A significant number of England’s 42 historic Anglican cathedrals are at “severe financial risk” and some have ineffective and under-resourced management, an investigation set up by the archbishops of Canterbury and York has found.

The Church of England should begin discussions with the government about the possibility of state funding for the country’s most venerated ancient buildings, it recommended.



Cathedrals, which attract more than 10 million visitors a year, face spiralling costs of running, repairing and maintaining their buildings. Nine charge an entrance fee, with the remainder relying on donations, legacies, endowments, grants and, increasingly, income from commercial events.



The cathedrals working group, led by Adrian Newman, the bishop of Stepney, spent seven months reviewing the institutions’ governance and financial management. Its report highlights vulnerabilities and weaknesses across the sector and a “confusion of governance and management [that] has increased both operational and financial risks”.



In a preface to the draft report, Newman said: “In many ways, cathedrals are one of the church’s ‘success stories’, bucking the trends of numerical decline, exerting a growing influence in civil society and demonstrating an effective way of engaging with contemporary culture.”



But, it continued, crises last year at Peterborough and Exeter cathedrals “exposed serious faultlines in their cathedrals and raised important questions about the structures by which cathedrals are governed”. A large number were “under significant financial pressure”.



The report recommended cathedrals hire chief financial officers with high-level expertise, review their funding, produce regular accounts and limit debt.



It also criticised the governance of cathedrals. Governing bodies, known as chapters, were often under-resourced and members have too little training, the report said.



“There is also a need for penitence for those occasions when relationships between cathedral and diocese, bishop and dean have broken down,” said Newman in the preface.



In seeking a balance between codes of practice, guidelines and church legislation, the working group acknowledged “no amount of legislation can solve the problems of dysfunctional relationships”.



The report recommended that chapters should continue to be cathedrals’ governing body, but separate and strengthened management structures should oversee day-to-day operations.



On safeguarding, the report said cathedrals were lagging behind the rest of the church in protecting young and vulnerable people from abuse.



Launching the report for consultation between now and the end of February, Newman said cathedrals were “inspirational in their impact on our national life and on the lives of millions of worshippers and visitors each year”.



He added: “In proposing changes to governance structures and aspects of cathedral operations, we do not wish to inhibit the entrepreneurial flair that has characterised so much that is good about the world of cathedrals nor impose unnecessary red tape.



“However, we are committed to ensure that cathedrals do not get into situations which prevent them from thriving in their role as pioneers in mission and ministry.”



Guildford Cathedral costs £3,500 per day to run. The possibility of closing it was discussed last year. Photograph: Loop/UIG via Getty

Adrian Dorber, the chair of the Association of English Cathedrals and dean of Lichfield, said: “Our cathedrals have been here for hundreds of years, vibrant seats of mission, of learning, of heritage and of love. Let’s ensure they are here for hundreds more.”



The working group was set up after a “cash-flow crisis” at Peterborough Cathedral which resulted in the acrimonious departure of the dean and several redundancies.



At Exeter, an investigation ordered by the bishop concluded the cathedral was in a parlous financial situation and that a change of culture among the cathedral leadership was essential.



The possible closure of Guildford Cathedral, consecrated in 1961, was mooted last year after local councillors rejected plans to sell seven acres of land for 137 homes. The move was intended to create a £10m endowment to secure the cathedral’s future.



Guildford Cathedral costs £3,500 per day to run, while Durham Cathedral’s operational costs were £10,000 per day.

