One in the EYF for Tate, BFI, British Library, British Museum and Stonehenge

The “black hole” in DCMS funding that appeared to have ended hopes for a series of important cultural capital developments has been more than filled after negotiations between the department and the Treasury, it has emerged.

Tate Modern, the British Film Institute, the British Library, the British Museum and Stonehenge are all to benefit in a £160.5m package announced by culture secretary Ben Bradshaw.

The shortfall reported in the summer transpired because of a Treasury shift in the rules covering what is known in Whitehall as “EYF” – end year flexibility. Public bodies are usually allowed to shift money unspent at the end of a financial year to other projects or keep it for future use, but this year the Treasury because of the recession told all government departments EYF would not apply. This meant that capital funding already promised to the Tate, the British Library and British Museum were no longer guaranteed.

There followed intense negotiations with between Ben Bradshaw, the culture secretary, and the new Chief Secretary to the Treasury, Liam Byrne, when the case was won on the grounds that the capital development would mean important work for the building industry, and that enhanced cultural facilities had a proven economic benefit.

In the package announced by the Prime Minister, there was a new commitment to establishing the BFI’s National Film Centre on the Southbank and for a visitor centre at Stonehenge.

But the decision will mean some pain. The Treasury has only guaranteed £60m for the current financial round and DCMS will have to find £10m savings across its budget, and the burden of that will fall on culture. One resultant economy is likely to be the delay of the move of ACE West Midlands into new premises. The British Museum’s money would not be called on until the next financial round.

The projects
National Film Centre, £45m. This will showcase the best of British and world cinema across five screens, as well as creating an innovative new space for exhibitions, cultural events, research and study, on the Hungerford car park site. The total cost is expected to be £166 million with the London Development Agency is providing £5 million and the British Film Institute will fundraise to meet the balance. The project should be completed by 2015.‪

Stonehenge Visitor Centre, £10m. Planning permission has been applied for and will be considered in the next few weeks. At a cost of £25m, the long awaited new centre is expected to be open in 2012 in time for the extra visitors engendered by the Olympics.

Tate Modern extension, £50m. Costed at £215m, the extension will create a new building, increasing the gallery’s size by 60 per cent and to allow it to display more of its permanent collection. The hope is for completion in 2012.

British Museum exhibitions and conservation centre, £22.5m. An on-off project, it is now on again but will cost £100m and he government is not expected to be called on until 2011-12 rather than 2010-11.

British Library newspaper storage, £33m. This will shift the unique collection from its home in north London, where already 15% is beyond saving, to Yorkshire and an e efficient, high-density, low-oxygen storage.