‘We need people to recognise the urgency': Peterborough Cathedral faces financial ruin

The Guardian

20-01-2025

Beneath the breathtaking oak ceiling of Peterborough Cathedral, on which images of kings, saints, bishops and a monkey riding a goat were painted nine centuries ago, the Very Rev Chris Dalliston pondered how to keep this magnificent edifice afloat in the face of financial calamity.
Dalliston, the cathedral's de facto CEO in a dog collar, has done his best to avert the looming crisis. The cathedral, built as a monastery in the 12th century, has become a venue for concerts, banquets, exhibitions, corporate events and even a controversial Ibiza-themed party night as well as daily religious services. Assets have been sold or rented.
But the costs of maintaining a Grade I-listed masterpiece and paying staff wages have soared. Dalliston has been forced to launch an emergency appeal to raise £300,000 by the end of March to avoid running out of money.
'Our cashflow is critical,' said Dalliston, who has been the cathedral's dean for seven years. If the appeal is unsuccessful, he faces painful decisions, including whether to shut its doors for several days a week for the first time in its history and making it the only part-time cathedral in the country.
'When people come to our cathedral, they are awestruck by the building. It is one of the great Norman buildings of England, with an extraordinary history. It has survived all kinds of trials and tribulations,' he added.
There has been a place of worship on the site since the seventh century. It is the burial place of Catherine of Aragon, Henry VIII's first wife, and Mary, Queen of Scots, who was later reburied at Westminster Abbey. It was transformed from an abbey to a cathedral in the Reformation, and was later plundered and damaged by Oliver Cromwell's troops in the civil war.
Now it costs over £2m a year – almost £6,000 a day – to run. About 15% of that comes from the Church of England (C of E), and the remainder must be raised by the cathedral through events, rent, grants and donations. Nothing comes from the government.
The costs are soaring. 'There have been three or four years of erosion of our reserves. Post-Covid, visitor numbers were low and events were slow to pick up. There has been a huge rise in the cost of utilities – our bill has gone up by more than £100,000 a year across the estate, a huge additional expense,' said Dalliston.
'The cost of managing the property and employing people has risen – and now we're facing increases in the living wage and employers' national insurance contributions. We want to be a responsible employer but these things impact our bottom line.'
The cathedral employs the equivalent of 25 full-time workers, including musicians, education staff and gardeners. 'It's quite a skeleton staff for a big operation,' said Dalliston. There are also about 400 volunteers. The annual budget covers routine maintenance but not any major works of restoration or repair.
Last year's income from events broke records, thanks to 'hard work, enterprise and ingenuity', said Dalliston. But it was still not enough, especially with falling income from donations.
'Peterborough is not a wealthy city. It's not a hotspot on the tourist trail, it's not seen as glamorous. In recent years, footfall has not been high in the city centre. We've lost our big department stores. People have been badly affected by the cost of living crisis.'
Government funding would help, said Dalliston. England's 42 Anglican cathedrals are 'part of our national heritage, each with a unique story. These buildings belong to everyone and are open to everyone.' Indeed, the first donation after launching the appeal last week was a cheque for £1,000 from the Muslim Council of Peterborough.
More support from the C of E nationally would be welcome, said Dalliston. The Church Commissioners, who manage a £10.4bn investment fund on behalf of the church, pay the salaries of the dean and two canons at Peterborough as well as annual grant.
'I know the commissioners have many demands,' said Dalliston. 'The difficulties of maintaining heritage buildings is not confined to cathedrals – parish churches are struggling too. But a little more support would be enormously helpful.'
The Guardian understands that the commissioners have no plans to provide additional funding in response to the cathedral's emergency appeal.
The Association of English Cathedrals said: 'With no regular income, cathedrals have to rely on donations, legacies and grants, and all have to be creative in building an economy around them to be sustainable, especially in these challenging financial times that have seen soaring utility and cost of living bills for everyone.
'Our cathedrals include Unesco world heritage sites, many are Grade I-listed, and they are home to the tombs of kings, queens and princes and hold the shrines of saints. They also care for some of the country's most unique treasures, from the Mappa Mundi and copies of the Magna Carta to ancient texts and other treasures, and stand strong at the heart of the nation at times of national sorrow or national celebration.'
Ten of the 42 cathedrals charge an entrance fee. Peterborough could be forced to become the 11th, but 'we're very reluctant because it could deter visitors', said Dalliston. It may also have to cut back on its community work, such as support for refugees.
'We're a spiritual hub and a community space in the heart of the city. But we also have to run this as a business,' said Dalliston. 'We need people to recognise the urgency of the situation. We're not crying wolf.'