The Treasury announced as part of the spending review that Gift Aid would continue in its current form for another year.

After that, the scheme, which allows independent museums to claim back tax on admissions, will be modified. Post April 2006, museums will be required to charge an extra 10 per cent on admissions, or offer unlimited admission for at least 12 months, to be eligible to claim tax back.

This represents a U-turn by the Treasury and comes in the wake of extensive lobbying headed by the Museums Association (MA), the Association of Independent Museums (AIM) and the Visitor Attractions Forum.

Sam Mullins, the director of London's Transport Museum and the chairman of AIM, welcomed the modified scheme, saying: 'It has the potential to strengthen the relationship between museums and visitors as it encourages repeat visits and membership. It is an opportunity for independents to stress the educational nature of what we do and to show our reliance on visitor support.'

Other independent museum directors were less enthusiastic. Last year, David Rudkin, the director of Fishbourne Roman Palace, invested £16,000 in new tills that were specially configured to account for Gift Aid.

'We will still be able to use the tills,' he said, 'but we would not have bought them if it hadn't been for Gift Aid. This announcement has brought an end to the scheme as we know it. I can't see the public being happy to contribute another 10 per cent.'

Terry Suthers, the director and chief executive officer of Harewood House, shared Rudkin's scepticism: 'Coupled with the proposed VAT changes, this is going to be crippling for the independent sector.'

Suthers is expecting the new scheme to lose the museum £100,000 a year, the equivalent of its entire programme for capital renewals 2005-6. 'We have no other income,' he said. 'We are totally reliant on the gate.'

Not all independents are unhappy about the proposed changes. Alan Bentley, the museum manager at the Bronte Parsonage Museum, said he was 'very pleased' with the scheme: 'It is no problem to extend our tickets for a year. It might even make them easier to sell.' But he dismissed the idea of the public paying 10 per cent more for admission, saying: 'I don't think we'll even try that option.'

For now, independents are waiting for the government to publish its draft legislation in the new year, when it has also promised to consult museums further on how the broader scope of the scheme will be defined.

Patrick Steel