Our Heritage, Our Future, Your Say was published last month and is designed to shape the HLF's plans for 2008-2013.

It says there are three main reasons for the fall in the amount of money it will distribute from 2008: lottery cash being diverted to support the London Olympics in 2012; a change in the way that the interest on balances is distributed (from lottery money allocated to projects, but not yet spent); and an end to the HLF policy of over-committing, which has involved awarding more money than it receives in income in order to help projects get off the ground quickly.

Carole Souter, the director of the HLF, is keen to emphasise that £200m a year is still 'an enormous sum of money'. But there are fears that the £200m figure could fall further following a Department for Culture, Media and Sport review launched this month into the share heritage, arts and sport receives from the lottery.

At present, the Big Lottery Fund (BLF) gets 50 per cent, with heritage, arts and sport having an equal share of the remainder. But there are concerns that sports bodies will successfully lobby for a greater share to support their Olympic activities.

'All the good causes could do with more money, so it is important that people involved in the heritage sector make their voices heard in the DCMS consultation,' Souter said. 'It really is quite an important moment, as before the lottery there simply was not this strand of grant-funding available.'

The HLF has invested £3.3bn in heritage in the past 11 years, with museums and galleries receiving more than £1bn. The department for culture has told the HLF that it expects heritage to remain a good cause, although it is not yet clear for how long or in what capacity. The museum sector would not welcome severe restrictions on the funding of heritage capital projects.

The Conservative Party has pledged to scrap the BLF and revert to the four original good causes - heritage, arts, sports and charities. This would give heritage a 25 per cent share of funding compared with its current 16.66 per cent.

The department for culture's consultation document on the share of lottery funding was due to be published shortly after Museums Journal went to press. It is likely to recommend maintaining the current share of money. The consultation will run until February 2006 and contributions can be made at www.lottery2009.culture.gov.uk

The HLF's consultation runs until 28 February. It will then wait until the government decides on lottery share before issuing specific proposals for its work from 2008-2013. Copies of Our Heritage, Our Future, Your Say are online at www.hlf.org.uk

Simon Stephens