Arts funding fears as local authorities receive worst settlement in a decade

Published Wednesday 31 October 2007 at 14:30 by Lalayn Baluch

Local government theatre funding is facing severe cuts after councils across the country complained they have received their worst treasury settlement in a decade.

An estimated £120 million is invested in arts organisations across England and Wales by authorities every year, providing one of the UK’s largest culture funding sources.

Executive officer of the National Association of Local Government Arts Officers Sue Isherwood warned that, following a disappointing settlement of 1% above inflation in the comprehensive spending review, the provision may plummet nationwide.

She explained: “Arts Council England is breathing a sigh of relief at [its own] 1% [above inflation], but of course the situation with local government is very different. The arts council spends all its money on arts and culture, but local authorities spend about 2% of their budget on arts and culture.

“So the real problem is all the other things the government asks it to do. There are rising bills on the things that local authorities have to do on a statutory basis - waste management, emptying bins, running a landfill site, things like this.”

According to Isherwood, costs for services such as waste management are rising by 10%, so a grant rise of 1% above inflation leaves a significant gap in funds. If extra money is to be sought from other sectors, she believes the arts will be vulnerable, particularly in rural or financially deprived areas.

Isherwood added that with an £850 million cut in the Local Authority Business Growth Incentive, a scheme that backs initiatives which encourage economic development, the arguments for maintaining arts spending will diminish further.

One regional venue that has already felt the affects of funding constraints after receiving a 10% cut in local authority subsidy is the New Vic Theatre in Staffordshire.

However, managing director Nick Jones believes it is “over dramatising” to assume that arts will be the first sector to suffer, and says it is up to theatres to fight their case “clearly and strongly”.

Ian Brown, artistic director of the West Yorkshire Playhouse, warned local authority cuts in the arts would “erode” industry developments made over the past decade, and could have a negative impact on young people’s participation in the arts.

He added: “Cutting us by 1% or 2% all the time just makes it more difficult to do all the things we want to. It stops us being innovative and risk-taking. It depresses the whole picture rather than making us feel expansionist and energetic.”