The sector has raised concerns that the local government finance bill, which had its second reading in the House of Lords over the summer, could dissuade local authorities from switching their museums services to trust status.
The bill will enable councils in England to retain 50% of the business rates they collect from April 2013. This revenue currently goes to a central pool for distribution to local authorities.
The remaining 50% will still be paid into a central pool and then allocated to individual councils through revenue support grants.
At the moment, if a museum adopts trust status, its business rates drop by at least 80%. Under the new legislation, local authorities would not make the same savings as previously by switching to trust status.
“Clearly this might impact those organisations that are considering going to trust,” said Mark Taylor, director of the Museums Association.
“However, something as important as moving to trust status will hopefully have more strategic and operational motives than solely making savings on the business rate.”
Adrian Babbidge, director of heritage consultancy Egeria, said: “The coalition government is changing the system in a way that is intended to increase the financial independence of councils, and provide a stronger incentive to promote local business growth.
“The short-term issues for museums will be less significant than the longer-term change that follows from the greater autonomy given to local councils.”
The bill will enable councils in England to retain 50% of the business rates they collect from April 2013. This revenue currently goes to a central pool for distribution to local authorities.
The remaining 50% will still be paid into a central pool and then allocated to individual councils through revenue support grants.
At the moment, if a museum adopts trust status, its business rates drop by at least 80%. Under the new legislation, local authorities would not make the same savings as previously by switching to trust status.
“Clearly this might impact those organisations that are considering going to trust,” said Mark Taylor, director of the Museums Association.
“However, something as important as moving to trust status will hopefully have more strategic and operational motives than solely making savings on the business rate.”
Adrian Babbidge, director of heritage consultancy Egeria, said: “The coalition government is changing the system in a way that is intended to increase the financial independence of councils, and provide a stronger incentive to promote local business growth.
“The short-term issues for museums will be less significant than the longer-term change that follows from the greater autonomy given to local councils.”