Scottish arts boost welcomed but concerns remain over council budgets

After months of uncertainty and campaigning, arts and culture organisations have warmly received the Scottish government’s draft budget (4 December), which included an additional £34m for culture in the next financial year.

However, the widespread optimism has been tempered with concern that budget measures for local councils, which are core funders for many arts and culture organisations, do not go far enough to prevent cuts to services.

‘A more stable, positive future’

The chair of Creative Scotland Robert Wilson said the draft budget, which includes £20m for the organisation’s deferred multi-year funding programme, was “enormously welcome”.

“The major boost to Multi-Year Funding and other activities opens up wider opportunities, and we are grateful to the Scottish government for this significant vote of confidence in Creative Scotland and the creative and culture sector,” said Wilson.

“This is especially positive in the light of the long-term financial challenges the sector has been dealing with and will enable people and organisations to once again look forward with more confidence.”

Writing on social media, Edinburgh International Festival, which is set to benefit from a doubling of Festivals EXPO funding, said: “We welcome the budget statement from the Scottish government signalling the value it places on culture & the arts.

“Culture is the beating heart of Scotland & this budget offers us all hope for a more stable, positive future.”

Scotland’s national performing companies – Scottish Ballet, Scottish Opera, the Royal Scottish National Orchestra and the Scottish Chamber Orchestra – will receive a 4% uplift in budget from the government.

Speaking to Arts Professional Jackie Wylie, artistic director and CEO at National Theatre of Scotland, said: “Producing and touring high-quality work in the current climate continues to present financial challenges, and even a small increment will have a positive and demonstrable effect on our programme budget.

“We are thankful that the Scottish government has acknowledged the value and worth of cultural provision to audiences and communities across the country. We are committed to delivering a cost effective, impactful, and far-reaching annual programme of work and to creating as many opportunities as possible for Scotland’s exceptional freelancers and artists.”

Jack Gamble, director of the Campaign for the Arts (CFTA), said that the “significant increase” in cultural investment is “extremely welcome”.

CFTA previously launched a petition signed by 18,000 urging the Scottish government to deliver on its existing pledge to “more than double” arts funding and to deliver “at least £100 million more annually” by 2028-29.

Gamble added: “Thousands of people across Scotland joined the Campaign for the Arts to urge ministers to support artists and cultural organisations at this critical time. We are delighted that they have listened and responded.”

”An ongoing position of uncertainty’

Elsewhere, optimism over the budget has been more cautious.

Last week, Dundee Contemporary Arts (DCA) warned that its core funding from Dundee City Council had been put forward for review as part of the council’s 2025-26 budget consultation in an effort to save £15m.

DCA said the removal or reduction of its council grant would have “catastrophic consequences”, impacting jobs and creative programmes and potentially leading to closure.

The organisation is one of 281 multi-year grant applications currently in limbo as they await a delayed funding decision from its other core financier, Creative Scotland.

Decisions on the applications, amounting to £87.5m, had been due by the end of October but were deferred until the end of January 2025 after Holyrood admitted it could not offer Creative Scotland funding clarity until the release of its draft budget yesterday.

“We’re very pleased to see Creative Scotland receive a significant uplift, which we hope will allow them to pass on increased grants in turn to organisations who have been on standstill funding for a decade or more,” Beth Bate, director of DCA told Arts Professional.

“At the same time, our full grant from our other core funder, Dundee City Council, is currently under review via public consultation, leaving us in an ongoing position of uncertainty.”

In an appeal to residents to engage with the consultation, DCA said that the process suggests that “organisations may be able to offset funding reductions through other income sources”.

“In reality, there are no funding or income generation routes available to us that would come close to filling the gap left by the loss of this funding,” said DCA.

Failure to engage with the scale of the challenge

The Local Government Information Unit also noted that the budget “does not engage with the scale of [the] challenge” facing Scottish councils whose finances are “hanging by a thread”.

Jonathan Carr-West, chief executive of LGIU Scotland, said: “One in four councils are afraid they won’t be able to pass a balanced budget next year. Three-quarters are warning that they may not be able to do so within the next five years.”

He continued: ”There is an increase in core funding in today’s budget, but it doesn’t cover the ever-growing costs of core statutory services.

“The truth is that even with the additional funding announced today, local authorities will still need to raise council tax and make cuts to services and will still edge closer to being unable to balance their books.”