Government Response
1. Introduction
1. The Government would like to thank the members
of the Culture, Media and Sport Committee for this thought provoking
and interesting report.
2. We are very appreciative of the work and the time
that has been undertaken by the Committee to engage with the wide
range of arts organisations and interested parties across England
in order to produce this report and for this timely evaluation
of the Arts Council.
3. The Government is pleased that the Committee has
recognised the important role that the Arts Council plays within
the cultural ecology of England and the hard work that is undertaken
across the country by its staff. This Government is committed
to ensuring that as many people as possible in the country can
access the incredible wealth of arts and culture that is available.
4. The United Kingdom as a whole has a long and rich
history of artistic and cultural excellence and the mixed economy
in which the arts is instrumental in supporting this. Arts Council
England, along with the arts councils of Wales and Northern Ireland
and Creative Scotland, plays a vital role in supporting artists,
writers and musicians. The growth and the contribution of the
creative industries as noted by the Committee, are an incredible
success story which has been supported by this Government through
its public funding for the arts and a range of tax reliefs that
are making an enormous impact across the sector.
5. Despite the challenging economic circumstances,
the Government will provide almost £3 billion to the Arts
Council in grant-in aid and National Lottery money during the
life of this Parliament compared to £2.91 billion during
the last Parliament. Indeed, Lottery funding for the arts has
been some £100 million per year higher than expected prior
to 2010, thanks to the changes we brought in to restore the Arts
Good Cause share to 20%, combined with increased ticket sales.
6. The Government also recognises the ongoing debate
regarding the balance of funding between London and the regions.
As the Committee reports, this has been something that has been
looked at over a number of years and the Government wants to see
further progress made in this area.
7. The Arts Council has the responsibility for making
individual spending decisions independently of Ministers and Government.
The long-established 'arm's length principle' is important in
the protection of freedom of cultural expression. Funding decisions
are a matter for the Arts Council; but their objectives sit within
the wider Government policy framework which emphasises Britain's
national and international reputation as a world leader in the
arts.
8. Data from the Taking Part Survey shows that participation
in the arts in 2013/14 remained at a similar level to 2008/09
and 2010/11. The Taking Part Survey has been measuring arts participation
since 2005/06 and in 2012/13, participation reached its highest
level with 78.4% of adults having engaged with arts in the 12
months prior to interview.
9. Similarly, visits to museums and galleries have
increased between 2008/09 and 2013/14, and between 2010/11 and
2013/14, despite the decrease in GiA received by DCMS-funded cultural
institutions. Attendance at museums and galleries in 2013/14 was
at a higher rate (53.1%) than in any other year since data collection
began in 2005/06.
2. Government's Response to the Conclusions
10. In this section, the Government sets out its
response to the conclusions and recommendations in the Select
Committee report. In referencing these areas, we use the conclusion
numbers as noted in the section 'Conclusions and recommendations'
on page 36 of the Committee report. We have grouped the responses
thematically and combined answers where appropriate.
NATIONAL AND
REGIONAL
11. (Conclusion 4, Paragraph 23)
We note the committee's comments on funding distribution
in the regions. In respect of regional museums, we support the
decisions that the Arts Council have made in distributing its
funding to the Major Partner Museums[1][1]
outside London, and the Arts Council's wider support to regional
museums and galleries through its Resilience Fund Museum Development
Officer scheme. The Arts Council encourages the Major Partner
Museums to work collaboratively with both National Museums and
with other partners. More broadly, National Museums already have
close relationships with museums across the country, and there
exists a large number of loan and touring exhibition programmes
to display national collections around the country. We also note
that collaborative working is enhanced by the National Museums
Directors Council's decision to include the Major Partner Museums
within their membership.
Many of the National Museums are also pursuing and
making progress on the digitisation of their collections, to ensure
that the largest possible number of people may have access to
them, and collaborative work continues across national and non-national
museums to ensure that this is done to the highest standard.
Many of the National Museums have a presence outside
of London and the Royal Armouries and National Museums Liverpool
are based outside of London. In addition to the Science Museum
Group, nearly all the National Collections including the Imperial
War Museums, Tate and the Natural History Museum have branches
outside London or share their collections with institutions outside
London on long or short term loans, such as the National Portrait
Gallery's arrangements with the National Trust, and we continue
to support them in this provision. In 2013/14, the Science Museum
Group's Kensington site received 3,343,000 visits, while its regional
sites attracted 2,366,000. In addition, the recent Autumn Statement
has announced a 'Great Exhibition of the North' which will celebrate
the great art, culture and design of the north and provide greater
access to collections of national significance; and provided funding
for a new exhibition space for the Museum of Science and Industry
in Manchester (which is funded by the Science Museum Group).
Many of the National Museums also work closely with
museums across the country, working collaboratively and offering
support and advice, as well as maintaining vibrant loan and touring
exhibition programmes to display collections around the country,
and this will continue to be important.
12. (Conclusion 6, Paragraph 28)
The Government wants as many people as possible to
have the opportunity to experience arts and culture wherever they
live. We were pleased to see that from 2015-18, the Arts Council
will focus on building capacity and infrastructure outside London
using strategic funds and being a more demanding partner of the
National Portfolio Organisations and Major Partner Museums they
fund, expecting them to take on national responsibilities as part
of their funding agreements. These organisations will have committed
to extend audiences, assist with education and increase workforce
diversity. The Arts Council will hold these organisations to
this commitment by monitoring and reporting on their reach and
we will expect them to do so.
We agree with the Committee that it is important
these organisations play a part in wider artistic and talent development
and that all national companies have partnerships across England.
The Government's Theatre Tax Relief has been designed to encourage
organisations to expand by extending the reach of touring organisations
across the country. The Theatre Tax Relief was announced by the
Chancellor in the 2013 Autumn Statement and came into effect on
1 September 2014. It applies to a range of live performances including
plays, musicals, opera, ballet and circus productions. The relief
has generated great interest within the theatre sector across
the country, helping to promote economic growth and widening the
opportunities for people to participate in the arts. In the 2014
Autumn Statement, the Chancellor announced that the Government
would launch a formal consultation in early 2015 on the introduction
of a similar tax relief for orchestras which would come into effect
in April 2016. This consultation has now been launched.
We also agree with the Committee on the use of new
media and screenings of plays and operas at cinemas or via the
internet. The National Theatre, an Arts Council National Portfolio
Organisation, is among the organisations that have led the way
on this. We were encouraged by figures in their most recent annual
trading report (published in October 2014) that reported ticket
sales from NT Live screenings to cinemas at home and abroad had
seen a 179% increase- from £2.4 million in 2012/13 to £6.7
million. Organisations such as the RSC, English National Opera
and the Royal Opera House are among those who have also embraced
this exciting new avenue for arts organisations. The screenings
allow people outside of London to experience an incredible range
of productions without the cost of transport or accommodation
in the capital as do the ability to purchase and download recordings
of productions to watch at home. There is great potential in this
area and the Government is keen for arts organisations and the
Arts Council to continue to embrace and develop this.
13. (Conclusion 8, Paragraph 32 and Conclusion
19, Paragraph 84)
Like the Committee, the Government recognises the
important role that the Arts Council plays in bringing together
cultural partnerships and how organisations that receive public
funding should be integral parts of their community that are accessible
to everyone. The Arts Council is working with Local Enterprise
Partnerships and local authorities and the Government is keen
that this continues in the future.
The ten Bridge organisations which were established
in April 2012 and have been funded by the Arts Council are a good
example of how cultural institutions in an area can work together.
We think the Creative People and Places programme that the Arts
Council has undertaken to improve arts and culture in areas of
low engagement is a step in the right direction so that the artistic
infrastructure of an area is enhanced and developed ahead of any
possible future funding.
14. (Conclusion 9, Paragraph 35)
We are committed to the principle that Lottery money
will not be allowed to become a substitute for funding that would
normally fall to mainstream Government spending. Distributors
such as the Arts Council are well aware of this principle and
the Government expects them to follow it.
The definition of 'additionality' is set out in the
2006 National Lottery Act. It is a matter for the Lottery distributors
to satisfy themselves and the department on the allocation of
Lottery funds within the additionality rules.
There is a requirement for all distributors to report
in their Lottery Annual Report and Accounts on how the additionality
principle has been applied. The NAO has the duty to scrutinise
those accounts and will raise any concerns with the Department
including on the application of additionality.
15. (Conclusion 13, Paragraph 67 and Conclusion
22, Paragraph 91)
The Government recognises that the Arts Council have
been working to address the balance of funding between London
and elsewhere since their 10 year strategy was launched in 2010,
and that they intend to build on that through both National Lottery
and Grant in aid. But we also concur with the Committee's view
that there is much more to do and much further to go. During the
next few years, it is important that further progress is made
on this issue.
We were pleased that the Arts Council's announcement
earlier this year regarding their programme of funding for 2015-2018
continues the trend in the increase of the share of funding that
is going to organisations outside of London. But as the Arts Council
acknowledged at the announcement of their portfolio, it will take
time for this to happen. Currently over 70% of its Lottery investment
is outside the capital, compared to 60% over the lottery's lifetime.
In 2004-5, ACE's share of National Lottery Distribution Fund income
and investment income was £169,169,000. In 2014-15, ACE's
projected share is £272,142,000 including their share of
returning Olympic Lottery Delivery Fund monies.
This is something that the Government has discussed
and has will continue to discuss with the Arts Council. Given
the current situation regarding public finances, we feel that
it is important for the Arts Council to ensure that funding decisions
are made carefully and with a view of the national picture. We
would be concerned if there was a sudden and hasty shift in funding
that would weaken and threaten London's cultural offer.
The Arts Council have been clear that their role
is to make arts funding as balanced as possible given the amount
of funding available and the various considerations that it needs
to take into account. The final balanced picture is dependent
on the kinds of applications that organisations have submitted.
This is something that the Department will continue to monitor
and discuss with them to ensure that sufficient progress is made
in addressing this issue.
FUNDING
16. (Conclusion 10, Paragraph 37 and Conclusion
21, Paragraph 90)
Due to the recession, many aspects of public funding
have had to be reduced to deal with the national deficit. Despite
that, this Government will provide £3billion during the life
of this Parliament, £1.8 billion in grant in aid money for
the arts—and over £1 billion in Lottery funding for
Arts Council England. At the 2013 Spending Review, arts and museums
were only cut by 5%—much better than many feared and something
that was acknowledged by Sir Peter Bazalgette when he gave his
evidence to the Committee. In April 2012, the share of National
Lottery funding for the arts increased from 16.67% to 20%.
However, it would be inadvisable to make commitments
on future spending. Both the Secretary of State and the Minister
for Culture continue to represent arts and culture within Whitehall,
making the case to HM Treasury in Spending Rounds and for tax
reliefs (e.g. theatre), with the Department for Communities and
Local Government on the important role that local authorities
play in funding, and with other government departments where the
arts contribute to their agendas e.g. health and education.
LOCAL AUTHORITIES
17. (Conclusion 12, Paragraph 47)
The Government agrees with the Committee in that
incredible arts and culture should be available and accessible
to everyone. In June last year in his first keynote speech on
the arts, the Secretary of State called for arts organisations
to make what they do accessible to everyone. He spoke of the need
for arts organisations to ensure that everyone in the UK has the
opportunity to engage with our artists and actors, our history
and heritage so that everyone has the chance to develop their
own cultural tastes. The Arts Council works to increase participation
in areas where there has been low engagement through its Creative
People and Places programme as well as its work with local authorities.
This Government has launched a social investment
tax relief which will unlock an estimated £480 million of
additional social investment over five years and encourages individuals
to support social enterprises, helping social enterprises to access
new sources of finance. The 2014 Autumn Statement saw the scheme
being enlarged in order to support the 230,000 social enterprises
that exist across the country which have a combined annual income
greater than £60 billion and a workforce of more than 2 million
people, representing over 4% of GDP and 5% of UK employment.
18. (Conclusion 14, Paragraph 70)
We are pleased that currently over 70% of the Arts
Council's Lottery investment is outside the capital, compared
to 60% over the lottery's lifetime and we will continue to monitor
this. Lottery funding allows the Arts Council to invest more strategically
via schemes such as the Grants for the Arts scheme which offers
awards from £1,000 to £10,000 to support a wide range
of arts-related activities including visual arts, dance and literature.
19. (Conclusion 15, Paragraph 74)
The Government notes and welcomes the Committee's
conclusion that a statutory requirement for arts and culture by
local authorities would not be helpful. The introduction of such
a requirement as exists for libraries, would create a 'tick box'
culture that may not represent a genuine commitment by local authorities.
Local authorities should take into account the views
of their local communities and Council Tax payers when they make
funding decisions but it is right that these decisions are separate
from Government. A locality's cultural assets can be a major part
of the local economy, attracting business and visitors as can
be seen by events such as the very successful Folkestone Triennial
or the Yorkshire Festival that was part of the Tour de France
taking place in the region in Summer 2014.
Arts and culture can provide a sense of pride and
place within a community and it is also an excellent way to discuss
and debate issues that are significant to the community in an
informative and challenging way. The Arts Council works with local
authorities to promote the impact that culture can have and it
is very important that local authorities recognise the benefits
that the arts can bring.
There has also been some good work by local authorities
that have innovatively looked at how to deliver services more
efficiently that includes the establishment of charitable trusts,
creating mutual and sharing services across local authority areas.
The Government would also like to applaud the work
of those who champion the value of culture in their localities
and their communities. Many of these have applied to be part of
our successful UK City of Culture campaign that celebrates local
authorities that are championing culture and increasing access
to the arts. It encourages the use of culture and creativity as
a catalyst for change, promotes the development of new partnerships
and encourages ambition, innovation and inspiration in cultural
and creative activity. Derry~Londonderry was the 2013 City of
Culture which saw £100 million invested in the city's infrastructure.
The Arts Council have supported this initiative and will be supporting
the 2017 City of Culture, Hull.
20. (Conclusion 16, Paragraph 80 and Conclusion
17, Paragraph 82)
We agree that the Arts Council should continue to
engage with local authorities and build partnerships with arts
organisations.
The recent Autumn Statement included a strong range
of new initiatives to support arts and culture across England
including the North of England. This includes a tax relief to
support orchestras, £78 million for a new theatre and exhibition
space in Manchester and £1 million to support a 'Great Exhibition
of the North'.
The Government has an important role to play in discussing
the value of culture with local authorities and work will continue
to gather evidence on the economic, social and intrinsic value
of culture so that we can highlight the benefits that the sector
can bring.
FUNDING PROCESS
21. (Conclusion 5, Paragraph 26)
We agree with the Committee's conclusion regarding
the Arts Council's increase to the Grants for the Arts budget.
The scheme plays an important part in supporting projects delivered
by organisations that either do not apply for or are not successful
for national portfolio funding as well as supporting small, new
or emerging arts, community or cultural organisations and artists
and providing them with the funding that is vital to innovate
and enable them to develop further.
22. (Conclusion 11, Paragraph 43 with Conclusion
18, Paragraph 84 and Conclusion 20, Paragraph 87)
We are satisfied that in the publication of its ten
year strategy and five goals, the Arts Council makes clear what
it expects of the organisations that it provides funding to and
the criteria and standards that they must match. The Arts Council
have made clear that these organisations must be accountable and
have clear delivery plans for their activity. As part of the Arts
Council's funding agreement with them, they must produce plans
to show how they will deliver their proposed activity for the
period of their funding.
The Arts Council must continue to ensure that organisations
that receive public funding comply with the funding agreements
that have been made and we are content that this will be done.
STRATEGY
23. (Conclusion 1, Paragraph 9)
The Government's policy towards the arts is set out
in the DCMS departmental business plan and funding settlement
letters. The Government will consider what further is needed
to explain the strategic policy approach to arts and culture.
EDUCATION
24. (Conclusion 2, Paragraph 15)
We welcome these conclusions from the Committee.
During this Government, we have been encouraged and pleased by
the work that has been done to improve access to all to our incredible
museums and libraries for everyone including the role played and
leadership by the Arts Council.
Part of this includes the work done following Darren
Henley's review of cultural education in February 2012 and the
Government's response that was published in July 2013. The Museums
and Schools Programme funded by the Department for Education,
which is part of that piece of work, has seen over 87,598 pupils
visit a regional museum. 5,951 schools have engaged with the programme
which has seen new and creative ways to work with children and
young people such as the collaboration between Aardman and SS
Great Britain called Full Steam Ahead.
The early results of this programme include evidence
that it has had significant impact on education basics such as
reading and writing skills and pupils' knowledge retention has
increased as has their engagement in school. The programme has
directly supported teachers to deliver the new national curriculum
and develop their teaching practice.
Work by the larger National Museums based in London
to share their collections with regional organisations includes
important campaigns to support learning and education. DCMS National
Museums have had undertaken projects to encourage object based
teaching across the curriculum, such as the National Gallery's
very successful Take One Picture project, a model which they have
now extended to a number of museums, heritage sites and archives
including the Tower of London and some Major Partner Museums.
This project provides resources for teachers to encourage the
use of a single painting, castle or object to teach across the
curriculum at primary level. Other examples include the Plus Tate
network of organisations which share a common vision and ambition
to inspire people about art.
The British Museum recently announced a new programme
called Teaching History with 100 Objects which includes online
resources which will assist in teaching the new national history
curriculum in England across key stages 1 to 3 and is being developed
in partnership with a number of regional and local museums including
Major Partner Museums funded by the Arts Council such as the York
Museums Trust. Examples like this where organisations nationally
work locally are encouraging and welcome.
25. (Conclusion 3, Paragraph 17)
We agree with the Committee's conclusion regarding
music education hubs and the distribution of their funding via
the Arts Council. Since they were established, they have seen
local music education services working together to provide music
services to children and young people across the country and we
have seen that there has been an increase in the reach and offer
of Hubs. In July, the Education Minister Nick Gibb announced an
extra £18 million of additional funding to boost music education
in 2015/16. £17 million of this will go to music hubs. On
26 January 2015, the Secretary of State for Education and the
Secretary of State for Culture, Media and Sport announced that
continued Government funding for music and cultural education
including £500,000 to continue to support the In Harmony
programme which inspires and transforms the lives of children
through community-based orchestral music-making in areas of exceptional
deprivation.
The additional money will bring this Government's
investment in music education to around £390 million since
2012. The total amount of funding available to music hubs in
the next financial year is over £75 million. The Arts Council
said the increase was recognition of the "important work
of music hubs to make sure that every child has the opportunity
to be motivated and inspired by music". They have published
data which shows that in the 2012 to 2013 academic year, the first
year of music hubs, nearly 80,000 disadvantaged pupils and more
than 30,000 pupils with special educational needs took part in
instrumental ensembles and choirs, demonstrating the impact of
the hubs.
Across 2012-2015, the Government is providing £84
million to support young musicians and dancers to attend centres
of excellence and £3 million, in conjunction with the Arts
Council, for National Youth Music Organisations to support pupils
from lower income families to join elite music groups. In January
as part of the funding announcements, the Government announced
that in 2015-16, it would continue to provide funding of £499,410
to National Youth Music Organisations to offer high-quality opportunities
for the most talented young musicians in England and Music for
Youth to provide opportunities for young people to perform in
regional and national music festivals and events across the UK,
including the School Proms at the Royal Albert Hall. We are pleased
with the progress that has been made by music education hubs and
their progress is something that we will continue to monitor.
PHILANTHROPY
26. (Conclusion 7, Paragraph 31)
Philanthropists have made significant donations to
many regional organisations. For example a £1 million donation
to the Lowry, £15 million donation to Bishops Auckland and
millions have been invested by a single donor over many years
to help regenerate Folkestone and the surrounding areas.
While we recognise that the situation in London is
different from the other English regions, philanthropy is already
being cultivated successfully in every region. DCMS is working
closely with the cultural sector, donors and corporate supporters
to explore how best to face these challenges.
The Government has always been clear that any move
to increase philanthropy and charitable giving will take time
and is a cultural shift to diversify funding streams that requires
organisations to build clear fundraising strategies and meaningful
relationships with potential donors, whether they have £5
or £5 million to give.
In November, DCMS published its annual Charitable
Giving Indicator which showed a substantial increase in charitable
giving to DCMS funded cultural institutions. This included charitable
giving to Arts Council National Portfolio Organisations funded
organisations which has risen steadily from £109 million
in 2008/09 to £180 million in 2013/14.
The overall upward trend supports what the Government
has been saying about philanthropy: There is capacity for private
giving out there, we just have to get better at asking for it.
3. Summary
27. The Government welcomes the Select Committee's
report on the status of arts and culture in the England.
28. Despite the difficulties caused by the financial
crisis and the difficult decisions that had to be made, arts organisations
have worked to find solutions and provide artistic output which
the United Kingdom can be incredibly proud of.
29. Funding decisions regarding arts and culture
are a matter for the Arts Council but we will continue to work
closely with them as well as advocating culture with local government.
30. Artistic and cultural organisations currently
play an important role in the cultural development of children
and young people and it is important that this continues and progresses.
31. The Government commends the Arts Council for
the important role that it plays in sustaining and cultivating
arts and culture across England and for the commitment shown by
the organisation and their staff.
32. This Government has made clear through its continued
public funding of the arts and a range of tax reliefs that arts
and culture are an essential part of British society. We have
also made it clear that it is important that everyone wherever
they live, whoever they may be should be able to access the incredible
standard, creativity and range of arts and culture.
1 1 The ACE Major
Partner Museums (including those joining the portfolio in 1 April
2015) are: Beamish and Bowes Museum, Birmingham Museums Trust,
Black Country Living Museum and Coventry Museums , Bristol City
Council , Derby Museums and Nottingham Museums & Art Galleries,
Horniman Museum & Gardens, Hull City Council, Ironbridge Gorge
Museum Trust, Leeds Museums & Galleries, Manchester City Galleries,
Museum of London, Museums Sheffield, Norfolk Museums & Archaeology
Service, Penlees House Gallery and Museum (and six museums in
Cornwall), Royal Albert Memorial Museum, Royal Pavilion &
Museums, Brighton & Hove, Tullie House Museum and Art Gallery,
Lakeland Arts and Wordsworth Trust, Tyne & Wear Archives &
Museums, University of Cambridge Museums, Oxford University Museums
and York Museums Trust. Back
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