NPO relocations: what you need to know

Arts Council England (ACE) is asking arts organisations in London to relocate to the regions to further the Government's Levelling Up agenda.

With an extra £43.5m in its pocket, the funder plans to spend another £75m outside of the capital over the next three years.

It potentially makes establishing a new office an appealing prospect – if not a shrewd strategy as £24m in regular funding relocates out of London too.

Is it worth it? Here's what you should know.

READ MORE:

• ACE instructed to address funding imbalance
• NPO applications: here's what you need to know

Why do funders want NPOs to relocate?

Addressing the imbalance of arts funding in London and the South East has been a long term project. ACE Chief Executive Darren Henley recently told MPs that 75% of its National Portfolio Organisation (NPO) investment goes to the regions, up from 60% when he joined the arts council.

The Levelling Up plan has given new impetus to fix the divide, with Culture Secretary Nadine Dorries insisting it's time the regions got their "fair share".

ACE is on board with forging a truly national portfolio, with Henley saying it's a "direction of travel" without a defined end point.

But why offices over activity? After so many years' focus on increasing engagement, and a 10-year strategy that promises to support culture as communities define it, some have questioned making a registered address the measure.

Ultimately it was DCMS' call: "The instruction on Levelling Up was issued by DCMS who have asked us to analyse our investment by location of applicant," an ACE spokesperson said.

What are the benefits?

Many London NPOs already work nationally but now they must consider having their main office elsewhere. 

NPOs that receive more than £2m per year from ACE are required to increase their activity by 15% in at least one of DCMS' 109 Levelling Up for Culture places, so moving in might be a way to achieve that.

Be warned: mere "offshoots" of London organisations aren't wanted. Relocation has to make sense for an NPO's business model.

The idea instead is to get organisations to think about opportunities to grow their regional presence in the longer term – it's something ACE will be looking for in applications for the 2023-26 portfolio.

Subsidy control rules currently making their way through parliament prohibit ACE from incentivising NPOs to relocate, though the funder hopes to provide some financial support to for NPOs to conduct "feasibility studies" at a later date.

Will it work as intended?

As always, the devil will be in the details.

NPOs have raised concerns this will be a tick box exercise, or that an exodus to the regions will mean more competition for existing local companies.

ACE says its mindful of not displacing organisations or imposing London-style culture where it's not welcome. Relocation is "not a requirement, but a question we are asking all London based organisations to answer", it says.

Among those who do relocate, some will have "relatively little impact on their local community", the funder predicts, because they might be Investment Principles Support Organisations (IPSOs) or touring companies.

"Others might focus on developing, over time, local programmes of work that will provide a wide range of benefits to their community, including those working in culture."

ACE hasn't analysed the costs and benefits of DCMS' new policy but says evidence to date suggest relocations won't negatively affect existing local arts activity.

"Rather the impact has generally been to increase skills and engagement and grow demand. We see no reason why it will be different with the relocations that will be supported through this investment programme."

What about touring NPOs?

Some have called for a different strategy for touring NPOs, arguing the focus on their home base isn't appropriate.

When asked, ACE asserted that all NPOs, including touring companies, have a registered office.

"When assessing applications we will also look at all activity that organisations are planning, and where it is taking place, including touring.

"Relocation is part, but not the only way, of redistributing and delivering investment and activity."

So what now?

At this stage, NPOs need only indicate an interest (or otherwise) in relocation.

Commitments will come later in the year, at which point ACE says it will provide more information on what relocating entails.