Tate Modern exterior

Tate Modern is one of four galleries in the Tate network

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DCMS pledges to keep Tate afloat as it attempts to cut costs

Cultural institution has been in discussions with central government over its financial position, with trustees acknowledging ‘uncertainty’ over its ability to remain a going concern.

Neil Puffett
2 min read

Tate has been told it will be given central government support to stay afloat as it attempts to move to a financially sustainable business model, it has emerged.

Tate’s most recent annual report reveals that its trustees have approved a deficit budget for the current financial year (2024/25) to give Tate “time to develop a new financially sustainable business model”.

“The trustees will continue to prioritise growing self-generated income and controlling costs and have had discussions with DCMS about the financial position,” the report states.

It adds that the trustees recognise the “risk of the organisation being in deficit” and the resulting “uncertainty over its ability to operate in its current form until the work on the business model is implemented”.

“Reassurance has been obtained from DCMS and Tate Foundation that support will be provided to ensure that Tate remains a viable going concern over the 12-month period from the date of signing the accounts [22 November 2024],” the report adds.

Workforce cuts

As reported by The Guardian, Tate – which has a network of four galleries across London, Cornwall and Liverpool – is in the process of reducing its overall staffing numbers by 7%.

During 2023/24, there was an average of 1,330 full-time equivalent staff, which was up 121 on the 2022/23 figure of 1,209.

Previous efforts to cut costs saw overall expenditure on staff reduced by nearly £10m, from £58.5m in 2020/21 to £49.3m in 2021/22. However, this subsequently increased to £54.4m in 2022/23 and hit a new high of £62m last year (2023/24).

A spokesperson for Tate told The Guardian around 40 roles have been cut through voluntary departures and job freezes.

“To eliminate the deficit left over from the pandemic, we have strengthened new income streams, strategically prioritised our most impactful activities, and carefully streamlined our workforce.”

“Such changes ensure we have the stability we need to continue being as ambitious and innovative as ever.”