The Department for Culture, Media and Sport has begun negotiations with the Treasury over its spending allocation for the next four years.
Speaking at the Media Festival Arts event at the Roundhouse in London, culture secretary Jeremy Hunt revealed that he had begun discussions over a funding deal this week.
He said: “I’m very happy to talk about the rather gloomy business… the very challenging time we’re having at the moment when it comes to government spending, in fact I had my first meeting with Treasury officials yesterday.”
Hunt added that his department was still looking at the possibility of 25% to 40% cuts.
In May, the arts sector was hit by £19 million of in-year cuts to its 2010/11 budget. The DCMS is currently negotiating funding levels for the four years from 2011.
The results of the government’s comprehensive spending review will be announced on October 20.