Coventry City Council has put forward plans to merge Coventry Transport Museum with the trust that runs the Herbert Art Gallery and Museum in a bid to save nearly £400,000 annually.

The council spends more than £4m a year in grant support and service fees to three trusts: Coventry Transport Museum, the Belgrade Theatre and the Coventry Heritage and Arts Trust, which runs the Herbert as well as Lunt Roman Fort and Priory Visitor Centre.

The proposal will see the two museum trusts merged in order to provide “a more joined up cultural offer for visitors while reducing costs and increasing income”. The Belgrade Theatre trust will remain separate, but will see its annual budget cut by about 25% or £272,000).

On top of the cuts set out in the proposal, the council is also looking to reduce spending on the three trusts by £200,000 a year from 2012/13 onwards.

The council said any redundancies as a result of the cuts were a decision for the trusts to make, but local press reports suggest there will be about 18 posts cut among the three trusts’ 146 full-time equivalent staff.

The council's cabinet will be asked to approve the proposal at a meeting on 9 October.

Ed Ruane, cabinet member for culture at Coventry City Council, said the move would help prevent the introduction of admission charges at the museums and reduced opening hours.

“The economic climate and public spending cuts mean that savings from the trusts need to be found, but we are determined to keep free entrance to the Herbert Art Gallery and Museum and to Coventry Transport Museum - we know how much Coventry people value both museums,” he said.  

The boards of all three trusts as well as Arts Council England (ACE) have supported the proposals.

Dorothy Wilson, chairwoman of Coventry Heritage and Arts Trust, said: "The trust will do all it can to ensure that the final option implemented by the city council includes the protection of continued free access to high quality arts and cultural facilities in the city."

The Herbert missed out on becoming an ACE major partner despite joining forces with the Shakespeare Birthplace Trust and Compton Verney, both in Warwickshire, to make a bid.

It was awarded transitional funding of £352,755, but Ludo Keston, chief executive officer at Coventry Heritage and Arts Trust, said losing Renaissance funding would leave 19 jobs at risk and put pressure on services such as learning and inclusion.