The following information is the latest position from the Arts Council on the funding available
from the 'Grants for the Arts' Lottery fund and the potential effects that the Olympics will have
on the monies available in the future.
As has been widely acknowledged and discussed the Arts Lottery has recently seen a reduction
of some 35% in cash terms and there has been much concern about the effects that reductions in
lottery funding might have, particularly in cities such as Hull where many projects are reliant on
Lottery funding.
I have heard several rumours circulating and so I felt it would be useful to try and outline
the facts as we understand them at the moment.
1/ The 'Grants for the Arts Scheme' is still OPEN and is accepting applications. There are no
plans to close the Grants for the Arts scheme.
2/ Applications for more than one year are still possible, especially where it can be shown
that an new initiative needs time to establish sustainability.
3/ The present reduction in funds available has NOT been caused by the recent announcement of
another allocation of lottery money to the London Olympics. The recently announced allocation will
not be felt until 2008/09 (next year).
The reason for the reduction in available funding can be traced back to three factors.
These are:-
* Changes in allocations to 'good causes' so that the arts receive a smaller tranche of the
funding
* Reductions as a result of the previous allocation of funding to the London Olympics,
announced as part of the original bid
* The ending of a period of enhanced spending as the Arts Lottery responded to criticism
that too much money had been held in reserve for capital projects
These factors have resulted in a reduction in the sums available in this region from £ 6.8
million in 2006/07 to £ 4.4 million in the present year. However, some perspective can be gained
from considering that this is a return to the same level as 2003.
There are some other factors which are worth bearing in mind, including the fact that there
has been an increase in demand - not necessarily in terms of numbers of applications, but in size
and ambition. There are more multi-year applications being made, which obviously create demand over
a longer period and generally cost more.
In response to the pressures the Arts Council is advising that applicants seek their advice
early in the process and will be seeking to offer honest advice as to the likelihood of success as
early as possible. It will also be carefully considering the level of matching money and other
sources of income towards project budgets, the 'match' figure remains 10% but there will be more
careful scrutiny of budgets in future.
The Arts Council has advised that projects requesting over £40,000 are likely to struggle at
the moment, but that project which meet two or more of the Arts Council priorities, which include
First Time Applications, Geographical Area (areas of low provision) and Artistic Quality, will
continue to have 'a fighting chance'.
Here at the City Arts Unit we would encourage anyone considering making a Grants for the Arts
Application to do so - we are very willing to help and advise with any questions or problems, and
do remember that all applications are referred to the City Arts Unit for comment.
Paul Holloway
City Arts Officer
Hull City Council
Tel. 01482 616875
4 July 2007
Arts Council Lottery Funding and the Olympics - An Update