Giorgio Bounous for City News
The Foundling Museum in Camden is one of is one of 29 museums to receive funding from the DCMS

Concerns remain over the long-term financial sustainability of smaller museums and arts institutions in London, despite the recent announcement of the Arts Everywhere Fund.

Lisa Nandy, Secretary of State for Culture, Media and Sport, introduced the £270m initiative last week, aimed at supporting struggling arts venues nationwide.

As part of the scheme, two London museums have received substantial funding: the London Museum of Water and Steam in Brentford will get £2.6m, while Camden’s Foundling Museum is set to receive £320,000.

Emma Ridgway, director of the Foundling Museum, welcomed the funding, calling it “long-overdue” and essential for making the museum “safer, stronger, and more welcoming for visitors.”

However, critics argue that without sustained investment, smaller museums will continue to struggle.

Short-term relief, long-term uncertainty

In her announcement of the Fund, Ms Nandy stated that the focus was on supporting establishments “in urgent need of financial support to keep them up and running, carry out vital infrastructure work, and improve long-term financial resilience.”

Lisa Nandy giving a speech in front of a podium at the Growth Summit
Lisa Nandy announced the initiative at the Creative Industry Growth Summit 2025

While the funding offers immediate relief, experts question its ability to address the sector’s deeper financial challenges.

Paula Orell, Director of the Contemporary Visual Arts Network England (CVAN), expressed skepticism, telling City News, “The announcement was just money DCMS repurposed for specific needs—it isn’t necessarily new money.”

Dr. Stephen Murphy, Senior Lecturer in Curating and Museology at SOAS, echoed these concerns, citing a serious funding crisis in the sector. “Curators’ salaries are barely a living wage. The public is likely unaware of how dire the situation really is.”

Decades of underfunding

The UK has one of the lowest levels of government spending on culture among European nations.

“The sector has been so underfunded for the past 20 to 30 years. It (The Arts Everywhere Fund) might help keep those institutions afloat but there needs to be more long-term, sustainable income streams and models put in place.”, Dr. Murphy said.

According to The State of the Arts report by the University of Warwick, core funding for cultural organisations decreased by 18%, now making up just 0.17% of total public spending per person.

Additionally, local government revenue funding for culture dropped by 48% in England, 40% in Wales, and 29% in Scotland.

Dr. Melanie Stavrou, a Museums and Cultural Policy scholar who worked on the report, warned that the Arts Everywhere Fund “is probably a short-term fix. A one-off raise raises concerns about sustainability for small and local museums in London.”

Smaller museums need central support. Local councils or national funds must play a bigger role.

Dr. Melanie Stavrou, University of Warwick

However, financial instability among museums is not unique to the UK.

A recent study by the International Research Alliance on Public Funding for Museums (IRAPFM) highlighted disparities between national and smaller institutions worldwide. The report called for diversified funding streams, increased government support, and recognition of museums’ role in cultural diplomacy.

A turning point for investment?

Despite ongoing concerns, some see the Arts Everywhere Fund as a potential catalyst for broader investment in the sector. “It’s a start. At least it acknowledges that museum buildings are at risk,” Ms Orell said.

She also noted a shift in government attitude towards cultural funding. “This could be a real opportunity—there’s a growing recognition that investment in the arts is needed.”

In response to financial challenges, museums are also exploring alternative revenue sources, including local tourism and corporate sponsorships. “Local museums must be creative in attracting the right audiences to niche collections,” Dr. Stavrou suggested.

Ms Orell emphasized the potential role of private sector partnerships: “Sponsorship from local businesses could play a crucial role. The arts and cultural sectors are essential to placemaking and community identity.”

While the Arts Everywhere Fund provides some relief, the future of smaller museums depends on long-term funding strategies, innovative revenue models, and stronger governmental commitment to cultural investment.