Veterinary charity PDSA income grew by 11 per cent to reach over £100 million for the first time, its latest annual accounts have shown.

Its total income for the year ending December 2016 was £102.1m, but the expenditure continued to exceed income by £3.6m. Although the charity’s deficit was a much less than the previous year when it was £15.7m, the consolidated accounts show.

John Smith, the charity’s chair, said that almost half the PDSA’s income was from legacies, with it receiving £45m. Its other highest sources of income were the People’s Postcode Lottery and the launch of its new veterinary product range Vet Care.

Mr Smith said: “Despite these successes, raising income remains a priority as the regulatory environment in which all charities operate continues to present new challenges. Expenditure still exceeded income by £3.6m and, despite the many uncertainties which exist, our future goal is to bring our income and expenditure at least into balance.

“On-going cost control is an essential part of charity governance, not least during a period in which, in common with many other organisations, cash contributions to our pension scheme have increased, despite the many actions we have taken over recent years to limit our pension liabilities. So it is pleasing to confirm that we have reduced our costs substantially in support areas and have achieved further efficiencies in our fundraising activities.”