The first black female deacon in the Church of England (CoE) is considering an appeal to the Privy Council following what she alleges to be a racist decision to dissolve her parish.

Reverend Yvonne Clarke 62, was ordained as a deacon in the CoE in 1987 and has served All Saints Shirley, in Southwark Diocese, for more than 20 years.

But cost-cutting proposals by the Diocese of Southwark, approved on Wednesday, will dissolve her parish and divide it between the parishes of St George, Shirley, and St John, Shirley.

They suggest the church of All Saints, Spring Park, which is housed in a Grade-II listed building, becomes a chapel of ease for use by those who live some distance from the parish church.

Rev Clarke said she is considering appealing against the decision, which will result in the loss of her home and job, after alleging the move felt “personal” and was motivated by racism.

The diocese firmly rejected allegations of racism or sexism towards her, and said it had come to the decision due to “ongoing concerns about the financial viability and capacity for governance and mission over a period of several years”.

At a hearing on September 7, Rev Clarke, who was among the first women to be ordained priest, also said due process had not been followed and she had not been consulted about the changes.

Following the decision, she said: “I am truly devastated by the decision of the commission, which I believe to be wrong, and I am now in discussions with my legal team and supporters to consider an appeal to the Privy Council.”

Frances Swaine, representing Rev Clarke, added: “We are very surprised by the decision of the Church commissioners, especially in their dismissal of the plans for outside investment in developing the run-down parish buildings, saving the Church many thousands of pounds. 

“We are now reviewing the whole decision and will be considering an appeal to the Privy Council.”

In its decision, the Church Commissioners’ mission, pastoral and church property committee said: “On the question of there being a racial, gender, or punitive basis for the scheme, the commissioners acknowledged the lived experience of racism experienced by the Reverend Yvonne Clarke in the parish and other contexts, but were satisfied that no specific evidence had been brought forward in either the written submission, or the oral hearing, to show the proposed scheme had been brought forward for an improper purpose.”

The commissioners also said the parish was “not financially viable in its current form” and the new scheme “would further cure the souls and mission of the church”.

It also said “the dispossession of the Reverend Yvonne Clarke would be a consequence of the scheme proceeding”.

During the earlier hearing Ms Swaine asked the committee to consider the “optics” of the minister’s position.

She said: “However uncomfortable, it is important to address the question of racism in the Church of England and in particular, the Southwark Diocese.”

“If that racism is felt by those who received it, then it occurred.”

She continued: “For black worshippers there is special joy in going and worshipping where there is a black minister.

“If the boundaries were reorganised there would be an inevitable black flight.”