The new millennium finds UK museums confronting change in their markets and a new political environment. Recent research has shown that the museum market is static. Sustainability may be difficult for many, with only those that are small and run by volunteers escaping financial difficulties. Alongside these market factors, and following the election of the Labour government, museums are being expected to confront new challenges. While much government policy continues the thrust of the previous administration — especially the focus on the national museums and galleries — there have been some distinctive shifts, especially in respect of admission charges. Besides devolution to Scotland, Wales and Northern Ireland, an increasingly important English regional agenda has developed, in which museums are expected to play a significant role. Other influences have also had a considerable impact, such as the advent of Best Value, which requires museums funded by local councils to demonstrate their efficiency and effectiveness, and the National Lottery's significant investment in museum capital projects. While this has created some exciting new projects, it has also added to museums' running costs at a time when market conditions are difficult. Additionally, limited opportunities for employees to progress and develop, and uncompetitive pay, make museums an unattractive career choice, thereby depriving them of the talent that will be needed to meet the public's changing needs. All these issues provide a reason for central government to understand better the issues faced by the museum sector as a whole, and regional museums and galleries in particular. Without such national guidance, and opportunities for strategic change and rationalisation, museums may close in a disordered way, and their collections lost. In this way, the legacy of this generation to the next may be in danger. [ABSTRACT FROM AUTHOR]