Funding shortages is preventing regional museums from achieving their potential in terms of social inclusion, according to Resource, the body, which provides strategic advice to government on museums, archives and libraries.

In a discussion paper, Resource questions whether regional museums are 'safe' in the hands of local authorities, which are vulnerable to budget cuts. The report also raises concerns about the loss of professional expertise in archives and libraries, which is negatively affecting the behind-the-scenes work.

Another area for concern is that more resources are being used to tackle social exclusion to the detriment of core activities like acquisition, scholarship and collection management. Judging from the review of 26 large museums, the report concluded that life is more difficult for regional museums now that it used to be. It questions whether discretionary services like museums, galleries and archives are losing out to large statutory services like education and social services.

According to CIPFA statistics, core revenue expenditure on museums and galleries by English local authorities fell in cash terms from £107m in 1995/6 to £104m in 1997/8. Since then the trend has been reversed with spending rising to £109m in 1998/9 and £118m in 1999/2000, although there is a huge variation across the country. A copy of the full Resource report is available on the website: www.resource.gov.uk