THE Museum of Childhood would be sold off and relocated to a new complex in the Canongate under plans for a massive overhaul of the city's council-owned galleries and museums.

The proposal would see the Royal Mile attraction sold to help fund the creation of the new "museum hub", which would incorporate the Museum of Edinburgh and the People's Story.

Under the scheme, which has been announced following the first review of its kind for 30 years, the City Art Centre on Market Street would also be extended into a new "arts hub" in a bid to attract more "blockbuster" exhibitions to the Capital and provide exhibition space for some of the city's independent galleries.

The blueprint is intended to promote the "story of Edinburgh" and allow council-run venues to compete with the National Museums of Scotland and the National Galleries of Scotland.

In a report to councillors, the city's director of corporate services Jim Inch said council art venues fell short of modern standards.

He said: "Over the last ten years, the opportunity for mounting major exhibitions has declined. Local competition has increased significantly, with the Queen's Gallery, the Dean Gallery and the extended National Gallery all entering the 'blockbusters' field. This situation has been made all the more challenging by the nature of the [council's] service in the city centre, which operates out of six separate buildings.

"Edinburgh's museums offer a professional service, with excellent staff, but in venues that fail to meet modern standards."

Officials have also proposed to open the free galleries and museums to the public on Sundays, and have recommended future reviews of the council's other facilities, such as the Newhaven Heritage Museum, Writer's Museum and Queensferry Museum.

The city's culture leader Deidre Brock welcomed the plans and said they would help Edinburgh stay "ahead of the competition".

She added: "The creation of two new cultural centres – an Arts Hub and a Museums Hub – would ensure that the fascinating record of Edinburgh's culture and history is safeguarded, re-invigorated and fantastically presented for many years to come."

Deputy council leader Steve Cardownie said: "We need to breath new life into the council's museums and galleries."

The plans have also been welcomed by opposition leaders, but they have expressed concerns over how the move will be funded.

Labour group culture spokesman, councillor Paul Godzik, said: "As there are areas that have already been highlighted for funding – such as the King's Theatre and the Assembly Rooms – there needs to be a lot of work done to find other avenues of investment for this project."

The plans will be discussed at a meeting of by the city's culture and leisure committee next week.

A business case will also have to be drawn up to assess the affordability of the scheme before it can be approved.

JOINED-UP THINKING

MUSEUMS

• Museum of Childhood, 42 High Street: Opened in 1955 as the brainchild of city councillor Patrick Murray, it was the first museum in the world to specialise in the history of childhood. Building would be sold off and collections relocated to Canongate.
• Museum of Edinburgh, 142 Canongate: Located in Huntly House and home to important collections relating to the history of Edinburgh.
• The People's Story, Canongate Tolbooth: Created in 1989. Museum charting the lives, work and leisure of the ordinary people of Edinburgh.
• Acheson House, Canongate: Former home of the Scottish Craft Centre until 1992 and the subject of a recent £10 million extension plan for the Museum of Edinburgh.

• City Art Centre, 2 Market Street: Opened in 1980, it is home to the city's collection of Scottish art, and one the UK's leading temporary exhibition spaces. Under the revamp, it would be extended on to an adjacent gap site and former police pound.

• Decisions to be made over the Writers Museum on Lady Stair's Close, Newhaven Heritage Museum and Queensferry Museum.
• Potential leasing or sale of Trinity Apse, home to the Brass Rubbing Centre.
• Decision to be made on creation of a museum for Leith.

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