The National Audit Office (NAO) has released its 2026 report on the financial resilience of the 15 museums and galleries sponsored by the Department for Culture, Media & Sport (DCMS). These institutions include some of England’s most‑visited free attractions and play a major role in the UK’s cultural presence at home and internationally.

Funding Pressures and Rising Costs

DCMS provided £484 million in grant‑in‑aid in 2024–25, but this represents a 16% real‑terms decrease since the peak of emergency COVID‑19 support in 2021–22. At the same time, overall expenditure has risen by 18% in real terms as institutions rebuilt capacity post‑pandemic, particularly around staffing.

Visitor numbers remain below pre‑pandemic levels — 42 million in 2024–25, down from an average of 48 million — with overseas visitors slower to return. This has contributed to increased financial strain.

Growing Dependence on Self‑Generated Income

To bridge financial gaps, museums and galleries boosted their self‑generated income by 53%, reaching £563 million in 2024–25, largely through commercial activities such as venue hire, paid exhibitions, memberships and retail.

However, the NAO notes that these income streams are more vulnerable to economic pressures, tourism trends, and fluctuating visitor behaviour, making them less predictable than government funding.

Reserves Under Pressure

By late 2025, unrestricted reserves had fallen by 18% in real terms, leaving some organisations requiring short‑term DCMS intervention to continue operating. Cost‑saving measures, including reduced staffing or vacant roles, have also become more common.

NAO Recommendations

The NAO emphasises the need for:

  • Stronger DCMS oversight to identify early signs of financial stress.
  • Improved financial planning and risk management within institutions.
  • A balanced approach to cost‑control, ensuring essential public services — such as free access and collection preservation — are not compromised.

Source: The financial resilience of DCMS-sponsored museums and galleries – NAO report