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Dateline: 21sst October, 2010
ACE and DCMS Clash The Department of Culture, Media and Sport has told Arts Council England that, in the wake of the 29.6% cut to its grant in aid, cuts to its 850 Regularly Funded Organisations must be limited to 15%. Most of the budget is spent on RFOs. Culture minister Ed Vaizey said, "We’ve made it clear that it is a condition of the settlement that they will limit cuts to the RFO budget to 15%" but ACE's Alan Davey responded that this demand would appear to contradict the arms-length principal. "Our National Council is responsible for setting budgets," he said. At a DCMS press briefing, Vaizey was asked what would happen if ACE did not accede to this demand, he replied it it would lead to an "interesting situation". He went on to say that his conceptof the arms-length principal was that "it exists for deciding which bodies are funded.... If they choose not to fund certain organisations that is their decision." Vaizey also annonced that ACE would be expected to cut its administrative costs by 50% although this did not, he said, suggest that the government believes it is badly run. Last year ACE began a restructuring process which led to a 21% reduction in staff (from 622 to 491), saving £6.5m.
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