£1.5bn cost pressure on councils’ cultural services

Cultural services at local authorities in England face a funding gap of more than £1bn amid the pandemic.

The National Audit Office reports that cultural services face the fourth-highest cost pressures after public health, adult social care and housing.

Cost pressures on cultural services are more than £1.5bn against an expected full year spend of less than £500m.

Local authorities are forecasting a £554m loss in income from recreation and cultural services in the coming financial year, the office reports.

It concludes that local government finance "remains a cause for concern" heading into 2022, and says many authorities will be relying on reserves to balance their 2020/21 year-end budgets.

"Many authorities are setting budgets for 2021/22 in which they have limited confidence, and which are balanced through cuts to service budgets and the use of reserves."