Sigh of relief in Scotland and Wales

 Coinciding with the annual conference of the Arts Council of Wales (ACW), the Welsh Assembly Government has announced a 4 per cent cut for the arts budget in Wales over three years starting in 2011/12. With the overall cut to the Assembly Government’s own revenue budgets amounting to 7.5 per cent, ACW had braced itself for “inevitable budgetary pain”, and in that context, ACW Chair Dai Smith, said: “In spite of the reduction, this is great news for the arts in Wales… In these straitened times we are delighted that a distinctive policy towards the arts has been understood and followed by the Welsh Assembly Government, and that, subsequently, the Arts Council of Wales will be able to implement the outcome of our Investment Review Strategy.” ACW is being expected to reduce its own running costs by 12 per cent over the same three-year period – a level which Smith described as being “entirely proper” under current circumstances. ACW receives £32m grant-in-aid from the Welsh Assembly Government and awards grants of around £28m. Although the real terms value of cuts potentially means the loss of up to £1.5m from grants to front line arts each year, ACW has pledged to “make every pound entrusted [to it] work harder.” A Council meeting on 10 December will translate the budget proposals into concrete financial plans relating to ACW’s new investment strategy.

 Speaking at the ACW annual conference just prior to the cuts announcement, Heritage Minister Alun Ffred Jones described the budget allocated for his department as “[reflecting] the Cabinet’s appreciation of the important role which arts and culture play in improving the quality of people’s lives” and “of the particularly valuable role which the arts can play during uncertain economic times”. He underlined the importance of ACW’s recent Investment Review (AP221) and praised the “transparent and professional manner” with which it was conducted: “…in the current financial climate being clear on priorities – whether in the arts or other areas of public funding – takes on even greater importance… It would have been important to conduct the review during a period of plenty. It was, in my view, even more important that a review of that nature should have been conducted in order to better help the sector to manage with less.” Jones went on to emphasise the importance of greater efficiency in the arts sector: “Every pound you can save on support functions – and every additional pound you can make at the box office – is another pound to spend front of house.” He also described partnerships across a wide range of organisations as being key to delivering new types of cultural experiences, giving the partnership between the heritage and arts sectors for the Cultural Olympiad as an example.
There were also reasons for cheer following Scotland’s budget announcement. While accusing the Westminster Government of making “unprecedented cuts… which go too far and too fast”, Minister for Culture and External Affairs Fiona Hyslop has tried to minimise the impact of these cuts on the arts in 2011/12. The Culture and External Affairs Budget sits within the Office of the First Minister, which will itself receive a reduction of 6.7 per cent in revenue funding. However, Scotland’s National Collections and the five directly-funded National Performing Companies will receive only a 4 per cent reduction in their funding. Furthermore, the £350,000 international touring fund has been protected and remains available to these companies. Creative Scotland will see its £35.5m core budget frozen in 2011/12, although it will be expected to cover a wider remit. It has not suffered any specific cuts, in recognition of the £700,000 of savings it has made since it took the place of the Scottish Arts Council and Scottish Screen. In direct contrast to decisions made by Arts Council England, Arts & Business Scotland’s £0.3m budget has been protected, as has that of the Cultural Enterprise Office. The Edinburgh Festivals Expo Fund will also continue next year.
However, Hyslop was clear that "the tangible outcome of the reduction in our overall budget will be a severely limited ability for the Government to respond to requests during the year to support emerging opportunities or new initiatives. This lack of flexibility means that almost all cultural spend will be through the organisations we fund and I am challenging them to do more with what they receive and continue to strive for more efficiency.” No decisions have been made on funding levels beyond 2012, raising questions about whether harsh cuts are being postponed rather than avoided.
Sir Sandy Crombie, Chair of Creative Scotland, described the budget as “a welcome expression of confidence in the contribution that the arts, screen and creative industries will make to securing Scotland’s future success.” Creative Scotland’s plans for the years ahead will be unveiled in January, including “a suite of new programmes”.