Budget Scotland: Creative Scotland ramps up pressure on Scottish Government to deliver on arts funding promises

Arts agency tells Holyrood there is "considerable expectation" ahead of the Scottish Budget

Creative Scotland has ramped up pressure on the Scottish Government to deliver on its promise to "more than double" arts spending in this month's Budget – as campaigners urged people across Scotland to write to their local MSP to urge them to help secure the future of hundreds of jobs and dozens of companies.

The arts agency has told the Scottish Parliament the culture sector wants to see "significant funding flowing immediately" following pledges made by First Minister Humza Yousaf at the SNP conference.

Chief executive Iain Munro has warned Holyrood's culture committee there is "considerable expectation" over a commitment to increase annual arts funding by at least £100 million.

Campaigners had previously called for an extra £104m to be allocated to arts spending for the next financial year alone in this month’s Budget to head off the funding crisis amid fears of a “tipping point” for many organisations if they do not secure significant additional money.

The government has been under growing pressure over the past 18 months to end prolonged standstill funding and reverse a trend that has seen Scotland slump to 28th out of 34 European countries for spending on arts and culture per head.

Culture secretary Angus Robertson’s overall budget is said to represent just 0.58 of government spending, with Creative Scotland allocated less than 0.1 per cent.

The government provoked fury across the cultural sector in September when it reinstated a 10 per cent cut in Creative Scotland’s budget, originally imposed in December last year, citing the impact of public sector pay deals, including for teachers, doctors and police officers.

Creative Scotland was ordered to raid its financial reserves to fill a £6.6m hole in its budget to avoid passing the cut on to 121 organisations on long-term funding.

It had previously warned one in three organisations were at "serious risk" of insolvency and more than 900 jobs were under threat due to the impact of inflation, rising energy bills, pay demands and prolonged standstill public funding.

The government was criticised last month in an official report from the culture committee for causing “considerable damage” to the "already fragile" confidence of the culture sector over its treatment of Creative Scotland and failing to get to grips with the worsening "perfect storm" of financial pressures.

Creative Scotland had built up around £17m in National Lottery funding as an emergency fund to help organisations who lose out in two key funding rounds next year.

Mr Yousaf and Mr Robertson have both suggested Creative Scotland's financial reserves would be “restored” and “replenished” next year, when the government has also promised to reinstate the £6.6m it cut from its budget in September.

However, Mr Munro has suggested it will not be possible for the government to deliver on this pledge due to strict spending rules.

In his letter to the culture committee, he said: “We have used part of our National Lottery reserves to fill the in-year reduction in our grant in aid budget in the 2023/24 financial year. This means we will have £6.6m less in National Lottery reserves to support transition funding in 2024/25, and beyond, for some organisations which currently receive some form of regular funding, but are unsuccessful in their multi-year application.

“These reserves are entirely separate to grant in aid budgets which require in-year spend and the accumulation of reserves is not permitted. However, as one of 12 National Lottery distributors, Creative Scotland is permitted to accumulate reserves from National Lottery income, to apply to future cultural funding.

“The board has agreed to build and designate National Lottery reserves for transition support for some organisations, which currently receive some form of regular funding, but are unsuccessful in their multi-year funding application."

Creative Scotland has revealed it is facing a funding gap of more than £50m to meet demand for long-term funding support from 361 organisations over the next five years.

Mr Munro added: “We have welcomed the First Minister’s announcement at the SNP conference. This is coupled with the Cabinet secretary’s assurance that the £6.6m cut from our budget this year will be restored in 2024/25.

“We look forward to hearing more detail on the £100m announcement as soon as possible. There are indications that some information may be shared as part of the Scottish Government’s draft budget announcement.

“There is considerable expectation in the sector as regards the £100m and a desire to see significant funding flowing immediately.”

The Campaign for the Arts is encouraging supporters across Scotland to call on MSPs to demand the country’s “long-term underinvestment” in culture and the financial pressures on the sector are addressed in the budget.

Director Jack Gamble said: “The future of the arts in Scotland isn’t just a matter for the more than 70,000 people who work in Scotland’s creative industries. Millions of citizens benefit from a thriving cultural sector, and from the ways it enriches our lives, communities, economy and society.

"The arts make life better, and everyone should have opportunities to experience and take part in them."

Culture Counts director Lori Anderson said it was “vital” for organisations to understand how the government intended to target the additional funding it had pledged to allow them to plan ahead.

She said: “We would urge the government to bring as much as possible of this investment into the Budget for 2024/25, to prevent the tipping point that many organisations stand to face next year.

“The number of organisations which ultimately receive funding will be influenced by the budget that is made available to Creative Scotland from the Scottish Government.

"Our long-term goal continues to aim for 1 per cent of overall Scottish Government expenditure towards culture. This will bring us closer to the levels of investment across Europe, where the average is 1.5 per cent.”

Mr Robertson said: “We will continue to do everything within our powers and resources to help those in the culture sector most affected by current economic challenges. However, our ability to respond to the cost crisis is limited by the inactivity of the UK Government and the financial restrictions of devolution.

"Years of UK Government austerity, historically high inflation caused by the mini-budget and, of course, Brexit has cut Scotland’s spending power to invest in crucial sectors.”