Select Committee on Culture, Media and Sport Minutes of Evidence


Examination of Witnesses (Questions 240 - 259)

TUESDAY 18 APRIL 2006

HERITAGE LOTTERY FUND

  Q240  Philip Davies: You mentioned that local views are important and were a condition—I think you said—of funding. Is there a conflict of interest between widening local public opinion and also maintaining the excellence? Is there a danger that important things that perhaps the public do not appreciate at the moment are important but may do later could get lost if we widen it too much to public opinion? Where do you draw the balance between those two potentially competing factors?

  Dame Liz Forgan: I think sometimes experts fear that but I think our experience is that if you engage amateurs/local people/non-experts in a discussion about heritage for more than about 30 seconds you quite quickly arrive at an extremely sophisticated view of the subject. If you ask people off the top of their heads, "Should we keep this old building or should we have a hospital" it is quite clear they will say, "Sweep away the old buildings, give us hospitals". If you sit and talk a little bit longer, as we have done for instance with citizens juries and as we do with individual projects, people understand perfectly well the value of the past. They understand perfectly well the issues involved in choosing what you should keep from the past and what you must destroy in order to rebuild. We have had the most sophisticated conversations on this subject with people who would not begin to describe themselves as experts in the heritage. We do not think there is a conflict.

  Q241  Philip Davies: Could you explain to me what the mechanism is for getting the public opinion for doing it? Presumably, from what you have just said, you would not be in favour of a local paper going and asking people on the street what they think we should support and what we should not support but something more in-depth, so what do you have in mind?

  Ms Souter: We have used a whole range of techniques for engaging public opinion and that begins at our planning process, so we are in the process of developing our next strategic plan. We issued 5,000 copies of a pre-consultation document asking people what they thought about what we have done so far and what we were thinking of doing for the future. We had nearly 350 responses, including a lot of membership organisations who speak on behalf of millions of members. At one end of the process we involve consultation in all of our planning, at the other end of the process in terms of decision making we have, throughout all of the English regions, and Scotland, Wales and Northern Ireland, committees which take decisions between £50,000 and £2 million. Those committees are made up of local people. We advertise in the press and we get a whole range of responses from people who want to be involved so the decision-making involves local people with local knowledge. In terms of what we ask of applicants, we ask them to demonstrate the support for their projects, the need for their projects and how they are going to involve people in those projects. Every application involves people saying, "This is why we know this park, for example, would be a popular project. This is how we are going to involve friends of the park", that sort of thing. Then we also ask people to think about how they could use volunteers, for example, how they could improve skills. In terms of priority setting, which is one of the things that has been an important area for us, we do look at planning consultation but we have run some very detailed—as Liz said—citizens jury type events. If I take an example, we worked with the Arts Council in the Thames Gateway to talk to young people about what they would like to see in the communities that are being created in the Thames Gateway and they had some very clear views about needing to keep things from the past as well as develop things for the future. At the project level we ask the applicant to show us details of how the public are going to be involved, at the decision level we have local people with local knowledge and expertise taking decisions, and at the strategic level we have widespread consultation and involvement.

  Q242  Philip Davies: Are you confident that this does get through to real local public opinion or is this just experts in the local area? You are breaking through the expert barrier.

  Ms Souter: Yes. I think we have got a lot of evidence that it does involve widespread groups of people. For example, if I stick with parks for a moment, because I think they are quite a good example, a big parks project will often generate very strong emotions and very strong feelings from the local population, people want to see this and do not want to see that, and a very strong engagement in the discussion about how the project should proceed. We also know that it has lots of spin-offs and benefits which were not anticipated at the beginning of the project. I am thinking of Lister Park in Bradford, for example, where on one day that I visited there were large numbers of Asian ladies out walking. It was not organised, it had not been part of the project proposal but because the park was now a safer, more open, more engaging sort of place it was bringing in groups of people to use its facilities that had not been involved before. I am sure those folk would not see themselves as experts in any sense but they had seen a role and they had taken advantage of what was provided. I think we will see that again and again throughout the projects that we support.

  Q243  Paul Farrelly: I entirely agree with you having spent a great deal of my time over the last year or so engaging on planning and conservation issues with local people when they are engaged, particularly on planning applications. I would not call it sophisticated but they come out with a great deal of common sense about what needs to be done to protect the heritage of the area. In my experience it is the planning officers for various reasons who are the philistines, if that is not giving philistines too bad a name, and indeed so-called conservation officers such as we still have in many local authorities such as mine. There are great needs that we will be concentrating on in the report in these areas which are partly mainstream local government and government funding, getting the proper staffing expertise. In terms of your remit, are there any needs which you see that the sector has which you would like to address whilst keeping the Heritage Lottery Fund as a focus body which you are prevented from doing so under the directions that you currently have? Is there any part of your remit which could make you and your contribution more effective?

  Dame Liz Forgan: We are primarily grant givers, that is our skill, and we are good at it. However, I think it would be a failure to dispense over £3 billion worth of grants without taking some cognisance of the strategic impact of that investment and therefore having a broad view about what the strategic application ought to be. We are very careful to stay out of the way of the strategic bodies that are set up by statute to do that job. There is no service to anybody from us tracking over other people's responsibilities, so we are careful about that separation. It is of course true that we have set out on a path which has a clear view about how this money ought to have an impact, and I tried to outline it in my answer to the first question. We do not think of the heritage as something separate that you do on sunny weekends when you have some time and money to spare. We think of it as the blood and guts of the mental health of our society. We think of it as what constitutes the extraordinary distinctiveness of Britain. We think of it as the key to the identity of the people of these islands, past and future. For us it is a very big deal and thoughts about the heritage ought to inform decisions about planning and political development of all sorts. Therefore, we will engage with anybody who will talk to us and we will go and beat at the door of people with responsibility for things that do not sound like heritage like planning and say, "Think of us as an asset not as an obstacle." That approach sometimes gets a very receptive hearing and sometimes it does not. If you ask us what we would really like the good fairy to give us in future, it would not be more powers to intervene, we seek to persuade—admittedly having money to dispense helps with the persuasion—not to have powers. I think if you asked us what single thing would help the heritage in terms of what might be done structurally with local government, I think despite the slight hint that conservation officers were not your idea of a perfect solution, we think that it would be extremely helpful to have a properly resourced proper status network of conservation officers as a focus in local government where people could go for advice, where all the different functions of local government could have an easy reference point to heritage issues. That is asking rather a lot but I think that would be a very helpful thing in terms of bringing heritage to the centre of the hard work of local government and making a place a focus where people get proper reliable advice.

  Q244  Paul Farrelly: You touch on an issue which is very close to my heart here, and actually we do not have a conservation officer in my borough of Newcastle-under-Lyme anymore. I do not think the last one was much missed either, quite frankly. I think we will be very strongly in favour of trying to get more training and a better supply of professionals but also, touching on the point you have just raised, I am a patron of an organisation called Urban Vision in North Staffordshire which is trying to get people to think about good design and heritage and conservation altogether because they belong together. That was a CABE seed funded body and it has been partnered by people in the regeneration zone, English Heritage are not in there but I may yet approach them for some money. Is that organisation, which is not a time limited project, the sort of organisation within your direction which you could help to fund now or by virtue of its other partners is that something that you could not touch under your remit?

  Ms Souter: The other partners thing is not an issue at all. We look for the broadest possible partnerships and encourage applicants to engage as many people as they can in support of funding. We are a project-based organisation and that is a requirement in our directions that we are looking at projects. I think it is probably important in terms of the additionality question . Once we reach a point at which we are being looked to for on-going support for core costs, for example, I think it then becomes much more difficult to demonstrate as a lottery funder that we are providing extras. It also, over time, means that a larger proportion perhaps of our funding would simply be going on day-to-day running costs. That said, of course, an organisation of the kind that you are talking about might well want to run projects. We can fund, for example, education officer posts, community liaison posts over the period of time that the project runs and I think that is often very helpful for people in establishing those sorts of posts, demonstrating the importance that they have and how effective they can be and maybe then going to other funders—maybe it is the local authority or whatever—and saying, "Right, now we want to embed this for the long-term because we have seen what it can do". We can help in that way but I do not think it would be helpful for us as a lottery distributor to get into long-term core costs funding because I think that would confuse the additionality argument.

  Q245  Paul Farrelly: One of my colleagues who is not here, Helen Southworth, is an archaeologist and we have heard from the Council of British Archaeology about one particular initiative that you have which is shortly to come to an end, which they find very valuable and would dearly like some news of any replacement, and that is the Local Heritage Initiative. I just wondered what words you might be able to say about that this morning?

  Ms Souter: Yes, the Local Heritage Initiative has been an extraordinarily successful partnership with the Countryside Agency and the Nationwide Building Society. It has supported a range of local projects. Its distinctiveness for us has been that it has provided a level of developmental support which is not typical for all of our projects so a small group that has not done any projects of this kind before has been able to have some technical assistance and some support in developing their project. That inevitably comes to an end because of the changes in the structure of the natural environment bodies and will come to an end this year. What we are doing at the moment is reviewing all of our small grant programmes as part of our planning for our next strategic plan and looking at what we can learn from the programmes we have run so far and what we can take forward into the future. I think the key thing from the Local Heritage Initiative is identifying those groups that have got a great idea but not very much capacity and finding a way of supporting them so that they can take their project forward. Not all small applicants need that sort of support and advice. It is not something that we provide directly. We do not have the staffing and we do not necessarily have the local knowledge or skills to do that but the important thing for us is to find a way of putting those smaller newer applicants in touch with the folk who can provide them with the help, support and skills. I am sure that is something that will be an element of our small grants programmes for the future because it has worked incredibly well both with the local heritage initiative and with our Young Roots scheme, where we work with the National Youth Agency to provide funding for 13 to 20 year olds to engage them with heritage. You might think they are a rather unpromising group to try and get involved in heritage but actually they are incredibly interested and excited and have come up with some really great ideas for projects. We know that finding the right ways of supporting often first time applicants is absolutely crucial to the success of small grants programmes.

  Q246  Paul Farrelly: A replacement is under active consideration. One of the frustrations with constant reorganisation across all parts of government is that by the time you have set a scheme up and if anything is valuable people know about it, suddenly it falls between the cracks and people do not know where to go.

  Dame Liz Forgan: That is a very loud message you get from any kind of public consultation "For God's sake do not keep changing the programmes because it takes years for people to realise they are there". We try to keep a pretty simple structure. Essentially we have big grants, medium sized grants and small grants. We need to have those categories because the issues involved in a £10 million huge great canal scheme are quite different because you are dealing with different people, different disciplines, and different supervision from a small community matter like that so we have a different focus. We do try to keep the number of our special programmes extremely small and change them as little as we possibly can. As Carole said, the reason why small grants have to be looked at again is because of changes elsewhere which mean that structurally it has to change. We will keep that message well in mind.

  Paul Farrelly: I am sure we will address this in the report.

  Q247  Chairman: Your directions specifically exclude grants being given for projects which are for private gain and you also say in your evidence that " . . . assets in private ownership are a low priority for HLF funding". We have also heard evidence that private owners own and manage two-thirds of the nation's built heritage and that they are under severe pressure, particularly with the reduction in funding that has taken place from English Heritage. Do you think it is now time to reconsider your policy towards grants to private owners?

  Dame Liz Forgan: We are just starting the process of consulting on our next strategic plan. Every time we do that we raise this subject again precisely because of the point you make. We are in a bit of a bind. Our direction is pretty elastic, it says we must have projects which promote the public good or charitable purposes and which are not intended primarily for private gain, so that gives us a bit of leeway. When we consult people it is quite clear that the notion of handing large amounts of money, as people would see it, to wealthy private owners is not a popular idea. However, we have historically looked at ways in which we can, with imagination and help, support the private owners consistent with our directions. For instance, at the strategic review, having listened to really eloquent and well-founded pleas, especially from the owners of the historic buildings, what we did was to put in place an encouragement to them to come to us for schemes to support the public visitors to their houses: education, public access, so that would all help with the support of those buildings. Support for mending the roof of a historic house in private ownership is never going to be our key priority, I am afraid to say. Other people have a role in that but in terms of lottery funding I think it is right to be straight with the private sector and say, "Do not look to us for certain things that we cannot do, come to us for the things we can". We will look again, for instance, in this Strategic Plan to see whether in terms of countryside management there are other ways in which we can support private owners who are making their estates and their land available for public enjoyment, things like that. I think it would be wrong to imagine that we are likely to embark on a major programme of supporting heritage assets in private ownership per se and as a priority.

  Q248  Chairman: Can I press you a little bit on that. We have seen the ways in which private owners use considerable imagination to access your funding. We went on a particular visit where we saw facilities such as a sensory tour, a Braille map for partially-sighted people and a virtual tour of the property, all of which are worthy projects, but they pointed out to us that the property is in a severe state of disrepair and there is a major need for expenditure on keeping the roof on. Does it not seem slightly strange that we should say it is fine to give private money for virtual tours but the serious threat to the fabric of the building cannot be addressed?

  Dame Liz Forgan: It would do but there are another couple more lines to that dialogue. If you are a private owner of a historic building you have three choices. You look after it yourself, you turn it into a trust which gives it a different status and makes it immediately possible to look to us for support, or you sell it to someone richer than you who can afford to keep it up. Historically that has happened to many great houses. That is the rule of the marketplace. I am speaking to you honestly, I do not think it is ever likely that the Lottery will devote the sorts of sums of money it would have to to make any difference whatsoever to the maintenance of the privately owned heritage to make that happen.

  Q249  Chairman: I understand you feel that it is not appropriate for the Lottery but you have said in your evidence, grants for private owners have now almost totally gone, HLF funding should not replace them and the Heritage White Paper should address this issue. If HLF is not replaced, how should the Heritage White Paper address the issue?

  Dame Liz Forgan: I think that if you talk to the owners of historic houses they will tell you that in the past support that was available to them from, say, English Heritage was much greater and it is no longer what it used to be because English Heritage's funding has declined.

  Q250  Chairman: Why is it right that public money can be spent through English Heritage but not Lottery money through HLF?

  Dame Liz Forgan: I think "right" is too strong a word for it. We have set out, within the terms of our directions, the priorities which the Lottery will apply to its funding, so everybody needs to be clear about the rules and they have to understand what we do, why we do it and what the priorities are. We do not say we will never fund private gain, we say public gain must greatly outweigh the private gain and it is never going to be a priority. That is our best guidance to people before they spend a lot of money applying to us. I think there is a perfectly good argument, which could be advanced, for the nation if it saw fit to support private owners in continuing ownership of historic assets through the statutory agencies if they so wanted to.

  Q251  Chairman: Can I move to another aspect, which has cropped up in the evidence we have had from several witnesses, which is the plea that rather than wait for there to be a real problem requiring substantial expenditure on repair, more attention should be paid to promoting effective maintenance and therefore avoiding the need for that. Is that something which you would be in agreement with and would be in a position to promote?

  Dame Liz Forgan: Can I ask Carole to answer that. I am passionately in favour of this but it is necessary to keep a very cool head when replying to this matter. Carole represents, in this instance, a cool head.

  Ms Souter: We agree entirely. Very often the projects that we support are tackling problems that have accrued over many, many years and which would not be so acute if proper ongoing maintenance had taken place. I think the issue for us at the moment is how we can ensure that the projects we fund put in place good maintenance regimes for the future so they do not come back 10 years later saying "We had that money for that particular building's refurbishment, or park, but now, unfortunately, it is still in difficulty because we have not been doing the ongoing maintenance." We require parks projects, for example, and we require buildings'owners, to demonstrate what their plans are to keep their estate in good order for the future. What we do not do is provide funds for regular routine maintenance for owners as a matter of course and that comes back to the point I made earlier about additionality and ongoing funding. It is the responsibility of owners to encourage good maintenance and to make sure that they deliver the maintenance. I think what we are keen to support is information about education, and the development of skills in ensuring that maintenance happens on a regular basis. As I say, for our own projects or the projects which we fund we can require it, we obviously cannot require others who do not come to us to ensure that they have got good maintenance regimes in place. The more we can emphasise and draw attention to the benefits of maintenance the better. I think, sadly, it is probably true that even as ordinary run-of-the-mill homeowners we do not always do the day-to-day maintenance in quite the way we should, and it will take a lot of encouragement but I think it is something that all of the bodies concerned with the heritage need to be emphasising all the time. Buildings and historic artefacts will require major maintenance from time to time and that cannot be avoided but if the regular day-to-day, year-on-year maintenance is kept under control that ten-yearly, 15-yearly cycle is much easier to manage.

  Q252  Chairman: Is there a danger that there is a perverse incentive that owners will decide not to spend money on maintenance because they allow it to deteriorate so badly that they will not have access to funding for major repairs?

  Ms Souter: I think it is certainly the case that some of the major capital projects and renovations that we have funded have been the result of lack of maintenance over time. I think it would be a very brave owner who decided to let things go in the hope of Lottery funding in the future, and we would always want to know and understand why that maintenance had not taken place in the past. I think in terms of local authorities it is very often quite clear. We would not look kindly on any suggestion that money was being diverted elsewhere on the assumption that we would come along and bail them out afterwards.

  Dame Liz Forgan: This is such an important subject. Can I add a couple of points. One is that I think we have to look forward, we cannot really deal with the past. We need to be sure that we are doing all we possibly can to see that in 10 years' time people are not coming back and asking for money again for the same projects that we have been funding. One of the things that we do, for instance, is to allow a local authority which comes to us for, say, a park to capitalise 10 years of maintenance budgets as their match funding for our funding which means that it is written into the contract, there it is, there is a sum of money set aside in the budget for 10 years or whatever the case may be. The problem is we do not have a police force and the issue of how we enforce that is one we need to think about a lot. The second issue I would lay on the table, because I have no solution, is this,: I think here and there—and I am thinking particularly of churches—health and safety legislation has made it more difficult to enforce maintenance regimes. Once upon a time you could stick a ladder up a church and clear the gutters with a tall verger but now you have to scaffold the blooming place and it has hugely added to costs and really made the problem worse, for good reasons I am sure, but it is an ingredient.

  Q253  Paul Farrelly: The Chairman's question has already touched on the overlap, welcome or not, between English Heritage and the Heritage Lottery Fund, particularly where heritage funding is reducing and people are looking to bodies like yourself to fill the gap. I want to explore that further. First of all, in terms of the delineation of roles between yourselves and English Heritage, do you feel that they are clear or are there some areas in which those roles could be made clearer?

  Dame Liz Forgan: Carole used to work at English Heritage so she is perhaps best placed to tell you.

  Ms Souter: I think they are pretty clear. We are a UK-wide body covering the whole of the heritage natural historic environment, cultures, traditions, industrial, maritime and transport heritage. We have a very broad definition and we go right across the piece. English Heritage has a range of statutory roles and also obviously operates properties and so on. I think whilst the public may regularly use English Heritage Memorial/National Lottery Fund, in terms of the practitioners I think there is no real confusion. I think it is absolutely essential for us that English Heritage is in a position to fulfil its statutory duties and obligations and that it has the resources to provide the advice and the guidance that the sector needs in terms of standards and in terms of knowledge and education and so on. I think the discussion we had previously about private owners also relates to the relevant grant making streams. We work very closely with English Heritage in two particular ways in relation to grant making, both asking them to provide us with expert advice in relation to particular applications but also, in the joint scheme that we run for places of worship where we each contribute appropriate to our own aims, if you like, to a single scheme which makes it easier for places of worship to have one place to go for a grant and not to have to apply to each of us for different things. I think that does work extremely effectively and, as with other organisations that have statutory responsibilities in fields which we cover, we have very close links in terms of policy discussions, planning and those sorts of things. I think that there is a clear distinction between them.

  Q254  Paul Farrelly: That then begs the question, do you think as things currently stand and as things develop in the near future that English Heritage is well-equipped and sufficiently resourced to fulfil its responsibilities?

  Ms Souter: I think there is a tremendous demand on English Heritage to provide the extraordinary depth of expertise and knowledge that they have to an increasingly demanding customer base, if you like. We talked earlier about local authorities, and there is no doubt that English Heritage's work to help skill local authorities, both in terms of officers and indeed in terms of members, is extremely important and I am sure they could happily devote significantly more resource to that area of work. I think it is important that English Heritage continues to be properly resourced. For a whole range of reasons they have not had the increasing level of resources which I think they feel they need to keep up with demand. Obviously from our point of view the more skills, expertise and knowledge there is out there in the world, the easier it is for us to respond to an application quickly and positively, and say, "Yes, this has got everything we need in it", and to disburse funds accordingly.

  Q255  Paul Farrelly: Without disparaging English Heritage and the good people there in any way, in short the answer to the question is "no" at the moment?

  Ms Souter: They could always use more resource, and I think they need more resource to be able to make best use of the skills that they have got. They are such an extraordinary resource of knowledge and expertise and, as we have said already, that knowledge and expertise is not shared across the countryside in all those places where it is needed.

  Q256  Paul Farrelly: Do you think that impacts on your work as well and their being insufficiently equipped therefore lets you down?

  Ms Souter: I do not think it lets us down, but I think it means that sometimes people who come to us need to take a little bit longer, need more help, maybe need to buy in help and it might be better for them to have more skills themselves having learned from English Heritage and taken advantage of that knowledge.

  Q257  Paul Farrelly: Liz, you are straining!

  Dame Liz Forgan: I think in an ideal world you have a really well resourced statutory agency whose expertise is established and respected which, for instance, administers rules about conservation areas so that everybody knows where they are and they work, and then the Lottery can dance around, be free to do its work, without getting involved in areas where it has not the expertise. I have to say, if you want to see what happens when the statutory agency is really not properly resourced, you look to Northern Ireland where you see awful depredation going on; not that anybody wills it, it is just there is not a structure, there is not a proper statutory agency to stand over it and say, "This is right and this is not right and this is how we are going to do it". I think English Heritage does a pretty good job but I think, as Carole says, the demand for that function and that expertise, in order to maximise the value of not only the heritage but also the Lottery contribution, is clear.

  Q258  Paul Farrelly: Earlier on in response to previous questions, this horrible word/jargon "additionality" was used. Given the resource constraints in English Heritage at the moment, how do you feel that you are now being asked to substitute for what should be central government funding and projects? What pressure have you been under?

  Ms Souter: I do not think we are asked directly to substitute for government funding. We have already mentioned local authority funding; I think there is no doubt that there are areas where we are funding projects which are dealing with many years of underfunding, whether it be local museums, parks, whatever. We are pretty clear about not substituting for government funding. It is a terrible word, "additionality", and it is incredibly hard to define, but I think we have got pretty good at knowing what we mean by it and spotting it. We always look to see how we can add value, if you like, do things that would not be possible without our funding. Sometimes that is because there simply is no other source of funding available; sometimes it is because we can add an extra layer of quality, inclusion or access to a project that might otherwise have happened but not happened in the same way. As Liz said earlier, we have got pretty elastic directions and I think we would both feel very strongly that we are not placed in a position where we are asked to do things in an inappropriate way. Were that to happen, we would be pretty good at making clear what that remit is as well. No, I do not think we are regularly asked to substitute for government funding. What I would say is that there is a range of areas where government funding would make a significant difference. We have not mentioned the National Heritage Memorial Fund this morning which is a fund operated by the same trustees that is a resource for acquisitions. We would very much welcome an increase to that funding to support acquisitions of objects, paintings, whatever. We also, of course, hope that the Government's review of the shares of good cause money going to heritage, which will be known in the middle of this year, will confirm the percentage of good cause monies that the Heritage Lottery Fund distributes. I think it would be a great loss to the sector if that were to decline in any sense.

  Q259  Paul Farrelly: Finally, Chairman, if you will permit me, let me ask the same question a different way, because any body with money is going to be approached by anyone with nous to get any project off the ground. To what extent do you feel—even if it is not a scientific measurement—that people now are coming to you when they have approached English Heritage and English Heritage have said, "Sorry, have not got the money, try the Lottery Fund", for projects that they previously would have funded? Likewise, although my Government has done a grand job in giving local councils more cash, they are not exactly awash with the stuff at the moment and there are great pressures on grant-giving for non-statutory functions in local councils these days. To what extent do you feel over time that again people are saying, "Try the Lottery Fund" for projects in the past that they would have been able to fund or part fund?

  Dame Liz Forgan: Occasionally people do say, "Try the Lottery Fund", but we are quite alert to this problem. It is not an exact science, as Carole says, but we will always ask questions. If somebody comes to us, we will say, "Is there somebody else whose job this is? Is there somebody else that has a responsibility for this? Why have they not done it?" If somebody comes to us and asks us to fund their disability access to a building, we will say, "No, that is your statutory duty. We are not funding that". If somebody finds asbestos and they want asbestos taken out of the roof of the museum and they come to us, we will say, "No, that is the job of the DCMS". We will only help with things like that in the context of a completely total Lottery project. We are quite alert to that. People do try it on, of course they do a) because that is human nature and b) because the Lottery does represent a large amount of money and, as you say, it attracts people with need, but it is our job to maintain and police that separation. I think it may be that the fact that we are only a Lottery distributor helps us to maintain some clarity in this. The Arts Council, for instance, has two streams that it administers almost as a single fund and I sometimes wonder how they manage to tell which hat they are wearing. It is quite easy for us.

  Ms Souter: Other sources of partnership funding are becoming more and more difficult to find, so I think that as European monies are lost from some areas, for example, we will find more people coming to us and saying, "Could you fund more of that because we have not got that source of funding?" That is going to be an increasing pressure particularly on regeneration-type projects in historic areas and historic buildings.


 
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