Councillors have approved a £170,000 bail-out for the charity that runs the new Perth Museum.
Culture Perth and Kinross is said to be losing “significantly more” money than bosses had budgeted for.
And now councillors have agreed to free up £170,000 that was set aside to help with the running costs of the cafe in the museum before it opened last year.
The sum was part of a £230,000 package approved after Culture Perth and Kinross took on the running of the cafe at the last minute.
It also included £60,000 for fixtures and fittings.
Council officers say Culture Perth and Kinross hasn’t had to call on the £170,000 share yet.
But the organisation, which runs cultural services on behalf of the council, risks going into the red by the end of March.
And now Chief Finance Officer Scott Walker has been given the authority to hand the money over if it’s needed.
Councillors were told it would go into Culture Perth and Kinross general funds, and not specifically towards the new museum.
But the finance and resources committee agreed it was a “pragmatic” solution, since the charity has had to dip into its reserves in order to get the museum up and running.
Museum cafe piles new pressures on Culture Perth and Kinross
The £27 million attraction in the former Perth City Hall opened to great fanfare at the end of March 2024.
Museum bosses say visitor numbers of more than 200,000 have exceeded all expectations.
But the cafe has been controversial from the start.
Critics said it would draw trade away from existing businesses in Perth’s cafe quarter.
Then Culture Perth and Kinross was forced to run it itself after two failed bids to find a private operator.
In November, the body’s chief executive Helen Smout admitted the cafe was still running at a loss.
And a report to Wednesday’s meeting of the finance and resources committee revealed the gravity of the financial situation facing Culture Perth and Kinross.
It explained: “They have experienced additional costs relating to the current year pay award, to historic equal pay claims and to the running costs of their establishments, particularly Perth Museum.
“Should these projections come to bear, Culture Perth and Kinross will have negative unrestricted reserves as at 31 March 2025.”
Culture Perth and Kinross in spotlight over libraries
Culture Perth and Kinross is also under intense scrutiny at the moment due to its review of libraries.
Residents in Alyth, Auchterarder, Birnam, Comrie and Scone are fighting to keep their local branches open.
And library users have staged protests against the proposed cuts in their own towns and outside Perth Museum.
The council is reviewing the future of Culture Perth and Kinross, as well as its other arm’s length organisations, Perth Theatre and Concert Hall and Live Active Leisure.
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