I applaud the noble Earl’s tenacity in again raising protection of the arts. He is right to do so, against continuing challenging economic conditions and particularly with his focus on Newcastle. Newcastle City Council’s plans are still consultative, and it will be up to local taxpayers to give a response. The Arts Council, which already supports 42 out of the 700 national portfolio organisations in the north-east, is working closely with Newcastle City Council to achieve a positive outcome. Finally, it is encouraging to report from the recent annual local authority arts survey that, contrary to adverse publicity, there is some stabilisation of local arts spending. For the 2012-13 year, the budgets reflect an average of £384,900 per local authority compared with £381,600 for 2011-12.
My Lords, I declare an interest as a member of Newcastle City Council and director of Newcastle’s Theatre Royal. Is not the best way to safeguard arts funding in Newcastle for the Government to reduce the requirement on the city council to cut its budget by more than a third, or £90 million a year, with devastating consequences for vital services such as adult social care and children’s services? Will the Minister use his best endeavours to persuade the Secretary of State for Communities and Local Government to ensure that the forthcoming local government finance settlement allows for a significant abatement in the expected cut?
The point that the noble Lord makes is noted. The funding settlement for councils, as has been mentioned, will be announced later this year, but, given that councils account for a quarter of all public spending, it is vital that they continue to play their part in tackling the inherited budget deficit by making sensible savings through better procurement, greater transparency and sharing back offices. The main general grant from the Government to local authorities was on average £300 per head more in the north-east than in the south-east, with Newcastle receiving £653 per head compared to, for example, £150 per head in Windsor and Maidenhead.