The Department for Culture, Media and Sport will receive an 8% cut to its budget for 2015 to 2016 after a deal was struck with the Treasury, according to press reports.
It is expected that a reduction of around 5% will be passed on to arts organisations and museums, within the overall budget for the DCMS.
Chancellor George Osborne will officially announce the full budget for all departments on June 26 in the Comprehensive Spending Review.
It is understood that in the past few weeks Arts Council England had been asking its funded organisations to model for 5%, 10% or 15% cuts following the CSR.
Peter Bazalgette, chairman of ACE, is reported to have said that the 5% reduction is a “real result” within the DCMS overall cut, but that there are still going to be some “tough decisions” that have to be made.
Speaking at the Theatres Trust annual conference earlier this week Ruth Mackenzie, the director of the 2012 Cultural Olympiad, said: “The arts council are saying that another 10% cut [to the ACE budget] would wipe out two thirds of the regularly funded organisations, and another 15% cut would wipe out 80%.”
ACE received a 30% cut to its budget in 2010 for the 2011 period onwards, but it was agreed that only 15% of the funding reduction would be passed onto organisations.
Since further in-year cuts, the arts council’s allocation for 2014 to 2015 grant in aid funding stands at £342 million. Therefore, if the 5% cut from this year’s spending review is confirmed, it would represent a reduction of around £17 million to around £325 million for 2015 to 2016.
The DCMS was unable to provide an official comment.