HL Deb 16 December 1987 vol 491 cc819-22WA
Lord Nugent of Guildford

asked Her Majesty's Government:

Whether they will announce allocations of funding for museums and galleries during the next three years.

The Minister of State, Department of the Environment (Lord Belstead)

Following my announcement on 5th November (Official Report, cols. 1189–1191) of a three-year settlement of the arts budget, I can now announce allocations to individual museums and galleries for the period from April 1988 to March 1991.

Overall provision for museums and galleries will be £157 million in 1988–89, £160 million in 1989–90 and £164 million in 1990–91. These figures are substantially higher than the £125.6 million which appears in the relevant estimates for the present year, for two reasons. First, there is a substantial increase, rising from over £11 million in 1988–89 to almost £12 million in 1990–91, in the planned provision for museums and galleries out of the settlement announced on 5th November; secondly, the total includes transfers of funding to the museums and galleries and the Museums and Galleries Commission in respect of services, including superannuation and the services of the Treasury Solicitor, for which the institutions will in future pay directly from their running costs, and property rates and certain rents which have been included in the provisions for building and maintenance work. The combined effect of these changes is to give a clearer picture of the total resources which the institutions as a group are receiving from central government through the arts programme.

Subject to parliamentary approval of Supply Estimates at the appropriate time, the Government propose that the allocations to specific institutions shall be as indicated in the table below. Excluding transfers, these figures amount to an increase of 15.9 per cent, for the three-year period as a whole. They are intended to give museums and galleries a firm base on which to plan their future activities and development. By providing the largest increase in the first year, they are intended to encourage early action to strengthen the institutions' management and financial position. Apart from the figures for building and maintenance in the second and third years, referred to below, the figures will not be reviewed in the course of the 1988–89 expenditure surveys unless the situation changes substantially in ways that cannot be foreseen today. The Government will consider in 1988 what provision to make for the last year of that survey—i.e. for 1991–92; and similarly in 1989 what provision to make for 1992–93—with a view to a rolling three-year programme.

Provision for running costs is being increased to take account of particular needs. Each institution will receive increases over and above the forward planning figures notified first in the spring of this year. My right honourable friend the Minister for the Arts is in particular providing increased grants for the Tate Gallery to help with the costs of the gallery in Liverpool which is to open next year; for the Imperial War Museum for the costs of fitting out the new galleries which will result from its major redevelopment scheme; and for the National Gallery for the running costs of the new Sainsbury Wing, which is due to open in the final year of the period.

Within the allocations for running costs, the Government have earmarked a total of £0.57 million to help the institutions through training and in other ways to improve their management and marketing. The Government also made provision within the grant-in-aid to the Museums and Galleries Commission announced on 5th November to enable the commission to assist other museums and galleries in the same way.

The Government have given careful thought to the question of purchase grants and have decided to give a higher priority to the other, more pressing needs which the institutions have represented to my right honourable friend the Minister for the Arts and which are reflected in the allocations for running costs and building and maintenance. Purchase grants will therefore remain in cash terms at their present levels for the time being.

The allocations to the individual institutions include for the first time provision within their grants-in-aid for building and maintenance. The building and maintenance programme for most of the institutions, which is at present managed by the Property Services Agency and carried on its Vote, will, as my right honourable friend the Minister for the Arts announced in July 1986, become the responsibility of the individual institutions from 1st April next; provision for it will be made in the Office of Arts and Libraries' Vote. The Government's allocations for this purpose will total £48.47 million in 1988–89. This includes the increase of £6 million which I announced on 5th November would be devoted to strengthening the building and maintenance programme. The Government hope that the institutions will be able as a result to tackle their priority maintenance tasks and get the new system off to a good start. For 1989–90 and 1990–91 the Government have decided to allocate to individual institutions the bulk of the money for building and maintenance, but to keep for future allocation a margin of 25 to 30 per cent, of the total. The allocation of the margin, amounting to over £12 million in 1989–90 and nearly £15 million in 1990–91, will depend partly upon the plans which the institutions bring forward and the extent to which they can raise money for these from other sources.

The national museums and galleries make a splendid contribution to conserving and displaying our national heritage. With the provisions which the Government are making for the next three years and with the incentive which these provide to strengthen their financial position, the Government are confident that they will continue to do so and that the institutions will welcome the firm basis which these allocations provide for their future planning and development.

£million
1988–89 1989–90* 1990–91*
MUSEUMS AND GALLERIES
British Museum
Running costs 15.665 16.132 16.594
Building programme 7.580 5.700 6.000
Purchase grant 1.400 1.400 1.400
Sub Total 24.645 23.232 23.994
British Museum (Natural History)
Running costs 15.370 15.772 16.242
Building programme 6.740 5.800 5.600
Purchase grant 0.190 0.190 0.190
Sub Total 22.300 21.762 22.032
Imperial War Museum
Running costs 6.318 6.515 6.129
Building programme 6.520 2.700 1.700
Purchase grant 0.100 1.100 0.100
Sub Total 12.938 9.315 7.929
National Gallery
Running costs 5.233 5.406 6.208
Building programme 3.490 3.300 2.900
Purchase grant 2.750 2.750 2.750
Sub Total 11.473 11.456 11.858
National Maritime Museum
Running costs 5.530 5.678 5.791
Building programme 2.510 2.500 2.000
Purchase grant 0.205 0.205 0.205
Sub Total 8.245 8.383 7.996
National Museums and Galleries on Merseyside
Running costs 6.780 6.996 7.169
Building programme 2.690 2.500 2.400
Purchase grant 0.750 0.750 0.750
Sub Total 10.220 10.246 10.319
National Portrait Gallery
Running costs 1.996 2.020 2.072
Building programme 3.020 1.500 1.500
Purchase grant 0.310 0.310 0.310
Sub Total 5.326 3.830 3.882
Science Museum
Running costs 11.047 11.374 11.652
Building programme 5.210 3.400 3.500
Purchase grant 0.375 0.375 0.375
Sub Total 16.632 15.149 15.527
Tate Gallery
Running costs 6.300 6.586 6.766
Building programme 2.780 2.800 2.900
Purchase grant 1.815 1.815 1.815
Sub Total 10.895 11.201 11.481

£million
1988–89 1989–90* 1990–91*
Victoria and Albert Museum
Running costs 12.900 13.315 13.716
Building programme 7.480 5.400 5.400
Purchase grant 1.145 1.145 1.145
Sub Total 21.525 19.860 20.261
Wallace Collection
Running costs 1.149 1.186 1.217
Building programme 0.449 0.400 0.400
Purchase grant
Sub Total 1.598 1.586 1.617
To be allocated later for building and maintenance 12.100 14.700
Running costs, including provision for building and maintenance
Greater Manchester Museum of Science and Industry 1.473 1.516 1.552
Museum of London 2.776 2.855 2.923
Sir John Soane's Museum 0.275 0.295 0.305
Sub Total 4.524 4.666 4.780
Museums and Galleries Commission 6.481 6.696 6.877
Research and Support Services 0.500 0.500 0.500
Total 157.302 159.982 163.753
*Individual provisions for the building programme in these two years will be increased when full allocation is made.