Exclusive:Scotland's heritage fights for future as funding crashes
Scotland’s heritage is hugely valuable to the economy - but systematic underfunding for the heritage sectors is putting its future at risk, it has been claimed
The multi-billion pound value of Scotland’s history and heritage to the economy is at “serious risk of being squandered” as funding for the sector crashes amid shrinking government support, strains on grant giving and a drop in value of charitable investments due to the war in the Middle East, a leading expert has warned.
Dr Simon Gilmour, director of the Society of Antiquaries of Scotland, said that despite the value of heritage tourism to the country, the public money set aside for research and conservation has sunk as costs rise, with organisations such as Historic Environment Scotland - which maintains and manages some 300 historic properties - struggling to deliver its aims and keep sites open.
Dr Gilmour, in an exclusive piece for Scotland on Sunday, described the country’s historic environment as one of Scotland’s “most powerful” economic and cultural assets, which contributed some £6bn to the economy in 2023. Heritage tourism generated £935m the following year, while employing tens of thousands of people.
But he said the county was “at serious risk of squandering” the economic benefits drawn from its world-famous heritage given the loss in funds for research, conservation and delivery of projects to enhance Scotland’s heritage for visitors.
Dr Gilmour said: “The consequences of underfunding are already visible. Multiple historic properties are closed or only partially accessible due to repair and maintenance backlogs.
“The inevitable result of a sector asked to do more with less, year after year. Some organisations will not survive. This is fact, not scaremongering. When they go, they will take with them decades of accumulated specialist knowledge and community relationships. Once lost, it stays lost.
“If Scotland is to continue to take pride in its heritage and benefit from the return on investment and effort that it has enjoyed to date, it must provide more
financial support.
“To reiterate, heritage is one of the best-performing investments the Scottish Government makes, yet it has been systematically underfunded for thirty years. The funding pot for heritage in Scotland has simply not kept pace with reality.”
The Scottish Government distributes around £12.4m a year in grants to heritage organisations across Scotland.
However, when adjusted for inflation, this should now be worth £24.5m, when tracked against previous annual settlements, Dr Gilmour said.
“Despite costs rising, we are 50% down on where we need to be just to maintain what we have,” he added.
Meanwhile, demand for funding from HES continues to rise, with £23m-worth of applications from archaeologists, academics and community groups made last year. Only just over half of these projects could be funded.
Meanwhile, the National Lottery Heritage Fund was “inundated” with applications “scrambling to plug the same gap”, he added.
While charities such as the Society of Antiquaries of Scotland rely on investment returns to fund core work, value of balanced investments portfolios have declined by around 5 per cent since he start of the Iran conflict.
“For a charitable organisation like ours which relies on investment returns to fund core work, that is a significant hit, and the ongoing volatility makes
meaningful financial planning is challenging,” he added.
Dr Gilmour called for additional funds for HES to improve and maintain properties and increase its grant programme by £10m, ring fencing the cash and then increasing it again in line with inflation. More financial support was required to support “strategic long-term thinking” .
“This would allow a high-performing sector to deliver even greater returns for Scotland’s economy and its people,” he said.
Dr Gilmour’s comment comes as HES pushes forward to determine which historic properties it will continue to invest in long term, which it will leave to managed decline and which could be used for another purpose, such as rented accommodation to help monetise its assets in the face of its tightening financial picture.
Some observers believe the crucial work to determine the future direction of the organisation has been derailed by ongoing controversies at HES surrounding key leadership figures and claims of a ‘toxic’ working culture at the top of the organisation.
Stephen Kerr, Scottish Conservatives candidate in the May 7 election, who has closely followed developments at HES, said that Dr Gilmour made “the important point - that Scotland’s historic environment is not a luxury, it is a serious economic asset.”
He added: “ A sector generating billions is being held back by funding that has barely moved in real terms for decades. That is not sustainable.
“But this is not just about money. It is about SNP negligence.
“I have been raising concerns for months about leadership, governance and accountability within Historic Environment Scotland. What we have seen is delay, drift and neglect.
“The culture inquiry has dragged on, confidence has been eroded, and key decisions have been avoided. Responsibility for that sits squarely with the SNP minister, Angus Robertson.”
Mr Kerr said: “The Scottish Conservatives have been clear. Yes, heritage needs proper investment. But it also needs leadership, accountability and a clear plan.
“This is now a test for the next set of Scottish Ministers. They must act quickly to restore confidence and get a grip - because what we have seen under the SNP, and under Angus Robertson in particular, simply cannot continue.”
David Linden, SNP candidate for Glasgow Baillieston and Shettleston, said the SNP recognises the valuable contribution that our heritage sector makes to Scotland’s culture, tourism and national identity.
“In government, we have continued to support this through a unique funding framework which gives greater freedom to invest more in safeguarding Scotland’s historic environment and delivering world-class experiences for visitors.
“This is part of our wider commitment to culture in Scotland with a recent report by the IFS showing that spending per person on culture was 87% higher in Scotland than in England in 2024/25.
“For the SNP, Scotland's heritage will always be vitally important and we will continue to act to ensure the sector goes from strength to strength." ENDS
A statement from HES said: “HES is the second-largest funder of heritage in Scotland, investing around £12.4million in grant funding in 2024-25 on behalf of the Scottish Government to projects that protect and promote the country’s historic environment. HES funding delivers strong returns, in 2024-25 for every £1 we invest an additional £5.24 was invested, showing the impact that HES financial commitment has on the projects supported.
“Historic Environment Scotland (HES) has also increased the maximum grant funding available per project from £500,000 to £750,000 to help support projects with increased construction and running costs due to factors including the cost of living crisis and climate change.”
Comments
Want to join the conversation? Please or to comment on this article.