Yearbook 2010/11 Celebrating 30 years of London … yearbook...Yearbook 2010/11 Incorporating the Annual Report of the Trustees and financial statements for the year ended 31 March

Yearbook 2010/11Celebrating 30 years of London Transport Museum

Yearbook 2010/11 Incorporating the Annual Report of the Trustees and

financial statements for the year ended 31 March 2011

London Transport Museum is an educational and heritage preservation charity. Its purpose is to conserve and explain

the history of London’s transport, to offer people an understanding of the Capital’s past development and

to engage them in the debate about its future.

Celebrating 30 years of London Transport Museum


Education and engagement

Access and operations

Heritage and collections

Feature articles *

Plans for the future

Message from the Chair of Trustees and

Managing Director

The year in summary

Article 1 Moving in the right direction Peter HendyArticle 2 London Rail – current and future plans Ian BrownArticle 3 Designing a new bus for London Stuart WoodArticle 4 Airport provision in the South East Lord SoleyArticle 5 Towards a sustainable railway Adrian ShooterArticle 6 Keeping Britain moving Alice Woodwark and Julian Mills

* Feature articles do not form part of the audited Report of the Trustees

Income and support

Public programme

Structure, governance and management

Trustees’ statement

Independent auditor’s report

Trustees and advisors

Financial review

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6–9

10–11

12–17

18–25

26–33

34–51

52–53

54–61

62–67

68 –71

72

73

74–75

76–90

Contents

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Message from the Chair of Trustees and Managing Director

Sir David BellChair of Trustees

Sam MullinsManaging Director

We are pleased to present the London Transport Museum (LTM) Yearbook for 2010/11, celebrating thirty years since the Museum first opened in Covent Garden. Over that time LTM has become the world’s premier museum of urban transport and Covent Garden itself has changed from a run-down, empty market quarter to one of London’s must-see destinations. We owe a debt to the late Michael Robbins who recognised the opportunity presented by the GLC’s redevelopment of Covent Garden in the 1970s. He encouraged London Transport to take a lease on the Flower Market and the Museum opened here in 1980. We have welcomed over six million visitors in the last thirty years and LTM’s overall impact on London is even greater when our talks, events, community and schools outreach programmes, and website are considered.

This Yearbook includes our Trustees’ report and accounts for 2010/11, demonstrating our achievements in engaging our audiences with the remarkable story of the Capital’s transport. This is complemented by a series of essays by our partners and collaborators, many drawn from our Thought Leadership programme – a partnership with Eversheds that has firmly established the Museum as a forum for debate about transport and London’s future.

Plans are well advanced for next year’s London Journeys exhibition – our contribution to the Cultural Olympiad. We are also planning a year-long celebration in 2013 to mark 150 years of the Underground’s contribution to London, since the world’s first underground railway opened between Paddington and Farringdon in 1863. A major publication and a touring exhibition of our world-renowned collection of transport posters are planned. We also hope to run steam trains on the Underground for the first time in many years as part of the anniversary programme.

We are grateful to all our staff and volunteers, our fellow Trustees, the Friends, Transport for London (TfL) and everyone who has contributed to the Museum. Particular tribute should be paid to the commitment and expertise of Bob Bird, Rob Lansdown and Michael Walton who all joined us in 1979 before the Museum opened and are still key players today.

To have achieved our visitor and financial targets in 2010/11 against the background of recession is satisfying. Nevertheless, the future remains challenging as we strive to offset a 25% reduction in TfL support over the next four years. MLA Renaissance funding also ends and both our public and corporate users are experiencing cost inflation and pressures on income. Our creativity and commitment will be needed to deliver on charitable objectives and stakeholder commitments. Our confidence that the Museum will thrive and develop in the future, much as it has done for the last thirty years, is based on our commitment to a winning formula: great collections, engaging exhibitions, wise Trustees and energetic, creative staff.

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Thirty years is not a long time in the history of many of London’s institutions, but it is a lifetime for London Transport Museum (LTM), which has only been operating in Covent Garden since 1980. In that short time the Museum has moved from displaying a small but important selection of buses, trams and trains to being a multi-faceted modern museum, strong on education, engagement and enterprise with a collection of over 400,000 objects.

The Museum’s prehistory can be traced to the formation by the London General Omnibus Company (LGOC) of a small collection of early buses at Chiswick Works in the 1920s and 1930s. Starting with the B-type bus when it was withdrawn from service in 1925, the LGOC soon added an exquisite replica of George Shillibeer’s original horse-drawn omnibus, built to celebrate the centenary of London’s first ‘hail and ride’ public bus service. Visitors will still find the Shillibeer bus, the B-type and other vehicles from this early collection proudly displayed in the Covent Garden galleries today.

In 1933 the London Passenger Transport Board was formed and set a policy to preserve significant vehicles as they were withdrawn from service. The collection at Chiswick grew and in 1951 the British Transport Commission officially recommended the preservation of the nation’s transport heritage collections. London Transport (and its successors) were given a statutory duty to preserve the material collected up to that date.

The Museum of British Transport was set up in a former bus garage at Clapham to house the national transport collection. The first curator was appointed and a small exhibits section opened in 1961, followed by the main hall in 1963. When the mainline railway material was set aside for the new National Railway Museum at York, which opened in 1975, the remaining material was retained at Syon Park in west London, opening there as the London Transport Collection in 1973.

There the story might have ended had not the Greater London Council recognised the regenerative potential of the former market at Covent Garden. London Transport seized the opportunity to move the collection to the West End and work began to create the new museum in 1979. A year later, on 28 March 1980, the Princess Royal opened the London Transport Museum in the former Flower Market building at Covent Garden and since then the Museum has blossomed into the world’s leading museum of urban transport.

Over the years, LTM has added photographic and film archives, posters, plans and drawings, signs and architectural features to its collection, which was designated of national importance in 1997, alongside a growing number of buses, trains and trams. Over six million visitors have passed through the doors of the Museum’s two sites at Covent Garden and Acton. Opened in 1999 as the first publicly accessible museum store in the UK, the Museum Depot in Acton has been a considerable asset for LTM. There the collections are conserved, stored and made available for study visits, school groups, guided tours and open weekends.

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Celebrating 30 years of London Transport Museum continued

Since 1980, the Covent Garden building has been significantly refurbished twice. It now boasts extensive conference and visitor facilities and more exhibition space than ever before. Visitor numbers have risen by almost 40% since the last reopening in 2007, from an average of 209,000 per year in the decade to 2005, to a total of 291,344 in 2010/11.

In April 2008 the Museum became a registered charity with a clear responsibility to deliver public benefit through its operations. The Board of Trustees has helped to invigorate the Museum and the redefined relationships with TfL have never been stronger. While the public sector funding landscape has meant an inevitable reduction in TfL financial support, the underlying commitment to the Museum remains. Recent research has concluded that the Museum delivers an annual economic benefit to London estimated at £25 million, meaning that for every £1 TfL invests in the Museum, a further £4 is generated.

For the future, the Museum aims to continue its delivery of imaginative programming, exciting exhibitions and innovative learning projects. The exhibition programme is mapped out for the next three years and further investment in visitor facilities and a skills centre for learning will be complete in 2011/12. As one of the world’s greatest cities, London demands a world-class showcase to record, interpret and explore the close relationship between the city and its transport. That showcase is London Transport Museum, past, present and future.

The Museum was opened by HRH Princess Anne on 28 March 1980

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The year in summary

The Museum established four priority areas for 2010/11: (1) to develop an exciting programme of exhibitions and engagement; (2) to maintain visitor numbers and satisfaction ratings; (3) to target acquisitions more strategically and incorporate user-generated content; and (4) to anticipate a tighter financial settlement by becoming more socially enterprising.

During the year, the Museum made significant achievements in each of these areas. LTM presented four exhibitions alongside a full programme of well-attended events, and undertook considerable research and preparation to deliver its forthcoming exhibitions over the next three years.

In the face of continuing economic uncertainty, LTM managed to increase its visitor numbers to 291,344, despite raising the price of admission in October 2010. The visitor satisfaction survey score was above target and new visitor segmentation research was undertaken that will allow the Museum to better identify and meet the needs of its diverse audiences.

Targeted collecting based on solid research has become LTM’s standard approach to exhibitions and the number of information records enhanced this year was more than double the target. The Museum values user-generated content as part of its core collection and works closely with communities to capture their stories and information as part of the collection records.

An entrepreneurial approach to funding led LTM to seek new partners and skills to support social enterprise, fundraising and new charitable businesses. Additional resources in the Marketing department increased the venue hire income and the recruitment of an e-Commerce manager is underway to generate greater online sales income. Staff also undertook a programme of work to develop the Museum’s website and online commerce activities.

Despite decisions in the government spending review that affected the entire sector, LTM secured a year’s support from the Museums, Libraries and Archives Council (MLA) Renaissance programme for a range of projects, including an innovative expansion in revenue-generating capability and investment in improved visitor experience. These projects form a significant part of the Museum’s planned delivery for 2011/12. Faced with a confirmed reduction of 25% in TfL funding over the next four years, the Museum reviewed its pricing policy. The new arrangements introduced in October 2010 aim to increase income and maximise Gift Aid, while promoting visitor loyalty and maintaining the principles of public benefit so as not to exclude people in poverty.

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‘ The future for LTM lies in the hands of our audiences and partners, as we seek to continue to use our collections and expertise to enhance people’s lives and better connect them to London.’ John Bull, Assistant Director: Learning and Public Programmes


1980

2010

23,782

Number of education visits

Our exciting and innovative education and engagement activities deliver learning opportunities and skills development to a wide range of audiences at both the Museum and the Museum Depot at Acton, and through a range of outreach programmes off-site. Educational outcomes are integral to all our temporary and permanent exhibitions and the Museum offers a library and information service for independent learning and research.

An accessible museum provides a stimulating and engaging environment for formal and informal learning for children and adults alike. LTM’s learning activities this year built on the strong programme developed since the reopening of the Museum in 2007. There was a welcome increase of nearly 50% in education visits to LTM compared to last year. The Safety and Citizenship team visited over 90% of London’s primary schools and new programmes helping marginalised groups into employment went from strength to strength.

There were almost 24,000 education visitors to Covent Garden and the Depot this year, with children of all ages taking part in curriculum-led activities which creatively link the Museum’s stories to art, history, design technology and engineering. One popular new activity this year saw Key Stage 1 pupils helping Montague Pinner the mole find his way home on public transport.

Family activities were also on offer at holidays and busy times, and a fun new family pack called Time-travelling moustaches and other great ways to explore London Transport Museum was developed with generous support from the Luke Rees-Pulley Charitable Trust.

Safety and Citizenship sessions equipped nearly 130,000 young Londoners to be safe and respectful when using public transport. The programme worked with both primary and secondary schools and included Be Safe Week, during which LTM staff, Westminster Road Safety, London Fire Brigade and others delivered family-orientated safety activities at Covent Garden during the school holidays. The Safety and Citizenship team coordinated Junior Citizenship Schemes in Hackney and Southwark and achieved only the second ever accreditation for a London scheme from the Royal Society for the Prevention of Accidents.

Prompted by high youth unemployment, the Museum has developed programmes to help marginalised young people into work. Pre-employment training has assisted unemployed young people to find apprenticeships in the transport industry. One participant, Nohman Younis, took part in Route into Work, a three-day training scheme for young people who are not in education or training. He was subsequently part of a team that developed activities on behalf of LTM for the FUSE arts festival. Having gained a V50 award for his volunteering, he secured an apprenticeship with telent Technology Services who provide services to London Underground.


9,729

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Education visits to the Museum

Working closely with Remploy and London Underground, the Museum also helped to deliver the Steps into Work programme for young people with learning difficulties. One participant, Anthony Forbes, completed 12 weeks’ work experience digitising collections material at LTM and went on to secure paid employment as a Digitisation Assistant. Inspired by successes like this, Trust for London awarded LTM funding to deliver a wider programme from 2011 onwards.

A valuable service is provided by the Museum library which supports staff research for exhibitions, publications and outreach activities. In addition around 300 independent researchers visited the library this year, and staff responded to thousands of detailed enquiries from as far afield as Japan, USA and Australia.

The year’s public programme of talks, events and activities continued to attract diverse audiences to LTM. Evening lectures covering topics such as the Thames Tunnel and the role of public transport 70 years ago during the start of the London Blitz frequently filled the Cubic Theatre. Tours of the disused Aldwych Tube station, presented in partnership with TfL and GLA, were an innovative and popular part of this year’s programme. Over three days, more than 4000 people descended 160 steps to the platform and climbed aboard a 1938-stock Tube train where they were met by costumed actors portraying housewives, ‘spivs’ and ARP wardens who brought to life the realities of sheltering from the Blitz. Press and public reaction was superb and the Museum is planning to run similar events in the future.

Blitz experience tours at the the disused Aldwych Tube station, presented in partnership with TfL and GLA

Education and engagement continued

Key Performance Indicators

Pupils seen by Safety and Citizenship programme

Actual 129,759 Actual 23,782

Target 105,000 Target 20,000

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‘ Our staff and volunteers work hard to put visitor excellence and sustainability at the heart of our operations, with innovative developments in the galleries, Depot, online and on the road.’ Kerry Foster, Assistant Director: Visitor Services


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Our access and museum operations activities make the collection available for the enjoyment of people of all ages, abilities and backgrounds through the daily opening of the Museum and galleries, special events in the Depot at Acton and extensive online Museum resources.

LTM continues to be a busy and popular museum: more than a million visitors have now passed through the doors of its two sites in Covent Garden and Acton since the Museum reopened in 2007. Over 291,000 people visited in 2010/11, 5% over the Museum’s target figure for the year and greater than the year before – despite an increase in ticket prices. All tickets are now valid for a full year to encourage repeat visits and give greater value for money. The previously high growth rates in online use declined this year, although the LTM sites still attracted 931,350 users who read a total of 3.96 million web pages.

LTM hosted four exhibitions in 2010/11. Overground Uncovered: Life along the Line coincided with the extension of the recently launched London Overground, which now runs from Highbury & Islington through Hackney and on to south London. Supported by London Overground, the exhibition’s displays included a view of Brunel’s Thames Tunnel, reminding visitors of the long history of transport innovation in London, home of the world’s first underground railway.

Another key transport development, the Barclays Cycle Hire scheme, inspired LTM’s Summer of Cycling programme, a highlight of which was the Cycling in London exhibition of illustrations. Presented in conjunction with the Association of Illustrators, with a prize sponsored by Serco, the exhibition featured over 50 works of contemporary art. The display, together with a public debate chaired by broadcaster and writer Robert Elms, attracted a new audience through coverage in the cycling media and among interest groups. The winning entry was shown across the London Underground network.

Summer 2010 also saw CBS Outdoor, sponsor of the Museum’s CBS Outdoor Gallery, bring Londoners’ experiences to life by telling the story of transport through the personal stories of Tube passengers in Lifeblood of London.

Opening in September, the year’s largest exhibition was Under Attack: London, Coventry and Dresden, an international collaboration with the Verkehrsmuseum in Dresden and Coventry Transport Museum. Using videos, posters, photographs and personal reminiscences, the displays told how transport workers maintained services and helped to boost morale by creating a sense of normality for three cities that experienced catastrophic bombing during the Second World War.


Number of visitors

1980

2010

291,344

208,329

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Marking 70 years since the start of the London Blitz, the exhibition was critically acclaimed for its sensitive approach to a topic that still stirs deep emotions. A significant number of visitors responded, many with moving personal recollections of the war itself and its effects on them or their parents and grandparents.

Access and operations continued

The Under Attack exhibition commemorated 70 years since the Blitz

Unique visits to the Museum websites

Actual 291,344 Actual 931,350

Target 275,000 Target 1,100,000


Museum and Depot visitors

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‘What a great exhibition. The story of three different cities enduring

similar attacks. And talk about the reconciliation spirit, Coventry and

Dresden being twinned.’

UK

‘We must not become complacent and forget the fragility of our

liberty. . . Without such vigilance we would be doomed to repeat the

horrors suffered by those before us.’

USA

‘The most uplifting thing was reading about the twinning of

Coventry and Dresden, which shows that people can get past even the

worst of experiences.’

DENMARK

‘May the future generation learn from the mistakes of the past, so an incident with such dire consequences on this world

never happens again.’

MALAYSIA

The exhibition Under Attack compared the physical and emotional experiences of transport workers and members of the public in three cities badly bombed during the Second World War: London, Coventry and Dresden. Visitors were asked to respond and tell us what the Blitz meant to them today.

‘Sobering and important exhibition. Makes me feel very humbled to think

of what my Mum’s generation had to go through. Their stoicism and

fortitude was extraordinary.’

UK

Under Attack – Visitor comments

‘The images from London and Dresden both are horrible

and shown next to each other in this exhibition just makes the insanity of it all so clear.’

GERMANY

‘Many congratulations because, as a nation, you are an example of tenacity and perserverance...

The world needs these values.’

GUATEMALA

‘My father was a prisoner of war in Germany for three and a half years, and despite all his suffering, and the suffering of others, he still thought

the bombing of Dresden was awful.’

UK

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‘ Our collection has developed enormously in thirty years. We now have over 400,000 items to help us tell the story of the huge impact of public transport on the life, look and landscape of London.’ David Bownes, Head Curator

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Number of items in the Museum collection

Our heritage and collections work involves preserving, managing, researching and acquiring transport-related objects and material for the use and enjoyment of the public through permanent and temporary exhibitions, heritage vehicle outings and other collections-based activities. The breadth and quality of the collections constitute an important resource for the study and interpretation of transport, industrial design and the social, urban and economic history of London.

From the humblest ticket to a working bus or train, the LTM collection draws on the power of the ‘real thing’ to inspire audiences and make the Museum what it is. Each year thousands of new items are offered to the collection. Many come from TfL, but a significant number originate from private donors, public sale and targeted collecting programmes in support of special exhibitions and audience engagement.

Deciding what to accept can be tough. With storage space at a premium, the Museum must ensure that new material not only represents the history of TfL and its precursor companies, but also reflects the contemporary experience of public transport in London and its place in popular culture.

In 2010/11, nearly 10,000 new items were added to the permanent collection. They reflect every aspect of public transport from the 1820s to the present day. Major acquisitions included a 1935 London Transport brake van (transferred from Neasden Depot) and a 1967 Tube Stock driving car (No. 3052) which was briefly driven by Queen Elizabeth II at the opening of the Victoria line on 7 March 1969.

A preparatory drawing for Harry Beck’s famous Tube map of 1933 was purchased from the Beck estate, with generous support from the LTM Friends. The Clarence Carter collection was also acquired. These colour transparencies depict buses and trams in the 1940s and 1950s, and over 120 have now been scanned and added to the website. An important collection of bus and coach posters was acquired, as were several early Underground and LCC Tramway posters from auctions in London and New York. Online sales have provided a wealth of transport memorabilia, from postcards and cartoons to a 19th-century parlour song called ‘The Metropolitan Railway Quadrille’.


1980

2010

400,000

1,000

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Number of collection records enhanced

Heritage and collections continued

The oldest of the year’s acquisitions was a transcript of evidence given by George Shillibeer, the pioneer bus operator, to account for the factors leading to his bankruptcy in the 1830s (he blamed the railways). Contemporary collecting included recording the sights and sounds of the Tube today, and two new blue bicycles from the TfL/Barclays Cycle Hire Scheme, together with related interviews, photographs and promotional material for this hugely successful innovation in the Capital’s transport.

Supporting these headline acquisitions is the continual work on the collection that makes it such a rich source of social history. Research, cataloguing and digitisation of objects included scanning several hundred previously unseen wartime photographs for the special exhibition, Under Attack.

Actual 105,077

Target 50,000

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Heritage and collections continued

The Museum has one of the greatest poster collections in the world. Begun in 1908, the archive now has over 5,500 different designs reflecting all aspects of public transport in London. But there are gaps in the collection. Each year we acquire ‘missing’ examples from auctions and other sources. Here is a selection of the best acquisitions from 2010/11.

1 Epping Forest, R B studios, 1930

2 Hampstead Heath, A Murray, 1931

3 Chrysanthemum show at Battersea Park, R B Studios, 1930

4 Greenwich Park, R P Sleeman, 1931

5 Hyde Park, Rene Blair, 1930

6 Society of Graphic Arts exhibition, Frank Brangwyn, c1922

7Now to Ascot, Reading, Camberley by Southern Electric,Charles Pears, 1938

8 Carfree, carefree, Abram Games, 1967

1

2

3

4

5

6

7

8

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Feature articles

Our exhibitions and Thought Leadership programme have established London Transport Museum as a place for engaging debate and high-level networking. In the following pages, a selection of this year’s speakers and other colleagues discuss transport issues affecting all of us today.

Moving in the right directon Peter Hendy

London Rail – current and future plans Ian Brown

Designing a new bus for London Stuart Wood

Airport provision in the South East Lord Soley

Towards a sustainable railway Adrian Shooter

Keeping Britain moving Alice Woodwark and Julian Mills

The mock-up of the New Bus for London in the Museum has provoked much interest

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Transport in the Capital has made enormous strides over the past decade. Two very different but both highly committed Mayors have transformed London’s transport network. After years of chronic under-funding of the city’s infrastructure, the creation of the Greater London Authority and Mayoralty has given the Capital a champion able to argue for serious investment in buses, Tubes and trains.

The rise of public transport has been impressive. TfL has overseen a mammoth 7% shift from car travel to public transport in the last ten years – a rate unmatched by any other major city in the world. My counterparts elsewhere are never less than amazed at this and are eager to learn from our experience. We are meeting ever-increasing demand on the Tube, buses, London Overground, trams, Docklands Light Railway and the strategic road network, while delivering the largest programme of investment in London’s transport system for 80 years.

The Tube, which carried 1.1 billion passengers in 2010, is busier than at any time in its 148-year history. With around 2.2 billion passengers, London’s buses account for nearly half of all bus journeys in the entire country. Despite the strain of vast passenger numbers, performance has continued to improve. Upgrades to the Tube are ongoing and we continue to improve the reliability of the road network. This includes increasing the effectiveness of London’s 6000 sets of traffic signals and pressing the case for a lane rental scheme, vital to reducing disruption from roadworks.

With London’s population forecast to grow by 1.3 million in the next two decades, continued investment in the capacity and reliability of its transport system remains absolutely essential for London and the UK economy. Tube improvements and Crossrail represent the backbone of the investment programme. Together, they will increase TfL’s rail transport capacity by 30%. Tube upgrades are bringing modern signalling, more and newer trains and improved reliability, along with new power systems, replacement track and renewal of other life-expired infrastructure, some of which dates back to the 1920s and 1930s.

The Oyster programme has transformed ticketing and we are continuing to innovate. London will become the first city in the world where passengers are able to access the entire transport network with just a swipe of their bank or credit card. Creative solutions like these not only place us in the vanguard of integrated transport provision, but they also enable us to make the savings we need in the coming years.

October 2010 saw one of the most austere Comprehensive Spending Reviews of our time. TfL’s overall grant from the Department for Transport has been reduced by £2.17bn in total over the four years covered by the Review. However, the funding settlement does ensure that the Mayor and TfL can continue to deliver our top transport priorities. These include upgrading the Tube (including major congestion relief schemes at Victoria, Bond Street, Tottenham Court Road, Paddington and Bank stations); developing Crossrail; maintaining the

Peter HendyCommissioner, Transport for London

Moving in the right direction

TfL has overseen a mammoth 7% shift from car travel to public transport in the last ten years – a rate unmatched by any other major city in the world.

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Capital’s extensive bus network which is of particular importance in outer London; delivering TfL’s commitments for the London 2012 Games; extending the hugely popular Barclays Cycle Hire scheme, as well as developing twelve Barclays Cycle Superhighways; extending the London Overground to Clapham Junction by the end of 2012; maintaining fare increases for 2011 at the level previously announced by the Mayor (Retail Price Index plus 2%) and protecting free travel and concessions.

TfL will, of course, have to find savings within the organisation. But we are two years in advance of the rest of the public sector in delivering massive efficiency savings. We will save some £7.6bn over the course of our revised Business Plan and in future years, and have already secured a third of these economies. They include a fundamental review of our back office and corporate functions, ensuring that where we can, we use efficiency savings to protect frontline services.

With the Mayor’s top transport priorities protected, we are on track to support a spectacular London 2012 Games while keeping London moving. But we cannot be complacent: we must continue to make the case for sustained transport investment in order to accommodate London’s forecast growth. Investing in London delivers prosperity for the UK. The delivery of Crossrail, upgrade of the Tube and maintaining London’s bus network all give an economic return on investment. We also need to look at new ways of funding infrastructure, working in partnership with the private and public sectors to maintain London’s position as a leading world centre and the UK’s global economic competitiveness.

Based on a Thought Leadership debate held in February 2011

Moving in the right direction continued London Rail – current and future plans

The last few years have seen a massive investment in London’s suburban railways. The £1.4bn spent represents excellent value for money, for it effectively extends the Underground system into a much wider area north, south, east and west of the central Tube network.

Few realise the importance of railways to the population and economy of London. Well over half of all rail journeys in the UK start or finish in the Capital, and National Rail, Docklands Light Railway and the Tube account for 80% of all commuter journeys to central London. Londoners make five times as many rail trips per person as anyone else in England, and public expenditure per trip (rather than per head) is considerably lower in London than in the regions. Londoners also pay higher fares, making a proportionally greater contribution to transport costs.

Central London jobs generate more GDP per head than jobs elsewhere in the UK. Extra rail capacity in the Capital will help the UK economy to grow. To meet demand and expand the reach of rail, the new East London line was designed to complete London’s orbital Overground network. Phase 1 of the project was opened in the summer of 2010 at a cost of £1 billion. This included new track and signalling, four new and fully accessible stations and a new maintenance depot at New Cross Gate. The final phase of the orbital railway, which links with Clapham Junction, is due to open in late 2012.

The north London railway development could not be more different. It upgrades an existing Network Rail mixed-traffic railway to provide frequent metro services. It will need to service the Olympic and Paralympic Games, but also provide a significant legacy in improved transport. The total scheme – funded by TfL, Network Rail and the Olympic Delivery Authority – costs £400m. It will double the frequency of trains on the route, and link in with the East London line.

Along with major improvements to London’s railway network itself, a new fleet of air-conditioned electric trains has been introduced. The new four-carriage trains provide a dramatic improvement in capacity. Standing room has been maximised, with walk-through carriages specifically designed to accommodate the needs and increasing number of London Overground passengers. The use of regenerative braking ensures 20% of the electrical energy consumed goes back into the system, creating a modern network that is not just efficient, but environmentally sound.

Based on a Thought Leadership debate on regeneration through transport, held in May 2010

Ian Brown Former Managing Director, London Rail, Transport for London

Well over half of all rail journeys in the UK start or finish in the Capital.

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The open platform...is a feature that seems to encapsulate the vibrant, active nature of travel in the city.

Designing a new bus for London For the first time since the late 1950s, the organisation which runs the public transport system has commissioned a design for a London bus. Back in 1954 London Transport chose to work directly with AEC to produce a vehicle that was particular to London. The result? The now iconic Routemaster.

In 2010, Heatherwick Studio joined the team who are producing a new bus specifically for the streets of London. Following in the wake of an internationally recognised icon was not something we took lightly. The Routemaster is now synonymous with London, appearing on everything from mugs and tea towels to films and television programmes. Much more than just a vehicle, it has become a brand for London.

It is worth remembering that the Routemaster was not only the result of engineering excellence. It was styled with great flair and sensitivity by designer Douglas Scott and his team. In an age where styling is often frowned upon in relation to public-sector activities, it is important to recognise what a vital part Scott played in the success of the original vehicle.

Although our brief was not to design a new Routemaster, we knew that comparisons would be inevitable. The Mayor of London and TfL laid down a gauntlet – to supply London once again with a bus that featured what is perhaps one of the most salient characteristics of the Routemaster design: the open platform. It is a feature that seems to encapsulate the vibrant, active nature of travel in the city, allowing passengers freedom of movement no matter where the bus is.

The core brief for ourselves and the engineers and builder of the vehicle, Wrightbus, was in many ways very simple. The vehicle was to have three doors, two staircases, an open platform and be of the best environmental and technical credentials. The rest was up for debate. Luckily, as a studio of designers and architects we saw great strength in our lack of familiarity with the world of automotive and public transport design. We came with no preconceived ideas and this afforded us the luxury of being able to question things at a fundamental level.

Our primary challenge was how to give visual identity and clarity to what is principally a box-like building on wheels. We were determined to make sure that there was continuity of thinking from the exterior to the interior. The story needed to make sense throughout. The public transport user should not be expected to comprehend, or make concessions to, the dense world of structure, components and cabling running beneath their feet. They should expect the functional and visual environment not only to work but to make sense and hopefully be exciting and memorable.

An early lesson we learnt was that aerodynamics play little part in the shaping of a bus. The average speed for a vehicle in central London is far too slow for any slick shaping to make a difference. However, due to the sheer size of the vehicle

Stuart WoodSenior Designer, Heatherwick Studio

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(more than 11m long), there was a real need to soften the form. The character of the exterior is derived from directly describing the movement of passengers as they pass through the vehicle. The glazing line starts at the entrances and then flows up each staircase to create a distinctive asymmetrical and open path, letting light in and giving views outwards.

It is fair to say the design possibilities today are very different to those which Scott dealt with. Regulatory control has a tighter grip on the physical and visual outcome of any modern vehicle. Almost every design feature is governed by rules which prescribe its dimensions and often its appearance. This has meant that designing the interior has been a voyage of discovery on a much greater scale, with every seat, hand pole, button and grill up for consideration and debate. Our hope is that we have created a holistic interior world which offers a calmer, more sophisticated experience with special details, rather than a lurid, hazardous-looking environment of bright colours, warning signs and generic details.

In recent times, the average public transport experience is one of a truly international nature. You can jump on the same model of bus in many cities across the world. The livery might change, the seat fabric might have a different pattern but the core experience is the same. We wanted to be more ambitious and create an entire bus that was specific to London. With less than one year to go before launch, and much left to do, the prospect of there being hundreds of new London buses trundling around the streets is one which fills us with excitement. Our hope is that they do their job for as long as the originals that inspired them.

Designing a new bus for London continued

Our hope is that we have created a holistic interior world which offers a calmer, more sophisticated experience with special details, rather than a lurid, hazardous-looking environment of bright colours, warning signs and generic details.

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Airport provision in the South East

If Britain is to be open to business, we need to have a premier hub airport. Currently that is Heathrow, but following the government’s decision not to proceed with a third runway the airport is in deep trouble and rapidly losing its position in the world league table.

Our competitors have all expanded their hub airports or are building new ones. The chief executive of Amsterdam’s Schiphol airport, on hearing that Heathrow would not get a third runway, made the point succinctly – ‘Good news for Schiphol, bad news for Heathrow’.

One cannot assume that London will always hold its attractions. We have to make sure that our infrastructure is capable of maintaining and improving our competitive position. Frankfurt, sitting at the heart of the world’s largest and richest market, has an airport that can fly you to 307 destinations compared to Heathrow’s 180. Frankfurt has a burgeoning financial market. Where are the new international companies of the emerging BRIC countries going to invest, if we can’t provide landing slots at Heathrow? The environmental arguments are important but aircraft circling over London waiting for space to land at Heathrow are not environmentally friendly and certainly not a good advert for Britain or British business.

If we decide that we cannot expand Heathrow, then we need a new hub airport: possibly Stansted, or one located in the Thames estuary. But there are major problems with both these options. If we do create a new hub airport, we will have to plan for the decline of Heathrow – no one believes that we can have two hub airports.

Heathrow is the largest single-site employer in the UK with 72,000 airport jobs and an estimated 100,000 in the region dependent on it. If Heathrow goes, those jobs go with it – just as they did when we lost the London docks to Rotterdam and Felixstowe. All the infrastructure surrounding Heathrow, including international companies that locate near the airport, will have to relocate to the new hub – or go to continental Europe. The challenges are serious. Hub airports are the key to the emerging global economy.

We cannot afford to drag our feet on this. The economy is not waiting for us to catch up. If we really are open to business, then we need to welcome the world with a modern hub airport, wherever it is – and we need to do it soon.

Based on a Thought Leadership debate on the future of airports, held in July 2010

Lord SoleyCampaign Director, Future Heathrow

Heathrow is the largest single-site employer in the UK with 72,000 airport jobs and an estimated 100,000 in the region dependent on it.

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Any industry is largely a product of its history. For over 100 years Britain’s railways were run by private companies that were geographically based. They flourished, but were so hemmed in by regulation that they were unable to react once road competition started in the 1920s.

When the railways were nationalised under the Transport Act 1947, the change brought not only full government control, but also a perennial shortage of capital – rail investment was not one of the Treasury’s priorities. Privatisation in 1996 brought many benefits, as evinced by the massive growth in rail traffic, but also many problems. Private-sector freedoms have been undermined by Whitehall micro-management; short-term franchises and an ideologically driven separation of trains and track mean that no-one is in control of both costs and revenues, and that much investment is led by organisations that have no contact with the eventual customer.

British Rail had many inefficiencies, but it also gave rise to some strong leaders, able to share their vision and to drive change. From them, from certain railways overseas and from my own experience since privatisation, I have learned a number of points that suggest how a sustainable railway – one that is in control of its costs and that satisfies its customers – might be structured:

1 Academic theories are a poor tool in designing the railway’s structure.

2 A cobweb of legal agreements costs money and impedes decision-making. Simplicity should be the watchword.

3 The railway is a system and must be organised as such. National oversight is needed, both to coordinate the network and provide leadership to speak on the railway’s behalf – not least when new legislation threatens to add extra costs for dubious benefits. However, control should rest with an efficient and effective private sector that is free to manage.

4 Managers should have full visibility of all the costs and revenues on the routes that they operate. Only then can costs be controlled.

5 Vertical separation has brought few benefits and many problems. Ideally we should reintegrate trains and track. Where this is not possible, organisational boundaries and incentives should be aligned to make decision-making as seamless as possible.

6 Railways are a long-term business in terms of project development, asset life and impact on the wider community. Franchise terms must reflect this.

Adrian ShooterChairman, DB Regio UK

Towards a sustainable railway

Privatisation in 1996 brought many benefits, as evinced by the massive growth in rail traffic, but also many problems.

7 It is right that public bodies should take the lead in setting parameters for train service and fares for the unprofitable routes and services that they subsidise. This need not mean detailed prescription, nor micro-management of the entire network.

8 Ongoing capital investment in trains and infrastructure will

be needed to provide capacity and meet passengers’ rising aspirations. Encouraging private-sector investment is essential, and the railway must be structured to allow companies to earn a return on such investments.

9 The Train-Operating Company (TOC) is the only industry body in contact with the end customer, and the only one that takes the full financial and performance risk of its decisions. The TOC should thus lead on train procurement, service design and investment specification. These are not tasks for Whitehall.

None of this is revolutionary. It is how private-sector railways are managed in places as different as the USA and Japan, and how most successful transport companies operate worldwide. It is also the goal that those visionary leaders at British Rail were working towards.

Public policy towards the railway is now both positive – think of all the investment recently authorised – and refreshingly non-ideological. We now need to cut costs. Structuring the railway along the lines indicated will not only enable this, but will also create a long-term, sustainable railway for the future.

Based on a Thought Leadership debate on rail franchising, held in January 2011

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While much has been written about the lack of transport infrastructure investment in the UK, there have been surprisingly few attempts to quantify the perceived ‘gap’ between what the UK needs to invest in transport infrastructure and the anticipated public expenditure.

It is only with an understanding of this shortfall – in terms of its scale and concentration across modes – that we as a country can start to address how (and indeed whether) to ‘fill’ the transport funding gap.

The UK’s transport infrastructure is under significant pressure. The roads, railways and airports are among the most congested in the world. On average, for each kilometre of motorway in the UK, 113 million passenger vehicle kilometres are driven each year, against 47 million in Germany, 39 million in France and 36 million in the USA. The UK’s roads carry more freight per kilometre of motorway than any other major economy apart from Japan, and the railways are carrying more passengers than at any time in the past 60 years, in a network roughly three-fifths of its 1950 size. Material parts of the national rail network date back at least this far: for example the 60-year-old wiring on the Great Eastern Main Line is now unreliable, sensitive to temperature increases and costly to maintain. Meanwhile most major UK airports still compare poorly with their international counterparts. The 2010 Skytrax survey, for example, ranks Heathrow 21st out of 163 airports worldwide for the quality of its infrastructure (up from 57th in 2009), Gatwick 64th and Stansted 99th.

In addition, transport demand is anticipated to increase significantly over the coming decades. By 2030, the average UK resident is expected to drive an extra 1100 kilometres a year, increase their use of long-distance trains and take one more flight than he or she does today. The combined effects of population growth and increased per capita travel over this period, other things being equal, will increase passenger numbers on the roads by almost 30%, rail travel by 50% and the number of flights originating in the UK by as much as 75%.

If congestion and resulting delays to travel times are to be capped at levels even roughly similar to those experienced today, some £350 billion will need to be spent on our road, rail and airport infrastructure over the next 20 years. Of this over £150 billion would be investment in the additional infrastructure required to keep pace with increased demand, and almost £200 billion would need to be spent on maintaining and renewing existing assets.

Transport expenditure is, however, not expected to match this required level of investment in the medium term. While the government’s recent Comprehensive Spending Review and National Infrastructure Plan both acknowledge the scale of transport infrastructure needs, cuts to public transport infrastructure spending are forecast over the next five years. Given these forecasts, and taking a medium-term view, we estimate that there will be a substantial public-sector funding gap for road and rail of around £100 billion over the next two decades, the equivalent of £5 billion a year.

Alice Woodwark and Julian Mills Associate Partners, McKinsey & Company

Keeping Britain moving

We estimate that there will be a substantial public-sector funding gap for road and rail of around £100 billion over the next two decades, the equivalent of £5 billion a year.

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The UK needs to close this gap, or face the potentially severe economic consequences: GDP growth could be reduced by up to half a percentage point – around one-fifth of the expected national growth rate based on long-term historic trends. We see two options for closing the funding gap, without increasing general taxation. The builders and operators of our transport infrastructure can further improve their productivity; and the users of our transport assets – vehicle owners in particular – can contribute more. Both of these options are challenging.

Improving construction planning and governance, increasing front-line productivity and addressing procurement costs could, taken together, reduce the £100 billion funding gap by almost half. However, this would still leave the UK with a requirement to find an extra £50 billion or more to fund its transport network (and specifically its road network, which accounts for over half of the £350 billion expenditure requirement) over the next 20 years.

Increasing revenue from road users will undoubtedly be difficult to accomplish. It will probably be necessary, however, if the UK is to expand road capacity and prevent congestion getting worse. A balanced and informed debate is urgently needed on this topic to ensure the country’s long-term economic recovery is underpinned by high-quality transport infrastructure.

This article is a summary of the report ‘Keeping Britain moving’, published by McKinsey & Company and debated at a Thought Leadership dinner in December 2010

Keeping Britain moving continued

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Plans for the future

With reduced financial assistance from TfL and the impending contraction of the MLA Renaissance funding scheme from 2012/13, the Museum’s priorities remain focused on efficiency, value for money and maximising self-generated income. In this way LTM aims to sustain its delivery of a high-quality public service to as many beneficiaries as possible.

The key target areas for 2011/12 are:

1. To invest in social and commercial enterprise, and an entrepreneurial culture for the benefit of the charity.

The Museum will develop new partnerships and seek project funding to deliver its public programmes. London Transport Museum (Trading) Ltd will establish new business opportunities and widen existing markets to increase profits.

2. To deliver levels of public benefit that meet the expectations of stakeholders and funders.

LTM has set targets to welcome at least 275,000 visitors annually, and work with 120,000 schoolchildren through outreach programmes. A new skills centre will be created to support education and into-employment activities.

3. To deliver an outstanding high-quality experience for visitors and beneficiaries.

The Museum will invest in improvements to the facilities at Covent Garden, and implement a Visitor Excellence programme to refresh the visitor experience three years on from reopening. A visitor experience target has been set of at least 82% for customer satisfaction.

4. To deliver a public programme of exciting, innovative and engaging events and exhibitions.

The exhibition programme has been set out for the next three years and a full programme of supporting events is being planned. In support of the programme 75,000 collections records will be enhanced per year.

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Income and support

‘ For thirty years London Transport Museum has been at the forefront of innovative product design. We commission artists and designers to provide imaginative new products and posters that complement LTM displays and exhibitions. The artworks – and even some of the products themselves – are preserved in the Museum collection as a record of our own time for future generations.’ Mike Walton, Head of Trading

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Income and support

The wide range of charitable activities the Museum offers is supported by income generated from retail and commercial activities, fundraising, marketing and the generous donations of time and funds by LTM volunteers and Friends.

The charity’s trading subsidiary company (LTMTL) was subject to increased VAT, particularly poor weather in December 2010 and ongoing uncertainty in the wider economy. Despite these factors, annual turnover remained constant at £2.1m for the year and LTMTL generated an operating profit of £0.1m. The profit will be donated to the charity by way of Gift Aid.

Sales from the popular Museum shop at Covent Garden form the most significant part of the turnover of LTMTL. In 2010/11, reduced revenues for some product groups were offset by growth in the souvenirs market. Book sales held up well despite increasing competition from online retailers and downloadable e-books. A wider range of items made from moquette seat fabric saw furniture sales grow by 90%. A press and PR agency specialising in retail business was retained during the year to raise customer and media awareness of the LTM retail brand and drive future sales.

Developments online saw improvements to the print-to-order service for posters, with optional framing offered. Other upgrades to the webshop systems included improved security and functionality that will enable new sales channels to be developed next year. LTM products are now being sold through Amazon Marketplace, with sales growing rapidly.

The Grade II listed building in Covent Garden has three spaces available for hire: the Museum galleries, a unique setting for evening drinks, receptions, formal dinners, product launches and awards ceremonies; the stylish 121-seat Cubic Theatre and foyer for conferences, presentations and screenings; and the 20-seat LTM boardroom for smaller daytime meetings. A new marketing strategy, improved offer and the appointment of a Venue Sales and Marketing Manager led to a growth in the number of hires and the value of sales this year.

The LTM marketing strategy develops Museum audiences and promotes exhibitions, events and retail products through targeted advertising campaigns, public relations and other activities. Public relations is a very cost-effective means of promotion for the Museum, which has so many interesting stories to tell. This year, LTM merchandise was highlighted in national newspapers and consumer magazines such as World of Interiors and the exhibitions attracted both print and broadcast media attention.

Significant international coverage for the exhibition Under Attack and its supporting public programme ranged from Chinese, Russian and Spanish television to UK newspapers such as the Guardian and Independent. Ticket sales were high and associated events attracted a broad audience, many of whom had not previously visited the Museum. PR activity for the exhibition Overground Uncovered supported TfL’s launch of a new London Overground line and helped

increase awareness of this important new transport opportunity to Londoners and visitors alike.

In anticipation of significant cuts in public funding, the Museum made it a priority to increase self-generated income to maintain its level and standard of charitable benefit. This year saw investment in, and gains from, greater fundraising capacity, with emphasis placed on raising money for work with young people. The Luke Rees-Pulley Charitable Trust was once more a generous partner, providing funding for the family activity packs as well as resources and a learning officer for the ‘Inspire’ programme to help young people into careers in the engineering and transport industries. TfL and MLA Renaissance were again key contributors, supporting the Museum’s community and family learning programmes, and the Safety and Citizenship initiative.

Strong corporate partnerships are also vital and LTM works hard to deliver rewarding relationships which meet genuine business objectives for corporate supporters. CBS Outdoor has become a supporter of the Museum’s CBS Outdoor Gallery for a further three years, while Serco sponsored the 2010 exhibition Cycling in London. Cubic Transportation Systems continue to support the Cubic Theatre and Clear Channel once again donated an outdoor advertising campaign worth £240,000.

This year’s Covent Garden dinner and auction was attended by more than 350 transport industry guests. Mayor of London Boris Johnson and TfL Commissioner Peter Hendy spoke in support of the Museum and its creative education programmes and the event raised £150,000 to support the Museum’s work. The next fundraising dinner will be on Tuesday 13 September 2011 at the Royal Opera House.

In 2010/11, the Corporate Membership programme increased the number of its Leader-level members, despite the challenging economic climate. Zurich Insurance and Serco both joined at Leader level. Corporate Members can benefit from tickets to the annual networking reception which attracts around 400 industry professionals, free admission to the Museum for their staff, a discount at the Fundraising Dinner, and generous discounts on hire of the galleries and Cubic Theatre. Leader-level members and sponsors receive free use of the Museum boardroom suite.

Another key benefit for Corporate Members is the Thought Leadership programme, funded and delivered in partnership with Eversheds, in which participants debate major transport issues of the day such as the social and economic impact of the East London line, the future of freight in London, sustainable roads policy, rail franchising, and funding the UK’s transport infrastructure. Events in 2010/11 attracted a number of pre-eminent speakers including Lord Berkeley, Chairman of the Rail Freight Group; David Quarmby CBE, Chairman of the RAC Foundation; Peter Hendy, Commissioner of Transport for London; and Adrian Shooter CBE, Chairman of Chiltern Railways.

Retail

Fundraising

Marketing

Corporate hire

E-commerce

Corporate supporters

London Transport Museum (Trading) Limited

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LTM also offers multiple opportunities for industry to partner the Museum on exhibitions and educational initiatives, and is continuing to develop work in the areas of transport sector skills and apprenticeships. Already working with over 150,000 schoolchildren in London, the Museum partnership with industry and TfL is building on this network to encourage young people to discover careers in engineering and science to promote the future prosperity of the transport industry.

To get involved, please contact LTM Marketing & Development on 020 7565 7284 or visit ltmuseum.co.uk/getinvolved

The London Transport Museum Friends is a charitable organisation established to advance public education in the history of transport and support the work of LTM. They offer invaluable assistance and encouragement for the Museum’s work and activities. The Friends provide expertise, knowledge and enthusiasm as well as financial support to LTM. Thanks to their generosity, the Museum has been able to acquire significant items for the collection and fund essential restoration projects.

To find out more about LTM Friends, visit ltmuseum.co.uk/friends

The Museum is enormously grateful to the many volunteers who give their time, skills and expertise to support LTM programmes. In 2010/11, 140 volunteers contributed over 13,000 hours to the Museum’s work. They led guided tours, helped in the library, assisted with oral history projects and ran object-handling sessions. Volunteer guides at Acton enabled over 500 visitors to see the vehicles at the Museum Depot. Work experience students and interns also contributed over 1500 hours, supporting exhibition development and auditing the poster collection. All have been essential to the continuing success of the Museum.

The 2010 London Volunteers in Museums Awards saw LTM collect three prizes, including special youth and long-service awards. The Museum is pioneering new schemes, including some designed to attract young people between 16 and 21 years to volunteer. ‘Journeys’ saw youth volunteers design activities for Hyde Park’s FUSE arts festival in summer 2010 and run workshops for more than 500 children and parents during half-term and at the Depot open weekend in March 2011.

To find out more about volunteering, visit ltmuseum.co.uk/getinvolved

London Transport Museum Friends

Volunteers

Income and support continued

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Corporate members

Leader Abellio*Alstom*Arriva LondonBombardier Transportation UKFirstGroup UK Bus*Halcrow GroupSerco*Zurich Insurance

Driver Cubic Transportation Systems*EnterpriseMouchel*Eversheds*Invensys Rail*Mansell ConstructionRingway JacobsSacker & Partners*

The Museum is grateful to the following companies and organisations for their support and generosity.

MemberAtkins*Bircham Dyson Bell*CapgeminiCitylink Telecommunications*Covent Garden London*Deloitte*FujitsuHerbert Smith*Mott MacDonaldPricewaterhouseCoopersSGS UKSiemens*telent Technology ServicesTrapeze UK Power Networks Services – Powerlink

AssociateBalfour Beatty Engineering Services*Birse MetroCanary Wharf Group*Freshfields*The Go-Ahead GroupHyder Consulting UKMane Contract ServicesMetrolineRadio Taxis GroupYJL Infrastructure

Honorary Corporate Member4-RAIL ServicesClear Channel Outdoor*

Major fundersTransport for LondonHeritage Lottery FundMLA Renaissance

Major supportersDCMS / Wolfson Foundation Museums and Galleries Improvement FundLondon Transport Museum FriendsLuke Rees-Pulley Charitable Trust

Sponsors CBS OutdoorSponsor of the CBS Outdoor Gallery

Cubic Transportation Systems*Sponsor of the Cubic Theatre and foyer

American Express: Sponsor of the exhibition Suburbia (2009–10)

Orange Sponsor of the ‘2055’ exhibition

Serco*Sponsor of the exhibition Cycling in London, with the Association of Illustrators (2010)

Eversheds*Thought Leadership partner

Clear Channel UK*Advertising partner

Docklands Light RailwayParsons BrinckerhoffSAP (UK) Toyota (GB) HCL AxonCapitaCorusHP Enterprise ServicesPeek Mercedes-Benz buses and coachesNational Express UK Alexander DennisAlstom*

Arriva LondonCompak RampsConran Design GroupFirstGroupHammondsHyder Consulting UKLondon Central / London General (Go-Ahead)Macquarie GroupMetroline (ComfortDelGro)NSL Optare UKRingway JacobsSkanska Stagecoach LondonThales UK*TransdevVolvo BusWrightbusNetwork Rail

Donors Garfield Weston Foundation Energy Saving TrustBiffaward – a Landfill Communities FundJohn Lyon’s CharityForesight, Government Office for ScienceRingway Jacobs

Education partnersBritish Science Association CrossrailInstitute of Civil EngineersLondon Apprenticeship CompanyLondon Development AgencyLuke Rees-Pulley Charitable TrustMLA RenaissanceRemployRoyal Academy of EngineeringRoyal College of ArtsSTEMNETTexas InstrumentsTransport for LondonTrust for LondonWestminster City College

Sponsors and donors

*Thank you to these companies who purchased tables at our 2010 Covent Garden dinner and auction, as did Amey, Ashurst, CSC, Deutsche Bank, IBM, Lexicon Partners, Lloyds Banking Group, McKinsey & Co, O2 UK and Visa Europe.

Thank you

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Public programme

The Museum’s exhibitions, events and activities cater to the diversity of London’s communities. Here is a selection from the 2010/11 programme.

DATE EVENT

4–16 April 2010 Easter workshop for families

29 May – 6 June 2010 Summer of cycling: family fun

2–3 October 2010 Creative capital: family craft drop-in

9–10 October 2010 Creative capital: family craft drop-in

16–17 October 2010 Family open weekend: Museum Depot, Acton

25–9 October 2010 War-time toys: vintage toy-making

27 December 2010 – Bauble Blitz: festive craft workshopJanuary 2011

21–25 February 2011 Paper dolls and buses: family fun

12–13 March 2011 Mapping in miniature: family open weekend, Museum Depot, Acton

12–13 March 2011 London’s transport in miniature: family open weekend, Museum Depot, Acton

DATE EVENT

13 April 2010 From the sublime to the ubiquitous : design excellence for the masses – LTM Research Fellow Oliver Green

11 May 2010 The People’s Palaces – LTM Research Fellow Oliver Green

30 September 2010 Underground to Hampstead: 100 years of posters, LTM Curator Claire Dobbin at Burgh House, Hampstead

5 October 2010 Reinventing the wheel: is bicycling the future? – Debate chaired by broadcaster Robert Elms

6 October 2010 The future of transport: to infinity and beyond? – Panel discussion chaired by founder of Spy, Nico McDonald

21 October 2010 Hampstead Tube and the growth of North-West London – LTM Curator David Bownes at Burgh House, Hampstead

26 October 2010 The London Blitz – historian Juliet Gardiner

27 October 2010 100 years of iconic posters – LTM Curator Claire Dobbin, in partnership with Covent Garden Apple store

16 November 2010 Private view of Under Attack exhibition with LTM curator David Bownes, Coventry Transport Museum Curator Steve Bagley, and Director of Dresden Verkehrsmuseum Dr Michael Dünnebier

23 November 2010 Stations of the London Metropolis – LTM Research Fellow Oliver Green

7 December 2010 Beauty and the Blitz – fashion historian Emmanuelle Dix

25 January 2011 The Blitz in the Provinces – historian Juliet Gardiner

1 February 2011 Eighth Wonder of the World: Thames Tunnel and the legacy of the Brunels – Director of Brunel Museum Robert Hulse

15 February 2011 Wheels on Fire – LTM Research Fellow Oliver Green

1 March 2011 Seeing it through: wartime posters on the Underground – LTM Curator David Bownes and art historian Dr Jonathan Black

8 March 2011 Fatal Crush, launch of novel The Report by Jessica Francis Kane, with LTM Curator David Bownes

12–13 March 2011 Engines of War and Subterranean Railways – two talks by transport historian Christian Wolmar as part of the Open Weekend, Museum Depot, Acton

15 March 2011 The Legacy of the Blitz – historian Juliet Gardiner

DATE EVENT

14 May 2010 100 years of night-life: Museums at Night – late opening

19–20 June 2010 London Transport Museum 30th birthday

29 June 2010 Artmongering the line

10 July 2010 Unicycle workshop

22 September 2010 London Design Festival: Moquette for London

23–6 September 2010 Under London: Blitz Experience tours of Aldwych Underground station

Family events

Talks, debates and seminars

Museum activities and events

‘ The workshop was very, very well done – you in particular did a great job at being lively and enthusiastic and making it interesting and engaging for the kids’

‘ I enjoyed so many things through the project. I’ve learned a massive amount, and I didn’t expect to learn as much as I did’

‘ I found the Depot actually really evoked a lot of memories for me. I think the Museum is very relevant for me’

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Public programme continued

DATE EVENT

2 May 2010 LTM’s 1931 LT-type bus (LT165) wins three trophies at the Brighton Historic Commercial Vehicle Run, including First in Class and Best AEC vehicle. Subsequently installed at LTM for the exhibition Under Attack, with wartime interpretation.

6 June and 10 July 2010 Green Line coach (GS64) displayed at events in Hertford and Acton

19–20 June 2010 RM1 heritage vehicle outing

17 July 2010 1930 AEC single-deck T-type motor-coach (T219) took part in the Cobham bus rally

16 August 2010 Volkswagen City Pacer single-deck motor (0V2) displayed at book launch at Knockholt

31 October 2010 Green line coach (GS64) took part in a heritage bus run at St Albans

6 February 2011 RM1 special run over London Bus Route 2 to mark its 55th anniversary of entry into service

DATE EVENT COMMUNITY PARTNER

March – June 2010 Mind the Art Action Space Artists in residence and exhibition

April 2010 Reminiscence Sessions Bishop Ho Ming Wah Community Project

April – November 2010 Locked in Transit Camden Calling Community Project

25 May 2010 Union dance performance Union Dance

May – June 2010 Poster and Gorringe Park Primary presentation skills project

May – July 2010 Take One Project St Clement Danes (Run by Catch 22) Primary school Film-making project with young people

9 June 2010 Summer fun! Balloon St Paul’s Church Centre powered buses and transport bingo!

Community and schools projects

June – August 2010 Capturing Camden Castlehaven Community Community Project with Centre young people

25 July 2010 FUSE festival Royal Parks

July – August 2010 Transport Textiles Greenside Community Centre/Vital Regeneration

July – August 2010 T-shirt making Bishop Ho Ming Wah Craft activity for Association young people

September 2010 Social surfing Westminster Libraries

September – Transport Tales, a digital The Abbey CentreDecember 2010 series project

September 2010 – Millman Memories Millman CentreMarch 2011 Local history Project

September 2010 – Transport Yourself Portman Early March 2011 Childhood Centre

September 2010 – All Aboard...Harrow Road Harrow Road HistoryMarch 2011 Group/Genesis Housing Association

17 December 2010 Poster Workshop Migrants Resource Centre

10–21 January 2011 ESOL course Migrants Resource Centre

February – March 2011 Poster project Migrants Resource Centre

February – March 2011 On the Buses Castlehaven Community Centre

Ongoing Every object tells a story Sundial Centre, Age Concern

(various locations)

Ongoing Every object tells a story Church Street Festival; Abbey Centre Lecture and Social Club; 60 Penfold Street; Greenside Community Centre Lunch Club; Sundial Centre, Bethnal Green

Ongoing Storytelling and museum Coram’s Fields visits, community outreach

‘ This project really challenged them and allowed them to explore and expand their artistic skills and experience and has given new drive and motivation’

‘ The trips to the Transport Museum have broadened my horizons’

Heritage outings

‘ It was amazing and lots of fun! I’m looking forward to any other future projects’

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September 2010 – Bus Shelters creative Ismaili Youth Arts February 2011 workshops in South Initiative, Chocolate Films, Kensington KMT, Orly Orbach, Community youth Clear Channel engagement project TfL Surface Transport

October 2010 – Bus Shelters creative Charter School, March 2011 workshops in Southwark STEP, Chocolate Films, Community youth Clear Channel, TfL engagement project Surface Transport

December 2010 – Young Volunteers from Volunteers recruited March 2011 the ‘Journeys’ youth through community and project delivered family other partners activities inspired by the Under Attack exhibition

Public programme continued


March – May 2010 Journeys: UK Thames Reach

May – August 2010 Journeys: China Soho Chinese Community Centre

June – August 2010 Journeys: Japan Local Japanese residents

July – August 2010 Journeys: France Local French residents

August – December 2010 Journeys: USA Online community

October – November 2010 Journeys: India Bluebells School, Deepalaya School, Delhi Metro Rail Corporation

April – May 2010 Regeneration Southwark Southwark arts charities: ceramics project Rainbow Arts, Art in

the Park

April – May 2010 Connecting Anerley Streetwise Youth Centre film project in Anerley

August 2010 Barclays Bikes TfL contemporary collecting project

October 2010 Photobooth: Black Transport for London’s History Month BAME Staff

Network Group

October 2010 Photomonth: Photomonth/ Scavenger Hunt Alternative Arts

December 2010 – Busking film project TfL BuskingMarch 2012

February 2011 Croydon: Scavenger Hunt Museum of Croydon, local residents

February 2011 Day in the life of TfL, Tooting Tooting film Broadway Station


May – September 2010 Bus Shelters creative Coram’s Fields, workshops in Camden Clear Channel, TfL Community youth Surface Transport engagement project

‘ We all worked together as a group and shared our opinions. I also improved my communication skills by working together in the Museum’

Stories of the World project

Community curator projects

‘ I had a FANTASTIC experience!’

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Structure, governance and management

London Transport Museum Limited (LTM) is a registered charity which was incorporated on 6 February 2008 as a company limited by shares and is governed by its Memorandum and Articles of Association. Under the GLA Act 1999, Transport for London (TfL) has the power to provide and maintain a museum of transport artefacts, records and other exhibits. While it is more common for charities to be operated by companies limited by guarantee, the Transport for London (Specified Activities) Order 2000 requires TfL to carry out museum activities through a company limited by shares.

Under section 5.1 of the LTM Memorandum of Association, the property and funds of the Museum must be used only for promoting the objects and no dividend is payable to TfL.

LTM has a wholly owned subsidiary, London Transport Museum (Trading) Limited (LTMTL), through which it operates retail, corporate hire and other non-charitable activities to generate funds for the furtherance of the Museum’s objects. All the profits of LTMTL are donated to LTM.

The Museum is governed by a Board of Trustees, chaired by Sir David Bell. The Board meets four times a year for routine business and convenes meetings as necessary to consider urgent issues. In addition, Trustees take part in an annual review of strategy. Day-to-day management of the Museum is delegated to the Managing Director, Sam Mullins, and through him to the Senior Management Team, employees and volunteers.

There are up to thirteen Trustees, three of whom are nominated by TfL and may be members, officers or employees of TfL or the Greater London Assembly. Nine independent Trustees unconnected with TfL are also appointed by the Board. The Managing Director of LTM is automatically a Trustee by virtue of his office. Trustees serve a three-year term following which they may be elected for another three years. The Articles of Association make allowance for a further three-year extension in exceptional circumstances. Other than the Managing Director, who is an employee of LTM, the Trustees receive no remuneration but may claim travel expenses for attending meetings.

Independent Trustees are selected on their ability to meet the knowledge and experience of the vacancy to be filled. The Museum seeks to recruit Trustees with expertise across a matrix of experience significant to its strategy and operation: community outreach, education, museum practice, commercial transportation, finance and governance, retail operations and public relations. It is also important to the Trustees that the Museum Board is recruited so as to be representative of London’s diversity. The Museum supports TfL’s commitment to promoting equal and fair treatment for all without unlawful discrimination in relation to age, nationality, ethnicity, sex, disability, age, sexual orientation, religion, belief, faith or other personal characteristics.

New Trustees undergo an orientation programme to brief them on their obligations under charity and company law, the content of the Memorandum

and Articles of Association, the committee and decision-making processes, the business plan and recent performance of the Museum. During their induction they are invited to spend time with the LTM Managing Director and meet senior staff, and are provided with a pack of reference material.

The role of the Audit Committee is to assist and advise the Board of Trustees of LTM on audit matters and oversee the relationship with TfL Internal Audit and external auditors. This includes detailed review of the annual accounts and supporting information, and consideration of Internal Audit reports.

The Trustees acknowledge their responsibility to assess and manage the risks facing the Museum. The major risks to which the Museum is exposed, as identified by the Trustees, have been reviewed. The Trustees have implemented a risk management strategy which includes the following actions that were undertaken in the year:

· Periodic risk reviews by the Managing Director and Senior Management Team, advised and assisted, where necessary, by the TfL Risk Management department

· Annual review of risk and risk management by the Trustees· Maintenance of the Risk Map and Risk Register· Periodic review of risks by the LTM Audit Committee· Maintenance of systems and procedures to mitigate risks identified in the Risk

Map and Risk Register· Maintenance of procedures designed to minimise any potential impact on the

Museum should those risks materialise· Regular audits of Museum operations carried out by TfL’s Internal

Audit department

The Museum’s key risks are identified as those with a potential impact that is rated ‘High’ or ‘Very High’. Of these, three have a Very High to High likelihood of occurring. These are:

· Significant reduction in income due to prevailing economic circumstances· Reduction of corporate funding · Loss of key skills, knowledge and capabilities following reductions in

project funding

To mitigate these risks, the Museum has undertaken the following actions:

· Identified and undertaken new online retail opportunities· Appointed key commercial advisors to assist the LTMTL Board· Identified and obtained new sources of funding for learning activities· Formed retail partnerships with commercial businesses and other

heritage bodies · Increased fundraising capacity and begun the process to appoint a Corporate

Membership Development Manager and e-Commerce Manager

Governing documents

Organisation

Appointment of Trustees

Recruitment of Trustees

Trustee induction and training

Audit Committee

Risk management

70 71

A series of written agreements exists between TfL and LTM which sets out the framework for the continued provision and maintenance of the Museum, the operation and funding of LTM, and the long-term relationship of the parties. The Museum cares for a collection of over 400,000 objects which remain the property of TfL and subject to a loan agreement between LTM and TfL.

At the end of March 2011, the Museum employed 106 people. The Museum is part of the TfL Framework for Consultation and Collective Bargaining. Pay negotiations are conducted between the TfL Company Council for Collective Bargaining and the recognised trades unions which are the National Union of Rail, Maritime and Transport Workers (RMT) and the Transport Salaried Staff Association (TSSA).

When reviewing the Museum’s aims and objectives, and in planning future activities, the Trustees of LTM have had due regard to the principles of public benefit and the public benefit guidance published by the Charity Commission. The Trustees believe that LTM delivers important public benefits that uphold these principles.

Principle 1: There are identifiable benefits, related to our aims and balancedagainst any harm.

LTM’s aims as a charity are to advance the heritage of transport in London and to educate the public about the history of transport in London through the provision, operation and maintenance of a transport museum for the public benefit. LTM also seeks to educate the public about the role of transport in the life and work of London past, present and future.

The Museum provides clear and identifiable benefits to the public in three categories of activity: education and engagement, access and museum operations, and heritage and collections.

LTM does no harm or detriment through its charitable activities. The health and safety of staff and visitors are taken very seriously and the Museum operates safety management systems involving trained staff to reduce our risks to a level that is as low as reasonably practicable for all our operations. We also seek to reduce our impact on the environment by reusing materials purchased for temporary exhibitions where possible. LTM also uses photovoltaic solar panels which, at the summer peak, generate an estimated 16% of the electricity required in the galleries. This flagship installation is understood to be the largest ever undertaken on a listed building in the centre of London.

Principle 2: The benefits to the public are not unduly restricted and do not exclude people in poverty. Private benefits are incidental.

LTM delivers benefits to visitors at the Museum in Covent Garden and the Depot in Acton, to users of our website and to schoolchildren across Greater London who take part in our educational programmes. Our audience development and

community outreach work engages with people who would not normally visit museums and galleries. The Museum at Covent Garden is fully accessible and welcomes visitors 363 days a year.

Our visitors come from across London and the world. We take our historic vehicles out onto the roads and rails, visit schools and work with local community groups across the Capital. Our comprehensive online Museum includes access to all the exhibits available in our main gallery as well as thousands of objects not normally on public display. We also loan objects to other institutions to extend our reach and increase access to our collections.

Online access is free and the Safety and Citizenship programme is delivered at no cost to the schools taking part. Although the Museum charges admission for entry to the galleries at Covent Garden, various measures are taken to ensure that charges do not unduly restrict access to the collection. These include free entry to the Museum for children under the age of 16; free entry for carers accompanying disabled visitors; and reduced admission charges for senior citizens, students and other concessionary groups. Standard tickets allow unlimited return visits for one year from the date of purchase.

Where the Museum delivers private benefits to individuals or companies, these are subject to appropriate commercial arrangements undertaken through a subsidiary company to generate funds for the Museum. No LTM or TfL staff receive private benefit other than in an incidental way and, with the exception of Sam Mullins who receives a salary in respect of his position as the Museum’s Managing Director, the Board receive no payments for their role as Trustees of the Museum.

The Trustees who held office at the date of approval of this Trustees’ Report confirm that, so far as they are each aware, there is no relevant audit information of which the Museum’s auditors are unaware; and each Trustee has taken all the steps that they ought to have taken as a Trustee to make themselves aware of any relevant information and to establish that the Museum’s auditors are aware of that information.

Relationship with TfL

Employment policies

Disclosure of information to auditors

Statement on charitable objectives and public benefit

Structure, governance and management continued

72 73

Trustees’ statement

Statement of responsibilities of the Trustees of London Transport Museum Limited in respect of the Trustees’ Annual Report and the financial statements.

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law they are required to prepare the group and parent company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice).

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charitable company and of the group’s incoming resources and application of resources for that period. In preparing each of the group and charitable company financial statements, the Trustees are required to:

∙ select suitable accounting policies and then apply them consistently;∙ make judgements and estimates that are reasonable and prudent;∙ state whether applicable UK Accounting Standards have been followed,

subject to any material departures disclosed and explained in the financial statements; and

∙ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the charitable company will continue its activities.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report was approved by the Board of Trustees and signed on its behalf on 9 August 2011 by:

Sir David Bell, Chair of TrusteesLondon Transport Museum LimitedCompany registration number 6495761Charity number 1123122

Board of Trustees

Audit Committee

Company Secretary

Directors of London Transport Museum (Trading) Limited

Principal Bankers

Auditors

Trustees and advisors

Directors and TrusteesThe Directors of the charitable company are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

Robert Ian ArthurtonSir David Bell (Chair)Howard Collins*Roger CookeLeon Daniels (to 5 March 2011)Jeremy FraserJudith GarfieldGlenn LyonsTerry Morgan*Daniel Moylan*Samuel Mullins (Managing Director)Janet VitmayerDavid Worthington

* Nominee of Transport for London

Sir David BellRoger Cooke (Chair)Leon Daniels (to 5 March 2011)

Howard CarterEllen Howard

Robert Ian ArthurtonJudith GarfieldChristopher GilbertSamuel MullinsRandeep SidhuMichael WaltonClaire Williamson (from 30 March 2011) David Worthington

HSBC8 Victoria StreetLondon SW1H 0NJ

KPMG LLP1 Forest GateBrighton RoadCrawleyWest Sussex RH11 9PT

TfL In-House Legal Department6th Floor Windsor House42–50 Victoria StreetLondon SW1H 0TL

Principal Legal Advisors

7574

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

∙ the charitable company has not kept adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or

∙ the charitable company financial statements are not in agreement with the accounting records and returns; or

∙ certain disclosures of Trustees’ remuneration specified by law are not made; or∙ we have not received all the information and explanations we require for

our audit.

MG Fallon (Senior Statutory Auditor)for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants1 Forest GateBrighton RoadCrawleyWest SussexRH11 9PT

11 August 2011

Matters on which we are required to report by exception

Independent auditor’s report

Independent auditor’s report to the shareholder of London Transport Museum Limited

We have audited the financial statements of London Transport Museum Limited for the year ended 31 March 2011 set out on pages 78–91. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice).

This report is made solely to the company’s shareholder in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s shareholder those matters we are required to state to the shareholder in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its shareholder as a body, for our audit work, for this report, or for the opinions we have formed.

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 72, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm.

In our opinion the financial statements:∙ give a true and fair view of the state of the group’s and the charitable

company’s affairs as at 31 March 2011 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

∙ have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and

∙ have been prepared in accordance with the Companies Act 2006.

In our opinion the information in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Respective responsibilities of Trustees and auditor

Scope of the audit of the financial statements

Opinion on financial statements

Opinion on other matter prescribed by the Companies Act 2006

76 77

Financial review

The Museum had a successful year in 2010/11, generating a surplus of £0.2m with funds carried forward of £29.6m (2010: £29.4m).

Reserves built up since the charity’s inception in 2008 were supplemented by a grant from MLA Renaissance/London Museums Hub, allowing important improvements to be made to the Museum’s premises and facilities this year. These included new glazing and roof works, additional solar panels and substantial remodelling of the back-of-house spaces to support improved working practices and the creation of a new Skills Centre in 2011/12. Planned work to address dilapidations and improve visitor facilities was delayed and will be carried out next year.

Incoming resources were higher than last year, with an inflationary increase in core support from TfL and a welcome uplift in project funds from MLA Renaissance. The TfL grant remains the principal source of income for the Museum but from 2011/12 it will begin a four-year, phased reduction of 25% to a new base level.

The turnover of London Transport Museum (Trading) Ltd (LTMTL) remained at £2.1m this year. Profit was slightly reduced due to the purchase of noise suppression equipment for corporate hire events and expenditure on the retention of a specialist retail PR agency whose work will benefit sales next year. The operating profit of LTMTL was £0.1m which will be donated by Gift Aid to LTM.

Other significant sources of income for the charity include admission charges to the Museum’s galleries and exhibitions (£1.1m), support for the Safety and Citizenship programme (£1m) and fundraising from events and corporate memberships (£0.5m).

Alongside the work to improve Museum premises and office space, a significant increase in costs arose from the implementation of the second year of a three-year TfL pay deal. There was also a notable increase in charitable expenditure on education and engagement, primarily as a result of the increased MLA Renaissance grant.

Next year is expected to be a challenging one. The reduction in core grant will be exacerbated by a further significant increase in costs resulting from the next stage of the wage settlement at RPI plus 0.5%. Actions are being taken to reduce costs and increase self-generated revenues, but there may be a call on the Museum’s reserves in 2011/12 as these plans mature.

Reserves policyThe Trustees maintain reserves in a Museum Development Fund to provide funds for major repairs, asset renewals and other future capital expenditure associated with the Museum’s premises, facilities and exhibitions. The target range for reserves for this purpose is between £1m and £2m, based on the Museum’s estimated capital expenditure needs. The net movement of the fund in 2010/11 was an increase of £0.1m. This was made up of two amounts. Firstly, the fund contributed £0.2m to match a MLA Renaissance grant for improvements to the Museum building. In addition, a transfer of £0.3m from the general fund was made to maintain the Development Fund at its target level in anticipation of additional capital work due to take place in 2011/12. This work will address the dilapidations and water ingress deferred, and deliver much needed improvements to visitor facilities on the ground floor.

Reserves equivalent to the balance sheet value of the Museum’s fixed assets at the date of transfer from TfL on 1 April 2008 were set aside in a designated fund in 2008/09 as they did not represent funds readily available for other purposes. This Capital Fund has been maintained and is adjusted regularly to include the value of asset purchases and disposals. It is written down annually by the value of the depreciation on

the Museum’s fixed assets. A transfer of £0.2m was made into the Fund for fixed assets purchased using restricted funds in 2010/11. The restriction was discharged by the purchase of the asset. Other adjustments were made to ensure that the Capital Fund represents the net book value of the Museum’s tangible fixed assets.

The Museum also designates reserves to reflect timing differences between the receipt of unrestricted funds earmarked for particular purposes and the delivery of the associated activities. The Future Exhibitions and Education Fund was established in 2009/10 at £0.5m and is being maintained at this level.

With the forthcoming reduction in grant, the additional work to the premises and uncertainty surrounding increased income generation, there may be a call on excess unrestricted funds during 2011/12. Because of this, no significant additional fund designations have taken place this year and general unrestricted funds now stand at £1.4m. The Trustees will review this position during the forthcoming year.

Investments policyIt is the policy of the Museum to invest surplus funds in short-term cash deposits within the UK.

78 79

Consolidated statement of financial activities

Including income and expenditure account – Year ended 31 March 2011

Balance sheets

As at 31 March 2011

2011 2011 2011 2010Note Unrestricted

funds£000

Restrictedfunds£000

Totalfunds£000

Totalfunds£000

Incoming resourcesIncoming resources from generated funds

Voluntary income:Core grants 5,981 – 5,981 5,609 Other donations 708 232 940 696

2 6,689 232 6,921 6,305 Activities for generating funds 3 2,529 – 2,529 2,819 Investment income (bank interest) 29 – 29 27

Incoming resources from charitable activitiesEducation and engagement 1,169 827 1,996 1,789 Access and museum operations 1,139 43 1,182 1,158 Heritage and collections 16 88 104 307

4 2,324 958 3,282 3,254 Total incoming resources 11,571 1,190 12,761 12,405

Resources expendedCost of generating funds

Cost of generating voluntary income 531 30 561 560 Commercial trading operations 1,932 – 1,932 1,882

5 2,463 30 2,493 2,442 Cost of charitable activities

Education and engagement 3,383 763 4,146 3,370 Access and museum operations 3,766 43 3,809 3,626 Heritage and collections 1,977 109 2,086 1,817

5 9,126 915 10,041 8,813 Governance costs 7 47 – 47 46

Total resources expended 11,636 945 12,581 11,301

Net incoming resources before transfers (65) 245 180 1,104 Gross transfers between funds 181 (181) – – Net movement of funds in year 116 64 180 1,104 Reconciliation of fundsTotal funds brought forward 29,379 29 29,408 28,304

Total funds carried forward 15 29,495 93 29,588 29,408

The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.

2011 2010 2011 2010Note Group Museum

£000 £000 £000 £000

Tangible fixed assets 11 25,643 26,344 25,643 26,344Current assets

Stock 535 475 – – Debtors 12 988 932 1,766 1,360 Cash 13 4,308 3,152 4,276 3,142

5,831 4,559 6,042 4,502

Creditors falling due within one year 14a (1,833) (1,495) (2,097) (1,438)

Net current assets 3,998 3,064 3,945 3,064

Total assets less current liabilities 29,641 29,408 29,588 29,408Creditors falling due after more than one year 14b (53) – – –

Net assets 29,588 29,408 29,588 29,408

Represented byRestricted funds 15a 93 29 93 29 Called up share capital 17 – – – – Unrestricted fundsDesignated funds 15a

Capital fund 25,643 26,745 25,643 26,745 Future exhibitions and education 500 500 500 500 Museum development 2,000 1,900 2,000 1,900

General unrestricted funds 1,352 234 1,352 234 15 29,495 29,379 29,495 29,379

29,588 29,408 29,588 29,408

These financial statements were approved by the Board of Trustees and signed on their behalf on 9 August 2011 by:

Sir David Bell, Chair of TrusteesLondon Transport MuseumCompany registration number 6495761The notes on pages 80–91 form part of these accounts.

80 81

Notes to the financial statements

Where costs relate directly to an activity they have been allocated against that activity. Support costs that relate to more than one activity have been allocated to activity cost categories on the basis of staff numbers in each area of activity (see Note 6).

f) Operating leases Costs relating to operating leases are charged to the Statement of Financial Activities on a straight line basis over the life of the lease.

g) Tangible fixed assets Individual fixed assets over £10,000 are capitalised at cost.

Tangible fixed assets are depreciated on a straight line basis over their estimated useful lives as follows:∙ Plant and equipment 3–10 years ∙ Buildings and refurbishments 10–35 yearsStructural improvements to the fabric of the Museum building are depreciated over the remaining life of the lease (33 years). Other building work is capitalised where it is considered that future economic benefits in excess of the originally assessed standard of performance will flow as a result of that work.

h) StockStock is valued at the lower of cost or net realisable value. i) Heritage assetsHeritage assets are those assets of historical, artistic or scientific importance that are held to advance the preservation, conservation and educational objects of the Museum. The Museum collections consist of over 400,000 items and are on loan from TfL. Assets on loan are not capitalised within these financial statements although expenditure relating to their use and maintenance is included.

j) Funds structure Restricted funds are funds to be used for particular purposes laid down by the donors or which have been raised for a specific purpose. Unrestricted funds are funds available for use at the discretion of the Trustees in furtherance of the Museum’s charitable objectives.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes.

The purposes and uses of the funds held in each of these categories are given in Note 15.

k) Pensions The Museum operates a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the Museum. The parent charity is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as permitted by the multi-employer exemption in FRS 17 ‘Retirement Benefits’, it is accounted for as if it were a defined contribution scheme. As a result, the amount charged to the Statement of Financial Activities represents the contributions payable to the scheme in respect of the accounting period. The disclosures required under FRS 17 are given in Note 18.

l) Related party transactions Except in so far as disclosed in Note 19, the Museum has taken advantage of the exemption set out in FRS 8 not to disclose any transactions with other TfL Group undertakings.

1. Accounting policies

a) Basis of preparation The financial statements have been prepared under the historic cost convention and in accordance with the Statement of Recommended Practice: ‘Accounting and Reporting by Charities’ (SORP 2005) as well as the applicable UK Accounting Standards and the Companies Act 2006. The principal accounting policies adopted in the preparation of the financial statements are set out below.

b) Group financial statements These financial statements consolidate the results of the charity and its wholly owned subsidiary London Transport Museum (Trading) Limited on a line by line basis. Neither a separate statement of financial activities nor an income and expenditure account are presented for the charity itself following the exemptions afforded by section 408 of the Companies Act 2006 and paragraph 397 of the SORP. The charity’s total incoming resources (gross income) for the year were £10.7m; the charity’s net incoming resources (net income) for the period were £0.2m.

c) Incoming resources Incoming resources are included in the Statement of Financial Activities when the Museum has entitlement and certainty of receipt, and the amount can be measured with sufficient reliability. Voluntary income includes donations, gifts, legacies and grants that provide core funding or are of a general nature. These are recognised upon receipt. Such income would only be deferred when:

∙ The donor specifies that the grant or donation must only be used in future accounting periods; or ∙ The donor has imposed conditions which must be met before the Museum has unconditional entitlement.

Income from corporate supporter memberships, commercial trading and sponsorship activities where benefits are delivered by the Museum is recognised as the related goods and services are provided. Investment income is recognised on a receivable basis.

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions which is recognised as the related goods or services are provided.

Goods, facilities and services donated for the Museum’s use, where the benefit is quantifiable and the goods and services would otherwise have had to be purchased, are recognised in the financial statements, as both income and expenditure, at a reasonable estimate of their value in the period in which they are donated.

d) Volunteers The value of services provided by volunteers is not incorporated into these financial statements. Further details of the contribution made by volunteers can be found in the body of the Trustees’ Annual Report.

e) Resources expended All outgoing resources are included in the Statement of Financial Activities inclusive of any irrecoverable VAT. Expenditure is recognised when a liability is incurred and is classified under the following principal categories:

∙ Costs of generating funds are those costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

∙ Charitable activities include expenditure associated with the operation of the Museum and its educational and public programmes, and the management and development of the Museum’s collections.

∙ Governance costs include those incurred in the governance of the Museum and its assets and are primarily associated with constitutional and statutory requirements.

82 83

Notes to the financial statements continued

m) Taxation The Museum is exempt from tax in respect of its income which is applied to its charitable activities.

n) Cash flow Following the exemptions afforded by FRS 1 and the Companies Act 2006, where the charity forms part of the Transport Trading Limited group, a separate cash flow statement is not required.

3. Activities to generate funds

4. Incoming resources from charitable activities

5. Resources expended

2011 2011 2011 2010Unrestricted

£000Restricted

£000Total£000

Total£000

Core grant from TfL 5,981 – 5,981 5,609 Donated services

Clear Channel 240 – 240 240Seconded staff 54 – 54 121 Other 43 – 43 –

DonationsDonations, grants & Gift Aid 371 232 603 335

6,689 232 6,921 6,305

2011 2011 2011 2010Unrestricted

£000Restricted

£000Total£000

Total£000

Retail sales 1,600 – 1,600 1,595 Other trading activities

Corporate hire 311 – 311 275 Catering income 56 – 56 64 Commercial sponsorships 56 – 56 125

Other activities to generate fundsFundraising events and sponsorships 463 – 463 692 Other miscellaneous income 43 – 43 68

2,529 – 2,529 2,819

2011 2011 2011 2010Group and Museum Unrestricted

£000Restricted

£000Total£000

Total£000

Museum admissions 1,139 – 1,139 964 London Museums Hub grants – 841 841 785 Safety and Citizenship income 1,020 – 1,020 1,017 Grants for youth engagement activity 30 32 62 256 Grants for 2010 exhibitions 16 – 16 150 Luke Rees-Pulley Charitable Trust grant – 85 85 – Other miscellaneous charitable income 119 – 119 82

2,324 958 3,282 3,254

2011 2011 2011 2010

Direct costs £000

Apportioned support costs

£000

Total £000

Total £000

Costs of generating fundsCosts of generating voluntary income 327 234 561 560 Cost of goods sold 821 – 821 872 Other trading costs 1,111 – 1,111 1,010

Charitable activitiesEducation and engagement 1,948 2,198 4,146 3,370 Access and museum operations 1,269 2,540 3,809 3,626 Heritage and collections 699 1,387 2,086 1,817

Governance 47 – 47 46

Total 6,222 6,359 12,581 11,301

The cost of generating voluntary income includes the cost of generating core funding.

2. Voluntary income

2011 2011 2011 2011 2011


£000

Access and museum operations

£000


£000

Activities to generate funds

£000

Total £000

Premises and facilities 1,429 1,650 901 151 4,131Finance and management 323 374 204 35 936Marketing 256 296 162 27 741Systems 117 136 74 13 340Design and presentation 73 84 46 8 211

Total cost 2011 2,198 2,540 1,387 234 6,359

Total cost 2010 1,896 2,359 1,172 277 5,704

6. Shared support cost allocation

A management fee of £766,000 (2010: £776,000) was charged to the trading subsidiary during the period.

7. Governance costs2011 2010 2011 2010 Group Museum£000 £000 £000 £000

Net payment to external auditor 30 16 25 11

Consultancy 2 14 2 5

Systems – 5 – 10Other 15 11 15 –

47 46 42 26

84 85


8. Trading subsidiaryThe Museum has a single subsidiary company, London Transport Museum (Trading) Limited (LTMTL), having an issued share capital of £1, wholly owned by London Transport Museum Limited. LTMTL undertakes retail and venue hire operations.

LTMTL profit and loss account

LTMTL balance sheet

2011 2010£000 £000

Turnover 2,057 2,068Cost of operations (1,932) (1,881)Operating profit 125 187

Gift Aid payable to London Transport Museum (125) (187)

Profit/(loss) before taxation – –

Taxation – –

Result for the year – –

2011 2010£000 £000

Current assetsStock 535 475Debtors 508 146Cash 32 11 1,075 632

Creditors: falling due within one year (including Gift Aid to LTM) (1,022) (632)

Net current assets 53 –

Creditors: falling due after one year (53) –

Net assets – –

2011 2010Group and Museum £000 £000

Wages and salaries 3,545 3,330Social security costs 267 252Pension costs 815 802

4,627 4,384

9. Staff costs and staff numbers (a) Total renumeration

The wages and salaries figure includes £54,000 (2010: £121,000) of costs relating to staff seconded to the Museum from TfL.

The Managing Director is the only paid director and received emoluments from the Museum, including salary, fees, benefits in kind and other emoluments totalling £84,124 (2010: £85,864). In addition, the Museum made contributions totalling £28,034 (2010: £23,662) to the TfL Pension Fund, a defined benefit scheme, on behalf of the Managing Director for the period. At 31 March 2011 the Managing Director had accrued an annual pension of £44,336 (2010: £40,901) in the TfL defined benefit pension fund.

The number of employees whose emoluments amounted to over £60,000 in the period was as follows:

2011 2010

£60,001–£70,000

£80,001–£90,000

No.

3

1

No.

2

1

Contributions to the defined benefit pension scheme were made in respect of the four higher paid employees and amounted to £81,810 (2010: three employees, £62,196).

(b) Other than the Managing Director, none of the Trustees received any remuneration for their services. Reimbursements of Trustees’ travel expenses which totalled £227 (2010: £40) were made in the period.

(c) The average number of persons (full-time equivalents) employed during the year was:

Group Group2011 2010

FTE FTE

Education and engagement 22.5 21.2Access and museum operations 26.0 26.4Heritage and collections 14.2 13.1Activities to generate funds 14.4 18.1Support functions

Premises and facilities 8.0 8.5Finance and management 9.8 10.5Marketing 2.5 2.0Systems 2.5 2.5Design and presentation 2.5 2.0

102.4 104.3Plus seconded staff 1.4 3.3

10. Net income This is stated after charging:

2011 2010£000 £000

Depreciation 1,279 1,267 Auditor's remuneration:

Audit – company 25 21 Audit – subsidiary company 5 5 Audit – other consultancy 2 5

Operating lease rentals – Buildings 978 1,026 Operating lease rentals – Office equipment 50 25

86 87


Property & buildings

£000

Plant & equipment

£000

Total£000

Group and MuseumCost

At 1 April 2010 28,219 658 28,877 Additions/adjustments 524 54 578

At 31 March 2011 28,743 712 29,455

Accumulated depreciationAt 1 April 2010 2,348 185 2,533Charge for the year 1,167 112 1,279

At 31 March 2011 3,515 297 3,812

Net book value at 31 March 2011 25,228 415 25,643Net book value at 31 March 2010 25,871 473 26,344

2011 2010 2011 2010 Group Museum

£000 £000 £000 £000

Trade debtors 171 206 127 140 Sundry debtors 120 157 120 129 TfL Group debtors 86 196 50 164 Prepayments and accrued income 565 355 535 352 Taxation 46 18 196 – Amounts owed by subsidiary undertakings – – 738 575

988 932 1,766 1,360

11. Tangible fixed assets

12. Debtors

2011 2010 2011 2010 Group Museum

£000 £000 £000 £000

Held in current accounts and in hand 108 134 46 131 Hold in short–term deposit accounts 4,200 3,018 4,230 3,011

4,308 3,152 4,276 3,142

13. Cash

2010 2010 2011 2010 Group Museum

£000 £000 £000 £000

Trade creditors 247 181 222 149 TfL Group creditors 660 890 1,060 890 Taxation 3 – 3 – Accruals 923 424 812 399

1,833 1,495 2,097 1,438

2011 2010 2011 2010 Group Museum

£000 £000 £000 £000

Accruals 53 – – –

53 – – –

14a. Creditors: amounts falling due within one year

14b. Creditors: amounts falling due after more than one year

Group and Museum 1 April 2010

Income Expenditure Transfers 31 March 2011

£000 £000 £000 £000 £000Unrestricted fundsDesignated funds

Capital fund 26,745 – (1,279) 177 25,643Future exhibitions and education 500 – – – 500Museum development 1,900 – – 100 2,000Total designated funds 29,145 – (1,279) 277 28,143

General unrestricted funds 234 11,571 (10,357) (96) 1,352

Total unrestricted funds 29,379 11,571 (11,636) 181 29,495

Restricted fundsLuke Rees-Pulley Charitable Trust 29 85 (25) – 89Wolfson – 21 (21) – –MLA Renaissance/London Museums Hub – 1,052 (871) (181) –Acton High Creative Partnership – 32 (28) – 4

Total restricted funds 29 1,190 (945) (181) 93

Total funds 29,408 12,761 (12,581) – 29,588

15. Statement of group funds(a) The movements on funds are as follows:

Designated fundsThe Capital Fund represents the net book value of the Museum’s tangible fixed assets.

Improvements to the Museum’s premises and facilities totalling £0.4m were met in part via a £0.2m transfer from the Museum Development Fund to the general fund.

A transfer of £0.3m was made into the Museum Development Fund to maintain the fund at the target level.

The Future Exhibitions and Education Fund has been maintained at £0.5m.

Restricted fundsThe Luke Rees-Pulley Charitable Trust made donations to the Museum for family resource packs and a learning officer. The remainder of the improvements to the Museum’s premises and facilities totalling £0.4m were met via a £0.2m transfer from the MLA Renaissance/London Museums Hub restricted fund to general funds. The restriction was discharged by the purchase of the asset.

88 89


Unrestricted funds

Restricted funds

Total

£000 £000 £000Fund balances as at 31 March 2011 represented by:Fixed assets 25,643 – 25,643 Current assets 4,687 1,144 5,831 Current liabilities (782) (1,051) (1,833)Long-term liabilities (53) – (53)

Total net assets 29,495 93 29,588

Land and building Other

Expiry date 2011 2010 2011 2010£000 £000 £000 £000

Between 1 and 2 years – – 3 –Between 2 and 5 years – – 64 33Over 5 years 978 978 – –

16. Operating leasesAt 31 March 2011 the Museum has annual commitments as follows:

2011 2010£ £

Authorised1 ordinary share of £1 1 1

Allocated, issued and fully paid up1 ordinary share of £1 1 1

17. Called up share capital

18. Pensions

Background The Museum offers retirement plans to its employees. The majority of the Museum’s staff are members of the Public Sector Section of the TfL Pension Fund, which is a final salary scheme established under trust. Benefits are based on employees’ length of service and final pensionable pay. The Fund’s Trustee is the TfL Trustee Company Limited, a wholly owned subsidiary of Transport for London. Under the rules of the Fund, its 18 trustee directors are nominated in equal numbers by Transport for London and on behalf of the Fund’s membership.

Every three years, the TfL Pension Fund’s Actuary makes valuations and recommends the level of contributions to be made by the participating employers to ensure long-term solvency of the Fund. The latest formal funding valuation of the Fund was carried out as at 31 March 2009 by the Actuary, a partner of consulting actuaries Towers Watson (formerly Watson Wyatt), using the projected unit method, and reported a funding deficit for the Public Sector Section of £1.2 billion.

A revised Schedule of Contributions was agreed between the Trustee and the employers following the 2009 valuation of the TfL Pension Fund. For the Public Sector Section, employers’ contributions for the period from 1 April 2010 until 31 March 2020 will continue to be 31.0%, with additional lump sum payments due in 2018, 2019 and 2020.

AccountingThe Museum’s ultimate parent, Transport for London, and the Museum’s fellow subsidiaries participate in the Public Sector Section of the TfL Pension Fund. Because the Museum is unable to identify its share of the underlying assets and liabilities on a consistent and reasonable basis, as permitted by FRS 17 Retirement benefits, the Museum treats contributions to the Public Sector Section as if they were contributions to a defined contribution plan. The Museum’s contributions to the Fund of £814,528 (2009/10 £801,900) have been charged to the income and expenditure account.

19. Related and connected party transactions The figures above include the assets and liabilities of the entire Public Sector Section of the TfL Pension Fund, and include members who are employed by, and whose contributions are made by, Transport for London and its subsidiaries. This is because, as stated above, it is not possible to identify the Museum’s particular share. Further details of the Public Sector Section’s position can be found in the Statement of Accounts of Transport for London.

Transport for LondonLondon Transport Museum Limited is a charitable subsidiary company of Transport Trading Limited (TTL), a Transport for London Group company. TfL provides financial assistance to the Museum in the form of a core grant for Museum operations and, in addition, certain divisions of TfL provide financial support to the Safety and Citizenship Programme and other Museum operations as agreed on a project by project basis.

The Museum receives benefit from the activities of TfL group functions such as Finance, Human Resources and Payroll. Management fees are levied upon the Museum by TfL and TTL for services provided. Fees are applied at the same rates as for all other TfL group companies. TfL group companies receive discounts on the hire of Museum facilities. All TfL staff receive free entry to the Museum and discounts in the Museum shop.

Under FRS 8 – ‘Related Party Disclosures’ the Museum is exempt from disclosing transactions with other TfL Group undertakings but a summary of the total value of transactions with TfL is given below.

(b) Analysis of group net assets between funds.

Other material related or connected party transactions in the year:

Related party transactions with TfL Income Expenditure £000 £000

Core grant 5,981 –Other income 1,125 –Group services provided – 460

Related party Income Expenditure Details£000 £000

London Museums Hub (a) 1,052 – GrantsLondon Transport Museum Friends (b) 39 8 Grants/ Volunteer expensesFirst Group (c) 14 – Corporate membership

90 91


(a) The Museum is a partner in the London Museums Hub together with the Museum of London, Geffrye Museum and Horniman Museum. All Hub museums are in receipt of funding via the Museums, Libraries and Archives (MLA) Renaissance funding stream. LTM Trustee Janet Vitmayer is Managing Director of the Horniman Museum and a member of the Renaissance London Board alongside LTM Managing Director Samuel Mullins.

(b) LTM Trustee Robert Ian Arthurton is Chairman of the Trustees of the London Transport Museum Friends, a registered charity whose aims include assisting and encouraging the work and activities of London Transport Museum.

(c) LTM Trustee Leon Daniels was Commercial Director UK Bus at FirstGroup plc.

As at 31 March 2011 the following amounts remained outstanding in respect of transactions a-c above.

20. Legal status and Ultimate Holding Company LTM is a company limited by shares and a wholly owned subsidiary company of TTL, the holding company for all the operating companies controlled by Transport for London. The share capital of the company is 1 ordinary share of £1.

LTM’s Memorandum of Association states ‘the property and funds of the Charity must be used only for promoting the Objects and no dividends shall be paid to the Member’.

Related party Debtor Creditor Details£000 £000

London Museums Hub (a) 286 120 Grants/cash advance

92

Design: LTM DesignEditor: Mark KilfoylePhotography: Steve LancefieldAll images © London Transport Museum and Transport for London, 2011

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London Transport Museum Ltd Charity number 1123122 Company number 6495761 Registered address: Windsor House 42–50 Victoria Street London SW1H 0TL

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Documents

Yearbook 2010/11 Celebrating 30 years of London … yearbook...Yearbook 2010/11 Incorporating the Annual Report of the Trustees and financial statements for the year ended 31 March