Autumn briefing event slides 2014
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This is the presentation delivered on 6 - 13 November 2014 by the Arts Council to funded organisations. Find out more here: http://www.artscouncil.org.uk/jobs-and-conferences/conferences/briefing-events-november-2014/
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Autumn briefing event slides 2014
- 1. Arts Council England briefing event November 2014 Part of FLOW outdoor visual arts programme, Northamptonshire. Lead artist: Jo Fairfax. Image: Andrew Randall
- 2. Agenda • Economic context • Political environment • Making the case • Funding agreements • Creative Case for Diversity • Museums • Artistic quality assessment • Strategic funds update
- 3. Economic context and Arts Council England income • Government’s Autumn Statement – 3 December • General Election – 7 May • Spending Review – Summer 2015 • Impact of local authority cuts • Further reductions in public spending until 2018/19
- 4. Arts income 1996/97 to 2017/18 - cash
- 5. Modelling Spending Review scenarios: arts income with 5,10 and 15% reductions Total Arts income with 0%, 5%, 10% and 15% Grant-in-Aid reduction 650 600 550 500 450 400 95/9696/9797/9898/9999/0000/0101/0202/0303/0404/0505/0606/0707/0808/0909/1010/1111/1212/1313/1414/1515/1616/1717/18 £millions 0% Total Cash -5% Total Cash -10% Total Cash -15% Total Cash
- 6. Modelling Spending Review scenarios: museums and libraries income Museums and library income
- 7. Current scenario planning • Arts Council England budgets for 2015/16 to 2017/18 based on: o Grant-in-Aid at cash standstill o National Lottery income of around £260 million per year • -15 per cent Grant-in-Aid would result in losses by 2017/18 of: o arts: over £75 million o museums: over £10 million
- 8. Efficiency agenda ‘We know there’s a long way still to go to achieve our ambitious plans for savings over the next few years. Hard-working taxpayers rightly expect their money to be spent judiciously…’ Francis Maude, Minister for the Cabinet Office June 2013
- 9. Political environment – priorities Where are the parties? UK polling 20 day average, 30 October 2014 34% 32% 16% 8% 5%
- 10. Political environment – influencing
- 11. Political environment – influencing Opportunities: 1. Creative industries 2. Economic regeneration 3. Wellbeing/public health 4. Education and opportunity 5. Social investment
- 12. What are we doing to make the case? • Gathering evidence and data • Advocating to Westminster, Whitehall and the Public • Create: perspectives on the value of arts and culture
- 13. Create: perspectives on the value of arts and culture
- 14. How you can make the case
- 15. • Presentation from Area org on sector-led advocacy work
- 16. 2015-18 • Funding agreements • Diversity and equality • Museums • Artistic quality assessment • Strategic funds update
- 17. Funding agreements – monitoring All agreements finalised by February 2015 Monitoring • Relationship framework • Annual returns
- 18. Diversity and equality • The Creative Case for Diversity • Data and classifiers • Strategic funding
- 19. Museums: 2015-18 • 21 Major partner museums • Museum resilience fund: £10 million for 2015/16 for non-Major partner museums • Museum development • Accreditation and Designation
- 20. Artistic quality assessment • Assessments for all National portfolio organisations and Major partner museums • A framework to improve quality and excellence • Improving our understanding of quality
- 21. Strategic funding: 2015-18 Selected continuing funds: • Creative people and places • Strategic touring programme • Exceptional Awards • Creative media • Capital awards
- 22. Strategic funding: 2015-18 Forthcoming new funds: • International • Arts impact fund
- 23. New online approach for grants management • Online grant management • Staged migration of Grants for the arts, National portfolio organisations, Major partner museums and Music education hubs • All grant holders will be contacted when they need to start using the system
Editor's Notes
- Let’s start with the big picture. The recovery of the economy is taking longer than forecast– GDP in 2013/14 was 5 per cent less than predicted in 2010. After the next election, any newly elected Government will still be in a period of austerity. The political parties are committed to continued reductions in public spending over the next five years; with further reductions needed if the deficit is to be cleared by 2018/19. It’ll be a challenging Spending Review – it’s possible that there could be 10 to 20 per cent cuts per year for unprotected departments. That’s if the current Government’s plans continue, with protected Departments reductions as they are currently, and if economic forecasts are correct. We might have an early, pre-election indicator in the Autumn Statement on 3 December. So we may also need to consider how to respond to in-year cuts as well.
- The next three slides show the trajectory of recent settlements for arts, museums and libraries, and models the potential reductions ahead; to illustrate the restrictive financial context we are operating in. This slide shows the planning figures we are currently using - outlining arts income (Grant-in-Aid and Lottery) from 1996/97 to 2017/18 (cash). Future figures are based on assumptions we will cover in a moment. We also know that National Lottery income may be lower than projected. The updated forecast in August predicted our share of Lottery will reduced by £45 million over the next five years.
- We can’t yet know what any future settlement for the arts will be and we certainly aren’t inviting cuts but now is the time to put plans into place to manage them, if (or when) they come, to help ensure the resilience of the organisations we fund. At -5 per cent we know that we could sustain our current levels of funding. Anything greater than this would have an effect on strategic funds and would require significant reforecasting. So far, our strategic funds budget – which we use to invest in opportunities and respond to challenges– has taken the weight of cuts (from £153 million in 2014/15 to £104 million in 2015/16). A Grant-in-Aid cut of -15 per cent would result in a loss of over £75 million by 2017/18 – National portfolio organisation grants would have to be cut. In the most extreme scenario the Arts Council could see a reduction of -20 per cent, coupled with a fall in our National Lottery income. We will consider cutting National Lottery funded programme budgets first, however, this becomes harder to manage if cuts are above -5 per cent
- Modelling Spending Review scenarios: museums and libraries income For museums a Grant-in-Aid cut of -15 per cent would result in a loss of over £10 million from a total museums programme budget of circa £43 million by 2017/18. That could mean, for example, a 50 per cent reduction in Major partner museum grants or a 100 per cent cut in the Museum resilience programme.
- As you will see from the slides our planning for 2015/16 to 2017/18 are based on two key income assumptions: Grant in aid at cash standstill for years two and three Lottery income at about £260m per annum- we do know this could be lower. We will need to act quickly in the second half of 2015/16 when we receive our settlement. We need to be realistic, as well as prepared for the worst, and we’ll all need to respond with creativity and flexibility. We know the challenge is to persuade Government of the value of arts and culture, that public money has a return and an impact on society that is far greater than the sum of its investment. That is why we are working hard to understand the political environment which will shape the agenda beyond May 2015…
- The recovery of the economy is taking longer than predicted. The most recent 2014 budget showed that Gross Domestic Product in 2012/13 was 14% less than predicted in 2008 and GDP in 2013/14 was 5% less than predicted in 2010. Indications are that there will be a continued period of significant austerity as well as: -An emphasis on efficiency, pay reform, new funding models. -A focus on value for money. Spending packages may well be considered on that basis. As part of our own efficiency we have faced cuts of 50% to our administration costs. We will be looking at further areas for efficiency at: Our grant processes What services could be shared with other Government bodies Our property costs The danger is that Government see our role as a grant maker, rather than a national development body. Administration costs will be under scrutiny; the work we do on development and support of the sector takes up a significant amount of these costs. We need to make this case clearly in the next spending review.
- Next year’s election will be close. At the end of October, polls indicated that Labour have a small majority; followed by the Conservatives, seeing their lowest share of the percentage of voting intentions this Parliament. UKIP have increased support rapidly and lead over the combined support of both Lib Dem and Green Party. (source: http://ukpollingreport.co.uk/uk-polling-report-average-2) Small parties could have a big impact in a tight race. Diversity and social mobility could be political battlegrounds across all parties. A focus on the North of England or ‘The Northern Powerhouse’ will form part of the Labour and Conservative offer. How each party prioritises culture will be different, indications from the main parties are; Labour prioritises cultural education, diversity and ensuring fair access to public culture funding – with an awareness that local council funding is a key issue. Conservatives’ arts and culture policy supports UKPLC, adding value to GDP through creative skills, apprenticeships and encouraging philanthropic support. The Secretary of State for Culture has been keen to drive messages around fair access and diversity. UKIP statements have indicated support for funding the best work- with some reservations around ‘cultural relativism’- to “end the failed policy of multiculturalism”. Lib Dems have yet to produce a distinct policy on culture. In the Lords they tend to prioritise cultural education and supporting the creative industries. Green Party is committed to arts funding but want to create regional arts boards made up of community arts groups and individual artists to “democratise arts funding”. We welcome the findings of the CMS Select Committee report which was published on Nov 5. The recommendations give us the opportunity to reaffirm our priorities for the near future: • we understand that in challenging economic times, we must continue to demonstrate the value and impact of arts and culture investment across England • we will continue to rebalance our investment intelligently – to build capacity outside of London, whilst not damaging the infrastructure in the capital • we are focussed on maintaining strong and meaningful local partnerships, including ensuring the continued commitment of arts and culture investment from local authorities
- We have been working on the holistic case to assist in making the case for public funding of the arts in an easily digested way. As you know this focusses on the benefits arts and culture bring to: Culture – intrinsic value Society – health, well-being and identity Education – from primary to university and beyond Economy – tourism, regeneration, creative industries We as a sector know that the intrinsic value is easily understood by people within the arts – but we are making it our focus to ensure our wider stakeholders across Government and the public start to engage with this idea. Using this allows us to tell a broader story, and to tailor our approach across the political landscape – where for example we might give weight to some specific elements which tap into political narratives – so we can talk about how art helps us to understand ourselves in the same breath that we talk about the value of arts and culture to education, and to social wellbeing, and to the economy. To better support the holistic case we need better data on the impact of our investment. So we'll be reviewing the data we collect and the way we publish it. We are examining how to use the holistic case as an organising idea to lay out some policy ideas that stem from culture and lead to education, society and the economy.
- We believe there are opportunities for the sector in the current political climate, based on ideas around the holistic case and priorities for the main parties: Increasing awareness of the importance of the creative industries to the economy Desire across all three main parties to regenerate economies outside London Moves in the policy landscape towards improving wellbeing, as well as reconsidering social care and public health Continued priorities on education in all main parties Emerging social investment models which the Cabinet Office is looking at around arts and culture
- Evidence and Data can support our case to Government: a report on our creative sector and its global competitiveness a second economic contribution study, adding to the existing Centre for Economics and Business Research report, with a geographical aspect. a study of the links between culture and place-making research about the spillover of money between public and commercial theatre sectors we are about to poll MPs on their overall awareness of the value of arts and culture and public funding We will be publishing data and reports on our findings between now and next years Spending Review Advocating A large part of our work towards the Spending Review is building contact with all parties, Whitehall and Westminster, that is happening now to better understand their priorities and help shape a public narrative that reflects the diversity and impact of the arts. We have met with Ministers from all parties and departments across Government to build momentum towards securing a positive outcome for the Grant-in-Aid settlement. The holistic case is a framework for these conversations and that is why we are planning on launching a publication Create: perspectives on the value of arts and culture in mid-November which will present the ‘case’ from a variety of different perspectives.
- We want to engage as many opinion formers as possible in a conversation about the value and impact of arts and culture. We'll be distributing it widely, including ensuring that every NPO and MPM gets a copy and asking you to support the dissemination of the digital content that supports the print publication. Create is a collection of essays, commentary, interviews, poetry and a graphic story, that look at the value of art and culture through different lenses. We’ve got a really broad range of contributors from Sir Howard Davies on economic value to performance poet Hollie McNeish on educative impact and graphic novelist Karrie Fransmann on cultural value. Although some of the content will be of interest to the general public, we don’t see this as our primary audience. We do see this document as a way of engaging with informed stakeholders, who have an interest in cultural policy; such as MPs, Local Councillors, business leaders, think tanks and the media. The voice of the sector is crucial in making the case. Advocacy can be done in many ways, and our strength as a sector lies in the networks and local support that many of you have. We are producing a suite of digital content to share across platforms. Please work with us to use Create to start a conversation about the value of arts and culture. We'll be distributing it widely, including ensuring that every NPO and MPM gets a copy and asking you to support the dissemination of the digital content that supports the print publication.
- We want the holistic case to assist in making the case for public funding of arts in an easily digested way. Some organisations are already great at advocacy, delivering great work in facilitating conversations across the sector. We know that it is often a resource issue. Larger organisations may find this easier and smaller organisations may need more support. To help you do this we have refreshed the Advocacy Toolkit. You might already be familiar with the toolkit but after extensive review we’ve updated it; adding a new section that sets out recent research findings outlining which messages resonate best with the public. Your audiences and local stakeholders are a huge part of building the momentum. But the first thing you can do, is make sure you share the Advocacy Toolkit and the Create publication with your teams across your organisation, also make sure your Board members see it too. It is designed to help you demonstrate the value of public investment in arts and culture so please have a look on our website and share it with your networks and colleagues. We hope it will help you: Map your stakeholders and networks in your area Build relationships with your local contacts, MPs, Local Authorities and councillors, businesses, teachers, leaders and community groups – to help persuade them why it's essential to invest in arts and culture Tell your networks and supporters why we need public investment in arts and culture, and encourage them to make the case Celebrate the value and impact of arts and culture with a public audience The beauty of the holistic case is that there’s something for everyone – it means we can work together to tell the same stories, but using our own voices. The main message is – don’t assume it’s been said. Find what works for you, and use our material and your material to encourage your chairs and other supporters to tell your story, on the terms that matter to the decision makers and influencers you can reach.
- Organisations should expect first payments in March. Monitoring remains a challenging task – in times of political scrutiny and financial pressure it is more relevant than ever that we are delivering value for the public purse. We have an important number of shared priorities that will affect how we manage our relationships with the organisations we fund. We will be monitoring these through our funding agreements for 2015 onwards in a newly transparent and accountable way. Relationship framework – in this round of funding we asked organisations to share a business plan for the first time. This meant the framework and processes for monitoring performance needed revision- to ensure we know how our investment is delivering against our 10-year strategy. To do this effectively we know we have to stop asking for irrelevant information – but we may be asking for more important information that you will have an obligation to provide. We will report on the extent to which National portfolio organisations and Major partner museums are delivering our goals, individually and collectively. This will require the collection of suitable evidence, particularly for goals 1,2 and 5. It will help us understand more about you and be able to demonstrate more clearly how you and your organisations enable us to deliver our strategy. It allows a stronger focus on resilience, and it will be best practice in business planning if the goals are embedded in your organisations plans from the outset. We will be asking organisations to tell us in the Annual Returns how they are contributing to: widening children’s participation in their activities ensuring the diversity of their artistic offer and their workforce undertaking talent development We are currently re-examining how we can move to a more transparent and rigorous way of measuring the implementation of the Creative Case for Diversity.
- Our Creative Case for Diversity looks at the extent to which the artistic programme and output of organisations we fund are reflective of audiences and contemporary society. This is part of Goal 1 - ensuring we are delivering artistic work and cultural experiences that represent the height of ambition, talent and skill. We asked all applicants to the new portfolio to outline how they would contribute to the Creative Case for Diversity. We were encouraged by the number, variety and strength of the National portfolio organisation applications we received that addressed diversity in a positive way. As part of the funding agreement negotiation we are working with you to ensure your business plans include detail on how you will deliver on the Creative Case. We will give you new ratings based on your business plans and this will provide us with a benchmark to map progress of the Creative Case. We believe that by addressing diversity and equality in your Goal 1 work, we will see impacts around diversity in delivering the other goals. In other words an organisation that has strong Creative Case plans and delivery is likely to attract more diverse audiences and be a more attractive place to work for a wider range of people when it undertakes recruitment. And in delivering the Creative Case well, organisations are likely to be stronger and wider networks in their communities – often through the delivery of Goal 5 activity - and thus make themselves more resilient. We are committed to fostering a fair and just culture landscape and we agree that there is much to be done if it’s to be truly representative of contemporary society. One of the steps we need to take is to gather better data and to publish it in a more transparent way. We will be taking a proposal to National Council that from 1 April 2015 we will be asking all National portfolio organisations and Major partner museums to include temporary and contract staff such as artists and performers in their workforce data and for the Arts Council to publish that data transparently on an organisation by organisation basis. We will also be recommending that we consult on whether there is support for gathering data on a wider set of protected characteristics than just race, disability and gender. We will also be recommending that we consult with the sector on whether our current ‘diversity led classifier’ provides us with a good enough account of the leadership of our sector. We want to make sure that we take a measured approach and in the coming months we will be actively consulting with the sector to gather your feedback on the way forward. We have also commissioned The Museum Consultancy to undertake a piece of research to look at workforce diversity across the portfolio and the challenges Major partner museums face in addressing issues around diversity and the workforce. This work will also be extended to benefit museum development providers to ensure equality and diversity is embedded across our wider work with museums outside of the Major partner museum portfolio. In July 2014 we announced £6 million of Diversity strategic funds, However it is important to stress that we run equality analyses around all our strategic funds to ensure that they are all designed with a view to promoting diversity and equality. These £6 million funds are therefore intended to respond to some of the issues that emerged from our equality analysis of the National portfolio organisation investment process and will therefore be specifically designed to tackle challenges our other funds – National portfolio, Grants for the arts and Strategic funds – won’t address.
- Despite the economic challenges, museums are achieving great things- as the continued growth in audience numbers proves, museums are an essential part of our national culture. The 21 Major partner museums play an important leadership role and we expect that role to be transparent and accessible to the sector. Major partner museums will need to focus on their resilience in the coming years and our plans for museums are responding to challenges in the sector with a focus on building that resilience and on close partnerships to make best use of the resources available. Museum Resilience Fund: An open application fund for non-Major partner museums prioritising activity that builds resilience in regional museums. With indicative budgets at the same level for 2016-18. Funding of £20,000-£300,000 a year over one to three years. It is the most accessible fund we’ve had for museums, with a lower limit of just £20,000 and with previous restrictions on eligibility removed (eg number of visitors). The fund will also support other specialist networks – for example those with a focus on museums and health or community engagement. Museum Development: Museum Development is the system of support and advice for all Accredited museums in England. Museum Development services are provided by nine regional organisations, giving comprehensive coverage over the whole of England. Eight of the existing providers have been re-appointed for 2015-18, with a new provider in the West Midlands (Ironbridge). Accreditation is supporting high standards in museums. Designation has been subject to review – the renewed scheme is currently being piloted and will be re-launched in the spring. The Arts Council/V&A Purchase Grant Fund, Designation Development Fund and PRISM funds will continue for 2015-18 at their current levels.
- Artistic Quality Assessment We are expanding the programme from October 2014 to include: museums, programmed work and participation. Some of you will already have benefitted from receiving assessments, and to some this will be completely new. The primary purpose of the Artistic and Quality Assessment process is to understand the quality of the work we fund. Relationship managers will decide which pieces of work should be assessed Independent assessors come from a range of backgrounds to undertake this work It provides a fair, robust and transparent platform for discussions about the quality of work and to develop a broad evidence base which will inform the Arts Council's future funding decisions. We hope these changes will strengthen the programme and not only help us, but also help you in providing a context for ongoing conversations about artistic quality and excellence. We are continuing to support approaches to developing quality metrics and quality principles for work with, for and by children and young people. We will update you on this work next year. In the meantime, information about this work can be found on our website.
- So far, our strategic funds budget – which we use to invest in opportunities and respond to challenges– has taken the weight of cuts (from £153 million in 2014/15 to £104 million in 2015/16). We know that these will be the first to be impacted in any in future cuts. Creative people and places - we will allocate £25 million to this fund. £20 million will become available from 2016 and an additional £5 million from 2018/19 Creative people and places focuses our investment in parts of the country where people's involvement in the arts is significantly below the national average, with the aim of increasing the likelihood of participation to: encourage long-term collaborations and empower partnerships to experiment and develop arts programmes using new and different approaches that will engage audiences £37 million invested between 2012 and 2015 in 21 action research partnerships. With funding earmarked against areas of greatest need, just over 50 per cent of the money was invested in the North and around 5 per cent in London we will continue to ensure that this fund makes a significant impact outside of London by establishing appropriate criteria Strategic Touring £23 million An investment of £23 million through 2015-18 across all six artforms to support touring across the entire country- to ensure that people across England have improved access to great art visiting their local area. Stronger relationships forged between artistic, audience and programme development on both the supply (eg artists, producers) and demand (eg promoters, audiences) side of touring. The programme is open to any arts and cultural organisation for the touring of arts activity – organisations not part of the National portfolio, National portfolio organisations, museums and libraries have been successful to date through the programme. We will be adjusting the guidelines from April 2015 to ensure that the fund supports mid-scale touring, especially theatre. We will also be investing additional funds to support inbound international touring. Exceptional Awards £8.2 million The Exceptional Awards programme was designed to fund ambitious or extraordinary projects that help achieve our Goals where the project could not be supported through our existing programmes. The current programme supports projects that must be substantially underway by 31 March 2015. Following learning from the progress of Exceptional Awards to date we are currently re-focusing the programme for 2015-18 to ensure that it able to operate with a smaller budget. We will publish new guidelines in March prior to our April quarterly release. Creative media £10 million Our aim in relation to digital, set out in our creative media policy, is ‘to increase the quality, volume and reach of digital content and experiences for artistic, economic and audience development and growth’. We expect all National portfolio organisations to contribute to this, showing leadership in digital innovation for the wider arts sector to learn from and follow. There will continue to be limited Strategic funds to complement creative media activity delivered through National portfolio and Grants for the arts investment. Recent activity in this area includes the Multi-channel network for the arts – set to launch in Summer 2015 – we will keep you updated about how you can get involved – and the new Random Acts Network Centres. Channel 4’s Random Acts short films series will re-launch in 2015. The successful Network Centres will be announced in January 2015. Capital awards: £116.8 million budget for Large and Small Capital grants- including £32.5 million for small capital grants. These funds work towards Goal 3 and will prioritise the consolidation and improvement of the existing arts infrastructure, rather than investing in significant expansion or new buildings. We will support organisations to develop resilience by having the right buildings and equipment to deliver their work and become more sustainable and innovative businesses. This includes increasing the environmental performance of buildings and equipment to support a reduction in carbon emissions. 14-18 NOW Opens to new submissions on Monday 17 November. 14-18 NOW co-commissions new work in all artforms to engage wide audiences – right the way across the UK - in reflection on the First World War. There is a particular focus on young people, and people from communities who would be less likely otherwise to engage with the centenary. To send a proposal to 14-18 NOW, go to http://www.1418now.org.uk/submissions
- We have previously mentioned a number of funds for the 2015-18 funding round and we are now able to give some more detail. International We have an opportunity to make a step-change in this area of our work over the next three years, to improve export and exchange on an international level. We have been given £18 million in monies returned to us by the Olympic Lottery Distributor. This fund will have several strands. Re:Imagine India (funded along with the British Council) will open in January 2015, as will a strand to support International showcasing – also delivered in partnership with the British Council. In April 2015 there will be an expanded Artists International Development Fund – enabling smaller organisations to undertake planning visits for international activity - as well as a strand to support inbound touring through the Strategic touring fund, as previously mentioned. We will also be asking National portfolio organisations and Major partner museums to report on their international activities as part of their annual returns. Arts impact fund: The Arts Council is working with partners across private and public sectors, under the auspices of the Cabinet Office, to create a social investment fund for the arts. It is hoped that this fund will offer an additional source of finance for the sector as well as allowing arts organisations to demonstrate their social and artistic impact. Details are still being agreed and we hope to be in a position to make an announcement before Spring 2015. A similar fund – Arts Ventures – is already being run by Cabinet Office and has supported projects including capital funding for the Rosehill Theatre in Cumbria. Regional ambition fund: Regional ambition fund at around £15 million in total for the period 2015-8. This will be designed to encourage ambition and talent development and retention outside London. There will also be details on further funds to come soon.
- In 2010, as part of our 2011-15 grant in aid settlement, the government set us a target of reducing our administrative costs by the end of March 2015. We selected a new grant management system and we will be rolling this out from February 2015 onwards. At the moment, individuals and organisations use our website to make applications, and for some grant programmes, complete an end of activity form. Any grant communication between these points happens offline – such as receiving an offer or rejection letter in the post, and submitting monitoring information via the post or email. When it’s set up, all grant management will take place online. This means that everyone in receipt of funding from the Arts Council will need to have an online user account and all communications about the grant will be online. We will launch the new system on 24 February 2015 with Grants for the arts only. Between February and December, we will start migrating more funding streams to the new system such as NPOs, MPMs and Music Education Hubs. In early 2015, we will be announcing the timetable for migration. We will be contacting all grant holders on a case by case basis to inform you of when you need to start using the new system and share a raft of support materials for you to use the new system