Chancellor Reeves announced a boost in funding for national museums in Labour’s autumn budget, which was welcomed by cultural figures. However, key arts organizations and regional museum leaders criticized the plans for not addressing long-term challenges in the sector.
The UK Department for Culture, Media and Sport (DCMS) will receive a 2.6% real-terms increase, totaling £2.3 billion for capital projects from 2025 to 2026. However, the Resource DEL (RDEL) budget for day-to-day operations will remain at £1.5 billion over three years (2023-2026), reflecting a 2.5% real-term decrease.
Despite real-terms cuts in the DCMS’s operating budget, its overall budget is projected to rise slightly, contingent on economic growth and potential adjustments in the spring budget. National museums will receive additional funding for long-term sustainability and to strengthen cultural infrastructure.
Starting April 1, 2025, rates for theatre tax relief, orchestra tax relief, and Museums and Galleries Exhibitions Tax Relief will be set at 40% for non-touring productions and 45% for touring and all orchestra productions across the UK.
The Chancellor also announced a 3.2% increase in local authority spending for the next financial year, aiding cash-strapped councils, including those issuing section 114 notices. Birmingham City Council plans to sell £750 million worth of assets over two years to balance its budget.
Creative UK cautiously welcomed the government’s commitment to a comprehensive plan for cultural and creative industries in next year’s spending review, hoping for sufficient investment for inclusive growth.
Andy Haldane, chief executive of the Royal Society for Arts, emphasized the need for substantial funding for “social infrastructure” and cultural institutions to revitalize communities. He urged investment in arts and culture projects in the upcoming budget, especially in deprived areas where such initiatives can improve quality of life. He highlighted the importance of investment for community cohesion, warning that neglect could lead to unrest.
Art Fund is launching a £1 million funding initiative for local authority museums, with awards like £10,000 for The People’s Palace in Glasgow and £45,000 for the Museum of Making in Derby. Art Fund warned of operational threats many museums face due to tight local authority budgets.
Tony Butler, executive director at Derby Museums, criticized the budget, noting it worsens the financial crisis for civic museums, especially those managed by independent trusts. He mentioned the budget ignored requests for emergency support, while minimum wage hikes and higher employer National Insurance contributions add strain.
Meanwhile, Rachel Reeves announced plans to abolish the non-dom tax regime, estimating it could yield £12.7 billion over five years. However, some worry this change could reduce philanthropic support from non-doms, potentially impacting cultural institutions.
