Scottish theatres, festivals and venues left on 'cliff edge' of collapse by new 3-month funding delay

Hundreds of theatres, festivals, events and venues have been left in limbo over their future Scottish Government funding after a crunch set of decisions was delayed by three months.

Creative Scotland has been forced to postpone decisions due this month on £87.5 million worth of applications from 281 organisations as it does not have enough “budget clarity” despite last-ditch talks to ensure they could be made.

Demonstrators protest outside the Scottish Parliament against the cuts to the performing arts industry in Scotland by the Scottish Government. Picture: Lisa Ferguson | Lisa Ferguson

The Government has refused to give Creative Scotland a budget for its long-awaited three-year programme, despite warnings from the arts agency that a number of leading organisations are "in crisis and on cliff-edges" due to uncertainty over their funding.

The arts agency has raised concerns that a postponement would leave organisations at more risk of financial collapse. Programming is also expected to be scaled back or put on hold as a result of the delay.

Scottish culture secretary Angus Robertson. Picture: Lisa Ferguson | Lisa Ferguson

The funding snub, which means decisions will not be taken until the end of January, has emerged despite repeated promises by ministers over the past year to roll out £100m worth of new investment in culture by 2028.

Shortly before culture secretary Angus Robertson was due to appear at Holyrood’s culture committee on Thursday, applicants were told Creative Scotland would not be allocated any funding for the three-year programme until the Government sets its full Budget in December.

The delay is a fresh blow to the industry after the controversial shutdown of Creative Scotland's open fund for artists in August due to the Government withholding part of its budget.

The open fund is due to reopen later this month after £3m was eventually released to Creative Scotland following a widespread industry backlash and on-stage protests from performers at Edinburgh’s festivals.

Creative Scotland has been telling organisations that it would be announcing its long-term funding decisions this month since the spring of last year, when organisations were given a deadline to make initial applications by October 2023.

It has previously warned it will have to fund “far fewer” organisations in future if it is left on standstill funding by the Government due to the impact of rising costs on organisations.

The Dundee Contemporary Arts Centre said the delayed decision on its future funding left it facing an “extremely uncertain future”.

A spokesperson said: “This delay will affect our audit report and our ability to be declared a going concern, jeopardising our ability to fundraise elsewhere, and will force us to escalate scenario planning for receiving less support than we have applied for, putting jobs and our ability to serve our audiences at risk.”

Robert Kilpatrick, chief executive of the Scottish Music Industry Association, said: “This delay adds further anxiety and pressure to a sector already stretched to its limits, and significantly impacts the lead time for both the planning and delivery of programmes of work.

“Recent events have eroded hope and trust in our sector and this announcement is yet another blow to Scotland’s cultural landscape, which is already on its knees.”

Michael Stitt, chair of the Brunton Theatre Trust in East Lothian, said a decision on its application was “vital” to support its “continuation” over the next three years.

He said: “This is an exceptionally difficult time for the arts and culture across Scotland and we need support from our funders and public now more than ever."

Creative Scotland chair Robert Wilson said: "While we would have preferred to announce the outcome from this application process in October as planned and have been working collaboratively with the Scottish Government to endeavour to do so, we also understand the extreme budget pressures that exist.

"These pressures mean we are required to postpone the outcome until such time as we have budget clarity. This will enable us to make final decisions in a context of budget confidence and to support as many organisations on a multi-year basis as we possibly can."

In a letter to applicants, Creative Scotland said: "We are aware of the difficult environment and challenging operating conditions that organisations face across the sector currently and apologise for the delay to the timelines for decisions.

"Please be assured that we have been pro-actively seeking budget clarity for this programme throughout the process, and on future budgets for culture more broadly, and will continue to do so alongside colleagues from across Scotland’s cultural and creative sector."

Mr Robertson insisted Creative Scotland's multi-year funding programme was on a "positive” trajectory, with the potential for "many, many more" organisations to benefit after decisions are made.

He said he fully appreciated the concern, uncertainty and “deep frustration" within the arts industry about the immediate and long-term funding outlook, adding the Government was still aiming to "substantially increase" its culture budget in the next financial year.

Labour culture spokesman Neil Bibby told Mr Robertson: "What we're seeing is chaos and a mess. The Scottish Government has promised, made clear commitments and promises to increase the budget by at least £25m in 2025/26 for months.

"Yet half an hour before this committee meets this morning you write to Creative Scotland saying you can't tell what the funding position is going to be next year. This is chaotic."

Mr Robertson said the Scottish Government needed to know the "budgetary decisions made by the UK government" before he could confirm how much funding the cultural sector would receive.

He said: "It is only once we have the necessary practical assurance around the Scottish Government's budget for 2025/26 that we will be able to set our commitments for the culture portfolio."

Creative Scotland has been forced to delay its funding announcement weeks after the government announced a review of its “remit and functions”.

Scottish Liberal Democrat leader Alex Cole-Hamilton said: “The SNP’s excuses and platitudes are worth nothing to a sector it has repeatedly thrown under the bus. Endless disruption and uncertainty - that’s all this government can offer them.”