Arts debate

Back to Features home

Raids on Lottery funding will hurt says Peter Hewitt, Chief Executive Arts Council England

06 April 2007 by Peter Hewitt 17 comments


Peter Hewitt, Chief Executive, Arts Council England

There is a view currently circulating in Whitehall and Westminster that the arts sector can absorb the impact of the Olympics raid on lottery funding without visible impact.  This is not true.

Five weeks ago the Prime Minister heard from a number of arts leaders gathered at No 10 that this was a 'golden age' for the arts and he went on to say that he would do everything possible to ensure the arts were not negatively impacted by the Olympics.  It was a surprise and a disappointment to find a few days later that we were to lose a further £63m in lottery income.

That £63m will need to be found over four years from 2009 and will sadly impact on the arts at local level in every corner of England - with very many youth organisations, festivals, dance and theatre tours, exhibitions, concerts and other activities being turned down for funding

In fact the damage will be felt sooner than that.  In the current year the Arts Council's budget for activities of this kind has been reduced from £83m to £54m.  There are three reasons for that.  Firstly, a reduction in the arts Lottery share, partly caused by the Olympics, even before the recently announced cut.  Secondly, the need to scale back in anticipation of the 2009 cut. Thirdly, the government's earlier insistence that we pre-commit substantial sums of lottery money over forthcoming years, concerned as it was that the Lottery Distributors were perceived to be sitting on large sums of Lottery money.  We took the government's request seriously and reduced our cash balances substantially.

The Arts Council has been a staunch supporter of the Olympics.  I have consistently argued that the arts would be a net beneficiary, and that the 'dividend' would exceed the 'loss'. We are currently being asked to part fund regional Olympics co-ordinators to develop projects at regional and local level.  We are also being asked to put £5m into a new Trust charged with funding cultural activities linked to the Olympics.  Recent events and the impact on our funding programmes means that we are now having to consider these decisions very carefully.  After all, what is the point of having people at local level develop projects when the money to realise such projects has been removed?

The experience of Sydney is instructive.  A four-year programme of activity was put in place in the years leading up to the Games in 2000.  Far from taking money away, 70m dollars additional government money was found for the Cultural Olympiad in Sydney.

The UK games has three strands of cultural activity.  There are the big ceremonial events - for example the opening and closing ceremonies.  This is thankfully already funded within the £9bn recently announced by the Secretary of State.  Then there is a slate of fifteen major 'bid projects' - including a Shakespeare festival, a Festival of Youth Culture, and an International Music Programme.  These formed part of the bid and having won the right to host the Olympics they now have to be delivered.  There is a small sum of money within the £9bn for these projects but nowhere near enough.  The implication is that the cultural sector is expected to make up the very large difference with other public and private partners.  Then there are the very many local projects and activities that are expected to take place in the years leading to 2012  - no extra money is available, indeed the budgets that were to fund these projects have now been reduced. Added to which we know that arts sponsorship will be hit, inevitably diverting to some extent to sport.

What is the answer?  Twofold.  The Secretary of State should be asked to consider an appropriate allocation for the Cultural programme from the £9bn Olympics budget.  And the Treasury should be asked to consider a larger than inflation increase to the Department of Culture, Media and Sport when it makes its decision on Exchequer funding this autumn coupled with an expectation that the cultural sector should receive a good proportion of that.  Anything less and the arts sector may, sadly, have no choice but to tell the government that it is simply not able to deliver a large proportion of the much-vaunted cultural Olympics.  The golden age would then, certainly, be over.


Peter Hewitt
Chief Executive
Arts Council England

"What do you think about the latest raids on lottery funds to pay for the Olympics? Have your say now."

Christopher Gordon said at 9:52 AM, 12 April 2007

Lottery substitution by dissembling governments is a universal phenomenon, and is recorded in all the relevant international research. So this predictably crude smash and grab raid should have surprised nobody after it was clear the DCMS had screwed up the Olympics budget big time.

The problem is that ACE and too many of the other key arts/heritage bodies are now seen as so far up the New Labour trouser leg (in their own short term interest) that there is no longer any room for them to make authentic independent statements in their own defence which the wider public is likely to believe and get angry about. Anyone recall the celebrated and chilling Pastor Martin Niemoeller quotation these days? The invited Tate Modern groupie audience applauding Blair's mildly dishonest platitudes - and grovelling appreciatively afterwards - provides the perfect symbol of the cumulative cost to the sector of 10 years of compliance.

Yes, Peter's two positive approaches suggested at the end of his note need to be tried, and good luck to them, but don't hold your breath...

We're still quite a long way off from 2012, and we'd be naive to think this latest debacle is the end of it. 14 April 2012, by the way, will be the centenary of the sinking of the Titanic, whose sister ship also had a habit of bumping into things in the fog and causing immense unforeseen collateral damage. It was called the Olympic, and they were both 'Olympic Class' ships. Irony, any one?

Join the debate

* = required
*
*

your email address will not be published


*

By posting you are agreeing to our comments policy


What people want from the arts

Click on the image to access a PDF (990Kb) of the new summary report, What people want from the arts

News

more news > >