Budget brings ‘much needed relief’ for museums in England but gaps remain

Culture sector bodies in England have welcomed the Covid-19 support measures announced in this week’s UK Government budget but warn that further support will be needed.

Chancellor Rishi Sunak revealed that a further £300m would be made available to cultural organisations through the Culture Recovery Fund, while £90m will go to help national institutions deal with the financial impact of Covid-19.

Other emergency relief measures have also been extended. The UK-wide furlough scheme will now run until the end of September 2021, while VAT for the hospitality and attractions sector will remain at 5% until that time, rising to 12.5% thereafter. Meanwhile, business rates relief will continue to be available for 750,000 eligible business in retail, hospitality and leisure.  

Some museums may be able to benefit from the £5bn Restart Grants programme, which will offer a one-off cash grant of £18,000 to eligible businesses. A new UK-wide Recovery Loan Scheme offering loans between £25,001 and £10m, and asset and invoice finance between £1,000 and £10m, has also been established.

There will be £18.8m for community cultural projects in Hartlepool, Carlisle, Wakefield and Yeovil, and £77m for similar initiatives in the devolved nations.

The Self Employment Income Support Scheme, which many culture and heritage freelancers were unable to access last year, has been extended to those who registered as self-employed in 2019/20, provided they have already submitted a tax return; two further grants will be available to cover earnings until September. However, the scheme remains closed to workers who pay themselves a salary and dividends through a company, leaving many still excluded.

A further 45 towns will be supported with more than £1bn through the government’s Towns Fund to stimulate economic and social regeneration. The fund has previously supported a number of culture and heritage-related regeneration schemes.

Stakeholders gave the budget a cautious welcome. The Museums Association’s policy manager Alistair Brown said: “The budget will bring some much needed relief to the sector. The increase to the Culture Recovery Fund and the extension of furlough, the business rates holiday and the tourism and hospitality VAT cut will help museums to get through the next few months as they reopen to the public, and will help to safeguard jobs that would otherwise be at risk.

“We are also seeking further clarity on whether museums will be eligible for the new hospitality and leisure Restart Grants of up to £18,000 each, which would be a further boost – particularly for small and independent museums.

“Unfortunately there was no news in the budget about the extension to the Museums and Galleries Exhibitions Tax Relief but we are still hopeful that the government will take action to extend this beyond its current expiry date of 2022.”

The Creative Industries Federation said in a statement: “We welcome the emergency measures and the increased recognition of the creative industries announced in the Chancellor's 2021 Budget Statement today.

“However, there are still fundamental gaps in support for many in our sector, which will hinder both the sector's and therefore the wider UK’s economic recovery.”

Ian Blatchford, director of the Science Museum Group, said: “This sustained support for the national museums throughout 2021 is very welcome news, building on the government’s strong backing during 2020. The five museums of the Science Museum Group are ready to play an important role in the country’s spiritual, creative and economic recovery, and this announcement is a boost to our exciting plans.”