THE Church of Scotland is to consider major cuts as coronavirus costs it tens of millions of pounds.

The Kirk will hold its annual General Assembly later this week.

The event will be held online as a result of the pandemic and will take place amidst fears that its £105m yearly income will this year plummet by £20m due to Covid-19.

A report prepared for the event warns that noone should “underestimate” the financial challenges and advises new planning to steer it through the next decade.

This includes a potential reduction in the number of ministries that can be afforded.

Buildings may have to be sold-off as a result.

The Assembly Trustees, appointed by the General Assembly in 2019 to oversee radical reforms, are seeking approval for congregational Ministry and Mission contributions to be set at £38.1million in 2021 — an 18% reduction on the previous year.

The report states: “Doing nothing is a recipe for slow decline, however, acting radically with foresight and focus could allow us to experience the growth that we long for and pray for.”

Work on deciding the future of the Kirk’s national offices in Edinburgh has been put on hold due to the pandemic.

A voluntary exit scheme for central service staff has produced an annual saving of £700,000.

Savings worth £4m have already been identified.

A spokesman for the Church of Scotland said: “The Covid-19 health crisis has affected income streams for all charities and the Church of Scotland is no exception.

“With church buildings closed over the last six months and activities curtailed, there is the potential for reductions in contributions from our congregations as well as in our trading activities and investment income which we rely on to carry out our vital work.

“To respond to the financial challenge facing us, a range of mitigating actions have been taken to maintain the income levels as far as possible, reduce our costs and accelerate our plans for structural reform.”

More than 730 commissioners will take part in the General Assembly remotely via the Kirk's website on Friday between 7pm-9pm and Saturday from 9.15am to 5pm.

Social distancing and hygiene measures mean only a small number of representatives of the Church's committees and councils will be at the Assembly Hall on The Mound in Edinburgh to present reports.

The Church has permission to use the building under a business exemption and proceedings will be chaired by Right Reverend Dr Martin Fair, Moderator of the General Assembly.

The only other people who will be in the hall will be a skeleton technical crew, and commissioners - mainly ministers, elders and deacons - will be able to engage with discussions and vote online.

The Queen will not be represented by a Lord High Commissioner this year but she will instead send a letter to the General Assembly.

Commissioners will be asked to back calls to develop a strategy for the Church to transition both locally and nationally to net zero carbon emissions by 2030.

They will also be asked to reaffirm that racism is a sin, declare that Black Lives Matter and report to a future Assembly on the issue of racial justice and the legacy of slavery and the Church of Scotland.