HC Deb 05 November 1987 vol 121 cc838-41W
Mr. Jessel

asked the Minister for the Arts whether he will announce levels of funding for the arts in 1988–89; and if he will make a statement.

Mr. Luce

I announced at Newcastle in July the start of a long-term plan for the funding of the arts. The aim of the plan is to maintain the level of support from public funds, but to encourage subsidised bodies to become more self-reliant in their development and growth. I am glad to announce today a new departure in arts funding which will carry that plan forward.

The new departure consists of a three-year settlement of the arts budget. This is a special arrangement providing firm figures not only for the next financial year but for a three-year period from April 1988 to March 1991. This is to give arts bodies a firm base on which to plan their future activities, and if they are successful their future growth. In order to create the right atmosphere and to get this new approach off to a good start, I am providing a substantial increase in funding in the first year.

The three-year settlement covers much the greater part of my central Government arts programme, including the national museums and galleries; the Arts Council, British Film Institute, Crafts Council and other arts bodies; the running costs of the British Library and the public lending right. It excludes the National Heritage Memorial Fund, for which my right hon. Friend the Secretary of State for the Environment announced a special injection of £20 million this year on 23 October. It also excludes the costs of the British Library capital project at St. Pancras, which will continue to be reviewed annually in the usual way. But it covers all the rest.

The essence of the three-year settlement is that the figures for the period up to March 1991 will not be reviewed in the course of the 1988 and 1989 expenditure surveys unless the situation changes substantially in ways that cannot be foreseen today. The Government will consider in 1988 what provision to make for the last year of that survey, that is for 1991–92; and similarly in 1989 what provision to make for 1992–93. We intend a rolling three-year programme.

Thus, arts bodies will be able to plan their own future on a firm basis. We want them to know what the Government are going to do for them—and what they are not going to do; to plan the fund-raising and income generation which they should undertake on their own account; and to match their plans and priorities to a realistic view of the total resources that they can secure for themselves over the three-year period.

That part of my budget to which the three-year settlement applies will rise from £336 million in the current year to £394 million in 1990–91: an increase of £58 million or 17 per cent. To get the new approach off to a good start, the increase in the first year will be 10 per cent. It will not he evenly spread over all my client bodies; most will go where I judge the case to be strongest. My central Government programme as a whole, including the NHMF and the British Library's capital needs, will rise to £440 million over the three-year period. That is a rise of £79 million or 22 per cent. in total.

The table shows the main allocations over the three-year period. The Arts Council's grant will rise from £138 million in the current year to £150 million next year, £155 million in 1989–90 and £160 million in 1990–91. Over the three years, this is a rise of over 15 per cent. From this increase I shall expect the Arts Council to deal with the financing of overseas tours by our major companies and to set aside sums rising to £7 million by the third year for incentive funding schemes and for increased touring in the regions outside London. The grant to the British Film Institute will rise to £12 million by the third year, an increase of nearly 20 per cent. The grant to the National Film and Television School will rise by 50 per cent. to £1.7 million. The Crafts Council's grant will rise by nearly 19 per cent. to £2.4 million.

I am increasing the provision for the business sponsorship incentive scheme from £1.75 million to £3.0 million.

The provision for public lending right will rise from £2.75 million to £3.5 million, a rise of 27 per cent, which will bring the fund to its highest level in real terms since its inception.

The provision for the running costs of the British Library will rise from £51 million in the current year to £56 million by 1990–91, a rise of nearly 10 per cent.

The total provision for museums and galleries will rise from £126 million in the current year to £141 million next year and £146 million by the third year. I shall make a further statement before Christmas on the allocation of these sums between institutions. But not less than £6 million of the increase in the first year will be devoted to strengthening the building and maintenance programme of the national museums and galleries—a rise of over 20 per cent. The grant to the Museums and Galleries Commission will rise to over £6.8 million by the third year, a rise of over 11 per cent.

These measures combine a substantial increase with a firm limit. They offer an opportunity to aim for, and secure, a broadening of the base of support for the arts in this country. As living standards rise, we should aim to ensure that increasing numbers of people not only have access to the arts but participate by their own choice in supporting them. My proposals are designed to help to create the climate in which artists and arts bodies can win that support.

Table of main allocations
£ million
1987–88 1988–89 1989–90 1990–91
Arts Council 138.40 150.00 155.00 160.00
British Film Institute 10.03 11.30 11.50 12.00
NFTVS 1.13 1.60 1.65 1.70
Crafts Council 2.02 2.25 2.35 2.40
Government Art Collection 0.16 0.20 0.22 0.24
BSIS 1.75 3.00 3.00 3.00
Arts Marketing 0.25 0.25 0.25 0.25
Research and supporting services 0.22 0.70 0.70 0.70
NHMF (OAL share) 1.50 1.50 1.50 1.50
Acceptance in lieu (OAL share) 1.00 1.00 1.00 1.00
British Library
current grant 51.00 54.00 54.70 56.00
capital 22.70 32.26 39.65 44.19
New library initiatives 0.00 0.25 0.25 0.25
RCHM 0.53 0.60 0.61 0.63
Public Lending Right Scheme 2.75 3.50 3.50 3.50
Museums and Galleries
Museums and Galleries total of which: 125.64 140.70 142.66 145.63
National Institutions 119.38 133.80 135.55 138.33

1987–88 1988–89 1989–90 1990–91
Museums and Galleries Commission 6.26 6.40 6.61 6.81
Research and support services 0.50 0.50 0.50

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