Our front-page story in the last issue of aP (AP219) stated that, with regard to the overall £23m in-year budget cut that it faced, ACE claims “to have made an immediate £4m in efficiency savings”. This was, as Alan Davey, Chief Executive of Arts Council England, says (p2) incorrect: ACE actually claims to have saved £6.5m in its annual running costs for the year 2009/2010 – a statement we reported on twice previously (AP189 and AP199). But, and excuse the cynicism (a default setting for journalists I’m afraid), whether that £6.5m saving amounts to actual fact still remains to be seen; the figure is yet to be confirmed in ACE’s annual report, which is not due til later next month.
I, for one, hope it truly is. Not only would it prove that ACE isn’t an inefficiently lumbering albatross wringing the neck of artists (a belief I don’t subscribe to although it’s not an uncommon one), but with some nifty maths it could make the present budget dilemma much easier: if ACE has already saved £6.5m in its annual running costs with the aim of pumping it back into arts funding this year, then the £23m in-year cut it has been handed by the DCMS, amounts to an actual budget reduction of £16.5m. In theory, given that it also has a healthy £18m in reserves, the entire deficit could be absorbed by ACE without having to cut a penny of funding from regularly funded organisations (RFOs) – with £1.5m still left in reserves! Well, I did say in theory.
Anxious discussion of impending budget cuts is nothing new for the arts sector; as long as there has been funding subsidy, there has been talk of financial despair. Last year, in advance of the 2009 Budget, ACE revealed that it was (sensibly, one would suppose) modelling funding cuts of 1.5%, 2.5% and 3% in preparation for a painful recessionary hit (AP192) from the DCMS. Palpable sighs of relief then, when ACE’s actual budget was only reduced by 0.86% (AP193); the worst-case scenario had been planned for and the pain could be effectively absorbed.
The difference now is that unlike the straight-up honesty of last year, ACE quite firmly told me, prior to the general election, that it was not modelling for immediate budget cuts – or rather, that the DCMS “had not asked us to”. Now, to me, it is that particular line (the official one) that makes ACE seem bonkers (as I said in the last issue). Mr Davey understandably balks at that accusation because he says, to repeat ACE terminology, different funding scenarios were, in fact, being considered and planned for. The idea was that we should read between the lines and understand that of course ACE was modelling – as everyone expected – but that it would not candidly say so. Why? For fear of sending a “negative message” to the arts sector. That message dear RFOs, in case you hadn’t heard from the daily headlines, is that the UK is in the worst economic mess in living memory. Add to that mix a new government and the continued promise of public spending cuts to fill a £155bn black hole. If you do not feel adequately patronised yet, please keep ears open on 22 June. The Emergency Budget, the clue being in the name, suggests even tougher times ahead.
This week Nosheen visited the beautiful and arresting new Picasso exhibition at the Gagosian gallery in London, she loved Japanese artist Tabaimo at the Parasol Unit but was still stumped by the popularity of Marc Quinn at White Cube. Most importantly, she picked Germany in the AP World Cup sweepstakes. A major result.