The first step to equalising the amount of funding for Renaissance in the Regions hubs was taken last month.

The Museums, Libraries and Archives Council (MLA) announced that it would be funding an average increase of 7 per cent for the six phase two hubs and a decrease of around 4 per cent for the three phase one hubs for 2008-09 (see table).

A spokesman for the MLA said that current thinking was that the gap between the phase one and two hubs should be further reduced in the following two years until all nine hubs had equal funding, based on population figures, by 2010-11.

Alec Coles, the director of Tyne and Wear Museums, told Museums Journal that although the settlement means the North East hub will have less resources than last year, they had anticipated the drop in funding: "The formula that has been devised is a fair deal given that Renaissance didn't get full funding. It's a sensible approach."

According to the MLA spokesman the decision to move towards equalisation was reached in consultation with the hubs and was endorsed by the MLA board meeting in September last year.

The funding of the hubs from 2009-10 will be subject to the review of Renaissance in the Regions that is expected to report by the summer.

Nick Dodd, the chief executive of Sheffield Galleries and Museums Trust, said the review needed to be thorough and that it should "give weight to the original vision and why we attempted to set out on this journey". But he added: "I'm not sure that the applecart needs upturning."

Also allocated was £2m for 2008-09 for the New Challenge Fund for Hubs that will replace the Designation Challenge Fund.

As Museums Journal went to press the MLA board was meeting to approve budget allocations to regional MLAs. It was feared that budget cuts of up to 25 per cent could be passed on to the regional agencies.

The MLA spokesman said that the allocations would be made on the principle of reducing overheads and duplication.
Renaissance funding allocation at a glance

Allocation 2008-09

Phase l

North East:
£3,503
% change: -3.5

South West:
£5,009
% change: -3.9

West Midlands:
£5,267
% change: -4.4

Phase ll

East of England:
£3,709
% change: 7.3

East Midlands:
£3,236
% change: 7.0

London:
£4,370
% change: 8.2

North West:
£4,237
% change: 7.0

South East:
£4,725
% change: 7.5

Yorkshire:
£3,544
% change: 7.0