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Nottingham’s museums could move to a charitable trust model says report

Nottingham City Council Communities and Environment Scrutiny Committee has unveiled a comprehensive update on the future management ideas for Nottingham’s Museum and Gallery Services.

Following a Decision Model Appraisal (DMA) approved in March 2023, the council is considering transitioning to a charitable trust model to secure the financial stability and enhance the cultural offerings of its museums and galleries.

Background 

The DMA, a structured assessment framework, was initiated to evaluate the potential for bringing Nottingham Castle operations back under council control and to explore long-term delivery options for the broader Museum & Gallery Service.

The process, conducted by independent consultants Esito Limited, CounterCulture, and Durnin Research UK, involved detailed financial and non-financial evaluations.

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Financial Evaluation Findings

Key outcomes from the financial evaluation include:

  • Cost Considerations: Retaining the current model with increasing cost-cutting pressures could lead to reduced income potential and a higher council subsidy requirement.
  • Liability Management: Arm’s length management increases landlord liabilities without contributing grant funding for maintenance.
  • Income Generation: Enhanced opportunities for external funding and tax reliefs could reduce the council’s financial burden.
  • Asset Disposition: Ceasing operations could lead to devaluation and prolonged, complex disposal processes.

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Non-Financial Evaluation Findings

The non-financial assessment focused on strategic alignment, economic contributions, resource placement, service continuity, market viability, and risk mitigation. Notably, it was found that:

  • Council Control: Retaining management within the council provides the best protection for cultural and economic outcomes and risk mitigation.
  • Independent Trusts: Moving towards independent management reduces council influence and introduces new risks.
  • Service Cessation: Halting services prevents achieving broader outcomes and introduces significant risks.

Market Appraisal Insights

A parallel market appraisal, conducted between August 2023 and February 2024, examined national, regional, and local markets for delivering cultural services. It involved consultations with 25 stakeholders from 21 organizations, revealing:

  • Predominance of council in-house models: Most core cities like Bristol, Leeds, and Manchester operate museum services in-house with associated charitable trusts. Nottingham is unique in lacking such trusts.
  • Limited Precedents for Combined or Independent Trust Models: Few cities, like Newcastle, have combined services, and only Sheffield operates under an independent trust.
  • Stakeholder Sentiments: Local and regional stakeholders prefer Nottingham’s model to absorb other cultural organizations rather than merge with others.

Proposed Transition to Charitable Trusts

The preferred outcome is establishing charitable entities to manage museum and gallery services, offering several financial benefits:

  • Enhanced Income Opportunities: Eligibility for Gift Aid, tax exemptions, and business rate relief.
  • Grant and Donation Potentials: Increased capability to secure larger donations and grants.
  • Tax Reliefs: Immediate eligibility for Museums & Galleries Exhibition Tax Relief at 45%.
  • Sustainability and Funding: Active fundraising and sponsorship to support long-term initiatives.

Next Steps

The council will finalise detailed business planning over the coming months to reduce its subsidy reliance, aiming to present a comprehensive business plan and structural changes to the Executive Board in the autumn.

Nigel Hawkins, Head of Culture & Libraries, emphasized, “Transitioning to charitable entities not only reduces financial pressures but also ensures our cultural heritage thrives. We’re committed to safeguarding Nottingham’s rich cultural legacy while exploring sustainable operational models.”

The matter will be scrutinised at a meeting of the committee on 24 July.

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