NAO Warns UK National Museums Face Volatile Post-Pandemic Finances Despite Higher Self-Generated Income
Britain’s best-known national museums are bringing in more of their own money than they did just a few years ago. But a new report suggests that the underlying picture is less secure than the headline numbers imply.
In a review of 15 museums and galleries sponsored by the UK’s Department for Culture, Media and Sport (DCMS) — including the British Museum, Tate, the Victoria and Albert Museum, the Science Museum Group, and the Museum of the Home in east London — the National Audit Office (NAO) examines how institutions have coped since the government ended additional Covid-19 pandemic support.
A central finding is that the revenue streams museums have leaned on most heavily are also among the most exposed to forces beyond their control. The NAO notes that “self-generated income sources are riskier and more susceptible to external factors,” pointing to variables such as travel and accommodation costs for tourists and shifts in exchange rates. It adds that income from “blockbuster” exhibitions can be “volatile and high risk,” while membership revenue is becoming less dependable because of “high membership churn.”
At the same time, costs have climbed. The NAO reports that total expenditure across the 15 institutions rose by 18% in real terms from 2021-22 to 2024-25, even though spending remained slightly below the annual pre-pandemic average. The increase since 2021-22, the report says, was driven in part by higher staff costs — reflecting pay increases and rebuilding staff numbers after pandemic-era layoffs — alongside rising operating expenses, including maintenance and energy.
To meet those pressures, museums and galleries have both expanded earned income and drawn down reserves. The NAO calculates that self-generated income reached £563m in 2024-25, a 53% increase compared with 2021-22.
The report details the range of tactics institutions have used to bolster revenue: venue hire; visitor donations and membership schemes; touring collections overseas; licensing deals with commercial partners; paid visitor experiences; and expanded hospitality and retail projects.
Government support has also shifted. DCMS increased funding to the museums and galleries by £31m from 2025 to 2026. That package included £24.8m to ensure every institution received at least a 5% uplift in February last year, plus additional help for six museums identified as being in the most acute financial difficulty.
Even with that increase, the NAO found persistent strain. More than half of the museums and galleries — 53% — told auditors they were in a worse financial position in August 2025 than they had been three years earlier.
Beyond the balance sheet, the NAO raises concerns about whether some institutions have the internal capacity to manage future shocks. It warns that several museums operate with small finance teams, and that many have experienced significant turnover in senior financial leadership in recent years. Some, the report adds, have struggled to prepare annual accounts in time for audit.
To reduce the risk of sudden crises, the NAO recommends that DCMS establish a set of indicators tied to museums’ financial resilience and monitor them regularly, so potential problems can be identified early. The report concludes that the department should also ensure it has the structures in place to spot warning signs if museums begin to struggle with financial risk.
The findings land at a moment when museums are being asked to do more with less predictable income: to maintain ambitious programming, care for collections, and keep doors open to broad publics, while relying on revenue streams that can swing with tourism patterns, consumer confidence, and the rising cost of staging major exhibitions.
