Arts Council England (ACE) and the UK’s national museums and galleries, will not feel the sting of a 5 per cent cut to the Department for Culture, Media and Sport’s (DCMS) budget, with chancellor George Osborne in fact promising to increase funding for culture.

As part of the changes to the DCMS budget, announced on 25 November by Osborne in his Spending Review, administration costs are set to be cut by a fifth.

Concerns had been raised prior to the announcement over the future of the UK’s museums, galleries and theatres, which rely heavily on government funding, with the majority of major cultural attractions being free-to-visit institutions.

However, Osborne said in the Review that ACE and the UK’s national museums and galleries will actually see an increase in funding up to 2020 – an expected rise of between 1-2 per cent over the next five years.

ACE currently funds a combination of 684 museums, galleries, opera, theatre and dance companies across the UK, with the news guaranteeing existing funding for the foreseeable future.

Osborne also said the country’s major national institutions – such as the Tate, National Gallery and British Museum – would remain free-to-visit, adding that he would be looking at a new tax credit scheme “to encourage museums and galleries to develop creative new exhibitions and display their collections for a wide audience”.

While the overall picture seems positive for the UK’s cultural institutions, some concerns have been raised about budget cuts at a local level.

Museums Association (MA) director, Sharon Heal, welcomed the protection of the UK arts budget, but said lower down the pole, smaller cultural attractions could be affected.

“We are deeply concerned about the impact of the local authority budget cuts on the UK's civic museums, and on the huge number of people who visit them,” she said.

“We believe that civic and local museums up and down the country will face real difficulties because of local authority funding cuts over the 2015-20 period – particularly those in less well-off areas.

“Museum closures, job losses and the introduction of charging are happening already. The Spending Review means that this trend is likely to grow.

“Our museums play a vital role at the heart of the communities. They preserve our heritage, provide lifelong learning, and improve our wellbeing. We believe that everyone must now work together to ensure that our museums can survive and thrive through this difficult period.”