Following the Herbert Art Gallery and Museum's £20m revamp, which was unveiled in October, Coventry Heritage and Arts Trust is in talks with Coventry City Council over its running costs.

The trust, which was set up in July, has secured £1.78m from the council for 2008-09, but is seeking a rise to cover utility costs, estimated at £170,000, as well as other running costs for 2009-10.

Ludo Keston, chief executive officer at Coventry Heritage and Arts Trust, denied claims that the trust had received a poor settlement from the council. "There was a realisation at transfer that no one would know the true costs, so we made sure the agreement was for a short period of time, to review the situation," he said.

"We are now talking to the council about the real running costs. Our ambition is for another one-year agreement from 2009-10 to make sure we have got it right, followed by a three-year agreement. The transfer of the building, use of the collections and so on are covered by a 30-year agreement."

But it is understood that the council is looking to make cuts of three per cent across all services next year. Keston said that although he was in talks with council executives, he could not predict whether that would result in the council delivering the necessary funding.

The trust is looking to double its earned income in 2009-10, he added, but hoped to do this through corporate hire rather than charging for admission.

A council source said that it was a worrying time for staff at the city council, which has projected 190 redundancies for next year, and at its partner organisations.

Turbulence behind the scenes has not affected the Herbert's visitor figures, which hit the target of 108,000 for the period 1 July 2008 to
1 April four months early.

At a glance: trusts

Coventry Heritage and Arts Trust: Formed 1 July and received £1.78m from the council in 2008-09. Funding reviewed year on year.

York Museums Trust: Formed in August 2002 and received £1.2m in 2002-03, as part of a 10-year agreement of inflation-proof funding from the council.

Museums Sheffield: Formed April 1998 and received £1.4m in 1998-99. Initial six-year funding agreement, with an annual review since 2004.

Culture and Sport Glasgow: Formed April 2007 and received £69.3m in 2007-08. Funding is reviewed each year.
Links

Museums Journal review, Janurary 2009, p44: Herbert Art Gallery and Museum