HC Deb 03 November 1988 vol 139 cc701-4W
Mr. Butler

To ask the Minister for the Arts whether he will announce details of the rolling forward of the three-year settlement for the funding of the arts; and if he will make a statement.

Mr. Luce

I announced a year ago a three-year settlement of the arts budget for the years 1988–89 to 1990–91. My aim was to give arts bodies a firm basis on which to plan their future activities and to encourage greater self-reliance and diversification in their sources of funding.

I am glad to announce today the rolling-forward of this settlement to a fourth year, 1991–92. As before, the three-year programme covers the whole of my central Government arts expenditure, except the heritage items which are jointly funded with the Department of the Environment and the British Library capital project at St. Pancras which will continue to be reviewed annually.

In order to get this new approach off to a good start, last year's settlement provided an increase of 10 per cent. in my programme for 1988–89. The three-year strategy introduced new measures, notably incentive funding schemes for the performing arts and for the libraries sector, and major increases in funding for the buildings and maintenance programmes of the museums and galleries. I am very glad to report that the three-year funding strategy has been a success and that arts organisations have responded vigorously to this approach. They are planning ahead on firm three-year figures and are actively seeking to increase their other sources of income.

The arts budget for 1991–92 builds on the foundations laid last year. Including adjustments for transfers to museums and galleries which I announced last year, and for VAT on new construction, the three-year funding programme will rise from £339 million in 1987–88 to £430 million in 1991–92, an increase of 27 per cent. over the first four years. The central Government programme as a whole, including the heritage items and the British Library's capital needs, will rise to £483 million over the same period, an increase of 31 per cent. Both figures represent increases of over 6 per cent. on the corresponding totals for 1990–91.

Table A summarises the main allocations. The Arts Council's grant will rise from £160 million in 1990–91 to £168 million in 1991–92, an increase of 5 per cent. From this increase, I shall expect the Arts Council to apply £3 million for additional incentive funding purposes. The precise nature of the incentive scheme and the targets for its achievement will be discussed later. The grant to the British Film Institute will rise from £12 million in 1990–91 to £12.8 million in 1991–92, an increase of 6.6 per cent. The grant to the National Film and Television School will rise by nearly 6 per cent. to £1.8 million. The Crafts Council's grant will rise by 6.25 per cent. to £2.55 million.

The Arts Council's grant for 1989–90 now includes £0.25 million for the second tranche of my contribution to Glasgow's year as European city of culture. I have also increased the grant-in-aid to the British Film Institute next year by £0.3 million for the refurbishment of the National Film Theatre.

The provision for the business sponsorship incentive scheme will continue at £3 million in 1991–92.

The total provision for museums and galleries will rise from £161 million in 1990–91 to £174 million in 1991–92, an increase of 8.2 per cent. Half the £13 million increase will go to a further strengthening of the building and maintenance programme of the national institutions. This brings the size of the building programme to £55 million in 1991–92, an increase of 53 per cent. over 1987–88. I have also increased my provision for this building programme by some £3.5 million in both 1989–90 and 1990–91. The increase includes provision for the liability to VAT on new construction and £1 million of new money in each year. The allocations set out in table B will make possible some major refurbishments and improvements to, for example, the British museum, the National gallery, the Science museum and the Victoria and Albert museum. I congratulate these institutions and others which have been successful in securing additional sources of income to support their plans.

I also attach importance to the management of our national collections, including their conservation, storage and documentation. I have discussed this with each of the national institutions in the context of its corporate plan, and have commissioned research studies into aspects of collections management. Recent reports of the Museums and Galleries Commission and the National Audit Office have also raised this subject. The allocations set out in table B are intended to help the national institutions in tackling their priority concerns in the management of their collections. I am increasing the grant-in-aid to the Musuems and Galleries Commission by 7 per cent to £7.3 million in 1991–92 in order to help the commission and the area museum councils to support other museums and galleries in this task. I am also increasing by £0.175 million the commission's provision for 1989–90 to help the commission and the area museums councils to promote the touring of exhibitions, and to support initiatives in training for museums management.

The grant-in-aid for running costs to the National gallery includes in 1991–92 provision of over £1 million to take account of the opening of the Sainsbury wing in April 1991.

The needs already described must continue to have priority over purchase grants, which will therefore remain at their present cash levels for the time being. I intend to review the overall provision for purchase grants, how they are best used to stimulate other funding and how they are best allocated. I shall make a further announcement about this in due course.

Provision for the running costs of the British Library will rise to £56.5 million in 1991–92, an increase of 4.6 per cent. over the previous year. I am also increasing the grant for 1989–90 by £0.7 million to help meet the cost of an early retirement scheme and preparations for the move to St. Pancras.

The sums for British Library capital in table A represent planned expenditure on phase 1A of the St. Pancras building. They will also cover preliminary design work on the completion phase, on which I am making a separate announcement today. Further expenditure on the completion phase will be provided for in next year's survey.

The provision for public lending right will be increased by £0.75 million to £4.25 million in 1991–92.

Table A
Table of Main Allocations
£ million
1988–89 1989–90 1990–91 1991–92
Performing Arts
Arts Council 150.00 155.25 160.00 168.00
British Film Institute 11.30 11.80 12.00 12.80
National Film and TV School 1.60 1.65 1.70 1.80
Crafts Council 2.25 2.35 2.40 2.55
Business Sponsorship Incentive Scheme 3.00 3.00 3.00 3.00
Research and Supporting Services 0.67 0.75 0.67 0.67
Museums and Galleries
Museums and Galleries Total of which 153.58 157.80 160.80 174.04
National Institutions 142.10 145.06 148.66 161.16
Museums and Galleries Commission 6.48 6.85 6.86 7.34
Research and Supporting Services 0.47 0.50 0.50 0.50
National Heritage Memorial Fund (OAL share) 1.50 1.50 1.50 1.50
Acceptance in Lieu (OAL share) 2.30 1.00 1.00 1.00
British Library Current Grant 52.18 53.50 54.03 56.50
British Library Capital 33.09 43.35 45.24 50.00
Public Lending Right Scheme 3.50 3.50 3.50 4.25
Public Library Development Scheme 0.25 0.25 0.25 0.09

Table B: Museums and galleries £ million
1989–90 1990–911 1991–922
British Museum:
Running costs 15.593 16.042 17.154
Building programme 7.250 7.270 7.900
Purchase grant 1.400 1.400 1.400
Sub total 24.243 24.712 26.454
British Museum (Natural History):
Running costs 15.230 15.686 16.478
Building programme 6.260 5.870 6.400
Purchase grant 0.190 0.190 0.190
Sub total 21.680 21.746 23.068
Imperial War Museum:
Running costs 6.327 5.936 6.335
Building programme 3.980 2.570 2.800
Purchase grant 0.100 0.100 0.100
Sub total 10.407 8.606 9.235

1989–90 1990–911 1991–922
National Gallery:
Running costs 5.285 6.083 6.985
Building programme 4.390 3.800 4.400
Purchase grant 2.750 2.750 2.750
Sub total 12.425 12.633 14.135
National Maritime Museum:
Running costs 5.535 5.644 6.035
Building programme 3.450 2.770 3.200
Purchase grant 0.205 0.205 0.205
Sub total 9.190 8.619 9.440
National Museums and Galleries on Merseyside:
Running costs 6.996 7.169 7.608
Building programme 3.060 2.670 2.800
Purchase grant 0.750 0.750 0.750
Sub total 10,806 10.589 11.158
National Portrait Gallery:
Running costs 1.976 2.027 2.157
Building programme 1.530 1.550 1.800
Purchase grant 0.310 0.310 0.310
Sub total 3.816 3.887 4.267
Science Museum:
Running costs 10.999 11.267 12.009
Building programme 5.310 5.130 4.900
Purchase grant 0.375 0.375 0.375
Sub Total 16.684 16.772 17.284
Tate Gallery:
Running costs 6.432 6.608 7.003
Building programme 4.200 3.910 4.700
Purchase grant 1.815 1.815 1.815
Sub Total 12.447 12.333 13.518
Victoria and Albert Museum:
Running costs 12.933 13.326 14.269
Building programme 7.660 7.670 8.500
Purchase grant 1.145 1.145 1.145
Sub Total 21.738 22.141 23.914
Wallace Collection:
Running costs 1.144 1.175 1.204
Building programme 0.482 0.447 0.483
Purchase grant
Sub Total 1.626 1.622 1.687
To be allocated later for building and maintenance work 5.000 7.000
National Museums and Galleries:
Total 145.062 148.660 161.160
Greater Manchester Museum of Science and Industry 1.516 1.552 1.616
Museum of London 2.855 2.923 3.096
Sir John Soane's Museum 0.295 0.305 0.323
Sub Total 4.666 4.780 5.035
Museums and Galleries Commission 6.854 6.859 7.345
Research and Support Services 0.500 0.500 0.500
Grand Total 157.082 160.799 174.040
1 Individual provisions for the building programme in these two years will be increased when the full allocation is made.

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