Majority of heritage organisations planning cuts

Nearly three out of five heritage organisations have begun reducing the scope of their future plans because of financial stresses, while a third have already made cuts to existing programmes, services, access or facilities, according to a recent survey.

In January 2024, 162 UK Heritage Pulse panel members responded to a survey asking whether their organisation is currently experiencing costs or budget pressures, with nearly 80% agreeing that they were affected by financial strain and 62% believing the situation will worsen in the next year.

The survey follows a separate study commissioned by Arts Council England that found museum service leaders have been left "demotivated, wrung out and drained" due to ongoing financial pressures,

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Members of UK Heritage Pulse, a collaborative data project managed by a consortium of partners and convened by The National Lottery Heritage Fund and Historic England said that the costs impacting their organisations the most were energy and utilities (54%), supplier prices (52%), maintenance and repairs (43%), insurance (38%) and payroll increases (36%).

As a result, 47% of struggling heritage organisations said they had delayed or reduced future maintenance projects, while a third said they had limited education and community plans.

Sharing the extent of the impact on their organisation’s existing activities, half of organisations with a turnover of over £1m said they had already made cuts. The areas bearing the brunt of reductions included opening hours and public access (37%), education and community programmes (37%), and building or technical maintenance (34%).

When it came to unemployment levels, one in five organisations said they had reduced paid staffing in the past 12 months due to budget pressure; however, the majority – 56% – had not, while 24% of respondents reported having no paid staff or being volunteer-led.

Of those who had reduced staffing, 73% of organisations said this had been done by freezing recruitment or not refilling roles.

Positive impacts

While some organisations shared that they had increased concern for staff welfare due to rising pressure, uncertainty and a decreased workforce, others reported that being forced to improve their financial planning had increased transparency and brought about positive changes.

One respondent said: “Additional time spent on scenario planning is a positive despite being challenging.”

Another noted: “It has been useful to reflect on what we do and why and create a shared direction for change.”

Others reported that being forced to seek alternative sources of income had been beneficial, with one saying: “The situation forced us to diversify funding but also to ensure advance payments work harder through choice of interest paying accounts etc.”

Another said: "[We] set up more free event days, which has slightly increased memberships. If it doesn’t cost you anything, let visitors come for free. They may make a donation, buy something or even buy a membership.”

'We cannot address all the issues'

Responding to the survey findings Eilish McGuinness, Chief Executive of the National Lottery Heritage Fund, said: "We are aware of the challenging economic environment and the cost-of-living crisis and how this is impacting organisations and the heritage sector.

"We are committed to supporting heritage where we can and are being as flexible as possible with our grants to find a way through these challenging times. We cannot address all the issues or replace long-term revenue funding, but we are working to help the sector navigate through some of these immediate and pressing concerns.

"The survey does also highlight some positive ways that organisations are coping, from diversifying income streams to improved financial planning. We will continue to work with organisations and partners to deliver our vision for heritage to be valued, cared for and sustained for everyone, now and in the future.”