Select Committee · Public Accounts Committee

Financial resilience of government-sponsored museums and galleries

Status: Open Opened: 12 Dec 2025 2 recommendations 25 conclusions 1 report

Fifteen national museums and galleries, including the British Museum and the Science Museum, are sponsored by the Department for Culture, Media and Sport (DCMS), with free access afforded to their permanent collections as a result. These institutions received £480m from DCMS in 2024-25, amounting to almost 25% of the Department’s total spend, and have successfully … Show more

Reports

1 report
Title HC No. Published Items Response
7th Report - Financial resilience of government-sponsored m… HC 96 24 Jun 2026 27 Pending

Recommendations & Conclusions

27 items
2 Conclusion 7th Report - Financial resilience of go…

The Department is missing opportunities to help museums and galleries address some of the common...

The Department is missing opportunities to help museums and galleries address some of the common challenges to their resilience. The Department aims to have sufficient oversight of museums and galleries while at the same time allowing them to use the freedoms they have to operate at arm’s length. For example, … Read more

HM Treasury
3 Recommendation 7th Report - Financial resilience of go…

The Department is not doing enough to ensure museums and galleries apply learning from recent...

The Department is not doing enough to ensure museums and galleries apply learning from recent threats to the physical security of their collections and their cyber security. Museums and galleries face significant challenges on cyber-security and the physical security of their collections, as evidenced by the October 2023 cyber-attack at … Read more

HM Treasury
4 Conclusion 7th Report - Financial resilience of go…

The Department relies heavily on museums and galleries and their boards to ensure their own...

The Department relies heavily on museums and galleries and their boards to ensure their own financial resilience, but their boards are not consistently well-equipped to do this effectively. As arms-length bodies, museums and galleries have primary responsibility for their ongoing financial resilience, with their boards playing an important role in … Read more

HM Treasury
5 Recommendation 7th Report - Financial resilience of go…

The Department’s current funding regime risks not providing museums and galleries with sufficient incentives to...

The Department’s current funding regime risks not providing museums and galleries with sufficient incentives to support themselves financially. The Department recognises the importance of providing museums and galleries with incentives to maximise opportunities for raising their own income, while also receiving grant-in-aid, as a way of improving their financial resilience. … Read more

HM Treasury
6 Conclusion 7th Report - Financial resilience of go…

The Department does not have the necessary insights into museums and galleries to give it...

The Department does not have the necessary insights into museums and galleries to give it sufficient early warning of their potential financial failure. The Department’s line of sight of museums’ and galleries’ finances and financial management capabilities is via quarterly partnership meetings and its receipt of copies of museums’ and … Read more

HM Treasury
7 Conclusion 7th Report - Financial resilience of go…

Grant-in-aid from the Department forms a significant proportion of the total income of the sponsored...

Grant-in-aid from the Department forms a significant proportion of the total income of the sponsored museums and galleries. It was, for example, an average of 46% of total income in 2024–25.13 We therefore asked whether the provision of grant-in-aid meant there was any incentive for the museums and galleries to … Read more

HM Treasury
8 Conclusion 7th Report - Financial resilience of go…

In most years, when calculating the grant-in-aid for the museums and galleries for the coming...

In most years, when calculating the grant-in-aid for the museums and galleries for the coming year, the Department applied an equal percentage uplift to their existing baseline allocations to allow for inflation, and subsequently used year-end top-ups to help those it discovered to be in financial trouble. It took a … Read more

HM Treasury
9 Conclusion 7th Report - Financial resilience of go…

We asked the Department whether its usual approach of flat rate annual increases in museums’...

We asked the Department whether its usual approach of flat rate annual increases in museums’ and galleries’ funding at the start of the year, with additional top-ups later for those in financial trouble, provided the museums and galleries with insufficient incentive to maximise self-generated income or operate efficiently.21 The Department … Read more

HM Treasury
10 Conclusion 7th Report - Financial resilience of go…

We are concerned that the top-ups in previous years show ultimately that the Department will...

We are concerned that the top-ups in previous years show ultimately that the Department will not allow a museum or gallery to shut and will seek to do something to make sure the museum or gallery were a going concern, and that, as a result, the museums and galleries will … Read more

HM Treasury
11 Conclusion 7th Report - Financial resilience of go…

With regard to sources of external income, we asked the Department if it had considered...

With regard to sources of external income, we asked the Department if it had considered whether charging visitors would result in an overall increase in museums’ and galleries’ revenue. It replied that, since the conclusion of the National Audit Office report, Baroness Hodge in her independent review of Arts Council … Read more

HM Treasury
12 Conclusion 7th Report - Financial resilience of go…

The Department is working to improve its oversight arrangements so that it has a clearer...

The Department is working to improve its oversight arrangements so that it has a clearer measure of the financial resilience of each museum or gallery.30 It told us that it considers that it has good insight into, and understanding of, what is going on with the museums and galleries through … Read more

HM Treasury
13 Conclusion 7th Report - Financial resilience of go…

The Department currently has a set of long-standing key performance indicators in place to monitor...

The Department currently has a set of long-standing key performance indicators in place to monitor the performance of the museums and galleries it sponsors. However, the indicators do not cover qualitative aspects of museums’ and galleries’ service delivery, such as opening times, gallery closures or condition of collections, which could … Read more

HM Treasury
14 Conclusion 7th Report - Financial resilience of go…

We also asked the Department about the new Strategic Indicator Tool covering both financial and...

We also asked the Department about the new Strategic Indicator Tool covering both financial and non-financial performance that it had been developing since early 2024 to help it determine its risk appetite for each of its arm’s-length bodies, including the museums and galleries.34 It told us that this was an … Read more

HM Treasury
15 Conclusion 7th Report - Financial resilience of go…

There are indications that some museums and galleries may not have the financial management capability...

There are indications that some museums and galleries may not have the financial management capability to manage future risks. For example, many have experienced significant churn in their senior financial leadership in recent years, while some have struggled to produce their annual accounts for audit on a timely basis. Weaknesses … Read more

HM Treasury
16 Conclusion 7th Report - Financial resilience of go…

Museums and galleries face a number of common resilience challenges and opportunities, such as the...

Museums and galleries face a number of common resilience challenges and opportunities, such as the costs of storing increasing collections, the challenge of digitally archiving collections, the use of Artificial Intelligence (AI) and the scope for the introduction of further shared services. Although the majority of museums and galleries agreed … Read more

HM Treasury
17 Conclusion 7th Report - Financial resilience of go…

We therefore asked the Department how it was going to support the museums and galleries...

We therefore asked the Department how it was going to support the museums and galleries to collaborate and address these challenges and opportunities. In response, it pointed out that the 15 museums and galleries were ‘freedom bodies’, which means they have their own accounting officers, independent trustees and governance, and … Read more

HM Treasury
18 Conclusion 7th Report - Financial resilience of go…

The Department told us that it provided support by developing a community of arm’s-length bodies,...

The Department told us that it provided support by developing a community of arm’s-length bodies, including museums and galleries, so that it can work on the common issues faced by museums and galleries together. It had already established a number of different forums at which these 38 C&AG’s report, paras … Read more

HM Treasury
19 Conclusion 7th Report - Financial resilience of go…

However, the Department agreed that it could do more and play a stronger convening role.44...

However, the Department agreed that it could do more and play a stronger convening role.44 For example, it was establishing a digital data and technology forum for museums’ and galleries’ digital information officers to address common technical challenges and share good practice around the use of AI and the digitisation … Read more

HM Treasury
20 Conclusion 7th Report - Financial resilience of go…

The Department also told us that, after talking to its museums and galleries, helping them...

The Department also told us that, after talking to its museums and galleries, helping them make best of their collective storage space was one of the areas it wanted to look into further. The Department highlighted the example of the National Portrait Gallery leasing space from Tate as good practice … Read more

HM Treasury
21 Conclusion 7th Report - Financial resilience of go…

Common resilience issues faced by the museums and galleries include the increasing threats they face...

Common resilience issues faced by the museums and galleries include the increasing threats they face of cyberattacks and of thefts of items from their collections, as evidenced by the October 2023 cyber-attack at the British Library and the thefts reported in 2023 at the British Museum.47 We therefore asked the … Read more

HM Treasury
22 Conclusion 7th Report - Financial resilience of go…

The Department assured us that it was now working closely with the organisations on how...

The Department assured us that it was now working closely with the organisations on how it can provide central advice on improving cyber-resilience and minimising the threat and impact of cyber-attacks. It highlighted the Government’s cyber action plan, which the Department for Science, Innovation and Technology published earlier this year, … Read more

HM Treasury
23 Conclusion 7th Report - Financial resilience of go…

We asked the Department what actions it was taking to support the museums and galleries...

We asked the Department what actions it was taking to support the museums and galleries to reduce the risk of thefts from their collections. The Department told us that it regularly discussed security matters at is meetings with the Chairs, CEOs, Finance Directors and the heads of Audit and Risk … Read more

HM Treasury
24 Conclusion 7th Report - Financial resilience of go…

Museums’ and galleries’ boards play an important role in ensuring the financial resilience of the...

Museums’ and galleries’ boards play an important role in ensuring the financial resilience of the museums and galleries. As at 9 October 2025, there were 34 vacancies across the 15 museums’ and galleries’ boards, representing a total vacancy rate of 15%. The average length of time to make appointments in … Read more

HM Treasury
25 Conclusion 7th Report - Financial resilience of go…

We therefore asked the Department why it was taking so long to get boards up...

We therefore asked the Department why it was taking so long to get boards up to the level they should be. It assured us that the delays had not been due to a lack of resources within its own appointments team but had been caused, in part, by factors outside … Read more

HM Treasury
26 Conclusion 7th Report - Financial resilience of go…

The Department reiterated that, despite the vacancies, all the museums’ and galleries’ boards had been...

The Department reiterated that, despite the vacancies, all the museums’ and galleries’ boards had been quorate.60 However, it acknowledged that the appointments process had been too slow and that addressing the delays was on its agenda as it sought to address those factors that it could control.61 It had undertaken … Read more

HM Treasury
27 Conclusion 7th Report - Financial resilience of go…

The Department told us that, as a result, the speed of board appointments had got...

The Department told us that, as a result, the speed of board appointments had got slightly quicker. A number of the October 2025 vacancies had been filled, with vacancies across museums’ and galleries’ boards falling to 27, representing a total vacancy rate of 11%.64 The Department told us that it … Read more

HM Treasury

Oral evidence sessions

1 session
Date Witnesses
20 Apr 2026 Andrew Pattison · Department for Culture, Media and Sport, Hannah Malik · Department for Culture, Media and Sport, Polly Payne · Department for Culture, Media and Sport, Susannah Storey · Department for Culture, Media and Sport View ↗

Who gave evidence

4 witnesses
WitnessOrganisationSessions
Andrew Pattison · Chief Operating Officer Department for Culture, Media and Sport 1
Hannah Malik · Director for Culture Department for Culture, Media and Sport 1
Polly Payne · Director General, Culture, Sport and Civil Society Department for Culture, Media and Sport 1
Susannah Storey · Permanent Secretary Department for Culture, Media and Sport 1

Correspondence

1 letter
DateDirectionTitle
14 May 2026 To cttee Letter from the Permanent Secretary at the Department for Culture, Media & Spor…