News and Events
ACE to cut RFOs by 8.7% in 2011/12
26th Oct 2010
The announcement follows last week�s Comprehensive Spending Review in which ACE was told that its funding from the Department for Culture, Media and Sport would be reduced by 29.6% in real terms by the end of the spending period in 2014/15.
From next April, RFOs will have their funding reduced by 6.9% in cash terms, which equates to around 8.7% in real terms. ACE�s own funding is being reduced by 14% in cash terms next year.
A 14.9% real-terms cut to the money available for the regular funding of organisations will be made by 2014/15.
Funding decisions for 2012 to 2015 will be announced by the end of March 2011. Before then, all organisations will be asked to re-apply for funding under a revamped system and, according to ACE, �some organisations will not receive funding in future, some may receive more, and some less. There will also be the opportunity for new organisations to apply.�
Major cuts have already been made to both Creativity, Culture and Education and Arts & Business. Both will have their current funding levels cut by 50% in cash terms. A&B will then receive no funding from ACE beyond 2012.
ACE chair Liz Forgan said: �These are severe cuts, made worse by the fact that around 80% of them have to come in the first two years of the settlement.
�We are determined to lead the arts through this tough period, using all our knowledge, expertise, and brokering skills, and drawing on the resourcefulness and imagination around us.
�For several months we have been in conversation with the DCMS, our funding partners, arts organisations and artists about how we can best support the arts in dealing with significant cuts. We have had to prioritise, to achieve a 6.9% cut to our portfolio within a 14% cash cut to our overall 2010/11 budget.
�These measures are designed to ensure a strong and resilient future. The country needs its artists at a time like this and we are about building, as well as sustaining, our unparalleled arts and cultural sector.�
By minimising cuts to RFOs in the first year, this has meant that ACE�s development fund - a pot of around �30 million it uses to fund National Touring, the Cultural Olympiad and events such as the Manchester International Festival - will be cut by 64% or �21 million in 2011/12.
Because of this �difficult choices will have to be made� and �in future the arts council will be asking its funded organisations to take on more responsibility for furthering its strategic goals, particularly in the areas of touring and audience development.�
A 50% reduction to the Arts Council�s operating costs, from the current �22m to �12m (real terms), will also be made by 2015.
However, ACE has raised concerns about its ability to manage this level of cut. According to ACE, its National Council �has serious concerns about the ability of the organisation to operate effectively with this level of cut, as it comes on top of a 15% reduction in operating costs this year.�
Source: The Stage
