A DIOCESE which includes churches over a wide area of North and West Yorkshire ran up a deficit of £280,000 in its last financial year.

There had been plans for a £190,000 shortfall on the basis of collecting a 100 per cent contribution from churches in the Anglican Diocese of Ripon and Leeds.

But financial chairman Alastair Thompson said there was a fall in funds collected from churches.

In the annual financial report he said: "These are extremely challenging times for the church as a whole, so we are not alone in our search to find a better way for the future."

The deficit has been met from reserves, with the chairman reporting a better year for investment assets, which are said to be worth £16.2m.

There was also better news for the diocese in the fixed asset housing stock, which increased by £16m to £44.9m.

The diocesan financial board has now started a policy of selling land producing low returns and investing proceeds to secure an improved income, relieving the burden on parish contributions.