A further 1% will be sliced off the NPO budget from April, with more to follow.

Cutting money
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Images of Money

Arts Council England’s (ACE) National Portfolio Organisations (NPOs) are to be hit by new cuts after the funding body received a further reduction to its grant in aid from the DCMS in last week’s budget.  A further 1.09% will be cut from ACE’s budget in 2013/14, followed by 1.06% in 2014/15. This means that additional budget cuts totalling 2.09% and 3.06% for those years have been applied since the 2010 Spending Review. ACE Chief Executive Alan Davey said there was “no choice” but to pass the cuts onto funded organisations and more information would be given once figures had been confirmed. He added: “Changes to budgets this near to the beginning of the financial year are never easy. This is why we will continue to work closely with [NPOs] through these challenges, recognising that we are determined to support those organisations who are struggling…” Further cuts are likely following the next Spending Review, which has been announced for 26 June and will cover 2015/16. The Government is looking to make a further £11.5bn cuts to public spending through that Review.