The organisation behind the controversial revamp of a cultural gem in Alton has taken up a new lease so it doesn’t lose £1.7million in National Lottery funding.

Hampshire County Council has granted a lease on the Allen Gallery to the Hampshire Cultural Trust to protect the funding and potentially safeguard the attraction from closure.

The council transferred its arts and museums service to the HCT in 2014 while also lending the Allen Gallery and Curtis Museum Foundation collections to the trust.

The council, which is the sole trustee of the Church Street gallery, also appointed the HCT as the agent to manage the foundation on its behalf.

Money from The National Lottery Heritage Fund was secured for a two-stage redevelopment project and the first phase ended in April 2024.

But the second phase sparked opposition in February 2024 because it involved altering the interior and what objectors perceived as turning its “nationally important ceramics collection” into a “dumbed-down, much reduced leisure opportunity”. Five volunteers resigned.

Granting the lease, the council said the plans would transform the gallery into a “vibrant cultural hub” with “modern museum design”, “interactive exhibits” and “diverse programmes”.

The lease was among criteria set by the fund for the trust to obtain second phase funding. Council leader Cllr Nick Adams-King approved it on February 10.

The council said not granting it risked losing the £1.7m and additional contributions, and would increase maintenance costs.

It threatened that this would cause “erosion of the gallery’s community and cultural value, potentially leading to its closure”, alongside “reputational damage” for the council, financial losses, and missed community and economic development opportunities.

The criteria also included a “memorandum of understanding” outlining how the council, trust, foundation and fund will work together, to ensure the fund has a say in the gallery’s future.