BBC Media Correspondent Torin Douglas: The money announced will have strings attached

A new cultural watchdog body will also be set up to monitor efficiency and value for money in the arts sector, Culture Secretary Chris Smith announced.

The overhaul is aimed at guaranteeing greater public access, educational activities and scrutiny of the nation's arts bodies, backed by an extra £290m over the next three years.

There will be a new body for architecture

Mr Smith is linking the cash increase to better public services and is demanding higher standards in return, setting targets for the arts, museums, libraries, film, heritage, architecture, tourism and sport.

A guarantee of free entry to national museums for children will be restored from April, pensioners from the year 2000 and all adults in 2001. It includes a string of regional and local galleries, as well as those in London.

The new watchdog, called the Quality, Efficiency and Standards Team (QUEST) will start work next week, Mr Smith said.

Chris Smith: "Children, particularly, should have ready and free access to our great collections"

Its brief will be to improve efficiency and financial management and promote quality among all arts bodies. It will comprise up to seven people with expertise in different sectors.

Mr Smith said he hoped in due course QUEST would become more independent of the Department for Culture Media and Sport.

Other changes involved in the shake-up include:

• merging English Heritage and the Royal Commission on the Historical Monuments of England to form one body

• creating a new body to promote architecture to the public in London and the regions, swallowing up the Royal Fine Art Commission

• setting up a Film Council to boost the film industry

• scrapping the Museums and Galleries Commission and the Library and Information Commission, replacing them with a national body for museums, libraries and archives

• combining the Arts and Crafts Councils

• and replacing the English Tourist Board with a "slimmer" body.

In addition, Mr Smith's department will soon be represented in government regional offices in a bid to deliver more local cultural activities.

Outlining the changes at the Tate Gallery in London, Mr Smith said: "In all cases the financial allocations will be closely tied to outcomes which reflect our four central themes - access, excellence and innovations, education and the creative industries."

He said: "We will give direction; we will set targets and chase progress, and where appropriate we will take direct action to make sure that our objectives are achieved."

Although the main focus will be on arts and museums, there will also be extra cash for the Sports Council, for heritage conservation, such as the Greenwich Naval College and new drive for quality in architecture, the minister said.

The purpose of the changes was also to streamline bureaucracy.

He told BBC News Online he wanted not only to put in more money, but also make sure, through QUEST, that it was well used.

The architecture body would ensure good quality for both public and government projects around the country, he said.