Museums ‘scaling down activity’ to survive

A significant proportion of UK museums are planning to reduce their opening hours or cut back on events to make ends meet in the face of the cost-of-living crisis, a study has found.

A survey by the Association of Independent Museums found 14 of the 350 museums that respondended conceded they were 'at risk of insolvency', two of these 'imminently' – potentially going out of business by Christmas.

Although 85% of organisations did not consider themselves at risk of insolvency and 70% reported still having three or more months of unrestricted reserves, the study found concern about fixed-term energy contracts coming to an end and the potential for high energy costs to continue beyond this year.

READ MORE:

Half of responding museums said they believe they can absorb cost-of-living pressures in the short term, but not long term. About half were in fixed contracts for their energy, with around a third of these ending in the next six months.

The vast majority (90%) of organisations said they were planning actions to tackle cost pressures, with the most common steps being trying to increase income, using reserves, reducing energy consumption, and reducing costs such as learning and development.

Opening times

However, about 20% of museums are going further by considering reducing opening hours. And 40% of organisations said they either already have, or plan to, scale down activity including reducing public offer, reducing events, or delaying or cancelling gallery refreshes and capital projects.

Around one in six museums are planning to restructure or make redundancies, which are most likely to affect senior management.

'One of the biggest challenges of this crisis is that, unlike Covid where the problem was clear, urgent, and consistent (closed museums meaning no income), with the current cost-of-living pressures and energy crisis, each organisation has unique circumstances,' the report states

'Our data show that for some museums the main issue is around reduced visitor numbers and reduced income (even against already-modest post-covid projections), while for others energy is the looming or indeed already-present threat. This means that the kind and extent of support required differs from organisation to organisation.

'While some museums are signalling distress now, most museums can carry on in the short-term, to some extent driven by the numbers of museums still in fixed term energy contracts.

'A major challenge of the current situation is not knowing whether the energy crisis will affect only this winter, in which case the sector as a whole is likely to survive reasonably well, or whether it will carry on, in which case more museums will start having significant difficulties into next summer and beyond.'

Underinvestment

Museums Association Director Sharon Heal has separately warned that energy bills could be more of a risk to the UK’s museums than the pandemic. She said years of underinvestment have left the sector badly prepared for the crisis.

“Many museums are housed in historic buildings that are not energy efficient,” she said.

“They are costly to run, heat and maintain. A lack of investment over decades has meant our museums are fraying; leaky roofs, poor insulation, antiquated plumbing, dodgy electrics, poor ventilation and rising damp.”

She added that museums are unable to cut their energy use significantly as collections require round-the-clock care.

In light of the findings from its survey, AIM is seeking discussions with UK governments and funders about a range of measures to help museums. These include funding for longer-term capital improvements to make buildings more energy efficient.

They also want guidance and funding to reduce energy consumption in the short term, and a strategic plan for supporting the sector if the energy crisis persists beyond this winter.

Under government plans set out last month struggling theatres, museums, galleries and music venues will receive government support with their energy bills for an initial six-month period.