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Dateline: 11th November, 2007

John Tusa
John Tusa, chair of the report panel

Tory Report Suggests a New Funding Approach

The major national companies such as the RSC and the National Theatre should be funded directly by the government and not through the Arts Council, the Conservative Party’s Arts Taskforce has recommended.

Further recommendations are:

  • that the restructured ACE be coordinated by a slimmed down central office adopting a role for the development and promotion of technology in the arts world; for giving advice and demonstrating best practice in fund- raising and charity legislation; and as broker for increasing project co-operation on the arts with local authorities and other bodies. It should aim to maximise the impact of the funds available for the arts through all the agencies
  • a true Department of Culture be established, comprising the arts, heritage, media and the larger part of the creative industries. Sport should be transferred to a separate office as is standard practice internationally, where we believe that it too would benefit from direct ministerial focus... Although the new Department of Culture would be comparatively small in terms of overall budget, its new status would properly reflect the defining importance of culture to national life as well as its spin-off economic and social benefits. The Secretary of State for Culture must be a member of the Cabinet
  • the introduction of new tax incentives for corporate giving and private giving. For individual donations above £5000 we recommend an incentive in which all the benefit goes to the donor. We also need to introduce new tax deductions for companies. In the US there is an income tax deduction of 100% of the value of gifts in cash or works of art. In France a 90% rate for corporations and a 66% for individuals. We cannot continue to ignore these international comparisons.
  • a strong cultural element should be introduced to Local Authority performance assessments. The “Culture Block” in the Comprehensive Performance Assessment (CPA) used to establish the effectiveness of local authority performance must include significant acknowledgement of the importance of the performing and visual arts. As things stand, the Culture Block is really about leisure and lifestyle not the arts
  • the Treasury’s current three year funding settlement should be increased to five years. The arts should demand and expect a degree of certainty in the level of government funding. The arts should be given a consistent level of expenditure over a longer period of time, with automatic annual inflationary adjustments. Spending settlements should be agreed and announced well in advance of the date of implementation
  • no further Arts and Heritage Lottery funds be diverted to pay for the 2012 Olympics; that the arts and heritage continue to benefit from their current proportion of Lottery good cause funding
  • there should be an entitlement to culture for all young people: all young people must be enabled to attend cultural events as part of their schooling, and all young people should have easy and affordable access to advanced training in their special discipline, should they choose to pursue one

Jeremy Hunt, shadow culture secretary, commented, "The arts taskforce have put together a comprehensive and ambitious document and have brought a wealth of expertise and fresh thinking to arts policy. We’re very grateful for all their work putting this report together. In it there are many proposals that would reform the arts, some we support, some are aspirational, and some, such as the plans to move sport out of the DCMS, are not something we would support.

"However, as the first Party since the last election to undertake such a wide-ranging, independent review of the arts, this document will set the agenda for a wide debate about future Arts policy."

The report panel was chaired by former Barbican Centre managing director John Tusa, who said, "The choice is simple – either to continue the same old guerrilla warfare over the same old issues, with the same old minimal results. Or to take a broader view whose working assumption is that the benefits to be released by a more generous, open minded approach to the arts can yield benefits to society as a whole that far outweigh any increase in costs. We believe the recommendations in this report can contribute to such a result."

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©Peter Lathan 2007