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It is unacceptable that while the Government may trot off figures about increasing attendance, a closer look reveals that the situation is much bleaker than imagined. Inadequate funding for acquisitions means static collections and flagging interest. Additionally, the higher number of visitors bring with them higher costs for maintenance, thus further depleting resources that could be used for collecting. Does the Minister consider it important to support museum acquisitions? I look forward to hearing the Minister’s answers to several questions that were asked by my noble friend Lord Renfrew. What studies have the Government made of the tax provisions of other countries that promote private support? Does the Minister agree that a key part of encouraging people to visit museums is for them to have high-quality exhibits? Does he share my concern that the difficulties in acquiring works of art will eventually impact on visitor numbers? We support the Portable Antiquities Scheme and we think that it is an excellent organisation, but if the funding is frozen for the next three years, which seems to be the case, it will wither away, particularly if it has to lose some of its staff.

The funding problem looks worse when we consider the money that has been diverted to the Olympics. The Government’s raid on lottery funding means that arts and heritage now receive £200 million less in annual lottery funding than in 1997-98. When the first budget for the Olympics was announced, the published breakdown of where the money was coming from revealed £410 million that would be taken from the current National Lottery good causes. The revised budget published in March last year revealed that an additional £675 million would be transferred from the lottery after 2009. This means that the arts are now contributing a staggering £160 million to the 2012 Olympics, £90 million of which is to help with meeting the overspending that has trebled the Olympic budget since London won the bid.

Thankfully, the Government have conceded that there would be no further raids on good causes to fund the Games. The result is still shamefully inconsistent. As Graham Sheffield, chairman of the Royal Philharmonic Society put it, the Government are,

However, we welcome the Government’s announcement today, whether it is real or in line with inflation.

The sales of Olympic land, which will be used to reimburse good causes for these diverted funds, is fine and I hope that it happens, but it is likely to take up to 10 years. Will there be any money to tide over the lack of money going towards museums? Do the Government expect it magically to bring arts and heritage back up to speed after a decade of slashed resources?

Surely the opposite approach is needed. The London Olympic Games will put a spotlight on the city and provide an occasion, the cultural Olympics,

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mentioned by the noble Lord, Lord Howarth, for the best of the nation’s cultural heritage to be showcased to the world. Does the Minister understand the widespread concern that the diversion of funds from the arts will compromise this? Is this a missed opportunity? Indeed, missed opportunity seems to be the overarching theme of the Government’s approach to funding for the arts. The state alone cannot fund all our great museums. We need to harness a wider range of resources. City profits have been increasing but corporate donations have not risen to match. The richest 20 per cent in the UK give a mere 0.7 per cent of their income and the poorest give four times as much. What have the Government done to encourage philanthropy?

In 2004, Sir Nicholas Goodison recommended tax relief on lifetime donations of works of art to national museums. According to Giving USA 2004, the private donations in the United States in 2003 were something like $13 billion. What is the Government’s current thinking on these proposals? My noble friend Lady Hooper asked some extremely penetrating questions on the subject and I look forward to the answers. We support the remarks of the noble Lord, Lord Clement-Jones, and the noble Baroness, Lady Bonham-Carter. According to a recent survey by the Museums, Libraries, and Archives Council, at least half of those museums surveyed would like more volunteers. What steps are the Government taking to encourage people to volunteer to help in museums and galleries? Even small donations help museums but is enough being done to encourage them? Is there any scope for increasing the visibility of donation boxes? Some of them are in excellent places and highly visible in museums but I have also seen some tucked away round the back. They should all be very visible at the exit.

Indeed, do the Government have any plans to assist museums in promoting donations on a more immediate scale? These are of course just a few ideas but will the Minister agree that they are so far missed opportunities? The essential point is that though there might be instances where museums are receiving more money from the Government and numbers are going up, this is by no means the whole picture. If we are to continue the great tradition of public museums in this country, a more dynamic and more robust approach is needed to safeguard our national heritage. Though there might be instances of success, museum funding seems flawed. I mentioned at the beginning the opening of a museum some 300 years ago. Of course I was referring to the Ashmolean Museum of Oxford, as also mentioned by the noble Lord, Lord Clement-Jones, which has been there for 300 years. I am delighted that it recently received £15 million in lottery money to partially fund a redevelopment. Let us hope that this will be enough to preserve at least this great museum and enable it to continue being the leading focus of culture and heritage in Oxford and for many miles around. I shall also mention the Fitzwilliam Museum in Cambridge, and the Walker in Liverpool, which has already been mentioned, and—dare I say—a little museum I know well called the Higgins museum in Bedford, which is full of amazing objects. They are all valuable and they all need much greater support.



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5.34 pm

Lord Bach: My Lords, the House will be grateful to my noble friend Lord Harrison for providing this opportunity to debate a really important topic. His experience in this field is widely known, but that is true of all noble Lords who have spoken in the debate. It has been of great interest for the Government to hear the considered and expert views on this subject.

I shall start by praising the Government for what they have done. While no doubt legitimate criticisms, large and small, have been made during the debate, it is easy to forget that by providing free admission to our national museums and galleries in 2001, the Government effectively absolutely transformed the position. Some will say that it is one of the great cultural achievements of this Government. I would go further and say that it is one of the great achievements of this Government in any field.

We are blessed in this House to have the noble Lord, Lord Smith of Finsbury, who I am glad is present this afternoon, the noble Lord, Lord Howarth of Newport, who is here too, the noble Baroness, Lady Blackstone, who played an important part and, indeed, my noble friend Lord Evans of Temple Guiting, who played an important role later on. They all played important roles in this successful policy change. That it has been a success is best indicated by the ultimate test of whether a policy is a success, which is when the official Opposition come round to adopting it—here they have done so. There was a little wobble or two last year with the loss of a shadow Minister or two, but they have come round to supporting it. Despite the criticisms made by the noble Lord, Lord Luke, I understand that the official Opposition would not change the policy of free admission if they were ever so fortunate to come back to power again.

Since the Government introduced universal free admission to our national museums and galleries in 2001, almost 37 million additional visits have been made to museums—an increase of 40 per cent. Visits to the nine museums that used to charge have doubled. These figures alone demonstrate the success of the policy.

I shall spend a minute or two reminding the House of the history of free admission. As the noble Baroness, Lady Bonham-Carter, reminded us, some of our great national collections, such as the British Museum, have always been free. But during the 19th and early 20th century, a number of museums introduced some form of charging. For example, the National Gallery—assumed by many to have always been free—introduced charges on certain days of the week to reduce the number of visits to enable artists to study works more closely and make copies of them. Post-war cultural policy saw the reintroduction of free entry to all national collections. However, in the 1970s, the then Conservative Government reintroduced charging through the Museums and Galleries Admission Charges Act. That policy came into effect in 1974, but thankfully was scrapped within three months by the incoming Labour Government.



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Unfortunately when the Conservatives came back into power in 1979, they demonstrated their determination to abolish the principle of free access by permitting national museums to charge. This policy, along with real terms cuts in grant-in-aid led to nine national museums introducing charges during the 1980s and 1990s, including the three south Kensington museums, which saw a drop of around 2 million visits per year as a consequence. By 1997, visitors to national museums had fallen to fewer than 24 million. Ever increasing charges meant that some of our museums were in danger of becoming bastions just for the elite. I hope that the noble Lord, Lord Luke, will forgive me if I will not take any lessons from the Conservatives on this issue of the great tradition of our public museums.

When we came into power we pledged to scrap admission charges, which we did. In 1999, we introduced free entry for children; in 2000, free admission for those aged 60 and over; and in December 2001, free entry for all. Additional grant-in-aid was provided to the nine charging museums to compensate for the loss of income. Not only that, but we amended the legislation on VAT to allow national museums to recover the tax. This was worth £22 million in 2005-06.

The lottery has had a major impact over the years. Since 1994, the museums and galleries sector has received more than £1 billion from the Heritage Lottery Fund, one-third of its total budget. Research suggests that the combination of government compensation for admission charges and lottery funding has had the biggest impact in terms of visitor numbers. The continued success of the lottery means that the more than £700 million in new funding will be available from the Heritage Lottery Fund between 2009 and 2012. Many of our national museums will, we trust, also be playing a key part, with our support, in delivering a successful Cultural Olympiad.

We should not forget that this Government have also invested significantly in regional museums through the Renaissance in the Regions programme. Nearly £150 million has been invested in England’s regional museums since 2002, to raise standards, broaden access and provide a comprehensive service to schools. This programme is having a huge impact, as many noble Lords have told the House. School visits are up by 18 per cent and the number of children taking part in activities at museums has increased by more than 120 per cent.

Headline increases in visits do not tell the whole story. The increase in visits to some of the national museums that used to charge is spectacular. At the museum of the noble Baroness, Lady Hooper, the National Museum of Liverpool, visits are up by 188 per cent; visits to the V&A are up by 151 per cent, and to the Museum of Science and Industry in Manchester by 133 per cent. Two of those museums are outside London.

Not only are more visits being made, but the visitor profile is more diverse. It is not the case, as some contend, that free admission has benefited only the middle classes. Data supplied by the sponsored museums and galleries show that child visits have

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increased by 79 per cent to 8.4 million last year. Visits by people from lower socio-economic groups have increased by 21 per cent, from 5.4 million to 6.5 million. Visits by people from black and minority-ethnic groups have increased by 78 per cent.

Many museums have also enhanced and expanded their education and outreach services. The number of adult learners involved in organised educational activities has increased from 6 million to more than 9.5 million each year, and the number of those involved in outreach activities has almost doubled to 6 million each year.

There has been a whole series of questions quite legitimately asked of the Government as a result of this all-too-short debate. I will not have time to attempt to answer all of them. If I do not answer questions that have been asked, I promise to write to noble Lords with replies. Copies will, of course, be put in the Library. I hope noble Lords will forgive me if I do not deal with everything. I cannot; we would still be here on Monday morning.

During the Comprehensive Spending Review, we recognised that safeguarding free admission was a top priority, not only for us, but for the boards of our national museums and the public. A convincing case was made for funding and, as a result, despite what everyone knows to have been a very tight spending round, we have been able to offer our museums inflation-proof increases in running cost grants and, in many cases, significant increases in capital. We have also provided additional funding for new facilities which will enhance the museums’ offer, bringing in even more visitors. This includes help towards the running costs of the new Museum of Liverpool, which will be a world-class museum of social history when it opens in two years’ time, and the costs of the V&A’s new education centre. As has already been mentioned, £50 million has gone towards the new extension to Tate Modern, now the most visited modern art gallery in the world, and perhaps one of the greatest successes of all that we have talked about today. We have also provided an inflation-proof settlement for the renaissance programme to ensure that this continues to provide vital support to our regional museums.

My noble friend Lord Harrison referred to the Waterways Trust. He made an eloquent plea to consider the position of the three museums of the Waterways Trust. We recognise the importance of our industrial heritage and the excellent work of the custodians of the trust’s unique collection. The trust receives financial support from government by way of a £100,000 grant for the Renaissance Designation Challenge Fund and £40,000 from the DCMS/Wolfson Museums and Galleries Improvement Fund. The Heritage Lottery Fund has provided £900,000 towards the redevelopment of the Ellesmere Port Boat Museum, which I know is close to my noble friend’s heart. However, I must make clear that the Government have no plans to expand their family of sponsored museums by providing direct core funding to the Waterways Trust or to other museums. In fact, we are reducing our sponsored museums family by

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one in April when the responsibility of the DCMS, along with funding, for the Museum of London transfers to the GLA.

Despite a good spending review outcome for DCMS, the budget is—noble Lords have drawn attention to this—extremely tight and priority has to be given to safeguarding those museums we already sponsor and the renaissance programme. I know that that is a disappointment not just to my noble friend, but also to others who have support for other museums. We encourage them to continue their dialogue with the department and with the MLA, which is working with the trust to help strengthen and develop its business model and secure additional funding from a range of sources. I understand that the Minister for Culture, Margaret Hodge, has also offered a further meeting to discuss the museum’s future.

Dealing as best I can with some of the points that have been made, the noble Lord, Lord Harrison, asked whether I could provide any more details on the national strategy for museums. My noble friend Lord Howarth also asked about that. I cannot give much more detail, but the Museums, Libraries and Archives Council has been charged with developing this strategy and will publish it in the next few months. My noble friends Lord Harrison and Lord Faulkner of Worcester and the noble Baroness, Lady Hooper, asked about devising strategies to obtain a better balance of funding between national, regional and local museums. It is inevitable that there will be some imbalance of funding for national museums, because most are based in London. However, 80 per cent of the renaissance programme funding goes to regional museums that are outside London and the south-east.

My noble friend Lord Harrison asked whether museum boards and staff need to redouble efforts to persuade a sometimes sceptical public that museums are not the preserve of the privileged white middle class. The answer of course is yes. Museums have increased their effort to attract a wider range of visitors to the traditional museum, which can be seen in the fact that visits by people from BME backgrounds have increased, as have visits from different socio-economic groups.

But should not the governing boards of museums reflect more accurately the profile of the country as a whole? I answer my noble friend Lord Harrison by saying, yes, we agree wholeheartedly that museums have made some progress on increasing board diversity, but there is much more still to do. My noble friend Lord Faulkner of Worcester asked about the comparative costs of attracting lower socio-economic groups. It is difficult to make direct comparisons between museums. There are many factors that determine visitor make-up, including local demographics. The costs associated with running museums vary considerably because of the nature of the collections and the building costs.

My noble friend Lord Howarth recommended statutory obligations on local authorities; I hope that is in due course rather than straightaway. We have no plans to impose statutory obligations on local authorities in respect of cultural provision. However, cultural provision is considered as part of local authority performance assessment, so local authorities are assessed

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on what they do in the cultural field. The noble Baroness, Lady Bonham-Carter, made the point that setting targets does not work and she welcomed the focus on excellence. The DCMS has abolished targets for the new funding agreements with sponsored museums and—I hope that she will be pleased with my reply—we will focus on judgments of excellence, as Sir Brian McMaster has recommended.

My noble friends Lord Harrison and Lord Howarth, the noble Baroness, Lady Bonham-Carter, and the noble Lords, Lord Renfrew and Lord Luke, asked about encouraging philanthropy and the use of tax incentives, which goes to the issue around contemporary art too. We are actively exploring ways of encouraging greater philanthropy in the sector. As noble Lords will know, the Tate, the National Gallery and the National Portrait Gallery have benefited this year from major bequests and donations. There are a number of successful tax concessions in place, including acceptance in lieu and conditional exemption. Under acceptance in lieu, 38 objects valued at £25 million went to our national collections in 2006. We need to encourage more take-up of the concessions that I have referred to. The Heritage Lottery Fund has awarded over £150 million for acquisitions and more than £56 million for archive and library acquisitions across the country. It created a £3 million fund per annum from last year to support museums and galleries in that area. However, there is a problem.

The Government are extremely grateful to Sir Nicholas for his recommendations in the Goodison report, which has been referred to. As I understand it, the majority of them have already been implemented. We share his view and objective of encouraging greater philanthropic giving to cultural institutions. We want better use made of existing incentives. To that end, the Treasury is undertaking a consultation with the charitable sector on measures to increase the take-up of Gift Aid. In addition, the Government keep all taxes under review and we will continue to try to identify ways to increase the uptake of existing forms of tax-efficient giving. I could not agree more with the noble Lord, Lord Renfrew, about the importance of acquiring contemporary art. Given the current inflated art market, public money alone cannot be expected to secure major acquisitions. We are working hard to encourage private donations, and he will know about the recent successes.

I have heard the strong feeling from various parts of the House about the Portable Antiquities Scheme, as has the right honourable Margaret Hodge in another place. Of course, the MLA intends to maintain current levels of support for the PAS in 2008-09. I understand how that is not enough for those who support this excellent scheme. The MLA is reviewing the scheme and will consider options for future funding in the context of wider priorities for museum collections and public participation. If it brings comfort to those who want to see the scheme continue to succeed—that is a universal feeling around the House—the DCMS, the MLA and the British Museum are in discussions about the issue, as we speak. I have taken on board the strong feelings expressed in the debate.



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What are we doing to encourage free access to local authority museums? The answer is that this is a matter for local authorities, but two-thirds of Renaissance museums, many of which are funded by local authorities, are free, including the one which I know best in Leicester, which is an excellent museum. The noble Lord, Lord Clement-Jones, referred to the poor imbalance of funding between Renaissance museums against national museums. I need to point out that Renaissance itself was not devised as a funding programme for all museums. The programme has been developed on the principle that investment should benefit audiences rather than institutions, hence the focus on investment into larger museums serving major centres of population. Are we considering the future funding of smaller museums? We will consider that as part of the McMaster Review and the next spending review.

I must move to my conclusion quickly. Has free admission worked? The answer from around the House is yes. We do not think that will be changed, whichever Government are in power. Many more people are visiting and from a broader cross-section. The National Museums Director has already been quoted during the debate. In his recently published and widely welcomed report on excellence in the arts, Sir Brian McMaster acknowledges the success of free admission. In fact, he is so convinced of the success of the policy at broadening cultural engagement that he has recommended that the principle of free entry should be extended to the arts for an annual free tickets week. We think this is a very exciting proposal and are considering how we might make this a reality in the hope that that idea has great support in the House.

The noble Lord, Lord Roberts of Llandudno, talked about museums teaching us about history. The noble Baroness, Lady Hooper, talked about museums being magic. They are a fantastic asset to our country. We have a huge amount to be proud of. It is the responsibility of the Government to make sure that museums continue to be the great success that they have been until now. I apologise to noble Lords for not being able to answer more of their questions, but as I said earlier I shall reply in writing.


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