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Dateline: 17th December, 2004

Spending Review: Arts Do Badly

"Huge increases in investment in the arts since 1997 have changed the cultural landscape in England. We have already helped put regional theatre back on its feet and made real investment in future talent through our Creative Partnerships programme. All of this will continue, but I also want to take things further."

So said culture minister Tessa Jowell about the allocation given to the arts in the government's comprehensive spending review, announced earlier this week.

"The settlement I have secured for the arts will allow them to build on the huge investment we have put in since 1997," she went on. "This, coupled with the reallocation of freed-up funds from existing programmes and efficiency savings, will allow additional grants to organisations to grow by at least 9 per cent by 2007-08. I am particularly pleased that I have been able to find one-off boosts of £5 million for the South Bank Centre in London and Liverpool's Capital of Culture programme."

In fact, as the Department of Culture, Media and Sport's own announcement says, "This Spending Review provides an annual average increase in funding of 2.3 per cent in real terms for culture and sport over the three years to 2007-08."

However, although the average is 2.3%, there will be an effective cut in money for the arts. The level of funding will be frozen at the 2005 total of £413 million until 2008, effectively a cut of £30m when inflation is taken into account. The commitment to the arts includes funds for extending the Creative Partnerships programme in schools in deprived aeas to 36 areas.

There will be correspondingly higher increases in the department's spending on sport and the DCMS statement places great emphasis on participation on sport and combating obesity among children:

"The Spending Review sets a target to increase the proportion of school children in England who spend a minimum of two hours each week on high quality sport from 25 per cent in 2002, to 75 per cent by 2006 and 85 per cent in 2008. The Department for Culture, Media and Sport will also work towards a new PSA (Public Service Agreement) target to halt the year-on-year increase in obesity among children under 11 years of age."

In addition, there will be an increase in spending on museums. University museums will now be able to offer free entry and still claim back VAT input tax as though they were paying VAT on admission charges.

Reaction from the theatre world has been angry. John Tusa (Barbican) told the Guardian that the decision is a "slap in the face" and Nicholas Hytner, although saying that theatre will "cope", said that it is at the cutting edge of theatre that the effect will be mianly felt.

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©Peter Lathan 2004