Arts Council NPO delay: Labour demands explanation

Labour's Shadow Culture Secretary has called on government to outline the reasons behind the dramatic delay to the announcement of Arts Council England's investment plans for the next three years.

Details of the National Portfolio for 2023-26 had been due to be unveiled last Wednesday (26 October), but the event was 'paused' the day before and has been rescheduled for Friday (4 November).

The decision to delay the announcement coincided with a government reshuffle and a rescheduling of Chancellor Jeremy Hunt's fiscal statement, which had been due today (31 October) but will now happen on 14 November. It is likely to feature measures to reduce government spending.

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Shadow Culture Secretary Lucy Powell has called for answers on what has happened.

ArtsProfessional last week asked ACE for the cause of the delay and whether funding levels for the National Portfolio will remain the same as planned.

In response, a spokesperson for ACE described the situation as "an administrative delay" and pointed to details of the budget being available on the ACE website.

Former Arts Minister Lord Parkinson has said the delay was due to last week's government reshuffle after Rishi Sunak became Prime Minister, but a comprehensive reason for the situation has not been provided by either ACE or the Department for Digital, Media and Culture (DCMS).

Acute anxiety

In a letter to Culture Secretary Michelle Donelan, Powell stressed that applicants for funding have been waiting since the application deadline of 18 May for the final decision to be made.

"This last minute delay has caused acute anxiety and frustration among our critical arts organisations, many of which are already facing severe financial challenges and uncertainty as a result of rocketing energy bills and the cost-of-living crisis," she said.

"While a replacement date has now been set for Friday 4 November, the fact that this funding announcement was postponed in the first place raises serious questions about both the regard with which your department holds the sector and the independence of Arts Council England as an arm's-length government body.

"First, the delay has sparked concerns in the sector about increased uncertainty over funding.

"With so many organisations expecting to receive less from the government this year, reassurance of future security is key."

Powell said cultural institutions are facing a "perfect storm" of falling donations, increased operating costs, a cost-of-living squeeze on audiences and "a decade of government cuts to the arts".

"They deserve better than to be left in the dark about their future," she said.

Powell said the lack of a reason for the delay, and absence of an immediate timeframe for reschedulment, caused "avoidable worry and confusion" for arts organisations.

"This is unacceptable," Powell said.

"Will you rectify the situation by apologising and explaining why the decision was delayed?"

Arms-length principle

Powell also raised concerns about the phrasing of ACE's initial communications of the delay, which intimated that the pause had been requested by DCMS.

"If the delay was a result of instruction from DCMS, then this calls into serious doubt the 'arm's-length' principle of Arts Council England.

"Funding should have been confirmed already to Arts Council England and there should be no reason to postpone an announcement following an application process carried out independently of government."

ACE has previously made clear that, due to record demand, many worthy applications will miss out on funding. It received more than 1,700 applications to the 2023-26 portfolio, requesting a total of more than £2bn over the three-year period – more than double the existing number of 828 NPOs it funds at the moment.

A Transition Programme has been set up to allow unsuccessful NPOs, or organisations funded outside the National Portfolio through Business Plan funding, additional time to make a decision on their future – whether that be finding new forms of funding, scaling back their work, or winding down.