Churches are already struggling financially. (Image: Getty)
has been warned that her could lead to some of Britain’s most historic buildings falling into financial peril.
Peterborough Cathedral, built in the 12th century, to raise £300,000 to save it from financial ruin. Rising operating costs and depleting cash reserves are pushing it to the brink.
The burial place of , first wife, is one of dozens of historic places of worship facing a bleak future and a difficult economic outlook.
The Very Revd Dr Simon Jones, Dean of Lincoln Cathedral, believes that many of Britain’s centuries-old cathedrals will show a deficit when the 2024 accounts are finalised in March.
Jones said: “It currently costs us around £25,000 a day to keep the cathedral open.
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It costs £25,000 per day for Peterborough Cathedral to stay open. (Image: Getty)
“At the end of our current financial year in March we will have a deficit of £500,000 and are projecting that there will be deficits in the next three years of £1.5 million, £1.4 million and £1.2 million”.
The bleak outlook has been made even worse by which has seen places of worship slapped with additional costs through increased national insurance contributions and an enhanced national living wage.
Jones added: “With around 100 staff – not all full-time – the increase in employers’ National Insurance Contributions is going to have a significant impact, especially on our efforts to build up our works department.
“It shrank during the pandemic, and we don’t want to be overwhelmed by the task of maintaining one of the greatest buildings in Europe”.
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Reeves’s budget announced rises in the amount of national insurance businesses pay. (Image: Getty)
Peterborough’s Dean, the Very Revd Chris Dalliston, referred to Reeves’s announcement when launching the appeal for emergency funding.
He said: “We’re facing increases in the living wage and . We want to be a responsible employer but these things impact our bottom line.”
, which is set to be cut from £29 million last year to £23 million with a cap of £25,000, have further affected places of worship.
Previously, cathedrals and historic churches were able to claim back the VAT of every repair bill of over £1,000.
Lincoln’s Dean said: “When you spend as much on repairs and restoration as we are doing, the cap will just add to the pressure on our budget, while the continuing uncertainty about whether the scheme will last more than one year makes any sort of planning much harder.”
The 950 year old Chichester Cathedral has been forced to charge entrance fees to balance the books. (Image: Getty)
The economic picture has become so tough that some places of worship have resorted to charging non-worshippers to enter, as falling service attendances lead to a decline in income.
The Very Revd Dr Edward Dowler, Dean of Chichester Cathedral, built in 1075, is running a deficit of around £700,000 per year and fears that charging for entry might be something he is forced to do, despite his reservations about doing so.
He said: “What you get into is something that I don’t want to do, which is charge for entry. At the end of the day, this is a church and I hate the idea that people will have to pay to come in, but I know that other cathedrals already see it as a necessity if they are to keep open.”
Wells Cathedral in Somerset is one such place that has introduced an entry fee to help it raise some of the £2.7 million to run the building.
The Very Revd Toby Wright has recently started charging tourists £14 each to enter, which, along with the shop and café, raises around £1 million a year. Despite also generating approximately £100,000 in offerings during services, the cathedral still operates at a loss of around £1.6 million.