Ineffective management and serious failings from clergy have left a number of England's cathedrals at 'severe financial risk', a report by the Church of England has found.

It recommends more regulation and oversight with the possibility of state funding as the investigation warns of a crisis among the historic buildings.

While cathedrals are enjoying a renewed interest in evensong and choral music and attract more than 10 million visitors a year, they risk falling into a tail-spin with rising costs for maintainance, repair and everyday running.

The CofE's cathedrals working group, led by the Bishop of Stepney, Adrian Newman, said there was 'confusion of governance and management [that] has increased both operational and financial risks'.

It 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.

However, situations such as that at Exeter Cathedral and Durham Cathedral which face annual deficits of £175,000 and £500,000 respectively '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', it added.

'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.

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.'