An independent financial review commissioned by Sheffield City Council has found that Museums Sheffield is critically underfunded and in need of recapitalisation.
Museums Journal understands that the council has approved short-term financial support to the trust in the form of a loan, although details had yet to be agreed.
Paul Scriven, leader of Sheffield City Council, said: “We believe it is important to support the museums through this period, and we are confident that over the next two months we will be able to work together and ensure Museums Sheffield’s finances are back on track.
“We will be working with them to develop long-term proposals to ensure that the organisation can avoid cashflow problems in the future.”
Nick Dodd, chief executive of Museums Sheffield, said: “Over the past 18 months, Museums Sheffield has significantly reduced its expenditure through redundancies, budget cuts, voluntary pay cuts and a freeze on recruitment.
“We welcome this show of support from Sheffield City Council and look forward to working with them to restore our cashflow.”
But a source close to the trust said some difficulties stemmed from the council’s request that the trust models 30 per cent cuts this financial year, amounting to more than £690,000 in savings.
A council spokesman said: “The museums might argue that these are inextricably linked, but we see them as separate issues. All services are being asked to find savings this year – a total of £6m across the council.
“The cashflow issue is more recent. It was brought to our attention by Museums Sheffield and they asked for our help on it.”
Museums Journal understands that the council has approved short-term financial support to the trust in the form of a loan, although details had yet to be agreed.
Paul Scriven, leader of Sheffield City Council, said: “We believe it is important to support the museums through this period, and we are confident that over the next two months we will be able to work together and ensure Museums Sheffield’s finances are back on track.
“We will be working with them to develop long-term proposals to ensure that the organisation can avoid cashflow problems in the future.”
Nick Dodd, chief executive of Museums Sheffield, said: “Over the past 18 months, Museums Sheffield has significantly reduced its expenditure through redundancies, budget cuts, voluntary pay cuts and a freeze on recruitment.
“We welcome this show of support from Sheffield City Council and look forward to working with them to restore our cashflow.”
But a source close to the trust said some difficulties stemmed from the council’s request that the trust models 30 per cent cuts this financial year, amounting to more than £690,000 in savings.
A council spokesman said: “The museums might argue that these are inextricably linked, but we see them as separate issues. All services are being asked to find savings this year – a total of £6m across the council.
“The cashflow issue is more recent. It was brought to our attention by Museums Sheffield and they asked for our help on it.”
