Arts Council England: Funding

Wednesday 18th January 2023 Westminster Hall

[MR PETER BONE in the Chair]

14:30

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

I beg to move,

That this House has considered the funding decisions of Arts Council England.

It is a pleasure to serve under your chairmanship, Mr Bone, and I am very grateful for the opportunity to return to this topic. It is also good to see the Minister in his place in Westminster Hall. As he will know, this topic has been ventilated before, but I think this debate broadens the issues.

As time has gone on, those of us who follow this issue have had more and more grounds for concern, not just about individual funding decisions by the Arts Council but about the process by which it makes them. That process lacks transparency and, I believe, accountability, and there is a lack of engagement with the sector at a time when funding reductions are being made. Those may be necessary in the overall economic climate, but they have been made in a distributional way that has taken no account of economic, social or other impacts—or, above all, of the overall responsibility of the Arts Council.

When the Arts Council was formed, it was set up

“to give more people opportunities to enjoy and benefit from great art and culture”—

I think it still has that phrase on the banner on its social media. It did not regard itself as an organisation about changing the nature of art or culture; it was about making excellence available to the greatest number of people. That was the vision of Keynes when he set it up and of people such as Jennie Lee when she was Arts Minister. In fact, I think Jennie Lee rightly said that it was important that everyone, wherever they were and whatever their circumstances, should have the opportunity of accessing the best in the arts rather than something cut-price or dumbed down. I rather fear that of late the Arts Council has lost its way in relation to that mission. Some of the specific funding decisions in the latest round highlight how it has gone wrong.

The Minister and others will know that I have raised in particular the issue of the removal of English National Opera from the national portfolio. That would have had the effect of creating 600 redundancies, and—for all the mealy words used by the Arts Council to begin with—it would have effectively meant the closure of the company. The idea that it would have been possible to relocate a 100-year-old company to a base in Manchester—more on that in a moment—at about 12 months’ notice was so risible that one wonders what experience and real understanding of the sector the bureaucrats in the Arts Council who drew up that decision ever had.

I am glad to say that discussions, hard work by English National Opera’s team and engagement with the Arts Council has led to some movement. I welcome the fact that there has been a willingness to listen and that funding has been secured, albeit with a reduction—a reduction perhaps on much the same level as those for other arts institutions. That will enable the 2023-24 season to continue next year. I hope that there will be better transition funding for the future. However, that is as yet uncertain. We have had a step forward, but at the moment English National Opera—a major international company that does co-productions with the Metropolitan Opera in New York and is a major draw for audiences—has had only a reprieve, rather than being saved in a form that is recognisably that of a high-class, top-rate opera company. That is not good enough.

[Ms Karen Buck (Westminster North) (Lab)]

I am grateful to the hon. Member for giving way, and I congratulate him both on securing this debate and on his speech. I also welcome the concession made in respect of English National Opera. However, does he agree that the latest Arts Council declaration still leaves more than £50 million worth of cuts to London’s arts budget over three years? That not only has a devastating cultural impact but, as he suggests, an economic impact; I am thinking of employment and the vital revenue that pours into London from tourists and others who seek to attend these marvellous cultural institutions.

[Sir Robert Neill]

That is certainly true; as a London MP, I am conscious of it too. Of course there is more than one issue at play. One is the distribution—where the money goes. Secondly, there is the question of which institutions and sectors are worst affected by what happens. It does seem that the performing arts have been particularly hard hit. When I look at the trustees of the Arts Council, there seems to be a lack of experience in the performing arts as opposed to the visual arts. We should perhaps return to the composition of the board and management and whether relevant experience of those sectors is there.

[Sir Peter Bottomley (Worthing West) (Con)]

rose—

[Sir Robert Neill]

I give way to the Father of the House.

[Sir Peter Bottomley]

I am grateful to my hon. Friend. Whether one’s experience is in the performing arts or the visual arts, everybody knows that it takes three to four years to put on a good opera of international standard or to put on an exhibition of paintings of international standard, with the co-operation of everybody involved. It seems peculiar that Ministers did not say to Arts Council England, “We understand that and, if you need to make changes, you need to make them over a six-year period, not a six-month period.”

[Sir Robert Neill]

My right hon. Friend makes a fair and valid point. When this matter has been debated in the past, Ministers have argued that this is an arm’s length body over which they have little control. With respect to the Minister, I am not sure that that entirely holds water. The Arts Council has said that a former Secretary of State, in its phrase, “instructed” it in relation to the distribution of some of the moneys.

That is a legitimate policy decision and stance for any Secretary of State to take, but it proves there is a power to instruct and intervene. That should not apply to the day-to-day running of an arm’s length body, but Ministers have an ability and right to set strategic direction and to ensure that there is proper governance and oversight and, at the end of the day, basic equity in how its operations and funding decisions, involving large sums of public money, are taken.

[Rehman Chishti (Gillingham and Rainham) (Con)]

I pay tribute to my hon. Friend for securing this debate. On the proper functioning of the Arts Council, there is a specific consultation at the moment on music provision across the country. A concern is that the timeline of the consultation was announced in December 2022, and the first real engagement with stakeholders begins and concludes in January 2023. Ministers and the Government have a duty to ensure that the consultation is proper and thorough. Centres such as mine, Dynamics CIC in Medway, that offer outstanding music provision will be severely affected if it is not done properly and thoroughly, in a way that respects outstanding provision, rather than pulling things together geographically for financial reasons.

[Sir Robert Neill]

I am grateful to my hon. Friend for making that point. It highlights the interesting fact that this is not just a London issue. There are institutions outside London that have lost funding for no apparent reason. That is the difficulty: the lack of any apparent evidence base or transparent and proper process for these decisions. There is a lack of any proper consultation or impact assessment.

I have seen freedom of information responses rather perfunctorily provided to individuals by the Arts Council, in a process that appears to be like drawing teeth. Mr Bone, you and I have had experience of such things from public bodies in the past. It appears that no full impact assessments were made on individual changes, even though some of them will close institutions. Equalities impact assessments were made, but not the full impact assessment expected when dealing with many millions of pounds of public money, and the possibility of an institution ceasing to operate, with redundancies caused thereafter.

[Andy Slaughter (Hammersmith) (Lab)]

The hon. Gentleman is absolutely right, and I congratulate him on this debate. This is at best half thought-out, and at worst an act of Luddism. I suspect that what we have seen with the revised proposals for the ENO, which do not save it in the long term, is just an admission that the Arts Council has got this wrong. Let me give him this quote:

“Sacrificing this particular golden goose for a bit of glib London-bashing will do little to improve cultural provision in the regions and would be an act of sabotage for one of our country’s greatest assets.”

That was the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) almost 10 years ago, the last time this was done, and it has not changed.

[Sir Robert Neill]

I am sorry to say that is true. I do not object, in truth, to the idea that we should spend more arts funding across the rest of the country. I am not an opponent of levelling up as such, but I have always taken the view that that should not be at the expense of London. Decimating London is counter-productive, because much of the talent that performs in the rest of the country is London-based and London-trained, because that is where the critical mass of the arts world is. It is where the conservatoires and colleges are.

[James Morris (Halesowen and Rowley Regis) (Con)]

One of the critical issues is defining what we mean by “levelling up the arts”. In relation to opera, this is not just about physical location. As a west midlands MP, I want more of my constituents to enjoy opera, but does that not mean that we need to define more clearly what levelling up opera might mean? That is what we lack in relation to the funding decisions: there is no overarching strategic view.

[Sir Robert Neill]

That neatly brings me to the next point, which is perhaps the most important. We have mentioned that the funding cut to the ENO would have been a woeful and destructive action. It still might happen: had Dr Harry Brünjes and Stuart Murphy, the chair and chief executive, all their team at the ENO and all the great artists—people such as Bryn Terfel and others, who started the petitions—rolled over to Arts Council England’s decisions, there would be redundancy notices at the London Coliseum this week, and 600 professional people would have been out of a job thanks to Arts Council England’s incompetence. That is no way to run an organisation, and Arts Council England should be ashamed of the way it went about it all.

It is significant that the former Secretary of State, my right hon. Friend the Member for Mid Bedfordshire (Ms Dorries), went public on social media, saying that the way Arts Council England has carried out her intended policy of levelling up arts funding was not as she intended, and has the effect of undermining it. That is the view of the former Secretary of State, who ought to know because it was her policy. The ineptitude of Arts Council England has undermined and discredited the Government’s policy intention, which the Minister and I could probably quite happily sign up to in principle. That is another reason why the Minister ought not to simply say, “I can stand back from this,” because the Government’s own policy is being failed by an arm’s length body. That is really important, which is why we need a proper strategy.

We need a proper strategy for opera. Opera is a major part of the British music scene. Some people think it is a bit of a foreign thing, rather like John Gay’s “The Beggar’s Opera” in the 18th century and Handel. It is not. It is fundamental.

[Kevin Brennan (Cardiff West) (Lab)]

On the point about having a strategy and some sort of strategic thinking, one of Arts Council England’s decisions was to cut funding to the touring side of the Welsh National Opera, which tours extensively in England, including to places such as Liverpool, Birmingham, Southampton, Oxford and so on. On the Digital, Culture, Media and Sport Committee, we found out that Arts Council England had not even talked to the Arts Council of Wales about that decision before making the cut, which obviously puts that opera company under threat. The net result, along with the Glyndebourne cut, is that there is no opera in Liverpool at all. What has that got to do with levelling up?

[Sir Robert Neill]

The hon. Gentleman’s point encapsulates why I think the former Secretary of State was right to say what she said: the decision absolutely negates the Government’s own policy. As the hon. Gentleman said, the result of the way Arts Council England has handled this issue is that there is now no opera in Liverpool, because the WNO cancelled its tour. Glyndebourne has cancelled its touring as well—that was touring in the regions of the UK. The WNO toured across the north-west, parts of the west of England, Bristol, Southampton and so on. All those places will now have no opera—not thanks to the policy decisions, but thanks to the way they have been handled and implemented by Arts Council England.

Ministers should not allow the situation to stand, and the same applies to other elements of the arts sector. There is no strategy that informs the approach to prose theatre, to concerts or to museums and galleries. Nowhere is there a fully-fledged strategy, and we certainly ought to have one for opera. In that case, we are talking about £50 million of public money simply going to the opera companies. Think how much more is going to other sectors as well—but no strategy!

When one tries to find the audit trail for this decision, the board minutes that are published are perfunctory in the extreme. None of the board papers is published, and there are considerable redactions to what is published. That is not a level of accountability or transparency that would be accepted in any local authority in this country, and it should not be accepted in a public body such as Arts Council England. It is letting the public down, and it is letting the Government, as the overseeing body, down as well. That is why there is another cause for intervention.

Finally, because I know others want to speak, we need to look at the lack of an economic analysis.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

The hon. Member is making a vital point about the economic impact. These cuts will impact organisations not in receipt of Arts Council funding that rely on smaller grants. However, organisations that have now come out of the NPO portfolio will also be drawing on that funding, such as the Omnibus theatre in my constituency and the White Deer theatre in Kennington. Should the Government not recognise the importance that these smaller independent organisations, working with the big national organisations, bring to our local economies in terms of jobs, employment, training and getting our young people involved in the arts sector?

[Sir Robert Neill]

It is certainly right that the arts offer real economic opportunity for many young people, and some of those smaller organisations are the breeding ground from which people come. That is true of ENO itself. Many international stars started at the English National Opera, and that is also true of smaller organisations. That reinforces the point I was making: there is not a strategy for any of that. The Arts Council does not appear to have a strategy for anything.

It seems that the funding decisions in this round were to meet a financial envelope. Fine—let us have a proper discussion then with the Department about how we produce a strategy to meet that financial envelope. But none of that was done. That is why we need a much more strategic approach; this is a serious matter.

Looking at the overall potential economic risk, the 2020 report from the Centre for Economics and Business Research found that in a single year—2018; that is the latest we have—the arts and culture industry directly generated £28.3 billion in turnover, £13.5 billion in gross value added, 190,000 full-time equivalent jobs and £7.3 billion in employee compensation in wages and fees: in other words, into the economy. This is big business; for the UK, this is big business that we excel in and which drags in people to visit us. Also, it enables people throughout the UK to have their lives enriched.

What I do not want to see as part of a levelling-up strategy is a cut-down English National Opera or equivalent doing a reduced orchestration, reduced cast and no-proper-chorus version of one of the great operas, be it “Carmen”, “La Traviata” or “Tosca”, in a shed somewhere outside one of our major cities. That is short-changing the people in regional England. They are entitled to see a proper performance like those we get from WNO and the Glyndebourne tour and which ENO would happily do.

ENO has always made it clear that it is more than willing to do more work outside London. Funnily enough, it was planning to do a performance in Liverpool, of all places, before the covid panic, and none of that seems to have been taken into account by Arts Council England. It is short-changing people in the regional parts of England to suggest that they should get a second-rate version of that which is available in London. No wonder the former Secretary of State, my right hon. Friend the Member for Mid Bedfordshire, was so angry at the way her policy had been misinterpreted—all the more reason for Ministers to intervene.

Let us look at ENO as an example of the economic benefit that one company can bring. It produces £1.75 for every £1 of spend—it actually brings money into the economy with all the knock-on expenditure that comes from people going to the theatre, and that is true across most of the theatrical world. To put all that at risk without a proper strategic basis seems ridiculous. The loss of touring by Glyndebourne and WNO means that some 23,000 fewer people will have the chance to see high-quality opera in this country than before. That is a funny type of levelling up.

[Sir Peter Bottomley]

In addition to the performances, does my hon. Friend agree that it is a betrayal of all those who helped Vernon and Hazel Ellis restore the Coliseum from 2000 to 2004, having bought the freehold and made it into the largest and best theatre in London again? What did Arts Council England think would happen to that building, which has been funded by the National Lottery Heritage Fund, the National Lottery, English Heritage and the like?

[Sir Robert Neill]

It may demonstrate the lack of thought in the Arts Council England process. It apparently wanted English National Opera, although no longer based in London, to still run the Coliseum as a commercial venue—a taxpayer subsidised version competing against west end theatre. That does not seem either competent or terribly Conservative, for that matter; it certainly is not a good use of public money.

At the same time, Arts Council England wanted English National Opera to relocate to The Factory in Manchester, a venue that was not built to take unamplified singing—no one had bothered to check. Singing there has to be on a mike. Basic due diligence might have found that one out. The Factory, which, I am told, has been a pet project of some of the senior management of Arts Council England in the past, is a venue that does not have a set of users. It is £100 million over budget. I do not think that forcing a company that has been well established for 100 years or so in London to fill what has become an Arts Council England white elephant was necessarily a very good idea—particularly because Opera North, which performs in Manchester, was not even told. If it had been, it could have said what the audience figures were and probably told Arts Council England that opera cannot be done in The Factory anyway. It is the lack of basic competence, strategic thought and good management that is terrifying in all this. That is why there is a compelling ground for intervention.

[Rehman Chishti]

rose—

[Sir Robert Neill]

I will take one more intervention and then let others speak.

[Rehman Chishti]

My hon. Friend mentions the forced collaboration between one organisation and another. That is a quick fix. He talks about opera, but before we get to staging opera we need to ensure that our young people have the right music skills. The Arts Council at the moment is carrying out a consultation on the national plan for music education. It has said that all hubs will cover multiple local authority areas. It has subsequently said that this will be achieved

“via prescribing geographic delivery areas for Music Hubs”.

In Medway we have outstanding music provision in schools. Our neighbours in Kent do not have quite the same standards, but under those proposals one area will be forced in with the other. Surely forcing a merger of an outstanding provision area with another cannot be the right way forward—it will weaken the provision in small organisations such as those in Medway.

[Sir Robert Neill]

It sounds as if Arts Council England has fallen into bureaucratic speak. What would that mean to any normal person or sensible institution? It defeats me. There is a complete lack of understanding of what happens on the ground, and a complete lack of engagement with the institutions and their audiences—that is the great error in all this.

I do not have time to quote it all, but the playwright Dennis Kelly wrote a very powerful letter to me; it can be googled and found on social media. It was about the impacts on prose theatre—in particular, the Hampstead Theatre and others. There is a lack of appreciation of the impacts on audiences, and an unwillingness to engage with them. The fact is that people travel to many of those London venues from all around the home counties; it is not purely a London thing in any event.

Lest I be tempted to go on indefinitely, I should say that I have set out the case as to why the whole approach to this funding round has been seriously flawed. Egregious individual decisions have been made. Some of those have been rowed back on to some extent, and I welcome that—I am always happy if Arts Council England or others are prepared to listen and to look at evidence. But it needs to be much more comprehensive and to do it in a much more transparent and strategic fashion.

I will quote the former Secretary of State again. She said that when she arrived at DCMS, she was not a great fan of opera—I had a conversation with her about that —but she went. I urge all Ministers who come into the Department to go to opera, ballet, theatre, concerts and to look at some of the galleries and museums that they are responsible for. They should see that as an experience in itself. My right hon. Friend became a total convert; she said, in relation to ENO and the Royal Opera House:

“They have been the front runners in levelling up for a very long time. They leave many in other sectors of the performing arts in the shade in terms of how much they give back and how they try desperately via a number of measures to make opera accessible to all.”

That is exactly what ENO has been doing.

Then there are the insulting comments of the director of music at Arts Council England, who said, “We don’t believe there is any growing audience for grand opera”—a rather bizarre term to use. Anyone who knows anything about opera will know that is a five-act French production by Meyerbeer from about 1860; we do not talk in terms of grand opera any more. I think what she meant was full-scale opera, with a proper orchestra and chorus. How anyone can say that when theatres have been locked down because of covid for many years defeats me. Freedom of information requests have not evidenced any robust statistical basis for that assumption, which is another reason to go back and have a proper strategy.

I hope all that tells the Minister that something has gone badly wrong in this funding round. We cannot just say that Arts Council England is an arm’s length body; we need to do something before serious and lasting harm is done to critical parts of our cultural and artistic heritage.

14:55

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

I congratulate the hon. Member for Bromley and Chislehurst (Sir Robert Neill) on securing this debate. I back absolutely every word he said, and I join him in urging Arts Council England to rethink this funding round, which has no strategy, has had no consultation, is thoroughly destructive, and importantly makes the crucial art form of opera more elitist, rather than less.

As a result of losing a third of its funding, Welsh National Opera has cancelled its 2023 tour to Liverpool. That is more elitist, not less. ENO’s core mission is to make opera accessible, bringing the art form to younger and more diverse audiences. The threat to ENO makes it harder to do that work. Because the Britten Sinfonia has lost its annual grant of £500,000, it will not be able to do its education and outreach work in the east of England. Because Glyndebourne has had its grant cut by 50%, it has announced that it will not be able to tour in 2023. When funding is reduced for opera, it is made more exclusive, not less. Public funding is the key way to open up opera to all. The funding cuts make opera more for the elites, not less.

One further consequence of Arts Council England’s decision, which I am sure is unintentional, is the effect on regional theatres, which I know my hon. Friends will mention. Peter Wilson, who ran the Norwich Theatre Royal, wrote a letter to Nicholas Serota and Darren Henley at Arts Council England, which said that there are

“people who stay loyal to their local theatres, providing the bedrock of serious support because of the regular appearance of challenging first class productions provided by Glyndebourne and WNO…Without them, NTR could not have flourished…And without their support theatres’ Friends lists, their ability to raise refurbishment and restoration funds, and their reputations will diminish. Theatres need high quality mixed programming; first class opera is a crucial part of the mix...Once started, a downward spiral in audiences is inevitable. You cannot possibly want that.”

What he is saying is that the decisions about these opera companies will make unviable and change vital regional theatres.

Peter Wilson continues:

“Glyndebourne, WNO and ENO have high cultural ambitions that deserve to be shared as widely as possible. To emasculate them—to destroy existing ‘skills, knowledge and networks’ so wantonly…will not just make those ambitions unavailable in the near future; it will probably ensure that they will never again be part of the national cultural fabric of which I have been so proud for 50 years.”

Does the Minister know whether Arts Council England considered the effect on regional theatres of what they are doing to these opera companies? Did it even consult regional theatres, which are dealing with the consequences of all this?

This is a very well attended debate, with people from different regions and parties. None of us is whipped to be here. None of us has not got other things to do. All the Members sitting here are those who are committed to the arts. If I was Arts Council England looking at this, I would recognise that I had gone seriously wrong. If the Members who are the backbone of championing public policy on the arts are in Westminster Hall complaining about the Arts Council, it should recognise that it has got things wrong and think again. To say from behind its hands, “Well, we’ve been told by wicked Secretaries of State and DCMS that we have to do this”, is something that I do not accept for one moment. The Arts Council is an independent body, for goodness’ sake—the key is in the name, “independent”—and if people take on responsibility for an independent body, they have a duty to that body to act independently. If they are told what to do by somebody whose business it is not, they should tell them to shove off, or threaten to resign. That is the way it is supposed to be.

The Arts Council has to recognise the scale of the problem. However, we are a forgiving group of people, because we love the arts, and therefore if the Arts Council sees sense, we will not complain about it; we will congratulate it. Really, it should read the writing on the wall. As Peter Wilson writes to Nick Serota and Darren Henley,

“I’ve bumped into you both over 25 years…It’s plain that your lives and careers have been dedicated to making the best art available as widely as possible throughout the UK.”

I say to both of them, “Keep faith with that. Change your mind. We all believe in redemption; it is not too late.”

[Several hon. Members rose—]

[Mr Peter Bone (in the Chair)]

Order. Seven Members want to speak. I have to start the wind-ups in 37 minutes’ time—very roughly, that is about five minutes each. I will not impose a time limit, but I trust people will bear that in mind.

15:01

[Dame Caroline Dinenage (Gosport) (Con)]

It is a great pleasure to serve under your stewardship, Mr Bone, and I congratulate my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) on securing this important debate. I will start by talking about the very difficult period during which I was culture Minister in the Department for Digital, Culture, Media and Sport. It was throughout the whole covid period, and I did not get out much; I did not get to go to many operas, ballets or performances, but I did get to work very closely with the Arts Council.

I have to start by paying tribute to the Arts Council and to the leadership of Darren Henley and Nick Serota, who worked incredibly hard with the brilliant team at DCMS, led by Emma Squire, throughout the covid period. They were responsible for allocating a significant share of the £2 billion culture recovery fund. The recovery fund board was appointed swiftly, and ensured that vast sums of money were allocated very fairly and effectively at enormous pace and scale, which meant the difference between survival and closure for some of our most vital cultural institutions. Thanks to their remarkable diligence and deep understanding of the arts and culture ecosystem across the country, we avoided many of the issues that some other parts of Government faced when they were trying to dish out vast sums of cash.

As the responsible Minister, I can tell Members that once the money starts rolling out, we really do gird our loins about the potential negative media stories that might come down the track, but they did not come. There were some great attempts from some quarters of the media to excite people about some of our funding decisions—the wonderful drag queen Le Gateau Chocolat was exceptionally grateful for her slice of the cake—but on the whole, there was very little error in a massive piece of work that was done at pace and scale. The work of the Arts Council was a bright light during an otherwise very dark period, and I have lost count of the number of institutions up and down the country that have told me they felt they were saved by the culture recovery fund.

I do not envy the Arts Council its job. Trying to allocate limited funds is always a challenge, now more than ever, in desperate economic times and against the backdrop of a Government who are passionate about the potential of arts and culture to drive economic prosperity and levelling up to all corners of the country. Over the next few years, Arts Council England will invest £446 million per year in 990 organisations—the largest national portfolio ever, reaching more organisations than ever before. It was the most over-subscribed round ever, with 1,723 applications; if all of those applications had been successful, the investment would have been over £2 billion.

Among the 990 successful applications were 276 new organisations. One of those is the Hampshire Cultural Trust, which will now receive £500,000 a year. It is the first time that it has been a national portfolio organisation, and I see what a tangible impact it has on my Gosport constituency, which is an area with deep pockets of deprivation and has been long underfunded by successive Governments.

Our heritage is one of our secret weapons, but, up until now, we have not been able to harness its potential to drive investment, build communities, create opportunities and promote excellence. The newly reopened museum and gallery has been reimagined as a cultural hub, breathing new life into our high streets. The money will allow them to animate already outstanding heritage spaces and organise community-based festivals and events. It is making a difference on the ground and it will continue to do so.

The UK’s cultural sector is among the best in the world: I would say that it is the best. It represents 12% of our service exports, and its potential for our soft power is so often undervalued and underestimated. We have a huge responsibility. The Arts Council has a huge responsibility to ensure that we continue to nurture and grow it.

Culture has the power to drive forward regional economies, build communities and improve health and wellbeing. Arts Council funding has historically been focused on London and we need to ensure that culture is thriving in every pocket of England, but we will not level up the rest of the country by levelling down London. We need to harness the potential of the great cultural powerhouses of London. We must spread their tentacles and sprinkle a bit of their magic across the country in the same way as some of our museums and galleries have driven footfall.

Recently, Dippy the dinosaur went on a tour. It went to the Tank Museum in Bovington. It popped up in the nave of Norwich Cathedral, reaching a whole new audience and inspiring a new generation. The ENO has done exactly the same thing with ENO Breathe, which is its wonderful, game-changing response to covid. It is operating in 85 trusts across the country, including my own. There were some bizarre and ill-judged decisions in this funding round and I think we can all agree that the decision to both relocate the ENO and cut its funding was an ill-judged one. I am pleased that there has now been some movement on that, but there is more to do to secure its future.

[Andy Slaughter]

I entirely agree with what the hon. Lady has said about the ENO, but it is a one-year reprieve. After that, what it pointedly said is that it wants to

“continue to make incredible opera available for everyone, in English, with hugely subsidised tickets, completely free for Under 21s and with 10% of all seats available for £10”.

It is working in schools and hospitals as well. That will be gone in a year’s time and, over the next three years, it will lose over 400,000 people seeing opera in that way. Surely that cannot be right.

[Dame Caroline Dinenage]

That is absolutely the point. The ENO not only plays a huge role in the cultural status of London around the world, but the work that it has done to attract a whole new audience and to make opera accessible to all is nothing short of remarkable. I was lucky enough to attend what they call a “relaxed performance” of “It’s a Wonderful Life” just before Christmas. The place was packed with children, people with disabilities and neurodiverse people. It was just incredible to see opera being accessible to so many and building the audiences of the future.

I agree with the idea of devolving money outside of the capital, but we cannot do it by destroying some of the great cultural institutions that do so much and put us on the map. We must avoid these token gestures. We must also be aware of the regional ecosystems that are already well developed outside London before we start transplanting existing organisations out of London.

The Arts Council was born out of world war two. Here we are again, with the global aftermath of covid and a war, once again, on the edge of Europe. The Arts Council has, once again, a unique opportunity to support the innovation, creativity and resilience that make our cultural industries our British superpower. I hope that we can all work together with them to enable them to harness that opportunity.

15:09

[Rachel Hopkins (Luton South) (Lab)]

It is a pleasure to speak under your chairship, Mr Bone. I congratulate the hon. Member for Bromley and Chislehurst (Sir Robert Neill) on securing this important debate. I absolutely echo his comments about access for all to the best of the arts. I am a passionate champion of arts in Luton and across the country. Participation in cultural activity develops social capital, and enables local people to lead happy, healthy and prosperous lives.

Financial security has rarely been more important for our arts and cultural organisations, having weathered the challenges of the covid pandemic and a decade of funding cuts to the arts. Cultural industries in the UK are a success story: in 2021, the gross value added by the creative industries was £104 billion.

The role of the Arts Council is very important and its funding decisions are critical to encouraging creativity across the country and in all our communities. In Luton, we have a rich and thriving arts and culture sector. It enriches our town’s cultural diversity, encourages investment and supports social mobility and inclusion. Arts culture and creativity are central to the Luton 2020-2040 vision for a place where everyone can thrive across all our communities, and the Arts Council plays a critical role in that.

Last year, brilliant Luton organisations, Wardown House Museum and Gallery, Luton Carnival Arts Development Trust, Tangled Feet theatre and Music24 community music group, each received funding as national portfolio organisations. Revoluton Arts is an excellent example of the impact of the Arts Council creative people and places funding in Luton. It is a people-powered project that cultivates grassroots creativity in Luton and puts on high-quality creative events, particularly focused on increasing the participation of diverse communities.

We do not have a large professional theatre or venue in Luton to attract symphony orchestras, large scale theatrical work or indeed opera, but we have an excellent music service team and a music hub, and brilliant schools that want their children to experience the best cultural, artistic and musical activities available. That is the reason I was disturbed by the original Arts Council decision.

Arts Council funding of English National Opera helped to bring opportunities to our young people and led to a strong partnership between ENO and Luton music hub. The partnership created excellent opportunities for Luton’s young people. English National Opera brought its opera squad to Lea Manor High School, albeit in in Luton North, and there have been trips from Luton to the London Coliseum, both back-stage and to the opera. The partnership had expanded post-pandemic with the Finish This… programme in which more than 500 Luton children from key stage 2 became English National Opera composers for a term, and created their own musical colour worlds in response to ENO’s specially commissioned piece, “Blue, Red, Yellow…”, by Omar Shahryar.

The list of excellent work goes on and on, but the fact is that the music hub’s partnership with English National Opera brought opportunities to young people in Luton that simply would not have been achieved otherwise. It is proof that the impact of English National Opera is beyond the borders of London. It is showing diverse, working class, young people in Luton that opera singers look like them and the sky is the limit on their aspiration, but the Arts Council’s decision cuts off that aspiration.

I welcome the announcement yesterday that Arts Council England agreed that it will invest £11 million in ENO in 2023-24, but because opera plans significantly further ahead, a 12-month commitment is very short term. Last November, the Arts Council said it would ringfence £17 million for three years of transitional funding. If we take the funding for year one, can we assume that leaves about £2.7 million a year for the following two years, compared to the Arts Council’s previous annual funding of £12.8 million?

A funding cut of that size is shocking because English National Opera has exceeded many of the success criteria set by the Arts Council in terms of young audience growth, increased diversity and representation, the ability to reshape opera and maintenance of financial stability. The cut is accompanied by the recommendation that the organisation relocates from London to Manchester by 2026. I agree with others that does not make strategic sense, given that Opera North already has a presence in Manchester. The Arts Council needs to provide an opera strategy so we can see its intent. Further discussions with the Arts Council and English National Opera must lead to a fair funding settlement and ensure that ENO can continue to deliver the very best that it has to offer.

15:14

[Damian Collins (Folkestone and Hythe) (Con)]

I congratulate my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) on securing this important debate. He was right to remind us that when the Arts Council was established, its principal role was to promote art for art’s sake and to promote excellence, and through doing so to give people the opportunity to experience excellence in the whole range of arts, from figurative and decorative to performing arts, and provide people with the opportunity to develop their talents. That should be something that is accessible to the whole country, and that is why the Arts Council was created. It is also perfectly legitimate that the Arts Council, which is in receipt of a large amount of public money, should be challenged and scrutinised over how it allocates those funds and the strategies that it deploys.

[Scott Benton (Blackpool South) (Con)]

My hon. Friend may be aware that two leading arts commentators have published a pamphlet calling for the Arts Council to be abolished. Their reason was that it has been taken over by “highly-politicised staff” whose left-wing “woke agenda” is generally failing to support the arts. That came on the back of a case last year in which £3 million of taxpayers’ money was provided to a company that published posters stating that “straight white men” should “pass the power”. Does my hon. Friend agree that decisions such as this will raise legitimate questions among the general public about the level of oversight of some of these Arts Council decisions?

[Damian Collins]

My hon. Friend makes an important point. There should be a clear strategy for allocated funds. It is right that the Arts Council is an arm’s length body and free to make decisions based on artistic merit that some people will agree with and others will not.

However, there is a clear strategy for how that benefits the whole nation, not parts of it. London receives a large amount of money because we have larger national institutions here. They demonstrate the benefit that they bring to the whole country, be that through touring exhibitions and performances or through the other cultural institutions around the country operated by the Tate, the V&A and so on.

It is important that there is a clear strategy and the Arts Council is held to account for it, because anyone who is in receipt of public money should be held to account. It is right that the funding strategy works for the national portfolio organisations on a three-year settlement, because organisations need to be able to plan for the future. While we welcome the additional year’s money that has been granted to the ENO for the coming year—it means, as my hon. Friend the Member for Bromley and Chislehurst has said, that the 2023-24 season can go ahead—it gives no certainty beyond that and does not enable the ENO to make any further investment decisions. Even if the Arts Council had said, “We want the ENO to try to increase revenue from other sources,” that is not a compelling bid to take forward when the public money that the ENO relies on is no longer guaranteed. Who would match fund against public money that might not be there in just over a year’s time?

There needs to be a degree of certainty. There will always be more demands on the Arts Council than it can fulfil, and there will always be people it has to let down, but that is why having a clear strategy, plan and understanding with the organisations that it funds is so important. It cannot be right to take a major national institution such as the ENO that has been funded in a certain way for many years and pull the rug out from under it with very little notice; I understand that the ENO had 24 hours’ notice of the decision.

It would be perfectly legitimate for the Arts Council to say, “We must review the way opera is funded, and we want a strategy for that. We might want to look at how other revenue can support the opera, but we are going to do that during a transition period. What we are not going to do is create a cliff edge whereby the required funding is not there.” As hon. Members have said, not only has the decision had a direct impact on the ENO as an organisation, but the cuts have had a knock-on impact on arts and opera in the regions, which the Arts Council is there to support. That is the best evidence of the lack of a clear strategy. The Father of the House, my hon. Friend the Member for Worthing West (Sir Peter Bottomley), raised that in his intervention.

The Coliseum is subsidised by the ENO to the tune of about £2 million a year. If the ENO cannot support the Coliseum as a building, who else will go into it? Who will pay those costs? Will we be left in the invidious position of using public money that should go into supporting performance arts to subsidise a building that nobody can use? That, again, demonstrates the lack of clear strategy. My constituency has organisations that benefit from national portfolio funding, not least Creative Folkestone. Less than 20% of its funding comes from the Arts Council; it has a diverse form of income, and that is right, but the extra money that it gets from the Arts Council enables it to do more, to do better things and plan for the future.

At the end of this sorry saga, we need to get to a position where the ENO can plan for the future and invest in the future. If that is against a strategy to do more in the regions and more to reach diverse audiences, it needs a fair funding settlement to enable it to develop that strategy. We must recognise, too, that with major cultural institutions such as the ENO, what we see on the stage is, in some ways, the icing on the cake. There is a long tail of people who rely on that institution being there—the people who will develop their talents and may go on to work in other companies, the regional companies and tours that will be supported by that, and the people who are involved in costume design and set design—and a great variety of projects that are there to support people. My hon. Friend the Member for Gosport (Dame Caroline Dinenage) mentioned the fantastic Breathe project that the ENO ran. All those things are lost if the ENO has no secure future. While yesterday’s announcement is welcome, there has to be a longer-term plan, otherwise we will simply be back in this position in a few months’ time.

15:20

[Kevin Brennan (Cardiff West) (Lab)]

I echo many of the comments that have been made. I thank the right hon. Member for Bromley and Chislehurst (Sir Robert Neill)—

[Sir Robert Neill]

Just honourable.

[Kevin Brennan]

I thank the noble Gentleman, or whatever he is, for securing the debate. I also thank the former arts Minister, the hon. Member for Gosport (Dame Caroline Dinenage). She appeared many times before the Digital, Culture, Media and Sport Committee, and she was a very refreshing Minister to have in front of us. I thank her for the candid and supportive way in which she carried out her duties as a Minister and for the work she did during covid to keep many cultural institutions going. I also thank my hon. Friends, including my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman), who has campaigned assiduously on this issue.

I mentioned the Welsh National Opera earlier, because when this debate about Arts Council England started, it focused—understandably, perhaps—on the decisions around the English National Opera, but in some ways, what was done around the Welsh National Opera was even more invidious, or at least as invidious, because it signalled that this was not a rational, strategic decision-making process by Arts Council England. Like the hon. Member for Gosport, I would normally express support and admiration for the way that Arts Council England goes about things. However, rather than being a strategic, well-thought-through plan for the arts, it resembled more an emotional spasm of some sort, as a result of wanting to do something very quickly to meet the perceived needs of the Secretary of State at the time, the right hon. Member for Mid Bedfordshire (Ms Dorries). We are now told by the former Secretary of State, Ministers and Government Members that that was not what the Secretary of State wanted all along, which makes the whole affair all the more strange.

One thing that is perhaps good about this whole incident is that it gives us an opportunity to highlight the fact that the Welsh National Opera is an opera company for Wales and England, despite its name. It is value for money because we have a proper national opera company with an international reputation that can serve both England and Wales, including, when it goes on tour, the parts of England that are not often well served by other cultural institutions. That is an integrated system for opera across England and Wales.

Arts Council England decided to cut a third of the funding that it provides to the Welsh National Opera for its touring work in England. That includes many different parts of England, such as Liverpool; the west midlands, which is the part of Arts Council England that looks after the Welsh National Opera in terms of its administration; the west of England, in places such as Bristol; and Southampton, Oxford and elsewhere. It is right that these touring opera companies form an essential part of our regional theatres right across the country.

When Arts Council England appeared before the Digital, Culture, Media and Sport Committee, I was interested to know what its decision-making process was, so I asked Darren Henley whether he had consulted the Arts Council of Wales prior to the decision being taken to cut the funding to the Welsh National Opera. He waffled for a bit, and I had to interrupt him to get him to answer the question, at which point he said:

“They were aware just before the announcement was made, but we didn’t consult them in the announcement”.

I put it to him and to Members here today that it is a dereliction of duty for a decision that has profound implications—as we know, it has resulted in Liverpool being denied any opera whatsoever—to be taken in that haphazard way.

There are no SNP Members here, so I think we are all Unionists in this room. The hon. Member for Blackpool South (Scott Benton) was born in Newport, and he understands the importance of the Union. Arts Council England did not consult the Arts Council of Wales on a decision that has a profound implication for the future of that opera company and the whole system of opera around the country, and that undermines the whole so-called levelling-up agenda that we were told this decision making was about.

I profoundly believe that creativity is a good thing in and of itself. I profoundly believe that this country’s greatest strength, or certainly one of its greatest, is its creative industries, and that we are one of the few countries in the world that is a net exporter. Our creative industries are a huge earner for our country and culturally enrich us all. Quite frankly, as a white, heterosexual male from a working-class background, I am sick of people speaking on my behalf, and talking about wokeism and all the rest of it. The arts and culture are profoundly important to enriching our lives, and we should all stand up for them, whatever our backgrounds.

Let us hope that this was just an emotional spasm. I say to Arts Council England: please, get your act together and start thinking about these things. The arm’s length principle is important, but it does not mean being so arm’s length as to not even consult the Arts Council of Wales. That is not what the arm’s length principle is about, so Arts Council England should get its act back together, and let us return to some sense around this issue.

[Mr Peter Bone (in the Chair)]

Before I call Jonathan Gullis, let me say that although this is such an important debate, I cannot extend the time, so we are now on something more like four minutes for each Back Bencher.

15:26

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

It is a pleasure to serve under your chairmanship, Mr Bone.

I congratulate my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) on securing this important debate. Culture is so important. I was delighted to spend time before the Christmas break at Springhead Primary School in Talke Pits, which worked closely with the Royal Shakespeare Company and the New Vic Theatre to stage a First Encounters production of Shakespeare’s “Twelfth Night”. Seeing kids as young as reception sat engrossed throughout that play, having learned about it in advance, was very special indeed. Mr Anderson, the headteacher, is doing a fine job.

My mother always told me that I should learn to read the room, but perhaps I am about to go against that—although I am sure that will not shock many Members here. I want to congratulate Arts Council England on its investment in the great city of Stoke-on-Trent. This £6.8 million investment, from 2023 to 2026, has taken us from having one national portfolio organisation—the New Vic, which is actually in neighbouring Newcastle-under-Lyme—to now having eight such organisations. They include the fantastic Portland Inn Project, based in Stoke-on-Trent North, which will have a profoundly positive impact.

Because of that investment, Stoke-on-Trent City Council, under its leader Councillor Abi Brown and Councillor Lorraine Beardmore, the relevant cabinet member, has been working tirelessly to look at how we can improve that partnership working further. Arts Council England has made Stoke-on-Trent a priority place and become a key member of the Stoke-on-Trent creative city partnership, which shows how the relationship continues to evolve. Indeed, it seems to have got the message that levelling up means making sure that places such as Stoke-on-Trent can celebrate their culture, history and heritage. We note that the levelling-up White Paper contained a Government promise that Stoke-on-Trent and Manchester would receive a special focus, to make the most of our cities’ industrial heritage.

The city has responded to that with a clear vision and strategy to establish an international ceramics centre, which will tie together world-class collections, celebrate the growth of contemporary craft ceramics and expand on our fantastic advanced ceramics sector. At the heart of that vision is a plan for our main museum, the Potteries Museum and Art Gallery, based in Hanley, working with Staffordshire and Keele Universities, as well as Stoke Creates, to secure a £5 million investment from the Arts Council’s cultural development fund to create new spaces through a new research centre and to redesign the layout of the fantastic ceramics that we have to display. That work will build on the city council’s £4.7 million Spitfire Gallery development, which houses the city’s Mk XVI Spitfire. Obviously, the Spitfire was designed in Butt Lane—where I am proud to live as a resident—by Reginald J. Mitchell, a great local hero, without whose efforts we would not have won the battle of Britain. The plan also builds on the £1.5 million relocation of the archive service from Hanley library.

We know that the decision is due in March. I am sure that Arts Council England is listening, and I am sure that the Minister will want to see Stoke-on-Trent get some more, because he has learned that once we get a taste of funding, we always want more. I look forward to more coming our way in Stoke-on-Trent. The clear notice from me is that a promise has been made and must now be delivered. We need major investment to continue to deliver new jobs and more high-skilled opportunities for people who want to study, understand and come to visit our great city, and to enable Stokies to be at the cultural heart of our great country.

15:29

[Laura Farris (Newbury) (Con)]

I congratulate my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) on securing this debate. I recognise all the things that he referred to in his opening remarks—a lack of transparency, accountability and engagement with the sector—in a decision that was reached on a treasured regional theatre in my constituency, the Watermill Theatre. It was truly a bolt from the blue for it to learn that there has been a 100% cut in its funding for the next three years.

One thing that has been frustrating in the process since then is the fact that the Arts Council did not really substantiate its decision with reasons, and it was so reluctant to produce written reasons when we invited it to do so. I had to remind the council that it is a public body and susceptible to judicial review. When the decision came, it was impossible to discern why the Watermill did not meet the relevant criteria. It had met them all in every previous round of funding and was not alerted to the fact that any criteria had changed. The Arts Council was unable to explain why, if it was a regional decision based on levelling up, the other theatre in Newbury, which we also love, was successful when the Watermill was not. Eliciting the final decision was like getting blood out of a stone, and when it came it simply set out generalities, such as the assertion that the Watermill lacked ambition.

The Watermill is an 18th-century watermill that has been converted into a theatre. I cannot improve on the description written in The Mail on Sunday, which said:

“What a location! Forget the glitz of the West End: try walking up a country lane, past waddling ducks, to this lovely little theatre in a converted mill.”

Its aesthetic beauty as a venue is absolutely treasured by our community, but we also treasure the quality and diversity of its productions. It is not just a standard repertory theatre that takes shows on tour: it produces its own work and pumps it around the country. It most recent touring production of “Spike” went from the Watermill to Blackpool, Glasgow, Cardiff and Darlington. It is also an artery theatre through which West End productions come and other productions flow on to international destinations, including Broadway.

The theatre takes its commitment to diversity and improving access seriously. It is in the heart of a tiny village, so in 2022 it did a rural tour. “Camp Albion” took its productions to villages, which are often completely neglected in the consumption of the arts. Overall, the theatre reaches 20,000 people annually through its various community engagement programmes, including children with autism, deafness and many other special needs. It has a deep commitment to the Arts Council’s outcomes, which the council even acknowledged in its decision letter.

We have been confronted with a deeply disappointing decision. We have found it incredibly difficult to know what mandate the Arts Council was working to, or why. I find it difficult to avoid the conclusion that this was capricious decision making, which undermines the status of the Arts Council as a guarantor of our national arts output. If the council is watching, I respectfully request that it reverse its decision because it has devastating consequences for the future of the Watermill Theatre in Newbury.

[Mr Peter Bone (in the Chair)]

I will call the Father of the House next; I am grateful to him for being willing to wait until the end.

15:33

[Sir Peter Bottomley (Worthing West) (Con)]

That is because I am going to go back in time and it might bore other people, Mr Bone. The first chairman of the Arts Council I met was Sir Ernest Pooley, who succeeded John Maynard Keynes two years after I was born. Given that Arts Council England is for the encouragement of music and the arts, Pooley and Keynes would have been delighted at the competence with which it took our cultural institutions through the pandemic. The three rounds of emergency funding were executed in a way that nobody criticised. It was quite remarkable, and very effective.

The most recent Arts Council England report available on its website is from 2020-21. The chairman, Sir Nicholas Serota, talks about the three outcomes and the four investment principles, none of which give any indication that the council might have conceived cutting off the ENO and the Coliseum at the knees. Tributes to those who have cared for, led and participated in the ENO and the Coliseum should be put on record. I will say again that Hazel and Vernon Ellis, together with the major public funders and private individuals and trusts, deserve to be recognised. One of those funders was the National Lottery through Arts Council England. I do not know whether those taking the decision that was announced recently were aware of the Arts Council England funding for the Coliseum and its restoration, so that Sir Oswald Stoll’s Frank Matcham theatre could be restored on the anniversary of its first opening.

I think mistakes were made. I do not how much of it was to do with the Government, how much of it was to do with Arts Council England, and how much of it was to do with time pressures. The fact is that what was done clearly would not work and was not right, and it seems to me that the principle, both for Arts Council England and for the Government, is to say, “Is it necessary, is it right and will it work?” I will leave it to the Minister to explain not what has gone wrong but how he will put things right. I suggest that, afterwards, he writes to the Department for Levelling Up, Housing and Communities, saying that the Worthing Borough Council bid for the connected cultural mile from the railway station to the lido, going past the museum, should be approved.

15:35

[Barbara Keeley (Worsley and Eccles South) (Lab)]

I declare that I am chair of the all-party parliamentary group on classical music. It is a pleasure to speak with you in the Chair, Mr Bone. I thank the hon. Member for Bromley and Chislehurst (Sir Robert Neill) for securing the debate and for the way he opened it, and all right hon. and hon. Members who have contributed to it.

I start by congratulating colleagues across both Houses and the wider arts sector on achieving the apparent 12-month reprieve announced yesterday for the funding of the English National Opera. It does not settle all the questions raised about the damage done by the decision, but I am pleased that there can at least be a longer-term conversation about the ENO’s future, which is right. The ENO has worked hard to increase access to opera, bringing it to younger and more diverse audiences. It has delivered innovative education and health projects throughout the country, and it is right that this is finally being recognised. However, the back and forth of the decision has caused acute anxiety among the ENO’s 300 full-time employees and the 600 freelancers whose job security was put at risk. The screeching U-turn is further indication of the total lack of strategic planning involved in the national portfolio organisation funding decisions that we have been debating.

First, I want to reflect on the arm’s length principle of arts funding, which we have heard about in the debate. At the core of the recent dispute about arts funding is the issue of who makes decisions about arts funding and what the criteria for those decisions are. When the answers to those questions are unclear, there will always be discontent and frustration about how the investment of taxpayers’ money is being made.

[Andy Slaughter]

My hon. Friend makes a very good point: there is a lack of transparency. I am very lucky that the two main theatres in my constituency, the Bush and the Lyric, have maintained their grants—in one case, it has slightly increased—but every organisation was on tenterhooks waiting for the announcements, and they will be next time as well, because they have no idea on what basis Arts Council England makes a decision. Other theatres in London, such as the Donmar Warehouse, have lost 100% of their funding. What is the rationale behind this?

[Barbara Keeley]

Indeed. It is important to focus on that principle. The arm’s length principle has been in operation since public subsidy for the arts began in the aftermath of the second world war. At the inception of the original Arts Council, Keynes wrote that:

“It should be a permanent body, independent in constitution…but financed by the Treasury”.

However, as we have heard, the former Culture Secretary, the right hon. Member for Mid Bedfordshire (Ms Dorries), issued a clear instruction to Arts Council England last year and ordered it to move money outside the capital through a reduction in the London budget. Even the places at which the additional investment would be targeted were decided with input from DCMS, with removals and changes to the “Let’s Create” priority places, which had been originally identified in Arts Council England’s 2020 strategy.

As we heard earlier, the former Culture Secretary has now criticised the decisions made by Arts Council England for their “undue political bias”, and accused the leadership of pulling a “stunt” to try to reverse levelling up. We have heard a variety of ways of describing the very strange decision making, but we have to see that it was this directive that led Arts Council England to the decision to make cuts to the English National Opera, the Welsh National Opera, Glyndebourne’s touring and other organisations, such as the Britten Sinfonia, the Oldham Coliseum and the Donmar Warehouse. The comments made show that Ministers and Arts Council England had not thought through the implications of the directive, both on art forms such as opera and on the other arts organisations I mentioned.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

Will the hon. Lady give way, just for one second, so that I can put on the record my views about the English National Opera?

[Barbara Keeley]

No; I will run out of time.

Through the directive, Ministers and Arts Council England reallocated a shrinking budget for London. I recommend to the Minister an excellent blog post from Border Crossings that can be found on Twitter and makes the point that we cannot level up at the same time as cutting. That is the problem: the aims have become confused. It is this inconsistency and short-sightedness that is so frustrating for so many arts organisations.

The second major issue with the NPO decisions—we have heard much about this in the debate—is the glaring lack of any art form-specific strategy, planning or consultation. Opera is the major victim of this approach. Before the reprieve—the reversal of the ENO decision—overall funding for the sector was down by 11 %. It is reckless and irresponsible to remove £19 million of funding with no strategy in place. The decisions should be based on evidence and audience data, not on a whim.

Under such acute constraints, it is the expense of touring that is often the first activity to be sacrificed, as we are seeing already. As we have heard, Glyndebourne has had the subsidy for its touring budget halved, so has been forced to scrap its entire autumn tour, which would have held performances in Liverpool, Canterbury, Norwich and Milton Keynes. As my hon. Friend the Member for Cardiff West (Kevin Brennan) rightly said, Welsh National Opera has responded to a 35% cut by removing Liverpool from its touring plans. As we have heard, it is estimated that the cuts to those two companies alone will deprive 23,000 people from access to opera throughout the country. In addition to that gap, the consequences for the arts ecosystem will be severe, given that there are already pressures on the workforce and on skills retention.

Jennifer Johnston is a mezzo-soprano who was born in Liverpool. She told me about the impact that the Arts Council funding allocations will have on young students at the Liverpool Philharmonic Youth Choir. These young people in Liverpool come from backgrounds where there is no money for singing lessons, with their fees for the choir paid by bursaries. She said:

“Now that live staged opera isn’t going to come to the city, these young singers won’t have a chance to see any at all. They don’t have funds to travel, and the educational workshops carried out by both Welsh National Opera and Glyndebourne now won’t happen.

It’s a simple equation—inspire a young person by showing them excellence in an artform and demonstrate what they could achieve if given the chance, defeating assumptions of elitism and thoughts of ‘Opera’s for posh people, not for me’.

These young people now won’t have the chance to be exposed to, and be inspired by, live staged opera, and are unlikely to want to train as an opera singer in the future. Arts Council England funding cuts will therefore affect life choices, making a nonsense of the idea of ‘levelling up’.”

I am interested to hear the Minister’s response to those comments. How does his Department intend to ensure that there is support for the next generation of England’s opera singers when there is no coherence to the decisions being made about the sector?

There are other arts organisations that have had their income slashed in this funding round, with little apparent sense in the decisions. We have heard that Britten Sinfonia was entirely cut from the NPO programme, despite being the only orchestra based in the east of England. Many other regional orchestras were funded only at standstill. Meanwhile, the funding settlement for producing theatres is short-sighted and risks having a negative impact on the programming of regional theatres—as we have heard in the debate—as well as compromising the UK’s cultural reputation in the longer term. Sam Mendes, the former chief executive of the Donmar Warehouse, has been predicted that it will “wreak long-lasting havoc” on the industry.

Speaking of the Donmar Warehouse, it received a 100% cut in its Arts Council funding. Its representatives told me that the hit to their budget means they will no longer be able to create work outside London and will have to reduce or cease altogether their excellent CATALYST programme, which supports 13 people a year with paid training to develop the next generation of writers, artists and administrators. Given the flexibility in exit funding that has suddenly been found by Arts Council England for ENO, will the Minister say whether Minister similar flexibility can be found for the Donmar Warehouse? It is really important that Arts Council England is transparent and equitable in its funding processes, as the hon. Member for Bromley and Chislehurst said earlier.

The combination of a top-down approach from DCMS and poor planning have given the impression that the Government’s goal is more about political gimmickry around levelling up than a true rebalancing of power to the regions. It is a fact that 70% of the organisations that are being entirely cut from the programme are based outside London, including the Oldham Coliseum, the Britten Sinfonia and, as highlighted so effectively by the hon. Member for Newbury (Laura Farris), the Watermill Theatre. In addition, the lack of consultation, which has been most clearly evidenced by all the reaction to the decision about ENO, speaks of insincerity in making the changes. That risks the very existence of our essential cultural organisations and makes it more difficult to achieve regional parity in arts provision.

Before I move on, I want to make the point that it has rarely been more important to get these decisions right, because having weathered the challenges of the covid pandemic—the Father of the House said that situation was well handled by Arts Council England—and a decade of funding cuts to the arts, organisations now face a perfect storm of other challenges, including increased energy and operating costs and a cost of living squeeze on their audiences.

The U-turn on ENO is an admission that the choices announced in November were not well considered. This situation could have been avoided if there had been proper consultation with the sector, as many contributors to this debate have said. I hope that DCMS will now undertake an internal assessment of the process behind the NPO funding round for 2023 to 2026, so that this chaotic approach is never repeated. It is vital that we now have a transparent and equitable process.

There are still some important decisions to be made to ensure that ENO can continue and so that future decisions are made based on strategy and in consultation with the sector, with a particular focus on supporting the organisations that we have heard about today, such as the Donmar Warehouse, Welsh National Opera, the Glyndebourne tour and the Watermill Theatre. They need to continue their vital work outside London and I hope to hear more from the Minister about what can be done to ensure that.

15:46

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Stuart Andrew)]

I thank my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) for securing this debate and other Members for their thoughtful contributions.

I am pleased that a number of debates on these issues have been held—both in this House and in the other place—over the last couple of months; that clearly demonstrates the ongoing interest in our incredible arts and culture. As I have stated on previous occasions, access to high-quality arts and culture needs to be more fairly spread. That is why we asked Arts Council England to ensure that funding is distributed more equally right across the country. As my ministerial colleagues have said in written ministerial statements, the Arts Council has fulfilled these ambitions and we are not apologetic about delivering on our policy commitments.

I will not go over past ground in respect of the investment programme or how it works, because I am keen that we think about the big picture today, but it is important to point out that this funding round will support a record number of organisations—a total of 990. That means we will be able to reach more people in more places than ever before. Every region in England outside London is seeing an increase in funding. For the avoidance of doubt, that includes the south-east: this is not just a north/south matter.

Every region in England, including London, is seeing an increase in the number of organisations that are being funded. Levelling Up for Culture Places, a list of 109 places that have been identified as having had historically low cultural investment and engagement, such as those my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) mentioned, will see investment almost double, with 192 organisations in those areas receiving £130 million over the next three years. When compared with the previous investment programme, that is equivalent to a 95% increase in investment. Many places that were not in the last portfolio—such as Stoke-on-Trent, Bolsover, Mansfield and Blackburn with Darwen—will now become home to funded organisations. I hope this will be transformative for many communities throughout the country.

There were a record number of applications to the 2023-26 investment programme, which is, as many will know, a competitive fund. It is usual that organisations will come in and out of the NPO. To support organisations leaving the portfolio, for the first time ever the Arts Council made available transition funding which, subject to application, allows organisations leaving the portfolio to access 12 months of funding from the point of announcement.

On the ENO specifically, no doubt Members have learned of the announcement that was made yesterday, which was mentioned in the debate. I am very pleased that the Arts Council has agreed to invest £11.46 million of funding in the ENO for the period from April 2023 to March 2024. This is to sustain a programme of work at the ENO’s home, the London Coliseum, and at the same time to help the ENO with planning work associated with considering a new base outside of London by 2026 and the development of a new business model for its future operation.

We will also continue to deliver planned activity in London during the year, including an appropriate level of education and community engagement. We are delighted that this has been negotiated. Both sides have also agreed to work together to reach an agreement by the end of March this year on a further two years of funding to support the future of the organisation, subject to successful application. They are also working together on the future running of the Coliseum, and a future base. Taking note of many of the points that have been raised, I hope that is something that can be arranged as soon as possible.

[Sir Robert Neill]

We all appreciate that there has been progress, and that is welcome, but I hope the Minister will accept that this is not a complete answer. I urge him, when he speaks to the Arts Council, to bear in mind that in opera the programmes need to be planned a minimum of 18 months, and very frequently three to four years, beforehand. Even two years will not be enough to mount a serious programme of work, wherever it is. Flexibility needs to be shown on the timeframes so that we get decent work available in and outside London.

[Stuart Andrew]

My hon. Friend has made that point clearly. I know that those discussions are ongoing. I hope we will hear something by the end of March.

ACE’s investment in opera, orchestras and other classical organisations will represent around 80% of all investment in music. Through the ’23 to ’26 investment programme, opera will continue to be well funded, with it remaining at around 40% of overall investment in music. Excluding the funding for the ENO, that is more than £30 million per year for opera alone. Organisations such as English Touring Opera and the Birmingham Opera Company will receive increased funding, and there are many new joiners, such as OperaUpClose and Pegasus Opera Company. The Royal Opera House and Opera North will continue to be funded.

Some Members have set out a view that where an organisation is headquartered is a blunt instrument when it comes to levelling up. My noble Friend the Minister for Arts set out a view on this late last year. He said:

“Touring is important…We do not, in any respect, disparage or undervalue that vital work, but… There is a difference in having an organisation based in your community from just being able to visit it as it passes through your town or city.”—[Official Report, House of Lords, 15 December 2022; Vol. 826, c. 852.]

That said, the Government will continue to work with the Arts Council to understand all the impacts of its investment in arts and culture, including opera.

We remain committed to supporting the capital. We recognise and appreciate that London is a leading cultural centre, with organisations that do not just benefit the whole country but greatly enhance the UK’s international reputation as a home of world-class arts and culture. That is clearly reflected in the next investment programme: around a third of the investment will be spent in London, equivalent to approximately £143 million per year for the capital. Historically, Arts Council spending per capita in London has always been significantly higher than in the rest of the country, at £21 per capita in London but just £6 per capita in the rest of England.

[Sir Peter Bottomley]

If I have a spare place, I could invite the Minister to come to “Carmen” with me in a week-and-a-half’s time at the ENO. Most people there will not be Londoners; people come to London for the show, so I think that those figures are not quite right.

I say to the Arts Council and the ENO, through the Minister, that if they had sat down together they could have worked out a better future. There are six weeks now for the Minister to encourage them to do that. If they do not succeed, he should come back here and there will be a much rougher debate.

[Stuart Andrew]

My hon. Friend has obviously missed the other debates, because they were fairly rough, I have to say.

[Sir Peter Bottomley]

That was the warm-up!

[Stuart Andrew]

There have been questions about the arm’s length principle. I want to make clear that were any arm’s length body, including the Arts Council, to breach the terms set by the Government, or to be found to be acting unlawfully, we would take the steps necessary to review the matter and determine the appropriate action.

There has been criticism of the board. I do not think it is fair to totally criticise the expertise that we have on many of those boards. They have a great deal of expertise in the performing arts. The board features musicians, concert hall chief executives, a Royal Shakespeare Company governor, a theatre chief executive—I could go on. Those are people who are obviously interested in the arts.

On the process, applicants receive lots of guidance, all of which is set out very clearly. Applicants know the criteria they are applying against and will have received, or be in the process of receiving, feedback on their applications. The Arts Council also runs webinars and is available to support organisations as they make those applications. In addition, there is a complaints process that is published on its website. If anybody has concerns about any process that has taken place, they can follow that. I will happily speak to hon. Members if they want more information.

I believe the arm’s length principle is right, and successive Governments have observed that. That said, no organisation should avoid scrutiny. A number of points have been raised today, particularly around consultation, and I will raise those with the Arts Minister, my noble Friend Lord Parkinson.

My hon. Friend the Member for Gosport (Dame Caroline Dinenage) was right that we should point out that there have been no cuts to the Arts Council’s core cash settlement. In fact, in the spending review, the Government increased that settlement by more than £43 million over the period from April 2022 to March 2025. That means that the Arts Council investment programme will soon be supporting more organisations in more places than ever before, all off the back of our unprecedented cultural recovery fund, which supported around 5,000 organisations and sites during the pandemic, and the ongoing increased rates of creative tax reliefs.

I am grateful for the opportunity to set out how the Government—

[Barbara Keeley]

Will the Minister give way?

[Stuart Andrew]

No, I am going to finish.

The Government’s extensive programme of support, through the Arts Council national portfolio organisation programme, is benefiting areas across England, and more of them. The Government’s support for the arts and culture across the country does, of course, stretch beyond national portfolio funding. It also includes our cultural investment fund, creative industries tax reliefs, support for business rate payers, support through the levelling-up fund and the energy bill relief scheme, and that is not to mention our unprecedented support during the pandemic.

I strongly believe that that investment will ensure that our world-class arts and culture continue to thrive into the future and across all parts of the country. I recognise the strong representations made in today’s debate, which I can assure right hon. and hon. Members I will bring to the attention of my noble Friend the Arts Minister.

15:57

[Sir Robert Neill]

I thank all Members who have attended the debate: the Father and Mother of the House and many others. That shows how seriously this is taken, which I hope is something the Minister will take back. This is something people care about strongly.

[Sir Oliver Heald]

Will my hon. Friend give way?

[Sir Robert Neill]

I will give way to my right hon. and learned Friend because I know he wants to say something positive about English National Opera.

[Sir Oliver Heald]

I am so sorry that I arrived late. I wanted to support my hon. Friend in what he had to say about the English National Opera, which we have discussed. It is so important that we preserve that institution, which has done so much to bring opera to the people.

[Sir Robert Neill]

That is a good message for the Minister to take away. The ENO is in the forefront of making art accessible to people who do not have a traditional background in opera, which I did not when I first took an interest as a young lad living in a semi-detached house in Hornchurch. My journey was not dissimilar to that of the former Secretary of State, my right hon. Friend the Member for Mid Bedfordshire (Ms Dorries), in coming to it as an art form.

Opera has enriched my life, and I declare my interest—which I do not think is unknown—as chair of the all-party parliamentary group on opera. That is the message I want the Minister to take away. This is not a fringe matter; it is central to our arts offer in this country. Although I accept that much good work is done by the Arts Council, something has gone badly wrong in this funding round.

There is a legitimate responsibility on Government to intervene when governance, process and consultation do not come up to the standards that we normally expect in a public body. That gives us the chance to put that right and get back on track with an arm’s length body. It is not, I respectfully suggest, a reason to stand back and do nothing. I am sure the Minister will take the strength of feeling in this debate back to his colleagues in the Government and ensure that that gets to the Arts Council itself.

Question put and agreed to.

Resolved,

That this House has considered the funding decisions of Arts Council England.