Arts Council England cuts: funding changes explained, how many companies are leaving London to access grants?

Arts Council England’s (ACE) has announced its new funding programme as part of a bid to divert cash outside London. However, some organisations will see cuts to their funding, while more than 20 will relocate out of London as part of a transfer programme.

The English National Opera has been removed from the ACE’s portfolio entirely. Instead, the company will get £17 million over three years to develop a “new business model” with a suggestions of a move from London to Manchester.

The Royal Opera House in London was another prestigious institution seeing a cut to funding following the ACE’s national portfolio announcement on Friday, while the Donmar Warehouse Theatre has also had its funding cut to zero.

The ACE announced its new national portfolio of funding for museums, libraries and other art organisations for 2023 to 2026, which includes new investment to 276 institutions that previously weren’t part of the programme. It means a total of 990 institutions will share £446 million each year, up from 714 organisations previously,

While the Blackpool Illuminations, and the Shakespeare North Theatre, in Prescot are among those receiving funding for the first time. ACE has said funding will increase by nearly £45 million a year for organisations outside London.

What’s been said about the funding?

During a press conference on Friday, ACE chairman Sir Nicholas Serota said the increase of funded organisations was partly a reflection of the increase of applications as well as the Cultural Recovery Fund established during the pandemic highlighting “many” arts organisations they had not been working with.

Sir Nicholas said: “I think it became clear to us that there was an enormous quantity of activity that really demanded support and certainly deserved support so it was natural in way that if we could, to increase the number of organisations within the portfolio.”

As part of proposed plans, ACE also announced £43.5 million investment to organisations outside London contributing to levelling up for the next three years. It will see a 95% increase in investment across 78 designated areas, towns and cities, including Blackburn, North Devon and Mansfield.

During the press conference Sir Nicholas said: “This investment means that we are supporting more people in more places. We’ve invested so that as many people as possible in England can enjoy the very best of creativity.

“This means no matter where you live, and whatever your background, you will have culture close to your homes. We’re supporting excellence and talent everywhere.”

Culture Secretary Michelle Donelan said: “Thanks to this new government funding package, spreading more money to more communities than ever before, people living in areas from Wolverhampton to Wigan and Crawley to Chesterfield will now get to benefit from the deep economic and social rewards culture can bring.

“We continue to support our icons such as the Royal Philharmonic Orchestra and Royal Shakespeare Company, but today’s announcement will see organisations in places all too often overlooked get the support they need to transform access to the arts for everyone - no matter where they live.”

Philippa Childs, head of broadcasting union Bectu, said the body is “deeply concerned” by the impacts of the announcement, whose members include the Royal Opera House, Donmar Warehouse and the English National Opera who “face the uncertainty of a move out of London”.

She said: “We are shocked and dismayed at the over £50 million worth of government cuts to London’s arts funding in today’s Arts Council England announcement.

“If the UK has an ambition to continue to be a leading cultural centre we must avoid politically motivated decisions that hinder rather than help support and underpin the fragile ecology of the cultural sector.

Which organisations are relocating?

The English National Opera announced it is to leave London - possibly relocating to Manchester. The ENO lost its annual £12.6 million grant from ACE, but will instead get £17 million over three years. It said: “For the past four years, the ENO has been reimagining what a modern opera company should look like, building new audiences and reach beyond London.

“Today’s offer of investment from Arts Council of £17 million over the next three years will allow us to increase our national presence by creating a new base out of London, potentially in Manchester. We plan to continue to manage the London Coliseum, using it to present a range of opera and dance whilst maximizing it as a commercial asset.

“The ENO has vision and purpose and we aim to support the levelling up agenda by reimagining opera for future generations across England.”

Twenty four other organisation are also set to relocate by October 2024, and have been guaranteed two years funding. They are:

• British Youth Music Theatre
• Cultural Co-operation
• Dedalus Limited
• English Touring Opera Ltd
• Film and Video Umbrella
• Furtherfield.org
• Headlong Theatre Ltd
• Improbable
• Libraries Connected
• Making Music, the National Federation of Music Societies
• Mercury Musical Developments
• Modus Arts
• Music for Youth
• National Association for Gallery Education (engage)
• National Youth Jazz Collective
• Orchestras for All
• Paines Plough
• Paraiso School of Samba
• Shape London
• Stagetext
• The Clore Leadership Programme
• Theatre Centre
• Theatre de Complicite Education Ltd
• Upswing Aerial Limited