Purnell questioned over Arts funding

Letter to James Purnell, MP

Dear Secretary of State,

We are writing, as representative bodies in the arts sector, to express our grave concerns at the way Arts Council England (ACE) has handled the announcement of its future funding proposals and to seek a meeting with you to discuss how this situation can be avoided in future.

While we absolutely recognise the responsibility of ACE to make funding decisions, we believe that the process they have followed for this funding round has seriously damaged relations with the sector and other funders, and undoes the good news achieved by the uplift in arts spending announced in the Comprehensive Spending Review.

We understand that for the majority of arts organisations the Arts Council's recommendations will be of benefit, with many receiving inflation-linked or additional increases in their funding (although we have yet to see the proposals as a whole). In the absence of this information and in the absence of a statement from the Arts Council about their rationale, the cuts that are coming to light cause us grave concern.

Neither we, nor the organisations affected, have seen any evidence that impact assessments have been made on the region or communities where cuts are proposed. Of particular concern is the effect on the national performing arts infrastructure. The proposed cuts potentially put at risk all the public investment that has been delivered to date and wastes public resources. These decisions also affect other funders, including and importantly local authorities. There appears not to have been any consideration taken in regard to how withdrawal of ACE funding might affect them.

This seems particularly key in the case of the Northcott Theatre in Exeter, which has just re-opened having undergone a £2.1 million redevelopment, work which was part funded by Arts Council South West with an additional grant of £100,000. Withdrawal of funding now puts the future of the theatre at risk, and seriously exposes the other, partner organisations.

Our impression, as representative organisations, is that the proposals do not always appear to be based on solid, reliable evidence. For example, one orchestra was told by its regional Arts Council that it will no longer be considered for funding because it does not meet the priorities for uplift in the context of the 'national orchestra strategy'. The organisation has repeatedly asked for a copy of this ACE strategy, and has recently been told by the Arts Council that it does not exist! This leads us to question what Arts Council's strategic overview for the arts sector might be.

A couple of examples have also come to light showing that the data Arts Council has used to reach their recommendations about funding were inaccurate and flawed. We fear that these may not be isolated cases.

The timing and the lack of notice for these proposals contravene Government's own Compact about how public bodies should deal with voluntary sector organisations (which many arts organisations are). In the past, ACE has tried to ensure an adequate notice and preparation period when taking funding decisions, and has always advised that the sector does the same in regard to its own long term planning. In fact the Council's own disinvestment policy refers to timescales of a six month notice period. It is worrying that ACE is not following its own advice in this instance.

As organisations representing many in the sector, we would welcome the opportunity to discuss with you how Arts Council can be held more accountable in future, demonstrate an openness in decision making and have a better understanding of the impact of their decisions in regard to other funders and partner organisations. While we absolutely support the arms length principle, we feel that this situation is of such seriousness that it merits closer inspection.

Your Department's own review into excellence and funding by Sir Brian McMaster, published on Thursday, recommends a more practioner centered approach and a system of peer review in future funding decisions and we would wish to discuss with you how these recommendations might be implemented to improve the strength of the sector as a whole, and thus how we might avoid situations like this in future.

National Campaign for the Arts

Co-signatories

Association of British Orchestras
BECTU
Dance UK
Equity
Independent Theatre Council
Musicians' Union
Theatres Trust
SOLT/TMA
Writers' Guild of Great Britain