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Dateline: 18th June, 2010
How ACE Will Cut £19m Arts Council England today gave details of how it will implement the £19 million cut to its 2010/11 income from government, announced by the Department for Culture Media and Sport on 24th May. The £19 million cut is in addition to an earlier in-year reduction of £4 million announced in the April 2009 Budget, meaning that the Arts Councils original 2010/11 budget has been reduced by a total of £23 million from £468 million to £445 million. In deciding how best to apportion the latest in-year cut the Arts Council has sought to protect and develop art, and the organisations that enable it to happen, to the fullest extent possible. The cut to regularly funded organisations 2010/11 income from Arts Council will, therefore, be limited to 0.5 per cent. This has been made possible only by the exceptional use of £9 million of the Arts Councils historic reserves, access to which was previously blocked by government. Had that not been the case, funded organisations would have sustained a three per cent (£10.8 million) cut. Arts Council Englands historic reserves stood at £18.4 million. DCMS has freed £16 million. The balance of £2.4 million remains blocked from use. Of the £16 million freed, £9 million is to be used to mitigate the in-year cuts, and £7 million will be returned to the Department. It has been agreed that £5 million of that £7 million will be returned to the Arts Councils baseline funding for 2011/12. The £19 million will be apportioned as follows:
Dame Liz Forgan, Chair of Arts Council England, said, "In-year cuts are always the most difficult to manage, because plans have already been made against an expected level of income. But we have done our best to minimise the effect on our funded organisations and the art they produce so brilliantly. "Some immediate impact was inevitable, and in the longer term the arts sector will also feel the effect of the cutting back of projects that are key to its long term sustainability and development. But I am confident that the decisions we have taken are the right ones for art, for artists and for the audiences we serve." Arts Council Englands budget for the next three years (2011-14) will be decided in the governments Spending Review, for which results are expected in the autumn. Speaking of the longer term picture, Dame Liz added, "The financial climate is tough, but the arts remain a compelling case for public investment. We will continue to put that case to government, and to make it clear that now reserves have been spent, the burden of any further cuts will fall on funded organisations. "Sustained levels of public funding are vital if we are to protect the world class arts offer that previous government investment has built, and to maintain our long term ambitions to achieve great art for everyone in this country."
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