Arts council announces £11.6m of in-year cuts

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Arts Council England has confirmed that in-year cuts of 1% and and 2% will be made to all its national portfolio organisations in 2013/14 and 2014/15.

The news follows the announcement in December 2012 that the Department for Culture, Media and Sport will reduce ACE’s grant in aid by £3.9 million in 2013/14 and £7.7 million in 2014/15. These £11.6 million of cuts are now being passed on to all ACE's core funded arts organisations, museums and libraries.

These are in addition to the cuts to arts funding announced by the coalition government in 2010. Those earlier reductions amounted to a 30% real-terms cuts to the arts council’s funding, of which half was passed on to arts organisations themselves, with the remainder absorbed internally by ACE through a radical restructure that will see 21% of its staff cut.

Writing this week to all arts organisation that receive core funding, ACE chief executive Alan Davey said: “Although these cuts are relatively small, we recognise that even a modest reduction in our funding to you could be challenging given the current economic climate.”

Meanwhile, he indicated that the decision to pass on the same across-the-board cuts to all organisations was not a reflection of who ACE would approach any future funding decisions. He added: “This approach does not set a precedent for our approach to our next investment process.”

As revealed exclusively by The Stage in March last year, more than one in ten companies that lost 100% of their core funding from Arts Council England as a result of the initial government cuts have closed as a result.

Many of ACE's funded organisations are also suffering simultaneous cuts to their funding from local councils.