The cost of upgrading crematoria could be a financial time bomb for councils, according to new research from Siemens Financial Services. All councils which currently run crematoria will have to update their facilities by 2012 in order to meet new government targets for mercury emissions. A survey by Siemens revealed the cost of building work would be so great that local authorities would not be able to claim back VAT they spent on such projects, as it would breach financial rules.