£100m government budget deficit puts arts projects at risk

Major development projects at cultural institutions are in jeopardy, following the discovery of a £100m black hole in the capital budget of the Department for Culture, Media and Sport, according to reports.

Projects such as the British Museum’s new exhibition wing, the new film centre on the South Bank in London and the Stonehenge visitors centre are now at risk.

Financial directors of bodies expecting to receive cash towards improvements apparently received a letter from the department detailing the scale of the problem and seeking contributions for unspent capital.

The Tate Modern redevelopment would increase the size of the gallery by 60% and the scheme has already received a one-off payment of £50m from the government. Arts bosses had planned to open the centre in time for the Olympics. A third of the funding is in place, but it was expecting another £50m from the government.

The British Museum’s £135m north-western development would give it a 1,500m² exhibition space to replace the current situation, where shows are set up in the reading room. The government has pledged £22.5m to the project, but all schemes are said to be under review.