University College London [UCL] has recently dropped what The Art Newspaper has called "one of the UK's most ambitious university museum projects" due to a lack of funding.
UCL's Petrie Museum of Egyptian Archeology houses 80,000 pieces of "pottery, sculpture, jewelry and mummy cases." The University's special collections have a number of important objects of cultural heritage, including an archive of George Orwell's letters, and even Agatha Christie's picnic basket. The Museum's current building is too small to contain all of these treasures. In 2009, the Petrie Museum held an interesting exhibition titled, "Disposal? Rethinking What to Keep in UCL Collections." This blog reported on the exhibit together with the University's Cultural Property Policy, which lays the groundwork for disposal of items from the collections.
Rather than dispose of these objects, why not move them to a bigger space? UCL had been in the process of moving its collections to a new building, "the Panopticon", and establishing what would be an institute for Cultural Heritage.
Dixon Jones, an architectural practice, won a competition in 2001 to design the Panopticon, and it had been scheduled for completion last year. Since 2001, the Heritage Lottery Fund, the Wellcome Trust, and a private foundation have awarded significant amounts of money to the collections. However, the amount of funding secured was not enough for the Panopticon, and the project has been dropped.