Hampshire Cultural Trust prepares to cut staff amid economic crisis

Winchester-based arts charity the Hampshire Cultural Trust could see up to 20 redundancies with the aim of reducing expenditure. Staff could be sacrificed to foot the bill of delivering arts and culture across the county.

The "restructure" is a response to an increase in inflation, utilities and overall costs, with the aim of shifting focus to generate income.

The trust, which operates The Arc and 23 other museums, galleries and arts centres across the county, currently employs 210 full-time and part-time members of staff and is looking to place those people at risk into alternative roles within the organisation where possible.

The new structure is designed to give long-term stability against the ongoing cost-of-living crisis which has seen visitors spend less money, while staff require higher wages.

The staff consultation process began on Monday, January 16 and will continue throughout the month. The new structure will be in place for February 6.

Arts Council England has offered £500,000 per annum for the next three years to the cultural trust as a National Portfolio Organisation (NPO). However, the charity says this is not enough to balance its budget.

READ MORE: Hampshire Cultural Trust awarded £500,000 per annum under Arts Council England’s investment programme

Paul Sapwell, chief executive at Hampshire Cultural Trust, said: “In the face of what anyone can see will be a challenging environment in 2023 and beyond, we are taking action now to protect our organisation and put in place a structure that will sustain us in the long term.

“We will be undergoing a two-way consultation process with those members of our staff who are affected by the changes. These changes unfortunately mean that we will have to make some very difficult decisions, but it is only by doing this that we will be able to continue to deliver high-quality arts and culture both for our communities and visitors to the county in the long term.

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“Although the cultural sector took a massive hit during the pandemic, Hampshire Cultural Trust venues and activities have recovered well and continue to be popular.

"However, our visitors are spending less with us as household budgets are squeezed, and we now need to absorb higher wage costs, as well as the impact of inflation and increased utility bills.

"We have a robust, long-term business plan, which is supported by the investment that we have made in our venues over recent years and the continued support of our funders.

“Our NPO funding for 2023-2026 will be crucial in supporting the additional work we will be undertaking in three of Arts Council England’s priority places in Hampshire – Gosport, Rushmoor and the New Forest. As a countywide organisation with 24 venues, while there will be some impact from the NPO funding on our core costs, it will be minimal.

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“We have the full support of our founding local authorities, Hampshire County Council and Winchester City Council, for this restructure and they have agreed not to reduce our grant in 2023/24 which is welcome and critical.  However, standstill funding still represents a de facto decrease with inflation so high.”

A spokesperson for Hampshire County Council said: “We are sorry to hear of the difficult decisions that the Hampshire Cultural Trust has had to make to remain viable.

"We are supportive of the need for the trust to take action now to address its short-term financial position. The council has maintained its exiting grant to Hampshire Cultural Trust into 2023/24 despite the significant and ongoing financial pressure faced by local authorities. 

"Hampshire County Council is committed to working with the trust going forward to help it develop a long-term, financially sustainable approach to ensure Hampshire’s arts, museums and heritage services continue to be championed and attract external investment from other sources.”  

The restructure follows an increase in hire rates for use of rooms at The Arc, formerly known as the Discovery Centre, which forced some community groups to leave after they were told of the tariff changes in September.

The trust was established in 2014 to promote Hampshire as a cultural county. As well as managing its venues, the charity delivers outreach programmes and social impact initiatives with the aim of providing equal access to arts and culture.