St David’s Cathedral faces financial crisis

Martin Shipton

St David’s Cathedral is facing a major financial crisis and could be insolvent within two years unless remedial steps are taken, according to an inspection report published by the Church in Wales diocese.

Located in the far west of Pembrokeshire, St David’s is known as the smallest city in Wales and its cathedral is seen by many as the jewel in the crown of the Church in Wales. Named after the patron saint of Wales, who was born nearby around the year 500AD, it is renowned for its beauty and tranquillity.

However, the report arising from the inspection – officially termed a visitation – states: “The Cathedral’s financial situation requires urgent and coordinated leadership action. Developing a clear, shared sustainability strategy for beyond 2026 has yet to be developed, and this must be an urgent priority.

“The Cathedral’s financial position remains the most critical challenge highlighted during this visitation. Financial sustainability is fundamental to enable the Cathedral to fulfil its mission, maintain its historic fabric, and remain a vibrant centre of worship and outreach. Without robust financial planning and disciplined financial management, the Cathedral’s ability to sustain this role is at risk.

“A general theme can be captured in a quotation by a witness describing the relationship to financial management and oversight as ‘a cruising culture – drifting, plodding’. The current financial trajectory is unsustainable. “Unrestricted deficits have persisted for seven years, eroding reserves to a dangerously low level and leaving the Cathedral exposed to any unforeseen costs. Free reserves are very low and a cause for great concern. The planned withdrawal of episcopal and diocesan support by the end of 2026, amounting to £98,000 annually, compounds this risk.

“While we acknowledge the recent appointment of a Project Development Manager, there is currently no evidence of success in securing external funding. This reinforces the need for a comprehensive fundraising strategy.

“Income generation will require renewed focus and a step change in approach. “Visitor numbers remain below pre-pandemic levels, and per capita giving remains comparatively low. Grant applications have yet to yield results and opportunities for commercial development and broader fundraising have not been fully explored.

“Although expenditure control has recently improved, further efficiencies are likely to be achieved through a structured review. Safeguarding restricted funds and improving financial controls must also be immediate priorities.

“Current cash handling processes present unacceptable risk, and relationships with key stakeholders -such as the Friends of the Cathedral – would benefit from thoughtful rebuilding rooted in trust, collaboration and shared purpose. “During the Visitation strong representations were made by the Friends concerning the transfer of a legacy. A Serious Incident Report has subsequently been submitted to the Charity Commission.”

Safeguarding

In addition, an inquiry into a potential safeguarding failure was ongoing at the time of the visitation.

The visitation report also expresses concern about the spiritual health of the cathedral, drawing attention to a lack of collegiate prayer among the clergy and “minimal” pastoral care for the congregation.

While the daily offices and Sunday services are “offered with dignity and care”, the cathedral has “limited awareness of the needs and well-being of its congregation”, the report says. Home communion reaches “only a small number of people”, and visiting “relies almost entirely on a few individuals”.

The cathedral’s relationship with the community “feels distant and strained” the report says. “Many residents perceive it as focused on tourists rather than locals. This disconnect has led to frustration, missed opportunities, and weakened trust.”

Working relationships

Among senior clergy, working relationships have become “strained, creating an environment that makes collaboration and effective decision-making difficult”. Stipendiary clergy must commit themselves to gathering daily for shared prayer.

The cathedral’s annual report for 2024, which mentioned the struggles of the wider tourism sector, reported visitor figures 30% below 2019 levels. The level of free reserves stood at £406,000 against annual expenditure of up to £960,000.

The Bishop of St David’s, the Rt Revd Dorrien Davies, recognised steps already taken but said that the recommendations must be “progressed with clarity, purpose and due urgency”.