Now that the dust has more or less settled on the Comprehensive Spending Review, it's a good time to take a look at what the settlement actually means for museums.

Initially, the headline figures looked promising - an extra £200m for the department for culture over three years. Although much of that will be swallowed by the Olympics, the settlement isn't as bad as feared.

The 5-7 per cent cuts that had been anticipated didn't materialise and instead most areas got a "real flat" settlement - in other words, their previous budget plus inflation set at 2.7 per cent.

Four of the nationals did well with extra cash for one-off projects: the new Museum of Liverpool; the second phase of the Natural History Museum's Darwin Centre; the Victoria and Albert Museum for running the Sackler Centre for Arts Education; and the Museum of London for the cost of merging with the Museum in Docklands.

And the capital grant-in-aid allocation, while not earth-shattering, held no nasty shocks for these museums.

Behind these figures, though, lies the fact that national museums will have to try to hold down staff wages (the biggest part of their budgets) for the next three years, which could pave the way for clashes between the staff and management.

The Museums, Libraries and Archives Council's (MLA) settlement was awaited with bated breath, and the slight delay led to all sorts of rumours and speculation. But in the end, Renaissance in the Regions did relatively well. Its cut of the MLA's budget was ring-fenced and in line with inflation, rising from £45m now to £48.7m in 2010-11.

But that's not enough to complete the project and elevate all phase two hubs to phase one status. What's not yet clear is how the Renaissance money will be divided.

Roy Clare, chief executive of the MLA, has already said that he wants to look beyond the "straitjacket" of phase one and two hubs, and has warned that there won't be an automatic formula for funding based on previous allocations.

A review of Renaissance is underway, the results of which will inform the funding allocation to the hubs. Nothing is certain, but it seems likely that phase one and two status will end, and a degree of equalisation will take place. What's probable is that if you are in a phase one hub now, you'll be getting less money in a couple of years' time.

Putting aside the Renaissance money, the overall settlement for the MLA itself represents a cut in real terms to the organisation's funding. Its allocation goes from £61.6m this year to £62.4m in 2010-11 and, according to the MLA, that means it will have to trim its operating costs by approximately 20 per cent.

Staff reductions will be inevitable. Gina Lane, the director of collections, has taken early retirement and her post will be replaced with that of director of programme delivery, with responsibility for the 2012 programme. It is understood that another of the five directors is also leaving.

As well as reducing central operating costs, there may be cuts on the horizon for the regional agencies - there has been talk about tackling "regional duplication" and "unifying" the national and regional organisations. The slimming down of the national organisation will also involve moving the finance and HR departments to Birmingham and a new smaller headquarters in London.

The MLA has issued assurances that frontline services will be protected but there are still worries that projects that it funds, such as the Portable Antiquities Scheme, could be hit (see p4).

In light of the tight funding round, and despite some quibbles about how the money will be spent, the consensus is that museums haven't done too badly.

Sharon Heal

At a glance

DCMS: overall budget increase from £1.6bn to £1.8bn in 2010-11 Arts Council England: increase from £417m to £467m in 2010-11

National museums: index-linked 2.7 per cent increase, with extra funding for four projects

Museums, Libraries and Archives Council: below- inflation rise from £61,621 to £62,365m in 2010-11

Renaissance: funding is ring-fenced in line with inflation, from £45m this year to £48.7m in 2010-11

English Heritage: below- inflation increase from £123.7m to £130.7m in 2010-11

Visit Britain: reduction in funding from £49.6m to £40.6m in 2010-11