Arts Council England: Regional Distribution of Funding

Earl of Clancarty Excerpts

Thursday 15th December 2022 Lords Chamber

[The Earl of Clancarty (CB)]

My Lords, I am grateful to the noble Lord, Lord Storey, for his excellent introduction to this debate and to the noble Lord, Lord McNally, for originally tabling it. I wanted particularly to speak in this debate rather than last week’s debate because it is helpful to have a debate which concentrates, at least in theory, just on the arts rather than them being grouped with the creative industries, although last week’s debate was clearly very helpful for this debate.

I strongly support the Arts Council model of funding for two reasons: first, because public funding of the arts is a benefit to us all for the whole of society; and, secondly, because to enable that there should be a properly independent body that can make decisions about to whom and where funding is to be awarded without government interference. I emphasise “where” because that will inevitably affect “whom”. Yet last Thursday, the day of the arts and creative industries debate in this House, Darren Henley made it very clear in oral evidence to the DCMS Select Committee that the Arts Council was not asked but instructed—he used the word “instruction”, as indeed has Nicholas Serota—by Nadine Dorries to shift a considerable amount of money from London to the regions, in my view breaking the arm’s-length principle and resulting in the controversial cuts we are seeing to certain organisations.

I will ask the Minister again the question that the noble Baroness, Lady McIntosh of Hudnall, asked in last week’s debate but to which she did not receive a reply. Does he think it is appropriate that the Secretary of State should instruct an arm’s-length body? The unhealthy result of such interference and uncertainty about where responsibility lies is the open but extremely understandable lobbying, of not just the Arts Council but Parliament, the Government, the press and the public that we are now seeing from organisations which not only feel hard done by but that the decision-making process is being levered by government, and the two things may be connected.

It may be that the Minister, if he does answer this question, will say simply that the Arts Council is an arm’s-length body, but unfortunately that is not how it is currently being perceived, as I hope the Minister will acknowledge. This needs to be properly and constructively addressed by all the concerned parties. I make these points irrespective of the particular decisions that the Arts Council has made, although all of us, perhaps more than usual, will have our personal views on these decisions, and I will come to mine in a moment. Meanwhile, it is worth pointing out that we have a new Secretary of State and the instruction was made by a previous one. However, there should never have been such an instruction if the Arts Council is to remain an arm’s-length body.

We should not forget that these concerns are taking place against the backdrop of long-term cuts to the arts, the necessary help given in response to Covid notwithstanding. In the last 15 years, the Arts Council’s grant in aid has decreased in real terms by 47%. Through Brexit, we have lost the funding from Europe, and central government grants were cut by 37% in real terms between 2009-10 and 2019-20. Some councils do not now spend anything on the arts at all. It has been reported that some councils are on the verge of declaring bankruptcy. Now, of course, we have the added stress of energy costs and inflation.

Unfortunately, the arts are going to be a long way down the list of priorities for many councils, despite local authorities being vital to many of our arts organisations, including museums and regional theatres, which are particularly concerned about their day-to-day running costs. The noble Lord, Lord Bassam, pointed out in a previous debate the necessary expenditure of specialist lighting for museums and galleries—one instance of something that cannot be got round. Irrespective of where you stand on austerity, these long-term cuts need to be reversed. In the debate last week, the noble Lord, Lord Howarth of Newport, made this pertinent observation:

“Fiscal austerity for the arts is not needed to salvage our economy. The DCMS budget for the arts and culture is indiscernible in the national accounts.”—[Official Report, 8/12/22; col. 280.]


I have argued for a long time that we can do much more to support artists across the whole country, but that should be done through an equitable funding model based on increases in funding, not through redistribution of the kind that the former Secretary of State insisted upon, which is surely a coarsening of the envelope of funding available to the Arts Council. This has led inevitably to the “invidious choices”—the Arts Council’s own term—that it has felt it has had to make. If £43.5 million is being made available to the regions—which is very welcome—why are these cuts still being insisted upon?

There is another significant consideration: the growing concern that the Arts Council, in the absence of other funding, is trying to take on too wide a range of projects. In particular, there is concern that through the Let’s Create strategy, it is losing its focus on what should be its core project—the funding of artists and arts production by professional artists—and shifting that focus instead to amateur community projects, particularly in areas of the country where cultural engagement is low, as the Independent Society of Musicians has pointed out. There is absolutely a place for such projects, and they should be funded, but the funding of professional artists and arts organisations should not be sacrificed in their favour. It is notable that the cuts over which there is so much current concern are aimed at organisations involving or directly impacting on professional artists and their co-workers.

Much of the focus on these cuts has been, quite rightly, on classical music and opera, but theatre and the visual arts have also been impacted. Here, there are also potential knock-on effects in terms of the production of new art. The Hampstead and Gate Theatres in London and the Watermill Theatre in Newbury, which have all had their funding cut entirely, all support new writing. Hampstead Theatre has said that it will not now be able to support its new writers programme, so I ask the Minister whether new new writers programmes are intended to be set up elsewhere in the country. If so, how will they be supported in the longer term? The danger is that removing funding from these flagship theatres, as the Writers’ Guild and playwrights themselves point out, will simply lead to more risk-averse programming, less commissioning and less new writing everywhere.

There are cuts to significant London gallery spaces. The wonderful Camden Art Centre—I am looking forward to seeing the Forrest Bess exhibition there—and the Serpentine Galleries are nationally important spaces which put on international work by visual artists. If these spaces are diminished, the whole country will be diminished in terms of the visual arts.

There is an ecology of mutual support between London and the regions, the great danger then being that if you hurt the arts in London, you will also hurt artists and audiences for the arts in the regions. Cuts in London will have a nationwide impact, and this will be true in the business sense as well. As the Heart of London Business Alliance said in a letter to the Financial Times last month:

“Central London’s dynamic arts sector and rich culture and experiences make the West End such a unique and special place, bringing in millions of tourists every year. Many of these visitors go on to visit other parts of the UK contributing £641mn to local economies in 2019. It is hard to avoid the conclusion that short-changing London is going to make us all culturally and financially poorer while making the UK a less attractive destination for visitors.”


London is not just the place that has historically received the most money for the arts. It is also the country’s centre of business and the major centre of higher education for the arts; and the galleries, theatres and concert halls there belong to the country as much as to London. For things to change radically from the present asymmetry, which I do not dispute, we need the cuts to grants for local authorities to be dramatically reversed. But local government across the country should also have strong revenue-raising powers, as regional government has in Germany, where there is a much greater spread of arts geographically.

There are brilliant artists, arts organisations and events across the whole of this country, but even in the digital age, the natural tendency remains for artists to gravitate to the big, powerful cities; artists and arts-producing organisations should be funded wherever they are. The former Secretary of State’s artificial arts engineering is not in the long run going to change this tendency, even as it frustrates the arts. The way forward is rather to empower our English regions and regional cities politically and financially to allow artists to thrive within them, and to be able to do so in the longer term.