Museums: Funding

Lord Lennie Excerpts

Monday 26th January 2015 Lords Chamber

[Lord Lennie (Lab)]

My Lords, I thank the noble Lord, Lord Monks, for securing this important short debate. I come at it from two perspectives. My base and my home are in the north-east of England, the location of many of Britain’s finest museums, Bowes being just one among a number, all of which are in some difficulty or other due to the current funding position. Secondly, I am the former deputy general secretary of the Labour Party. As noble Lords heard from the noble Lord, Lord Monks, earlier, the party’s comprehensive archive is located there—and, if for no other reason, the People’s History Museum is definitely worth a visit from noble Lords.

The analysis of the current funding of museums leads to a number of common themes and threads. First, on all museums and galleries there is a significantly increased force of self-reliance on income generation. That is not necessarily a bad thing in itself; all manner and means of securing additional income are important. However, it is not in any way going to substitute from the core funding of such institutions. Secondly, there is a massive increase in dependence on benefactors. To follow up the point about the privileged position referred to earlier, London benefits—in proportion about 70% to 30% in terms of benefactor income to galleries and museums compared to the rest of the country. Thirdly, there is an erosion of lottery funding, which is seeping into core funding outside of its added value original concept, its purpose being not to substitute core funding but to supplement and add value in all aspects of cultural life across Britain. Fourthly, there is a widening gap between the imbalances of funding available to and in London and in the rest of the country.

Since the end of the 20th century, lottery funding has benefited Londoners by about £142 per head compared with about £45 outside London. Additionally, local authorities outside London have provided 32% additional income to arts funding grants, as opposed to the 6% added additionally within London. The overall figure per capita inside London is about £65 per head of arts funding, compared to £5 per head across the rest of the UK. Those imbalances grow year on year. Then, of course, there are additional hidden costs and subsidies to cultural life in London, such as the cost of travel to London, the use of hotels, restaurants and other facilities when people increasingly visit London as opposed to the rest of the country—and the imbalance is further compounded.

Austerity is biting and will continue to bite year on year, particularly outside London, which will have a worsening consequence for the regions of England year on year. The imbalance is evident and the Government need to examine it and come up with a plan for action as to how they will go about restoring the balance back to the rest of the country compared to London. As a last resort, museums and galleries have been forced to sell off precious items, which should be stopped through government action.