Memorandum submitted by The Millennium
1. HOW THE
1.1 The Millennium Commission is a UK-wide
body, established under the National Lottery etc Act 1993. Its
sole purpose is to distribute 20 per cent of the National Lottery
Distribution Fund for "expenditure on projects to mark the
year 2000 and the beginning of the third millennium".
1.2 The Commission's work can be divided
into four programmes: capital projects; the Millennium Awards
Scheme; the Millennium Festival; and the Millennium Experience.
The Commission plans on the basis of an expected total income
of £2.236 billion and Funds have been allocated as follows:
£1,283 million to capital projects;
£198 million to the Millennium
£20.7 million for Festival activities
as part of the up to £100 million Festival Fund operated
jointly by the original Lottery Distributors and;
£11 million to First Weekend
1999-2000 and New Year's Eve 2000 celebrations;
£628 million to the New Millennium
£95 million for running costs
(4.4 per cent of total budget).
Examples of Breadth of Millennium Commission Funding
(i) Tate Modern£50 million grant£134.5
A new national art gallery enabling the Tate's
modern art collection to be established on a permanent basis.
This wonderful transformation of Bankside Power Station is a major
catalyst for the regeneration of this area of London and is bringing
significant benefits to the Borough of Southwark.
(ii) Millennium Greens£10.1 million
grant£20.2 million project
This scheme is enabling up to 250 communities
to have their own Millennium Green tailored to suit their own
needs. Millennium Greens are located in cities, towns, suburbs,
villages and hamlets and will be permanent breathing spaces for
(iii) Chinese Arts in the Park Festival£30,000
The Dragon Festival 2000 was a double celebration
of the Millennium and the Year of the Dragon which ran from January
until March. Activities included the creation of a new play "Dancing
Along The Silk Road", Chinese puppet shows, kite making workshops,
performances by dragon dancers, folk dancers, musicians and acrobats.
(iv) Cardiff Millennium Festival£645,000
A year-long programme of activities which started
off 2000 with the spectacular Calennig celebration. Events through
the year include a Millennium Youth Arts Celebration and an International
Millennium Festival. A 12 month programme of performance, participation
and celebration, creating events and opportunities sustainable
beyond the year 2000.
(v) Save the Children Fund "Saying Power"
Millennium Awards£1.2 million grant
Seventy-two awards averaging £15,500 to
young people in 13 areas of the UK to undertake projects which
seek to encourage young people to get involved in decision making
and improving services which affect them and others.
(vi) One Millennium Award winner who received
£2,222 under the Scarman Trust Millennium Award scheme has
transformed the lives of people living on one of London's most
notorious inner-city estates. The Award winner has brought a sense
of community, purpose and hope to the residents. By setting up
a residents' association and offering vital facilities such as
a drop-in centre, 24 hour helpline and a savings club, they have
improved community life and also inspired others to become actively
involved in revitalising the area.
1.3 The Commission is supporting 190 capital
projects on 3,000 sites. These include over a hundred and fifty
smaller one-off capital schemes with a regional or local impact,
and "umbrella projects": ie grants which cover groups
of schemes with a common theme, often including projects which
individually would be too small to apply (normally with grants
of less than £100,000). The Commission offers grants of up
to a maximum of 50 per cent of the total cost of a project.
1.4 The Commission's portfolio of capital
projects is incredibly diverse. They range from the widely acclaimed
Eden Project in Cornwall to the Moss Side Youth Powerhouse providing
facilities for young people in Manchester, and 21st Century Halls
which will create over 300 community centres across the UK. Other
projects include the Millennium Stadium in Cardiff which hosted
the final of the 1999 Rugby World Cup and the 5,000 mile National
Cycle Network. 87 projects are already open.
1.5 The Commission also provides grants
to individuals to enable them to achieve a personal aspiration
whilst benefiting the community in which they live. The Awards
have been described as "enabling ordinary people to do extraordinary
things". In order to ensure that Award schemes meet properly
identified needs and are managed by experts in the relevant fields,
the Commission makes grants to existing organisations, known as
Award Partners, which then recommend grants for individuals. These
recommendations must be approved by the Commission before a grant
offer can be made. The individual Awards are monitored by the
Award Partners which include many nationally known charities as
well as more local organisations.
1.6 The Commission has already offered £79
million in Awards to 79 partner bodies running 81 schemes which
will eventually benefit some 25,000 individuals. A further £20
million of Awards are planned by the year 2001 and with earlier
schemes this should provide grants to nearly 40,000 individuals
by 2004. In June a competition was launched to find an agency
to administer an endowment of £100 million and continue the
Awards into the next millennium (see section 4 below).
1.7 The Millennium Fellowship has also been
set up to recognise and celebrate the achievements of individual
Award recipients who have completed their Awards and to encourage
networking and the sharing of ideas and experience.
1.8 A contribution of £20.5 million
has been made by the Commission to the Festival fund of up to
£100 million established by UK Lottery Distributors. This
represents the largest cross-Lottery Distributor initiative ever
undertaken and the first UK-wide collaboration.
1.9 Awards were split between larger grants
of over £5,000 and smaller grants of between £500 and
£5,000. The Commission has funded nearly 400 larger Awards
with total grant of over £17 million and nearly 1,500 of
the smaller Awards with total grant of over £4.5 million.
1.10 In addition, the Commission provided
£5m to fund celebrations over the First Weekend of the year
2000 in 21 towns and cities and has allocated further funds to
help a larger number of towns and cities celebrate New Year's
Eve 2000. A further £6 million is being made available to
help towns and cities celebrate New Year's Eve 2000.
1.11 The Millennium Experience comprises
both the Dome at Greenwich and a major National Programme co-ordinated
by the New Millennium Experience Company (NMEC). This memorandum
does not provide detail on the Millennium Experience as it was
dealt with extensively in the Committee's recent inquiry "Marking
the Millennium in the United Kingdom".
1.12 The UK-wide National Programme of events
and activities involves schools, voluntary groups, churches, local
authorities and businesses. These initiatives are linked to the
theme of the Experiencethat the new millennium is "a
time to make a difference".
The Millennium Commission's projects are additional
2.1 The Commission has been keen to ensure
that its projects are additionalin essence that they have
added to what might otherwise have been available. In practice
this has meant supporting some projects which would not have happened
at all without the Commission, some which might have happened
but would have been of a lower quality and some which might not
have been realised so quickly. We have also been keen to fund
new types of projects and use public funds in new ways, such as
for a whole generation of Science Centres, or for the exciting
environmental education facilities which are being established
across the UK. This has sometimes meant that the Commission has
taken measured risks in funding projects that would not otherwise
have been realised but we believe that these risks have been justified
by the exciting projects which are now operating around the country.
Projects have attracted funding from other sectors
2.2 The Commission's decision to offer a
maximum of 50 per cent of the total capital cost of any one capital
project imposed a tough challenge on grant recipients to attract
funding from other sectors. They have been extremely successful
in doing this and have already secured over £1.6 billion
with only 2.5 per cent of the target remaining unsourced. The
total value of capital projects funded by the Millennium Commission
is £3 billion. A detailed breakdown of the sources of partnership
funding for Commission projects is at Annex A.
3.1 As a short life body with only a limited
period over which to distribute its funds the Commission was limited
in the ways in which it could adapt its policies in response to
public and political opinion. The Commission has, however, sought
to adapt according to public and political concerns and has made
full use of the new powers granted by the National Lottery Act
1998, including being the first distributor to solicit applications.
The Commission was also the first Distributor to make grants to
3.2 The Millennium Commission's funding
strategy is based upon consultation with the public and the desire
to fund projects which would almost certainly not have happened
without Commission funds. The Commission believes that the diversity
of its programmes and innovation of individual projects will leave
a lasting legacy of the move into the new millennium.
3.3 Following its formation the Commission
needed to decide how best to use the funds available to it within
the constraints set by the National Lottery etc Act 1993. Although
it was never the intention that all projects should be completed
by 2000, there was clearly a need to ensure that the public could
see some of the results of the Millennium Commission's use of
their Lottery funds in the millennium year.
3.4 The Commission began by undertaking
a wide ranging consultation including roadshows, speeches and
meetings. Following these consultations, Commissioners decided
that the majority of the available funds should go to capital
projects which would serve as a lasting reminder of the change
of millennium. More specifically, they agreed that the Commission
should aim to have a major capital project in each region and
country and that projects should be based around the five themes
which had emerged from the consultation, later titled: promoting
science and technology; supporting our communities; revitalising
our cities; encouraging environmental sustainability; and investing
3.5 In August 1998 the Secretary of State
for Culture, Media and Sport issued new Policy Directions to the
Commission following the implementation of the National Lottery
Act 1998. It should be noted that prior to this, the Commission
had targeted publicity at regions and groups that had not made
significant numbers of applications. However, the previous Directions
had prevented the Commission from soliciting applications from
particular geographical areas or social groups, even where it
had been noted that relatively few applications were coming from
certain groups such as black communities.
3.6 In July 1999 the Commission therefore
held a further funding round targeted specifically at capital
projects which "reflect the aspirations and achievements
of black communities in Britain". The Commission's powers
of solicitation were used to invite applications from short-listed
bodies. 44 applications were received seeking a total of nearly
£68 million. To date, seven of these applicants have been
awarded grants totalling £9.33 million.
3.7 As not all of the funding allocated
for Round 4 has been awarded, the Commission decided to hold one
further applicants round for projects which "reflect the
aspirations and achievements of ethnic minority communities in
Britain". In order to overcome some of the problems which
applicants from this sector have had in developing their applications,
the Commission decided to award development grants to a small
number of applicants who would then be invited to make a second
application for a full grant. In doing so the Commission solicited
applications from a number of projects which it thought stood
most chance of reaching fruition. Development grants have been
awarded to three of these and to one other non-solicited approach.
Full applications are due to be received in January 2001.
Smaller grantsAwards and Festival
3.8 The Government has been keen to ensure
that a higher number of smaller Lottery grants are available and
to make it easier for small, community based organisations, to
access these funds. The Commission's Millennium Awards programme,
discussed above, will eventually fund nearly 40,000 individuals,
all of whom are making a difference in their communities. Although
Award Partners need to provide partnership funding, individuals
themselves do not and the Awards are, therefore, accessible to
3.9 In addition, the Millennium Festival
Awards for All programme for grants from £500 to £5,000,
run jointly with other distributors, involved a simpler application
process making it more accessible to the type of organisation
which might not previously have been confident about applying
for Lottery funding.
Regional spread of grants
3.10 Although the original Policy Directions
issued to the Commission by the then Secretary of State for National
Heritage prevented the solicitation of applications, the Commission
has always been keen to see a broadly equitable geographical spread
of projects around the regions and countries of the UK. Although
there are some discrepancies, we believe that we have broadly
achieved our objective and have achieved our aim of having at
least one major project in each region and country.
3.11 There is, however, a wide variation
in capital projects grant per head across the UK. This is partly
explained by the policy of having a landmark grant in Scotland,
Wales and Northern Ireland which have a relatively low population,
ie a £50m landmark grant in Northern Ireland automatically
means a high grant per head. Tables of grants for each Commission
programme by RDA are attached at Annex B.
3.12 However, the Commission also depended
on regions submitting applications. Where a region did not make
sufficient applications it impacted on grant made. Thus although
the East of England only received £8.97 per head (national
average £21.38) they were slightly more successful than the
national average in terms of the proportion of their applications
which were successful. Of the applications they made, 11 per cent
were successful whereas the national average was 10 per centie
while the quality of the applications they made were on a par
with the average, their poor success rate is explained by the
fact that they did not make many applications. Conversely while
Scotland was highly successful in grant per head (£37.40),
they were only marginally more successful (13 per cent) in terms
of turning applications into grants, ie the fact that they made
lots of applications contributed to their success. London was
the least successful in turning applications into grants. Only
six per cent of applications were successfula fact that
might surprise many people.
3.13 The variation across the country in
percentage of applications which were successful shows less variation
than the grant per head figure. Much of the variation is therefore
accounted for by the pattern of applications. A table showing
the percentage success rate for capital projects for each RDA
by amount granted and number of grants, along with grant per capita,
is attached at Annex C.
4. THE CONTINUING
4.1 By the end of 2000 the Millennium Commission
will have awarded nearly all of its available funds. Our perspective
on the future of Lottery funding is, therefore, different from
that of the other distributors. The cessation of Lottery funding
will have varying effects on the diverse programmes we have supported.
Millennium Festival and Experience
4.2 Two of the Commission's programmes,
the Festival programme and Millennium Experience will have run
their course by the end of the year. It is, however, good to note
that some of the towns and cities which held First Weekend celebrations
and will be celebrating again on New Year's Eve 2000 have indicated
a willingness to make such celebrations an annual event.
4.3 The Lottery have moved away from large
capital grants to providing smaller grants aimed at people and
activities. The Commission has funded both but, perhaps more than
any other distributor, we have been involved in the big capital
investment game. The Commission's work may well have satisfied
a pent up demand for certain facilities and in this respect the
Commission's withdrawal from this field may not be missed. The
Commission has also sought the largest amount of partnership funding
and once again the trend has been towards more flexibility. However,
the Commission has been able to invest in significant urban infrastructure
projects and act as a catalyst for regeneration and this function
may be missed. Because the Commission did not set a rigid formula
as to how money would be distributed around the country it has
been able to provide facilities in Scotland, Wales and Northern
Ireland which would be outside the scope of national specific
distributors, eg Hampden Park (Glasgow), Millennium Stadium (Cardiff)
and Odyssey (Belfast). In addition, there are two significant
areas of capital project funding where the flow of money from
the Commission may be missed:
(i) Science centres
4.4 The Commission's capital projects programme
has funded science centres on a scale the country had not hitherto
seen. They use leading edge technology and educational techniques
to provide an exciting experience for visitors and an important
educational resource. These centres have told the Commission that
they need to plan to replace their technology over time if they
are not to lose their attractiveness to paying visitors and their
usefulness as providers of education.
(ii) Environmental projects
4.5 The Commission has funded many projects
which focus on the environment in nature, from visitor centres
such as Slimbridge 2000 and the Scottish Seabird Centre to Millennium
Greens and Woods on Your Doorstep which are providing green spaces
for people to enjoy all over the UK. Other projects such as The
Millennium Seed Bank and the National Botanic Garden of Wales
focus on research as well as being open to the public.
4.6 There are some alternative sources of
funding for these type of projects, for instance the New Opportunities
Fund has recently announced a scheme with some similarities to
our Millennium Greens project, but there is possibly not the breadth
of funding for the diversity of projects which the Commission
has been able to support.
4.7 From the outset it has been the Commission's
intention that the Millennium Awards Scheme should be part of
its long-term legacy and it therefore allocated £100 million
to enable the Awards Scheme to continue beyond the five year programme
set up in 1996, which comes to an end in December this year. As
the Commission itself will not be around to administer the scheme
into the future, in June we launched a competition to find an
agency to run the Awards in perpetuity. Commission staff are now
working closely with shortlisted applicants. Full applications
are required by 16 October and a decision on the successful applicant
will be made in December. The new scheme will begin towards the
end of 2001.
4.8 The Committee will wish to note that
although the Endowment will be a grant, the award will be made
in the spirit of delegation of decision making which the 1998
Act makes possible.
Maintaining the Momentum
4.9 The Commission is holding a series of
five seminars entitled "maintaining the momentum of change"
focusing on the five key themes of the Commission's work: Exploring,
Building, Breathing, Uniting and Learning. The first of these,
"Exploring" was held in early May and looked at the
public understanding of science and technology and the contribution
which the Millennium Commission's investment is making in this
area. The second, Making ConnectionsBuilding Communities,
was held in September and focused on the ways in which Commission
projects and Awards have drawn communities together at many different
levels. The remaining seminars will be held before the end of
5.1 As well as its ongoing work to see its
remaining capital projects through to completion, the Commission
is undertaking two exercises which will evaluate the effect which
the Millennium Commission's funding is having.
Economic Impact Assessment
5.2 The Commission has commissioned an Economic
Impact Assessment survey which will assess more accurately the
effects which the spending of such unprecedented sums over such
a period of time has had on the economy. The study will take place
over the autumn and the final report covering capital projects,
Millennium Awards and Festivals, and linking with similar work
being undertaken on the Millennium Experience, is due at the end
of the year. A preliminary analysis of the number of construction
jobs created by the Commission's programme totalled 46,000.
Social Impact Study
5.3 The Commission published the findings
of an independent Social Impact Study of its Millennium Awards
on 22 September. The study sought to evaluate the effects of the
Awards to date and provide important information for the whole
charity sector on the effectiveness of grants to individuals.
982 Award recipients were interviewed along with 39 Award Partners.
Key findings were that:
90 per cent say their project has
been a success in terms of its effect on them;
81 per cent say it has been a success
in terms of its effects on their community (gap is probably because
some projects are as yet unfinished);
62 per cent say that the effects
on them would not have happened without the Millennium Award projects,
showing high additionality;
85 per cent produced a public record
of their project;
70 per cent are planning to continue
or extend their project in the future;
the average time spent on a Millennium
Award project is 144 days, roughly 1,000 working hours;
the total of 40,000 grants could
therefore add up to some 40 million hours of work; and
the total value of the work of the
12,500 Award Winners to date has been calculated at £75 million.
NB: The £75 million is calculated using a minimum
daily rate of £50 for voluntary work.
6. KEY POINTS
Millennium Commission capital projects have
attracted over £1.7 billion of partnership funding.
The Commission has funded 27 major projects
costing more than £30 million each, one in every country
and region of the UK.
The Commission had funded over 550 village and
Through its funding programmes the Commission
has attracted a further £2 billion of investment from public
and private sources.
The Commission was the first Lottery distributor
to solicit applications.
The Commission was the first Lottery distributor
to offer grants to individuals.
Nearly 40,000 individuals will receive Millennium
The Millennium Awards will continue through
a £100 million endowment.
Through the Millennium Festival the Commission
has supported the largest programme of year-long celebrations
ever mounted in the UK.
30 million people have attended First Weekend
and Millennium Festival events.
A quarter of a million volunteers are involved
in the roll-out of projects across the UK.
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