Art gallery's £2m loss

Council figures show how much is being spent on everything from salaries to repairing the building. In total the gallery cost over £2.7m to run in 2005/06 and generated revenue of just £832,515 - a loss of £1.89m. The estimated income generated for 2006/07 is £1,086,655, with costs totalling £2,957,170.

The difference between expenditure and income is expected to be £1.87m in the current financial year and could rise to £1.93m in 2007/08.

The council is responsible for subsidising the difference. In 2005/06 the total outlay on salaries was £594,916 which is expected to rise to £753,626 by the end of this financial year and £817,217 in 2007/08.

Building repairs and general maintenance cost £180,341 in 2005/06, £188,042 in 2006/07 with around £176,023 earmarked to be spent in 2007/08.

Bosses say the gallery receives an annual grant of £800,000 from the Arts Council towards the running costs but in the income table for 2006/07 and 2007/08 the figure 0 is listed by Government grants and there is no mention of contributions from other bodies.

According to the table a grant of £639,622 was received in 2005/06. In its draft budget proposals for 2007/08 to 2009/10 the council has identified several cost cutting measures which could save an estimated £37,350.

Bosses have denied the authority is struggling to keep the building open and say any cuts will not impact on the services offered.

Tim Challans, assistant director for leisure, said: "Any budget considerations are only proposals at the moment but because the New Art Gallery is run by the council its budget will be reviewed in the same way as any other service area.

"Any proposed changes will be relatively small and will not have an impact on the service it offers."

By Emma Tate