News and Policy brief - November 10
Read on for this month's news and policy brief
A spate of policy developments relevant to the sector has followed the Spending Review; the Government has given more clarity to its skills agenda and provided further indications about Higher Education funding in England. The Commons Culture Media and Sport Committee has published oral evidence sessions
1) Spending Review (SR) – Funding for Culture
SR Summary:
Department of Culture, Media and Sport (DCMS)
- 24% reduction in Resource Department Expenditure Limit (resource spending)
- 32% reduction in capital budget
- 41% reduction to the Department’s admin costs
Arts Council England (ACE)
- 29% reduction over the period 2011-14
- 15% reduction to total RFO budget
ACE Regularly Funded Organisations (RFOs)
- 6.9% reduction across the board in 2011-12
- All organisations to reapply for new funding programmes (open to existing RFOs and new applicants). NB: It is possible that some organisations may receive higher funding in future, but explicit that ACE will disinvest from others.
SR Detail:
On 20 October, George Osborne unveiled the long awaited Spending Review, detailing the Government’s budget for the next four years and approach to fiscal consolidation – the reduction of government deficit and debt accumulation. The Chancellor said that the review was guided by principles of Growth/Fairness and Reform. He opened his announcement of the Department of Culture, Media and Sport’s allocation with the comment that:
‘Britain’s arts, heritage and sport all have enormous value in their own right, but our rich and varied cultural life is also one of our country’s greatest economic assets.’
He went on to say that the department will have its budget cut by 25 percent, from £1.9 billion to £1.1 billion by 2014-15, but also stated that measures were necessary to mitigate the impact to core programmes such as national museums and to protect front line funding for the arts, which would be limited to 15% cuts of the total cuts over the review period.
Specific measures set out in the Chancellor’s statement:
- Reduction of 41% to administrative costs
- Abolition or reform of 19 of the 55 DCMS quangos
- Completion of capital building projects for the Tate Gallery and the British Museum
- Retention of free entry to national museums and galleries
- Ongoing provision of £9.3 billion of public funding for the Olympic and Paralympic games in London in 2012
Details of the DCMS settlement are expanded in the Spending Review Document also published on 20 October, which announces Government commitment to:
- encouraging corporate investment to bring in new sources of funding and philanthropic giving, particularly in the arts;
- providing greater freedom and flexibilities for museums through easier access to reserves of privately raised funds, and taking a more strategic approach to public funding for the arts; and
- continuing to reform Lottery funding to ensure more money goes to support projects in the arts, sport and heritage, by allocating 60 per cent of Lottery funding to these causes and 40 per cent to the voluntary and community sector.
Read the full transcript of the Chancellor’s announcement in Parliament here and access the Spending Review Document here
In recent weeks, measures have begun to be taken in connection with the reform of legislation around museums’ reserves and confirmation of the return of Lottery funds to their original levels.
DCMS:
Spending priorities for the Department correspond to those outlined in the Spending Review Document (see above). DCMS said that the 25 per cent overall reduction reflected a 24 per cent reduction in resource spending and 32 per cent reduction in capital budget.
Jeremy Hunt, Secretary of State for Culture Olympics, Media and Sport commented:
‘In the current economic climate, this is a good settlement for DCMS’s sectors’.
See the department website for details.
Arts Council England:
The DCMS also outlined the funding settlement for ACE over the next four years. The current grant of £450m, will decrease to £349.9m in 2014 – a real terms cut of 29.6 per cent. There will be a first year cut (2011-12) of around 14 per cent.
The full breakdown is:
- 2011/12: £387.7 m
- 2012/13: £359.2 m
- 2013/14: £351.6 m
- 2014/15: £349.4 m
Within this settlement, ACE is required to make a 50 per cent cut in its administrative costs and 75 per cent cut to its managed funds. It was also advised to pass on cuts of no more than 15 per cent to RFOs.
Click here for further details.
In light of the DCMS settlement, on 26 October, ACE announced initial plans for the implementation of the cuts to its budget. In 2011/12, there will be an ‘across-the-board’ 6.9 per cent cut to Regularly Funded Organisations (RFOs), which equates to around 8.7 per cent in real terms – lower than the 10 per cent for which ACE had cautioned RFOs to prepare. There was an exception for two organisations which received higher cuts as ‘their primary purpose is not arts creation or performance’, Creativity, Culture and Education (CCE), and Arts &.Business.
Over the four year period 2011-15, the total percentage budget cut for funded arts organisations will be 14.9 per cent, corresponding to the Government’s stipulation that the budget for front line arts organisations should not reduced by more than 15 per cent. However, it was stressed by ACE that 2011/12 will be a transitional year and that RFOs must re-apply for funding from 2012; meaning that some will receive less, some more, and it will disinvest in some entirely.
The 50 per cent reduction in the Arts Council’s administration costs will be made by 2015.
To read the ACE announcement about RFO in 2011/12, click here
For the full text of the DCMS settlement letter to ACE, click here
ACE Revision of Arts Funding
ACE has subsequently announced the implementation of a new grants system designed to formalize the application process for RFOs. A new National Portfolio Funding programme from April 2012 will replace the Arts Council’s current funding system. There are four major changes in the new system:
- an open-application process for all organisations
- funds awarded for a fixed term of normally three years, but with flexibility in the length of funding agreements from two up to six years
- funding agreements with organisations based on clear criteria and shared goals
- funding agreements based around ‘strategic’ and ‘programme’ relationships, rather than the previous RFO model.
See the ACE website for details.
2) Skills Agenda
As we have been reporting regularly, the change in government has seen renewed emphasis on skills and practical learning with a number of ministers championing the importance of craft skills.
‘The craft so long to lerne: Skills and their Place in Modern Britain’
John Hayes, Minister of State for Further Education, Skills and Lifelong Learning, delivered a significant speech on skills at the RSA on 26 October. The minister spoke about the need to reassess our valuation of skills, saying ‘the stock of craft must rise’, and in keeping with earlier speeches stressed economic and social significance of skills – arguing that the higher the skills level in the economy, the more profitable the economy as a whole will become, that the benefits to individuals of acquiring new skills are reflected throughout society, and describing skills as an ‘integral’ part of our national culture.
He also outlined five key priorities for skills which correspond to the Government’s emerging vision for the sector, in summary;
- Continuing and intensifying efforts to re-establish apprenticeships as the primary form of practical training, with the number of apprentices set to rise by 75,000 during this Parliament.
- Redefining what a sectoral approach means, and calling for sectoral bodies, particularly the Sector Skills Councils, to be closely involved in designing training and qualifications and in setting standards.
- Continuing to supporting adult community learning and the role it plays in enriching the lives of individuals and local communities
- Breaking down the barriers to progression – making the barrier between HE and FE more permeable and encouraging lifelong learning by ensuring the road for any individual from basic skills to higher learning is smooth.
- Freeing FE colleges to innovate and excel, and to be more responsive to learner choice and employer demands.
John Hayes also used the speech to announce that the Government is considering a new award for excellence in “the crafts”, saying they will work over the next few months with organisations that support the crafts, including the various charities under the Patronage of The Prince of Wales, to encourage and reward excellence in this area.
The Crafts Council has contacted the minister about contributing to the development of this proposal. We were also able to make the point on the night that craft makers’ knowledge and skills are taking them into partnerships across the creative and digital industries and with manufacturers; and that the prevalence of portfolio careers means that these are the same makers who are producing objects for exhibition and sale elsewhere in their practice
Read his speech here
Skills for Sustainable Growth:
Earlier last month the Department for Business’s consultation on future skills strategy closed. The consultation document sets out the Government’s vision for the sector and how it anticipates the skills strategy will be delivered.
Read the consultation document here and the Crafts Council’s response here
3) Local Government
Local Enterprise Partnerships and Regional Growth Fund:
As we have reported previously, the Government announced in the Our Programme for Government document that Local Enterprise Partnerships would replace Regional Development Agencies. LEPs will aim to bring local councils and businesses together. At the same time, a new Regional Growth Fund of £1 billion was announced for projects with potential for significant private sector-led growth and to support areas particularly affected by public sector cuts.
At the end of October the Government released a new White Paper on Local Growth which sets out its approach to rebalancing the economy and stimulating growth, focussing on three key criteria:
- shifting power to local communities and businesses
- increasing confidence to invest
- focussed investment (tackling barriers to growth that the market will not address itself and supporting investment that will have a long term impact on growth)
In the context of this White Paper, ministers announced that the Regional Growth Fund is now open and that 24 of the 62 responses to its invitation to propose LEP partnerships have been asked to progress their bid to the next stage.
See the BIS news item including the list of LEPs invited to progress here and access the White Paper here
Economic growth and rehabilitation:
The Business Secretary Dr Vince Cable also gave a speech last month to the Confederation of British Industry (CBI) on economic growth and rehabilitation. He commented on the Government’s hopes for the future business landscape, acknowledging the importance of SMEs:
‘…in five years time we would like a much broader choice for businesses. More banks who understand SME finance. More non-bank sources of finance. More use of equity. More specialist knowledge of sectors.’
Read the speech here
The Crafts Council has recently met senior CBI staff to update them on its research into the economic importance of craft, following the launch of the CBI’s Blueprint for the UK’s Creative Industries which can be accessed here
4) The Big Society/ Participatory Funding
Prime Minister David Cameron’s Big Society initiative, which has been present in many policy agendas since May, is beginning to take more concrete shape.
The Big Society Network, launched in July with the aim of promoting the concept of The Big Society, has unveiled its first projects, of which the most significant to date may be ‘Your Local Budget’ in collaboration with NESTA. This project aims to explore how Participatory Budgeting – involving local people in the allocation of public budgets – can be used to make decisions on mainstream funds. It will work with ten local authorities across the country to pilot a range of approaches for involving people in spending decisions.
NESTA has produced a publication to accompany the project.
For further details visit the Big Society Network website and to view the NESTA publication click here
5) Higher Education
The Department for Business, Innovation and Skills (BIS) is to reduce its resource budget by 25 per cent over the course of the four year Spending Review period. According to the department, this equates to a 44 per cent cut to capital spending by 2014-15. The BIS Administration budget will also be reduced by 40 per cent, including savings from the abolition of RDAs.
The Department announced that it will manage the reductions in resource spending by reforming Higher and Further Education funding which will deliver broadly 65 per cent of BIS resource savings, a further 25 per cent of savings will come from efficiency and the remaining 10 per cent savings will be found by cancelling lower priority programmes.
Following Lord Browne’s long awaited Review of Higher Education Funding and Student Finance, published on 12 October, the Government is also reforming funding for Higher and Further Education. BIS said that changes mean the overall resource budget for Higher Education, excluding research funding, will reduce from £7.1 billion to £4.2 billion, a 40%, or £2.9 billion, reduction by 2014-15.
The Chancellor also announced in the SR that funding for science and research programmes will be ring fenced and according to BIS the science budget will be maintained in cash terms over the SR, with resource spending of £4.6 billion a year by 2014/15.
Click here for the BIS announcement following the SR.
Browne Review:
News of the BIS funding settlement was preceded by the publication of Lord Browne’s report making recommendations on the future of fees policy and financial support for students in England. The report noted that:
‘…the current funding and finance systems for higher education are unsustainable and need urgent reform’ (p8).
Central to the review is the recommendation that the bulk of the teaching grant, currently administered to universities by the Higher Education Funding Council for England (HEFCE), be paid by student contributions from loans, which will be repaid at varying rates according to their subsequent earnings. Following the review the government has announced a ‘more progressive payment system’ for university funding. In summary key measures include:
- Raising the cap on graduate contribution to tuition fees of £6000 a year (and in exceptional cases, up to £9,000 per year, subject to conditions on widening participation and fair access).
- Establishing a new £150m National Scholarships Programme for ‘bright students from poor backgrounds’.
- Administering loans to part-time students for the first time.
- Giving a larger student maintenance grant of up to £3,250 to students from families with incomes of up to £25,000. Those from families with incomes up to £42,000 will be entitled to a partial grant.
- Exempting graduates from contributing towards tuition costs until they are earning at least £21,000, up from the current £15,000.
The Government plans to publish a Higher Education White Paper later this year with detailed proposals on the wider, long-term issues that arise from Lord Browne’s review and reforms will be implemented in the 2012/13 academic year.
Read the BIS statement about proposed reforms here and access the Browne report here
The Crafts Council revised and updated its briefing on changes in craft courses to coincide with the Assemble conference in the summer, but postponed publication so that it could reflect the outcome of the Browne Review and Spending Review. This update will be available shortly.
6) Sector News:
The Big Link Up
As we reported in August, the Cultural Learning Alliance, a collective body working to ensure that all children and young people have meaningful access to culture, is hosting the Big Link Up, which encourages local and regional organisations involved in cultural learning to host Link-Up Events celebrating the importance of cultural learning and discussing how it can continue in the current climate. The events are aimed at cultural and arts practitioners, head teachers, teachers, parents, agencies and decision-makers and will take place between 22-26 November, with a National Event on 23 November in London. Among other key speakers, Ed Vaizey, Minister for Culture, Communications and Creative Industries, will be setting out his vision for cultural learning.
More here
Ceramics 2010
Last month UK Trade and Investment (UKTI) announced that ceramics are undergoing a ‘renaissance’ in Staffordshire, commenting that new R&D in ‘traditional’ ceramics has enabled sector diversification and showcases expertise in the Potteries.
The announcement was made following Ceramics 2010, an industry event showcasing more than 80 pottery firms and suppliers, organised by the British Ceramics Federation. We welcome acknowledgement of the significance of ‘traditional’ ceramics to industry sectors, while also advocating recognition of the social and economic importance of ceramics as a craft in areas such as the Potteries specifically and across the UK generally.
More from UKTI here
Details of the Ceramics 2010 here
7) Publications
Culture Shock:
Leading UK think-tank Demos has released a new pamphlet by Samuel Jones, Culture Shock, which is part of a joint Demos and CASE (Culture and Sport Evidence Programme) addressing the question: why should the state get involved in culture, and if it should, how?
The pamphlet examines current data on public participation in culture and sport and argues that culture has a bearing on areas of policy far beyond what is currently thought of as the DCMS’ remit. It aims to put in place a new rationale for government intervention in culture based on two concepts ‘the cultural realm as a basic and inalienable continuum of human life and society, and the forms that provide the manifestations of beliefs and opinions about culture’; it argues that there is a need for new approaches to cultural policy making and proposes one possible alternative.
Read the pamphlet here
Creative Recovery:
REFORM, a think tank focussing on the delivery of public services, has published a collection of essays Creative Recovery.
Mark Oliver’s opening essay acknowledges the current, significant contribution of Creative and Cultural Industries (CCIs) to the UK economy, and the potential for the industry to contribute to future economic growth and rebalance. Although essays focus on digital industries and broadcasting some arguments are relevant to craft, for example Sir John Hegarty’s essay advocates the encouragement of creative education to prepare young people for creative careers, an agenda that we firmly support.
The concluding essay by Dale Bassett also sets out some concrete policy recommendations for CCIs. However, these relate closely to digital industries, we would strongly welcome greater recognition of the significant contribution of other sub-sectors, including craft, to innovation and the UK economy and, in turn, of their policy priorities.
Access the report here
8) In Parliament:
Culture Media and Sport Committee:
As we reported previously, the Commons Culture Media and Sport Select Committee launched an inquiry into funding for the arts and heritage in August. The Crafts Council submitted written evidence to the inquiry on 2 September and over the past month there have been three oral evidence sessions with a wide range of representatives from the sector. Sessions took place on 12, 19 and 26 October.
All written evidence was made available on 13 October and, the uncorrected transcripts for the oral evidence sessions on 12 and 26 October are also available. See the list of inquiry publications
Tuesday 12 October:
Session 1: Alan Davey, Chief Executive, Arts Council England, Colin Tweedy, Chief Executive, Arts & Business, Louise de Winter, Director, National Campaign for the Arts
The session opened with a discussion of the case for public funding as ‘seed funding’ for research and development and as leverage to encourage private funding. The enhancement of infrastructure and artistic product attributable to the high investment from government and lottery over the last fifteen years was also highlighted. Later the session turned to a discussion of the particular risk of cuts to smaller and regional organisations that are less well positioned to raise funds from private sources and are vulnerable to cuts in local authority budgets as well as from central government.
Session 2: Gary Millar, Councillor, Liberal Democrats, Liverpool City Council, Simon Eden, Chief Executive, Winchester City Council, Mr Guy Nicholson, Councillor, Labour, Hackney Borough Council.
Evidence focussed on the socio-cultural significance of supporting the arts and culture in local contexts with reference to specific examples, notably Liverpool as European Capital of Culture 2008. Witnesses were asked whether local funding for arts should be statutory. They said that there are significant variations in the attitudes of local authorities towards participatory funding, which includes arts and culture, and broadly argued in favour of funds being administered according to what local communities want. They also talked about the importance of institutions, including ACE, local authorities and heritage bodies, working jointly to invest in participatory activities.
Tuesday 26 October
Session 2: Roy Clare, Chief Executive, Museums, Libraries and Archives Council, (MLA) Dr Michael Dixon, Chair, National Museum Directors’ Conference
Discussions initially focussed on free entry to museums and income generation. Concerns were again raised about cuts in local authority investment in culture and the arts, and the significance of lottery funding was noted. The future of MLA and the possibility of ACE subsuming its functions was examined at length.
The discussion then turned to managing cuts to protect collections. Dr. Dixon argued that in his case, decisions will be based on what essential expertise must be retained to make them valuable as international research collections; later in the discussion he highlighted the importance of collections as research resources for a spectrum of communities including science.
Roy Clare then mentioned what he described as the ‘controversial and difficult’ issue of ‘Collection Development’, the balancing of acquisitions by deaccessioning.
Towards the end of the session he stressed the importance of developing sector-wide solutions to cuts, arguing that for example, there is at present no strategic approach to collections management which is hugely expensive.
Notes for 19 October were not available at the time of writing.
STOP PRESS
The DCMS and BIS published their business plans for the next four years at the time of uploading our policy brief. We will cover them in more detail in a forthcoming news item.
Click here to access the DCMS plan and here for the BIS plan.
