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Speaking at the Governance Now conference in Birmingham today, our Chair Sir Nicholas Serota spoke of the critical role governance teams play when the “stakes were higher” and there is a need to “respond to changing circumstances.” He went on to talk about the difficult choices faced by our own governance board in the run up to our 2023-26 investment programme, the most competitive round in the Arts Council’s history. .  

The annual one-day conference organised by Clore Leadership and Cultural Governance Alliance held at the Midlands Art Centre focused on the need for cultural organisations to respond to topical debates, social issues and the needs of their communities. 

Largest National Portfolio ever 

Sir Nicholas said that our strategy Let’s Create, which was developed after wide consultation with both the public and the sector: “helped us consider the cultural landscape in a new way. It was both a guide for that change and provides a set of investment principles of how to invest taxpayers and National Lottery players money wisely. As a governing body, it guided us in making difficult decisions in the face of our limited resources being so oversubscribed.” 

This year we received 1,700 applications from organisations applying to receive regular investment. That is almost double the number of organisations we fund in the current National Portfolio. The new National Portfolio which begins in March is the largest ever with 276 new joiners among the 990 organisations included.   

Tough choices 

Our Chair also reflected on the choices faced when the Arts Council received a ministerial instruction in November 2021 to move £24 million of investment away from London. He acknowledged such instructions are not uncommon and that he understood the ambition of the decision.   

But he told delegates: “We argued that the instruction could not interfere with the established precedent that we should decide who received our funding and we explained that it would inevitably mean the withdrawal of funding from organisations of all types and scales. 

Our decision was to forewarn ministers of the consequence, but to accept the instruction.” 

He said his role as Chair had been to achieve a position where the whole of National Council could support that decision and sustain it as the process of assessment and allocation of investment was being carried out.  

Sir Nicholas said: “It was a difficult series of choices, and some will inevitably contest those decisions, but as guardians of public money, if we can show we have consistently followed principles, I believe we can be confident in the decisions we have made.”  

Delivering benefits to more places 

Looking to the future he said that he believed the new investment programme would deliver “immense benefit” in areas where investment by the Arts Council in creativity and culture has been historically low. He thanked the support of the newly renamed Department for Culture, Media and Sport in championing our shared agenda around under-served people and places, and in recognising the value of the Arts Council’s independent governance. He also welcomed the announcement of Lucy Frazer as the newly appointed secretary of state to head up the department. 

The speech also acted a curtain-raiser on two new initiatives which will offer additional help, support and training to governing bodies as part of our work as the development agency for creativity and culture in England. Transforming Governance will offer workshops, mentoring and specialist advice to creative and cultural organisations looking at how to improve their oversight. In addition, the Arts Council’s environmental partner Julie’s Bicycle will offer programmes highlighting how environmental responsibility can contribute to good governance. More details on both will be revealed in spring 2023. 

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