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Dateline: 27th February, 2009

ARts Council England logo

ACE to Reorganise

In an effort to make £6.5m in savings, Arts Council England is undertaking a major review of its structure and organisation.

In a briefing paper it says, "The Arts Council was asked by Government to reduce grant-in-aid administration costs by 15% by 2010-11. We also agreed that 15% savings should be made on our National Lottery costs, so that a total of £6.5 million could be found to go back into the arts, year on year, and this has already been factored into our budgets for 2010/11. Because of the level of savings already made by the Arts Council over the last few years, finding this amount of additional saving will involve far more than simple tinkering with the way we are currently structured."

The proposals are:

  • a smaller head office - focused on strategy and support to frontline staff
  • nine regional offices - smaller and more focused on frontline delivery, working with the organisations we fund, artists and other key partners
  • regional offices grouped under four area executive directors - with a strong senior management team to streamline internal processes and encourage knowledge sharing
  • a central Grants for the arts processing team - relieving regional offices of administrative burden and making grant-giving more equitable. The team to be based in Manchester
  • a streamlined advocacy and communications team - a specialist head office team and three area advocacy teams supporting regional offices, line-managed in the areas but forming a clear professional family
  • a smaller executive board (nine members) with a balance of regional knowledge and a strategic overview, making quicker decisions

In the new head office (formerly the national office), there will be five departments: Arts; Arts Planning and Investment; Advocacy and Communications; Resources and Chief Executive's Unit. This will reduce the number of staff needed from 168 to 112.

The regional structure will also change. Although the nine regional offices will remain, planning, investment strategy and other budget decision-making will be based on four areas. Area executive directors will have the authority to decide how planning and funding are managed by and delegated to regional offices.

The four areas will be North, Midlands and South West, East and South East, and London. The nine regional offices will lead on:

  • relationships with arts organisations and partners in their region
  • relationships with artists, including helping to develop appropriate applications for Grants for the arts in their region
  • raising funding for the arts in their region, building funding partnerships and levering in funding for the arts wherever possible

There will be a support centre based in Manchester which includes teams for enquiries, finance transactions, human resources operations, IT infrastructure and the service desk, and a Grants for the Arts centre to carry out assessment and monitoring processes, with close links to regional offices and head office, and decisions made at area level. This will also be based in Manchester alongside the North West office and support centre and will have forty staff.

All in all there will be a staffing reduction from 622 to 473 across the organisation. Staffing in the regions will change as follows:

East Midlands : 22 staff (currently 38)
London : 59 staff (currently 90)
North East : 22 staff (currently 37)
North West : 28 staff (currently 47)
South East : 25 staff (currently 45)
South West : 26 staff (currently 40)
West Midlands : 26 staff (currently 46)
Yorkshire : 26 staff (currently 40)
Area staff : 14 staff (none at present)
Grants for the arts centre 40 staff (none at present)
Total : 311 as opposed to the current 422

Right across the organisation, the staffing will change as follows:

Regional offices, areas and Grants for the Arts centre : 422 (proposed 311)
Support centre : 32 (proposed 50)
Head (formerly national) office : 168 (proposed 112)
Total : 622 (proposed 473)

Other savings will come from property, by co-locating London regional office with head office, reduced travel and subsistence budgets through better use of technology, and reductions in, for example, as telephone and small equipment budgets.

There will now be three months of formal consultation with staff and unions on these proposals, which will run until the end of May. Final proposals from the chief executive and Executive Board, informed by comments made during the consultation, will be presented to National Council in July. The final structure will then be announced and implementation will begin over the summer. The new structure will be fully operational from April 2010.

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©Peter Lathan 2009