	8,100	35,300	43,400	8,800	35,000	43,800

Following the actuarial review by the Government Actuary’s Department (GAD), the fund in respect of reported but not settled claims (Outstanding Provision) has decreased in 2024-25 by £0.7m (2022-23: £3.4m decrease). The provision for claims incurred but not reported (IBNR Provision) has increased in 2024-25 by£0.3m (2023-24: £9.8m decrease).

The £0.4m decrease in the provision is driven by changes in the HM Treasury mandated Public Expenditure System (PES) discount rates and updating the data in the model to account for claims experience during the year.If inflation moves as predicted by the Bank of England, thevaluation may swing higher in future years.

The Outstanding Provision for claims received but not yet settled is an estimate and as it involves projecting future payments, the final amounts paid on these claims is uncertain. The main uncertainties are:

• the proportion of outstanding claims that will ultimately be paid;
• the value of the payments made; and
• the effect of any legal judgements.

The presence of large outstanding claims can add significantly to this uncertainty.

The IBNR Provision is greater and inherently more uncertain than the Outstanding Provision. Unlike the Outstanding Provision, which is based on existing claims information, the IBNR Provision covers potential claims that may be made as a result of errors that have already been introduced into the register as a result of day-to- day update activity (either through fraud and forgery or administrative error). The main uncertainties within the IBNR Provision are:

• the number of unreported errors currently within the Register is unknown;
• at what point in the future these errors will be discovered and claims made; and
• how much the cost of the corresponding claims will be.

Claims can take many years to be reported and subsequently settled.

In estimating the IBNR Provision, the actuary projects the number and timing of future claim reports and average claim sizes, using assumptions about claims settlement patterns, the expected effects of any known legal judgements and claims inflation. The resulting projected future claims cash flows are then discounted to a net present value at the accounting date using HM Treasury- prescribed discount rates.

The assumptions used in the projections are based on analysis of historical claims data, allowance for recent trends and consideration of the potential effects of underlying factors such as the volume of HM Land Registry activity and numbers of registered titles. We provide input to the actuaries on these assumptions, based on the knowledge of the legal team that handles the claims.

Uncertainty in the provisions – sensitivity analysis

The values of the Indemnity Fund Provisions are subject to future uncertain final settlement value, both for known claims and claims incurred but not reported (IBNR). The uncertainty in value of outstanding claims could lead to a variation in the proposed provision. A range of scenarios have been considered in respect of the assumptions on:

• the proportion of claims that settle for zero;
• the average claim size;
• the HM Treasury prescribed discount rate;
• the number of claims that will be received; and
• the rate of inflation.

These scenarios have been considered in isolation and combination as shown in the sensitivity analysis table below.

On the basis of this analysis work:

• it is reasonably foreseeable that the value of liabilities could be in the region of £8.1m(Outstanding Provision) or £35.3m (IBNR Provision);
• it is possible that extreme favourable scenarios the value of liabilities could be as little as £6.9m (Outstanding Provision) and £20.1m (IBNR Provision).

We have also considered extreme adverse scenarios, where the value of liabilities is as much as £9.4m (Outstanding Provision) and £51.4m (IBNR Provision). The long-term open-ended nature of statutory indemnity means that these figures do not represent the maximum possible liability. However, we believe the likelihood of such scenarios to be small.

The degree of uncertainty at future accounting dates may be different from that illustrated here. This could be fora number of reasons, for example because the profile of claims has changed or because the outlook on future claim trends has changed.

At future accounting dates, it should be expected that:

• the outstanding provision will fluctuate depending on the volume of claims reported at the time, especially large claims;
• all else being equal, the IBNR Provision will increaseover time because of inflationary forces; and
• both the Outstanding Provision and the IBNR Provision will be particularly sensitive to the number and value of fraud and forgery claims as these are the most financially significant category of claims.

The Indemnity Fund Provision of £43.4m is a best estimate. Additionally, the future values of Indemnity Fund Provisions are subject to inherent uncertainties.

Sensitivity analysis

			2024-25
	Outstanding Provision Maximum £m	Outstanding Provision Minimum £m	Percentage movement %
Provided in these accounts (reasonably foreseeable value – see Note 14.2)	8.1	8.1	0.0%
Impact of scenarios Discount rate
1. Increase Treasury prescribed discount rate by 1.0% pa		(0.5)	(7.0%)
2. Decrease Treasury prescribed discount rate by 1.0% pa	0.6		8.0%
Settlement costs			0.0%
3. Increase settlement costs for the first development year by 5% for error claims	0.2		1.0%
4. Decrease settlement costs for the first development year by 5% for error claims		(0.2)	(1.0%)
5. Increase settlement costs for the first development year by 5% for fraud claims	0.5		1.0%
6. Decrease settlement costs for the first development year by 5% for fraud claims		(0.5)	(1.0%)
Extreme favourable scenarios
(1) + (4) + (6)		6.9
Extreme adverse scenarios
(2) + (3) + (5)	9.4

				2024-25
	IBNR Provision maximum £m	IBNR Provision minimum £m	Percentage movement increase %	Percentage movement decrease %
Provided in these accounts (reasonably foreseeable value – see Note 14.2)	35.3	35.3
Impact of scenarios
Favourable but foreseeable scenarios
Nil claims proportion
1. Change the nil claims proportion for attritional claims by +/- 5%	1.3	(1.3)	3.0%	(3.0%)
2. Change the nil claims proportion for large claims by +/- 5%	1.0	(1.0)	2.0%	(2.0%)
Average cost per claim
3. Change average cost per claim for attritional error claims by +/- 10%	1.7	(1.7)	4.0%	(4.0%)
4. Change average cost per claim for large error claims by +/- 10%	1.2	(1.2)	3.0%	(3.0%)
5. Change average cost per claim for attritional fraud claims by +/- 10%	0.3	(0.3)	1.0%	(1.0%)
6. Change average cost per claim for large fraud claims by +/- 10%	0.2	(0.2)	1.0%	(1.0%)
Discount rate
7. Increase Treasury prescribed discount rate by 1.0% pa		(3.0)		(7.0%)
8. Decrease Treasury prescribed discount rate by 1.0% pa	3.5		8.0%
Projected number of IBNR claims
9. Increase projected number of attritional IBNR claims by 10%	2.0		5.0%
10. Decrease projected number of attritional IBNR claims by 10%		(2.0)		(5.0%)
11. Increase projected number of large IBNR claims by 10%	1.5		3.0%
12. Decrease projected number of large IBNR claims by 10%		(1.5)		(3.0%)
Future claims inflation
13. Increase assumed future claims inflation by 1%	3.4		8.0%
14. Decrease assumed future claims inflation by 1%		(3.0)		(7.0%)
Extreme favourable scenarios
(1)+(2)+(3)+(4)+(5)+(6)+(7)+(10)+(12)+(14)		20.1
Extreme adverse scenarios
(1)+(2)+(3)+(4)+(5)+(6)+(8)+(9)+(11)+(13)	51.4

15 Contingent liabilities

15.1 Indemnity

The Land Registration Act 2002 places a legal liability on HM Land Registry to indemnify for losses resulting from errors or omissions on the register of title. This includes errors resulting from frauds perpetrated by third parties. As a statutory insurer of titles in England and Wales, indemnity payments are not confined to mistakes made by HM Land Registry. HM Land Registry provides for these claims under its Indemnity Fund both for known claims and claims incurred but not reported (IBNR) (see Note 14.2) based upon the assumed likelihood that claims will be successful.

As at 31 March 2025, the value of pending indemnity claims made to HM Land Registry is shown below. The estimated settlement value of these claims included within the Indemnity Fund provision is £8.2m (see Note 14.2) (2023-24: £8.8m).

	2024-25	2023-24
Errors or omissions	£’000	£’000
Mistakes	4,841	8,794
Fraud and forgery	17,276	13,897
	22,117	22,691

15.2 Employment tribunals

At 31 March 2025, HM Land Registry had no employment tribunal cases, which are considered contingent liabilities.

16. Capital commitments

	2024-25	2023-24
	£’000	£’000
Capital expenditure	12,790	12,781
Contracted for but not provided in these accounts	12,790	12,781

Capital commitments within HM Land Registry’s Local Land Charges (LLC) and Automation Programmes remain consistant with previous year’s trends.

The LLC programme is part of Government’s Major Projects Portfolio, for which HM Land Registry receives ring-fenced funding.

This disclosure reflects HM Land Registry’s capital commitments where contracts were signed before 31 March 2025, which are not reflected within other notes to these accounts. The latest available information was published on 16 January 2025, and can be found at HMLR Government Major Projects Portfolio data, 2024 on GOV.UK.

	2024-25	2023-24
Programmes	£’000	£’000
Local Land Charges	9,361	9,181
Internal Services	–	–
Automation Programme	3,429	3,600
Corporate Services	–	–
	12,790	12,781

17. Related party disclosures

In accordance with IAS 24 Related Party Disclosures, as interpreted by the FReM, the following information is provided on related party transactions.

During 2024-25, HM Land Registry had a number of material transactions with other government departments and other central government bodies. Most of these transactions have been with Ordnance Survey, HM Courts and Tribunals and the Government Property Agency.

None of the Board Members, or members of the key management staff or other related parties, have undertaken any material transactions with HM Land Registry during the year.

The Remuneration Report provides information on key management compensation.

18. Events after the reporting period

In accordance with the requirements of IAS 10 Events After the Reporting Period, events after the Statement of Financial Position date are considered up to the date on which the financial statements are authorised for issue. This is interpreted as the date of the certificate and report of the Comptroller and Auditor General.

On 11 June 2025, Spending Review 2025 (SR25) was announced. HM Treasury have informed HM Land Registry of its plans for HM Land Registry to be able to use its income to fund its expenditure, which will change the way in which its finances are presented from 2026-27 and beyond.

HM Land Registry Trust Statement 2024-25

Statement of Accounting Officer’s responsibilities

Under the Exchequer and Audit Departments Act 1921, HM Treasury has directed HM Land Registry to prepare, for each financial year, a Trust Statement (“the Statement”) in the form and on the basis set out in the Accounts Direction. The Statement is to be prepared onan accruals basis and must give a true and fair view of the state of affairs of the fees and charges, and of the related expenditure and cash flows for the financial year.

In preparing the accounts and trust statement, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual and in particular to:

• observe the Accounts Direction issued by HM Treasury, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis;
• make judgements and estimates on a reasonable basis;
• state whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the accounts;
• prepare the accounts on a going concern basis; and
• confirm that the Annual Report and Accounts as a whole is fair, balanced and understandable and take personal responsibility for the Annual Report and Accounts and the judgements required for determining that it is fair, balanced and understandable.

The Permanent Secretary at HM Treasury has appointed the Chief Executive and Chief Land Registrar as Accounting Officer of HM Land Registry. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records and for safeguarding the HM Land Registry’s assets, are set out in Managing Public Money published by HM Treasury.

As the Accounting Officer, I have taken all the steps that I ought to have taken to make myself aware of any relevant audit information and to establish that HM Land Registry’s auditors are aware of that information. So far as I am aware, there is no relevant audit information of which the auditors are unaware.

Governance Statement

As the Accounting Officer for HM Land Registry I have responsibility for maintaining corporate governance structures that support the achievement of HM Land Registry’s aims, objectives and targets, while safeguarding public funds and HM Land Registry’s assets.

HM Land Registry operates and follows the principles of good governance in accordance with HM Treasury guidance. The Governance Statement, which covers all aspects of HM Land Registry, including those reported here in this Trust Statement, is provided in the Accountability report (pages 49 to 61).

Simon Hayes
Chief Executive and Chief Land Registrar
7 July 2025

The Certificate and Report of the Comptroller and Auditor General to The House of Commons

Opinion on financial statements

I certify that I have audited the financial statements of the HM Land Registry Trust Statement for the year ended 31 March 2025 under the Exchequer and Audit Departments Act 1921.

The financial statements comprise:

• HM Land Registry’s Trust Statement
• Statement of Financial Position as at 31 March 2025
• Statement of Revenue, Statement of Other Income and Expenditure, and Statement of Cash Flows for the year then for the year then ended; and
• the related notes including the significant accounting policies.

The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and UK adopted international accounting standards.

In my opinion, the financial statements:

• give a true and fair view of the state of HM Land Registry’s Trust Statement’s affairs as at 31 March 2025 and its net revenue for the year then ended; and

• have been properly prepared in accordance with the Exchequer and Audit Departments Act 1921 and HM Treasury directions issued thereunder.

Opinion on regularity

In my opinion, in all material respects, the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs UK), applicable law and Practice Note 10 Audit of Financial Statements and Regularity of Public Sector Bodies in the United Kingdom (2022). My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of my report.

Those standards require me and my staff to comply with the Financial Reporting Council’s Revised Ethical Standard 2024. I am independent of the HM Land Registry in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that HM Land Registry’s Trust Statement’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on HM Land Registry’s Trust Statement’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Accounting Officer with respect to going concern are described in the relevant sections of this certificate.

The going concern basis of accounting for the HM Land Registry Trust Statemnent is adopted in consideration of the requirements set out in HM Treasury’s Government Financial Reporting Manual, which requires entities to adopt the going concern basis of accounting in the preparation of the financial statements where it is anticipated that the services which they provide will continue into the future.

Other information

The other information comprises information included in the Annual Report, but does not include the financial statements and my auditor’s certificate thereon. The Accounting Officer is responsible for the other information.

My opinion on the financial statements does not coverthe other information and, except to the extent otherwise explicitly stated in my certificate, I do not express any form of assurance conclusion thereon.

My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Opinion on other matters

In my opinion the part of the Remuneration and Staff Report to be audited has been properly prepared in accordance with HM Treasury directions issued under Exchequer and Audit Departments Act 1921.

In my opinion, based on the work undertaken in the course of the audit:

• the parts of the Accountability Report subject to audit have been properly prepared in accordance with HM Treasury directions issued under the Exchequer and Audit Departments Act 1921.

• the information given in the Performance and Accountability Reports for the financial year for which the financial statements are prepared is consistent with the financial statements and is in accordance with the applicable legal requirements.

Matters on which I report by exception

In the light of the knowledge and understanding of the HM Land Registry’s Trust Statement and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance and Accountability Report.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• adequate accounting records have not been kept by HM Land Registry Trust Statement or returns adequate for my audit have not been received from branches not visited by my staff; or

• I have not received all of the information and explanations I require for my audit; or

• the financial statements and the parts of the Accountability Report subject to audit are not in agreement with the accounting records and returns; or

• certain disclosures of remuneration specified by HM Treasury’s Government Financial Reporting Manual have not been made or parts of the Remuneration and Staff Report to be audited is not in agreement with the accounting records and returns; or

• the Governance Statement does not reflect compliance with HM Treasury’s guidance.

Responsibilities of the Accounting Officer for the financial statements

As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Accounting Officer is responsible for:

• maintaining proper accounting records;

• providing the C&AG with access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;

• providing the C&AG with additional information and explanations needed for his audit;

• providing the C&AG with unrestricted access to persons within HM Land Registry from whom the auditor determines it necessary to obtain audit evidence;

• ensuring such internal controls are in place as deemed necessary to enable the preparation of financial statements to be free from material misstatement, whether due to fraud or error;

• preparing financial statements which give a true and fair view and are in accordance with HM Treasury directions issued under the Exchequer and Audit Departments Act 1921;

• preparing the annual report, which includes the Remuneration and Staff Report, in accordance with HM Treasury directions issued under the Exchequer and Audit Departments Act 1921 and

• assessing the HM Land Registry’s Trust Statement’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Accounting Officer anticipates that the services provided by HM Land Registry’s Trust Statement will not continue to be provided in the future.

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to audit, certify and report on the financial statements in accordance with the Exchequer and Audit Departments Act 1921.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a certificate that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting non-compliance with laws and regulations including fraud

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulations, including fraud. The extent to which my procedures are capable of detecting non-compliance with laws and regulations, including fraud is detailed below.

Identifying and assessing potential risks related to non-compliance with laws and regulations, including fraud

In identifying and assessing risks of material misstatement in respect of non-compliance with laws and regulations, including fraud, I:

• considered the nature of the sector, control environment and operational performance including the design of HM Land Registry’s Trust Statement’s accounting policies.
• inquired of management, HM Land Registry’s Trust Statement’s head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to the HM Land Registry’s Trust Statement’s policies and procedures on:
  • identifying, evaluating and complying with laws and regulations;
  • detecting and responding to the risks of fraud; and *the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations including the HM Land Registry’s Trust Statement’s controls relating to the HM Land Registry’s Trust Statement’s compliance with the Exchequer and Audit Departments Act 1921 & Managing Public Money.
• inquired of management, HM Land Registry’s Trust Statement’s head of internal audit and those charged with governance whether:
  • they were aware of any instances of non- compliance with laws and regulations;
  • they had knowledge of any actual, suspected, or alleged fraud,
• discussed with the engagement team and the relevant specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, I considered the opportunities and incentives that may exist within HM Land Registry’s Trust Statement for fraud and identified the greatest potential for fraud in the following areas: revenue recognition, posting of unusual journals, complex transactions and bias in management estimates. In common with all audits under ISAs (UK), I am required to perform specific procedures to respond to the risk of management override.

I obtained an understanding of HM Land Registry’s Trust Statement’s framework of authority and other legal and regulatory frameworks in which the HM Land Registry Trust Statement operates. I focused on those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements or that had a fundamental effect on the operations of HM Land Registry Trust Statement. The key laws and regulations I considered in this context included Exchequer and Audit Departments Act 1921, Managing Public Money, the Land Registration Act 2002, the Land Registration Rules 2003, the Agricultural Credits Act 1928 and the Land Charges Act 1972.

Audit response to identified risk

To respond to the identified risks resulting from the above procedures:

• I reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having direct effect on the financial statements;

• I enquired of management, the Audit and Risk Committee and in-house legal counsel concerning actual and potential litigation and claims;

• I reviewed minutes of meetings of those charged with governance and the Board; and internal audit reports;

• I addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements on estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and

• I communicated relevant identified laws and regulations and potential risks of fraud to all engagement team members including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of my responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website. This description forms part of my certificate.

Other auditor’s responsibilities

I am required to obtain sufficient appropriate audit evidence to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control I identify during my audit.

Report

I have no observations to make on these financial statements.

Gareth Davies

Comptroller and Auditor General
National Audit Office
157-197 Buckingham Palace Road Victoria
London
SW1W 9SP

Trust Statement

Financial statements

Statement of Revenue, Other Income and Expenditure as at 31 March 2025

		2024-25	2023-24
	Note	£’000	£’000
Fees and charges revenue
Registration of title	2.1	382,391	312,726
Land Charges and Agricultural Credits	2.1	11,404	5,483
Local Land Charges	2.1	1,552	1,064
Total fees and charges revenue		395,347	319,273
Commercial income
Income from commercial activities	2.1	3,899	3,972
Total commercial income		3,899	3,972
Total revenue and other income		399,246	323,245
Expenditure
Collection costs	2.2	(331)	(263)
Other debts written off	3.3	(55)	14
Bad debts written off	3.3	(6)	(2)
Total expenditure		(392)	(251)
Net revenue for the Consolidated Fund	5	398,854	322,994

There were no recognised gains or losses accounted for outside the above Statement of Revenue, Other Income and Expenditure.

The notes at pages 118 to 120 form part of this statement.

Statement of Financial Position as at 31 March 2025

		2024-25	2023-24
	Note	£’000	£’000
Receivables falling due within one year
Current assets
Other receivables	3.1	1,587	2,049
Cash and cash equivalents		187,967	176,446
Total current assets		189,554	178,495
Current liabilities
Payables	4.1	–	–
Deferred revenue	4.1	173,803	174,830
Total current liabilities		173,803	174,830
Net current assets		15,751	3,665
Total net assets		15,751	3,665
Represented by:
Balance on Consolidated Fund Account	5	15,751	3,665

The notes at pages 118 to 120 form part of this statement.

Simon Hayes
Chief Executive and Chief Land Registrar
7 July 2025

Statement of cash flows for the year ended 31 March 2025

		2024-25	2023-24
	Notes	£’000	£’000
Net cash flow from operating activities	A	398,288	324,575
Cash paid to the Consolidated Fund	5	(386,767)	(326,375)
Increase/ (decrease) in cash in this period		11,521	(1,800)
Notes to Cash Flow Statement
A: Reconciliation of net cash flow to movement in net funds
Net revenue for the Consolidated Fund	SoCNE	398,854	322,994
(Increase)/ decrease in receivables	3.1	461	(1,123)
Increase/ (decrease) in liabilities	4.1	(1,027)	2,704
Net cash flow from operating activities		398,288	324,575
B: Analysis of changes in net funds
Increase/ (decrease) in cash in this period		11,521	(1,800)
Net funds at 1 April (Net Cash at Bank)		176,446	178,246
Net funds at 31 March (closing balance)		187,967	176,446
The following balances as at 31 March were held at:
Government Banking Service		187,967	176,446
Balance at 31 March		187,967	176,446

The notes at pages 118 to 120 form part of this statement.

Notes to the Trust Statement

1. Statement of Accounting Policies

1.1 Basis of accounting

The Trust Statement is prepared in accordance with:

• the 2024-25 Financial Reporting Manual (FReM) issued by HM Treasury, in particular Chapter 11.3 which deals with Consolidated Fund revenueand Trust Statements. The accounting policies contained in the FReM apply International Financial Reporting Standards (IFRS) as interpreted for the public sector; and
• the accounts direction issued by HM Treasury under section 2 (3) of the Exchequer and Audit Departments Act 1921.

The accounting policies adopted in the Trust Statement are described below. The accounting policies have been applied consistently in dealing with items considered material in relation to the accounts.

The income and associated expenditure contained in these statements are those flows of funds which HM Land Registry handles on behalf of the Consolidated Fund and where it is acting as agent rather than principal.

The financial information contained in these statementsand in the notes is rounded to the nearest ‘£000.

Accounting standards issued but not yet effectiveIFRS 17 Insurance Contracts replaces IFRS 4 (of the same name) and is effective in the FReM from 1 April 2025.FReM 2025-26 interpretation IFRS 17 for use in the public sector. That interpretation states that ‘legislation and regulations, in isolation, are not the equivalent to insurance contracts’. Therefore, as anticipated, there is no accounting impact for HM Land Registry as a result of IFRS 17.

1.2 Accounting convention

The Trust Statement has been prepared under the historical cost convention.

1.3 Revenue recognition

Fees and charges are measured at the fair value of amounts received and in accordance with IFRS 15. Fees and charges are derived from the Land Registration Fee Order 2024. They are included within the financial statements of the financial year in which the service is delivered. Income is recognised net of any refunds for transactions that are not completed, or ontransactions where erroneous information is provided by customers.

Registration of title and Land Charges and Agricultural Credits income is recognised upon receipt of a completed application. If an application is not complete, the amount received is treated as a fee in advance, regardless of application type. All application types are accountedfor consistently. The associated payment amounts received for services not delivered in the financial year reported are subsequently recorded as contract liabilities (deferred income) and disclosed within current liabilities.

Income is recognised once the contract performance obligation under IFRS 15 Revenue from Contracts with Customers has been fulfilled, that is once the register has been fully updated following receipt of an application.

1.4 Receivables

Receivables are shown net of impairments in accordance with the requirements of IFRS 9 Financial Instruments.Receivables are derecognised when the rights to receivecash flows from the assets have expired.

1.5 Accounting judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances (which currently relates to an immaterial bad debt provision and credit losses – see note 3 for further information).When preparing the Trust Statement, HM Land Registry makes estimates and assumptions concerning the future. The most important area in the preparation of this Trust Statement relates to revenue recognition and the calculation of the deferred revenue balance, which is identified from the stage of completion recorded in HM Land Registry’s processing system thereby reducing the extent of management judgement in this area. Further details on revenue recognition is contained in Note 1.3.

1.6 Impairment of debt and credit losses

Receivables are shown net of impairments in accordance with the requirements of the FReM and IFRS 9 Financial Instruments: disclosures. The fair value of receivablesis determined by making an impairment to reduce the carrying value of receivables by making an impairment to reduce the carrying value to the estimated future flow of repayments

HM Land Registry is not exposed to credit risk under IFRS 7 Financial Instruments.

1.7 Miscellaneous Consolidated Fund Extra Receipts(CFER) Income

In accordance with Managing Public Money, HM Treasury has powers to direct that income included in a departmental Estimate and approved by Parliament may be retained and used by the department. This is undertaken by applying this income against specific costs (resource or capital) within that Estimate. WhereHM Land Registry receives income outside that authority, the cash must be surrendered to the Consolidated Fund.

2. Statement of Revenue, Other Income and Expenditure Notes

2.1 Revenue and other income

	2024-25	2023-24
	£’000	£’000
Fees and charges
Registration of title	382,391	312,726
Land Charges and Agricultural Credits	11,404	5,483
Local Land Charges	1,552	1,064
Total fees and charges	395,347	319,273
Commercial income
Income from commercial activities	3,899	3,972
Total commercial income	3,899	3,972
Total revenue and other income	399,246	323,245

2.2 Expenditure

	2024-25 £’000	2023-24 £’000
Collection costs	(331)	(263)
Total expenditure	(331)	(263)

3. Receivables

3.1 Current receivables

	2024-25	2023-24
	£’000	£’000
Receivables	1,600	2,056
Provision for doubtful debt	(13)	(7)
Receivable before impairment	1,587	2,049
less estimated impairments	–	–
Total receivables as at 31 March	1,587	2,049

Receivables represents the amount due from taxpayers and businesses where invoices or other demands for payment have been issued but not paid for at 31 March 2025. Debts are written off only when the debtor is dissolved, bankrupt or in liquidation and the debt is deemed unrecoverable through any further means.

Individual application receipts are only processed once the relevant fee has been accounted for. The total collectable is spread over a high volume of different customers with associated low-value fees. Accordingly, the likelihood of non-collection of fees and credit risk exposure have both been determined as insignificant in terms of overall risk.

3.2 Non current receivables

There are no amounts falling due after more than one year.

3.3 Credit losses

	2024-25	2023-24
	£’000	£’000
Other debts written off	(55)	14
Bad debt written off	(6)	(2)
Total	(61)	12

4. Payables and deferred revenue

4.1 Current payables

	2024-25	2023-24
	£’000	£’000
Payables	–	–
Deferred revenue	173,803	174,830
Total payables and deferred revenue at 31 March	173,803	174,830

Payables are the amounts established as due at the balance sheet date, but where payment is made subsequently. Deferred revenue includes income for fees paid in the current year that relate to future financial periods.

4.2 Non-current payables

There are no amounts falling due after more than one year.

5. Balance on the Consolidated Fund Account

		2024-25	2023-24
	Note	£’000	£’000
Balance on Consolidated Fund as at 1 April		3,664	7,046
Net revenue for the Consolidated Fund	SOCNE	398,854	322,994
Less amount paid to the Consolidated Fund		(386,767)	(326,375)
Balance on Consolidated Fund Account as at 31 March		15,751	3,665

6. Related party disclosures

In accordance with IAS 24 Related Party Disclosures, as interpreted by the FReM, the following information is provided on related party transactions.

None of the Board Members, or members of the key management staff or other related parties, have undertaken any material transactions with HM Land Registry during the year.

The Remuneration Report provides information on key management compensation.

7. Events after the reporting period

In accordance with the requirements of IAS 10 Events after the Reporting Period, post year end events are considered up to the date on which the accounts are authorised for issue. This is interpreted as the date of the Certificate and Report of the Comptroller and Auditor General. The accounts do not reflect events after this date.

On 11 June 2025, Spending Review 2025 (SR25) was announced. HM Treasury have informed HM Land Registry of its plans for HM Land Registry to be able to use its income to fund its expenditure, which will change the way in which its finances are presented from 2026- 27 and beyond.