DCMS announces £1.5bn to tackle underfunding across culture sector

A highly anticipated funding announcement by the Department for Culture, Media and Sport (DCMS) has confirmed that £1.5bn will be invested in cultural organisations over a five-year period – including £600m for its directly-funded museums and £160m for regional and local museums.

Culture secretary Lisa Nandy said the money aims to turn a corner on the underfunding that the sector has faced in the past 10-plus years. It will also tackle urgent capital repairs and “unite communities in the face of division”.

Of the £1.5bn, £760m will be invested in museums. This includes:

• £600m infrastructure funding to support national museums and DCMS-sponsored cultural organisations to address critical maintenance and works to estates (see box at end for the full list).
• £160m for local and regional museums through the Museums Estates Development Fund (Mend) and a new Museum Transformation programme to support organisations to move towards more sustainable business model.

DCMS will also invest £80m over four years in National Portfolio organisations that receive regular investment from Arts Council England. This is part of a 5% uplift next year for these organisations. 

A further £230m has been earmarked for heritage, which includes: 

• £75m for at-risk heritage in the form of grants towards repairs and building conservation. 
• £46m for the Heritage Revival Fund to help communities bring local heritage buildings back into public use.
• £92m for a new Places of Worship  Renewal Fund to replace the Listed Places of Worship Grant Scheme. 

The Museums Association’s response to the announcement

Sharon Heal, director of the Museums Association, said: “We very much welcome this additional funding which comes at a critical time for the sector when many museums will be negotiating budgets to ensure their survival over the next few years.

“Local museums are doing amazing work connecting to their communities and creating space and opportunities for civic renewal and for the conversations that we need to have in society.

“From the fantastic work that Bristol Museums have done using collections to understand gender throughout history to the innovative work that Manchester Jewish Museum is doing to support collective healing between Jewish and Muslim communities, we know that our diverse collections can be a focus for curiosity, understanding and bridging social divides.

“We hope that this new funding, on top of increased funding for NPOs and for Mend, will support museums to deliver more in partnership with their communities.”

Elsewhere, the funding will provide £27.5m for libraries and £425m to support around 300 capital projects in arts venues across the country.

 “At a time when forces seek to divide us, arts, culture and heritage are what bind us together,” Nandy said when announcing the investment. "This funding will keep the doors open and the lights on at thousands of arts organisations, museums, libraries and heritage buildings that might otherwise have been at real risk of closing.”

Sector response

The funding was welcomed as a “massive vote of confidence” by Laura Pye, chair of National Museum Directors' Council and director of National Museums Liverpool, one of 15 organisations directly funded by DCMS.

“Investment in museum maintenance – for regional and national institutions – is essential if we are to protect our shared heritage and ensure our collections can be enjoyed for generations to come,” Bye said.

“We are especially encouraged by the commitment to transformation funding to support the sustainability of local and regional museums. This support recognises the vital role we play in our communities, driving education, creativity, and local pride. With this renewed investment, we can strengthen our foundations and continue delivering world‑class cultural experiences for everyone.”

And Darren Henley, the arts council's chief executive, described the news as a "big boost" for the arts.

"By continuing to fund our cultural infrastructure, the government is investing in our collective future in ensuring creative opportunities for generations to come,” he said.

Mike Clancy, general secretary of Prospect union, which represents 160,000 members in the public and private sectors, said: “This £1.5bn capital investment is welcome recognition of the huge cultural and economic importance of heritage and the arts. Properly maintaining and protecting these venues is vital for them retaining their national and global importance in the years to come.

“On the heritage side in particular, however, our culture is not just about artefacts, sites, and buildings but about the people who bring it to life. This sector is facing an ongoing and intractable crisis in pay and retention which has to be addressed.

“We need a model for day-to-day spending that allows for sustainable workforce planning, pays these highly qualified experts what they are worth, and enables our institutions to employ enough of the right people to keep sites and collections open to the public and show them in the best way possible.”

Art Fund director Jenny Waldman said: “We welcome this major investment in museums and culture announced by Secretary of State for DCMS Lisa Nandy. We’re especially pleased to see £760m for museums including over £150m for the UK’s local and regional museums, which will help to safeguard our world-leading collections for future generations.

“Museums have been placed under immense strain in recent years – this funding is a huge boost which recognises the crucial impact they have in communities and their central role in ensuring everyone across the country can enjoy our incredible cultural heritage.”

Nicholas Cullinan, director of the British Museum, said: “As the most generous national lender, we are delighted with the Government's announcement of £1.5 billion of capital investment for cultural institutions. This sends a strong signal to the museums sector, and adds strong financial backing to the Government's commitment to people, place and national renewal.”

Underspend at DCMS

The investment comes a week after the National Audit Office published a report that found DCMS has “consistently underspent” over the past five years – with museums and galleries contributing the largest underspend.

Museums and galleries underspent their resource departmental expenditure limit by £64m in 2024-25 and their capital departmental expenditure limit by £68m.

The report says this underspend was driven by visitor income being higher than forecast and museums using their own reserves, rather than expecting additional departmental funding.

The department spent £7.6bn in 2024/25 – down £259m from the previous financial year. Of this spend, museums and galleries accounted for £663m; arts and culture £452m; heritage £176m; and lottery grants £1.5bn. In comparison, the BBC accounted for more than 50% of the budget at just under £4bn.

The audit office warns that DCMS faces a 1.4% average real-terms funding decline over the next five years.

It is currently undertaking a study on the financial resilience of DCMS-sponsored museums and galleries.

• National Audit Office report on DCMS

The 15 DCMS-sponsored museums and galleries:

• British Museum
• Museum of the Home
• Horniman Museum
• Imperial War Museums
• National Gallery
• National Museums Liverpool
• National Portrait Gallery
• Natural History Museum
• Royal Armouries
• Royal Museums Greenwich
• Science Museum Group
• Sir John Soane’s Museum
• Tate
• Victoria and Albert Museum
• The Wallace Collection