‘Lessons learned’ from Nottingham Castle failures as council considers running museums under charitable trusts

Nottingham Castle atop Castle Rock
Nottingham Castle atop Castle Rock
By Joe Locker, Local Democracy Reporter

Nottingham City Council says it has “learned lessons” from the failures of Nottingham Castle and has no intent to replicate how it was run as it considers operating its museums service under charitable trusts.

The council’s museums service currently directly runs Wollaton Hall, Newstead Abbey, Nottingham Industrial Museum, the Museum of Nottingham Life and, more recently, Nottingham Castle.

Nottingham Castle had been run by the independent Nottingham Castle Trust, which reopened the site in summer 2021 after a £31m revamp.

However it suddenly closed just over a year later in November 2022, after the Trust went into liquidation. It had experienced management problems, issues over its handling of an alleged racist incident and criticism over ticket prices.

The council took back control and it reopened again last summer.

It prompted a review of the Labour-run authority’s entire museums service, particularly amid significant financial challenges which led to the council declaring itself effectively bankrupt in November last year.

Commissioners were then appointed in February, to make sure it is delivering best value for city taxpayers.

The results of a 12-month assessment have now suggested the council should run its museums service through the creation of two charitable trusts.

The assessment said the preferred model was the creation of a development trust and exhibition trust, which would be used to supplement the council in running the museums service.

During a Communities and Environment Scrutiny Committee meeting on Wednesday, July 24, Cllr David Mellen (Lab), the former leader of the council, said: “I suppose I was a little bit alarmed to read in the report that the model previously adopted for the castle was being considered because I didn’t think that worked very well.

“It also runs the danger of restricting the access to what is the jewel in our crown, that belongs to the people of Nottingham. I think the current arrangement is better.

“I’m asking really what setting up a charitable trusts alongside the current arrangement would mean for the governance of that, because certainly the governance of the castle when it was under the trust was very hostile to the City Council?”

A council officer said Leeds and Manchester currently operate development and exhibition trusts, which are wholly-owned by the council, and act as an “umbrella vehicle” to help get extra funding and tax relief.

He said control, transparency and oversight from the council is “imperative”.

“There is no intent to replicate the Nottingham Castle Trust model,” the officer said.

Nigel Hawkins, the head of culture and libraries, added: “We know the lessons from the Nottingham Castle Trust.”

The council says it is one of few cities that operates its museums service on its own, and establishing charitable trusts could help lower the costs to the council.

If services were operated with the help of a trust, they could be exempt from corporation tax and VAT charges on certain goods and services.

A trust would also be eligible for Gift Aid and Museums and Galleries Exhibition tax relief, which is currently being held at an uplifted rate of 45 per cent under post-Covid measures, the normal level being 20 per cent.

Other options considered were the selling of assets, but concerns were raised by consulted organisations and stakeholders.

The council says they had “expressed concern” over the significant impact on the city, its communities and economy if assets were disposed of.

Northampton Borough Council lost accreditation for funding from Arts Council England in 2014 after it sold its Sekhemka figurine, a 4000-year-old Egyptian statue, for almost £16m.

It took almost 10 years to regain accreditation and associated grant funding.

No existing not-for-profit organisations, including the National Trust and English, would be interested in taking on the museums service as a whole, although the council says partial sales may be a valid option.

Derby Museums currently operates as an independent charitable trust that runs the Museum and Art Gallery, Museum of Making and Pickford’s House, on behalf of Derby City Council.

Derby Museums said last year it was facing potentially “devastating” effects due to council cuts and inflation.

Its grant from Derby City Council decreased from £710,000 to £639,000 from April last year.

Cllr Sam Gardiner (Lab), a member of the committee, said he was concerned the charitable trust model could prove “a slippery slope towards privatisation”.

“We the people own these assets and we have to safeguard them,” he said.

Council officers said the charitable trusts would “supplement the museums service, not detract from it.”

A final decision is yet to be made and further consultation is expected.