5-year snapshot of our income and expenditure (£millions) The majority of our funding is awarded through annual funding agreements, is restricted to a particular area of activity and relates to a specific financial year. Therefore, where restricted income grows, there will tend to be a corresponding increase in expenditure in the same year. This is reflected in the 5-year snapshot of income and expenditure opposite. In the financial year 2020/2021, there was a more significant variance than other years because of the recognised cost of the agreed increase in future pension payments to the closed defined pension scheme. This is discussed further in the pensions section below. Whilst income has risen substantially in recent years as we have taken on delivery of more services, our expectation is that this will fall over the next 2 years. This reflects a generally challenging funding environment, coupled with the expectation that most of the existing services will be competitively recommissioned during 2021 and 2022 as current funding agreements end. Income Expenditure 2016/17 2017/18 2018/19 2019/20 2020/21 0 140 20 40 60 80 100 120 160 99 104 94 94 110 109 139 137 163 169 59 Financial review