The Spending Review: impact on the Arts Council

The government’s Department for Culture Media and Sport’s overall budget is to be cut by 5% it was recently announced, yet the Arts Council will continue to be protected. Chancellor George Osborne has promised to increase funding to Arts Council England, and national museums and galleries in his Spending Review, however there have been different concerns over the future of museums, galleries and theatres that rely on funding from local councils.

However, Osborne told the House of Commons that the Arts Council and the UK’s national museums and galleries will get a cash increase between now and 2020, and as a result Arts Council England’s grant is expected to rise by between 1-2% over the next five years. This means it can continue to fund its 684 theatres, museums, galleries, dance, opera and ballet companies and other cultural organisations at current levels until 2018.

It was a welcome surprise to hear Osborne proclaim that one of the best investments for the nation to make is in our arts, museums, heritage, media and sport: Ed Vaizey, the Minster of State at the DCMS, said the Comprehensive Spending Review settlement for his department was the best news the subsidised arts have had for six years. Many in the arts had been prepared for a deeper funding reduction, relieved for the decision not to have significant impact.

Despite the good news however, it is likely that many museums, galleries and performing arts organisations must heed the repercussions of cuts to local government budgets, meaning some may close. Across the country, especially in less well-off areas, civic and local museums may face difficulties because of local authority funding cuts over the 2015-20 period.

While the Comprehensive Spending Review also included other provisions for arts and culture, such as £4million for a Birmingham Dance Hub, it has been highlighted that arts organisations still need to look for new sources of funding in this very narrow funding environment. A more diverse funding model will mean a greater emphasis on philanthropy and the growing social investment funding environment.