Cuts not as bad as feared, but "local government is low down the food chain and we know that local government museums or independent museums supported by them are way down the local government food chain." so the outlook is gloomy. See the details and more opinions here.
Perhaps it may ruffle some feathers, but it needs to be said. Now is the time to think like a business, and rather than close, cut and crumple inwards, use this as an impetus to try the new, the unusual, the dangerous. Get together all those ideas that you've never broached because they're possibly upsetting to the 'Friends of the Museum', because the education officer hates working evenings (get someone else to run it) because you weren't sure that the effort would guarantee enough return.
Use the desperation to spur creativity, and channel worries and panic of those around you into proving that it's worth taking a gamble on the odd ideas. Push and push to try every avenue, because on a Blue Peter budget, with less staff and less expertise, you will find gems which could increase revenue and visitors which you would never otherwise discover.
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