Regional arts funding imbalance will ‘worsen significantly’, warn arts leaders

Imbalances in funding between London and rest of the country scrutinised in new report on Arts Council investment plans

Download the Hard Facts to Swallow report in full
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Anna Nicole at the Royal Opera House
Anna Nicole at the Royal Opera House, the highest-funded organisation in ACE’s national portfolio. Photograph: Tristram Kenton

Hard Facts to Swallow (pdf) – an analysis of Arts Council England’s (ACE) investment plans for 2015-18 in 12 questions – is published today along with the working papers that substantiate its findings. This is the third self-funded and independently produced report we’ve produced that looks at how ACE is performing in relationship to its stewardship of public funding for the arts in England.

Since the launch of its investment plans for 2015-18 on 1 July, ACE has worked hard to create the impression of a body striving to begin to rectify historic imbalances between London and the rest of England – and between those already benefitting substantially from public funding of the arts and those who do not. That effort may well be in place but our detailed analysis of the numbers tells another story.

Of the £1.59bn ACE will invest from its grant-in-aid and lottery income streams from 2015 to 2018, the report’s analysis shows that the existing imbalances between London and the rest of the country will worsen significantly over the period.

• £689m (43.4%) will be invested in the arts in London, a per capita return of £81.87 per head of population (php)
• £900m to be invested in the rest of England, a per capita return of £19.80 php
• Overall, a balance in London’s favour of 4.1:1

The report also claims there has been a clear breach of the principle that lottery funds should be for “new and additional” activity (additionally) with the diversion of significant lottery funds to established companies producing opera and ballet – the most expensive artforms – for established audiences drawn from the already privileged.

The Hard Facts report illustrates the absence of any strategic support of participation in the arts at local level and the proven contribution that such work can make to individual and community wellbeing. The longer term research framework of the report also reveals what appears to be an undeclared policy to shed smaller companies from the ACE’s national portfolio (a net loss of 352 since 2007/8), a continuing failure to address cultural diversity in the country and worrying inconsistencies in the operation of grant programmes.

With regret, we have concluded that the forces of custom, practice and vested interest are just too strong. ACE repeatedly demonstrates a systemic inability to reform itself without external intervention and that is what is now urgently needed.

After the next general election, any incoming administration must fundamentally review the arrangements for funding arts and culture in England, including negotiating their place within the newly emerging structures of combined local authorities.

In particular, the report proposes the need for a new cultural concordat between the nation and its capital. London contributes far less proportionately to the costs of the capital’s cultural infrastructure than is routinely expected of other major conurbations in England – and would be the norm elsewhere internationally.

Finally, we acknowledge that this specialised report will not generate the level of wider public interest generated by earlier research but we hope, at the least, we have again provided serious reading material for those who will be charged with leadership of the arts in England over the critical year ahead.

Peter Stark, David Powell and Christopher Gordon are co-authors of Hard Facts to Swallow, which you can download along with their other reports here

Arts Council England response

This is an edited extract of the Arts Council’s response, which you can read in full here.

Alan Davey, chief executive of ACE, said:

“The authors raise a number of issues that are at the heart of our 10 year strategy, agreed with the art and culture sector. We’ve been addressing the balance of funding between London and elsewhere since that strategy was launched in 2010 and we will build on that in our next funding period.

“Our national strategy considers the whole ecology of England’s arts and culture. Our devolved decision making and funding, through area councils and staff on the ground, means we understand local agendas.

“We have deep local knowledge and expertise. That leads to good partnerships with local authorities, LEPs and others. This means we can make a big impact with the relatively small amounts of money we have.

“We’re investing in building capacity outside London: grants for the arts increases to £70m, £25m for encouraging new cultural communities to grow through our Creative People and Places programme, £23m on touring work to where audiences are and £15m on ensuring that ambition and talent is supported regionally.

“The trend is in the right direction. We need to be realistic about the speed of progress given the difficult economic picture. The biggest challenge now is persuading local authorities to sustain their investment in very difficult circumstances. No political party is yet promising more investment in culture, but we hope we can persuade them to do so.”

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