Arts Council England: Funding

Andy Slaughter Excerpts

Wednesday 18th January 2023 Westminster Hall

[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.

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[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.

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[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.