English Heritage has been told to cut costs following a freeze in its annual government grant.
The government has told the heritage body that its £110m annual grant will be frozen for 2005/6, even though the budgets for other culture quangos, including the Arts Council, Sport England and CABE, have been greatly increased.
The government move comes just weeks before the heritage body is due to appear at a costly public inquiry opposing Irvine Sellar’s London Bridge Tower.
It is anticipated that the inquiry will cost English Heritage in excess of £500,000.
The quango is also involved in what could become an expensive battle to take control of the Duke of Westminster’s London residence, Apsley House, known as 1 London.
English Heritage was hoping for an increase in its grant of as much as £20m.
But at a private meeting last month, EH was told by the Department of Culture, Media and Sport that it would have to tighten its belt.
According to sources, DCMS secretary Tessa Jowell believes that significant savings could be made by the organisation as a result of the reforms being introduced by chief executive Dr Simon Thurley.
Not only will EH receive no additional funds from the government, but it will also lose out on its inflationary increase.
However, since there will be inflationary increases for salaries and loans, the freeze will equate to a 5% cut.
A source said: “At the very time that EH is being more effective and constructive in its relationship with developers, the government has made it more difficult for EH.
“The government was quite happy to give it money when it was simply an inconvenience.”
But sources close to EH have argued that the cuts are a result of a lack of commitment to heritage from the government.
The grant, paid to the organisation by DCMS, forms the bulk of EH’s annual budget.
A further £33m is raised mainly from membership and entrance fees to the properties it oversees.
References: EGi News 07/04/03
