Tate has grown in many ways over the last few years. Around 2.5 million people visited our galleries in 1999-2000. In 2003-04 the numbers had risen to 6.2 million, not counting the 3.4 million who visited Tate Online. We now show fifty percent more works from the Collection and hold three times the number of exhibitions. Some 400,000 people a year are participating in our education programmes.

This expansion has taken place in a constrained financial climate for museums and galleries. We have met our statutory obligations, and managed to achieve a small surplus for the biennium in accordance with our financial policy. In 2003-04, we were fortunate to receive a special additional grant of £2 million from the Department of Culture, Media and Sport, invested to achieve greater efficiencies, but our Grant-in-Aid per visitor still falls short of our need.

So, of necessity, we are becoming more entrepreneurial, and whereas ten years ago eighty percent of our revenue was from government, over the last two years we have generated an average of fifty-four percent of our revenue income ourselves, through trading and from the private sector, and in 2003-04 raised £58.5 million in total self-generated income. As the recent National Audit Office report confirms, we rely less on government funding than any other national museum or gallery.

Behind this achievement is a combination of factors. We have significantly increased the numbers of Tate Members and Corporate Members and managed, despite market instability, to continue to attract major corporate sponsorship. Trading revenue through Tate Enterprises was particularly strong around the exhibition programme in 2002-03. Then Tate Publishing reorganised its overseas distribution in 2003 and sales of Tate books outside Europe tripled. More than one million people visited our restaurants, cafés and coffee bars.

We continue to develop our estates, improving both buildings and connections. A highlight of the last biennium was the launch of the Tate Boat in May 2003. Visitors can now travel along the Thames between Tate Modern and Tate Britain in eighteen minutes in a state-of-the art catamaran, with specially commissioned exterior and interior designs by Damien Hirst. The service, which is run by Thames Clippers and sponsored by St James Homes, is made possible by a striking new pier at Millbank, in front of Tate Britain, designed by Marks Barfield, architects of the BA London Eye. The Millbank area will be further enhanced by the arrival, in buildings next to Tate Britain, of Chelsea College of Art and Design.

Since 2002, more people have been visiting the South Bank thanks to the Millennium Bridge, which allows pedestrians easy access to Southwark from the City and is an attraction in its own right. Because the bridge lands close to the north entrance of Tate Modern, this route into the building has seen greatly increased use. To accommodate the extra footfall, we have worked with Tate Modern's architects Herzog & de Meuron to reconfigure the layout of the north entrance, adding a space for the new Untitled series. In the next two years we will look at opportunities for developing Tate Modern further.

Meanwhile, we are moving ahead with a new development at Tate St Ives, which will enable us to display more art, provide proper education spaces and serve our visitors better. We are also working hard to prepare Tate Liverpool for its role in the city's tenure as European Capital of Culture in 2008.

It is the people who work for Tate who realise our ambitions and we have done much in the last biennium to address their needs. Our recently strengthened Human Resources team includes a new dedicated Learning and Development Manager to coordinate our approach to learning and career development throughout Tate. And we have introduced a new pay structure - a system that has enabled us to reward better those people throughout Tate who help deliver such an exciting and varied programme with limited resources.

We continue to add infrastructure and networks for greater efficiency, and a major development is the creation of our own box office system, introduced alongside a dedicated Membership and Ticketing Services department. Without the need for third-party ticketing, we can now deliver a good, direct service that builds better relationships with people booking for our exhibitions and events. A number of other IT systems, such as a Content Management System, are now helping us improve coordination between departments and keep better records of our work.

We continue to improve our infrastructure