The Stage

Olympics will hit arts even harder

Published Wednesday 22 November 2006 at 11:45 by Nuala Calvi

Arts organisations had their worst fears confirmed this week after they were warned they face further “significant cuts” in lottery funding as a result of a 40% hike in the cost of the 2012 London Olympic park.

Culture Secretary Tessa Jowell told MPs this week that the price of the building project would be £900 million higher than originally estimated, as a result of the rising cost of materials and transport and money spent hiring a company to ensure that the project is delivered within budget. Under a pre-existing agreement with the Mayor of London, the additional revenue would have to come from the capital’s taxpayers or the National Lottery, although Jowell insisted that no conclusions had yet been reached on this.

However, Commons Culture, Media and Sport Select Committee chair John Whittingdale warned that lottery distributors, including Arts Council England, were likely to bear the brunt of the price rise. He said: “While she [Jowell] didn’t say that will certainly be the case, it is implied that it means the lottery will take a hit and all the good causes dependent on the lottery will see a serious amount of decline.

“They are already suffering as a result of the fact that an Olympic lottery game has been created and that an amount from the proceeds of the main game has already been top-sliced out - the implication is that it is likely to be even greater. Arts charities will see significant cuts in the amount available to them in lottery funding over the next four years.”

The final price tag for the games is likely to rise even higher because this week’s announcement does not include increases in regeneration and security costs. Independent Theatre Council chief executive Charlotte Jones said: “I feel hugely excited about the Olympics as an opportunity for the arts and am pleased to see how strong the agenda is in relation to culture. But we’d be concerned to see cuts to money spent on the arts as this would hinder their ability to contribute positively and so we would ask government to try and find another source and think very creatively and carefully about how they’re going to support the Olympics from the whole nation.”

Meanwhile, London Councils has announced that investment in voluntary organisations, including arts groups, will not be reduced as a result of a recent funding review. Culture will sit with tourism and the 2012 games.