Museums Sheffield has received confirmation it will face a reduction in council funding for the next financial year, and has said it will reduce core expenditure and focus on income generation as a result.

The 10 per cent cut will amount to a £200,000 reduction in budget annually and will be effective from April 2013.

Museums Sheffield is a charitable trust responsible for the Millennium Gallery, Weston Park Museum, Graves Gallery and Bishops' House.

In a statement released this week, chief executive Kim Streets said while they are disappointed in the funding reduction, the news was expected.

She said restructuring over the next three months would result in some redundancies in the visitor services team.

The organisation will create a new retail team tasked with delivering growth, including from its online shop, and a programme of events starting later in the year is specifically intended to generate income through ticket and bar sales.

Sheffield City Council said the government has cut its funding over the past two years and prioritising social care services means they have had to find a bigger share of savings in other budgets.