3rd Special Report - Work of Arts Council England: Responses to the Committee's Third Report of Session 2014-15 - Culture, Media and Sport Contents


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

 Back


 
previous page contents next page


© Parliamentary copyright 2015
Prepared 27 February 2015