Creative Scotland has warned that a combination of rising costs, falling income and the impact of Brexit means it is likely to have to cut the funding it provides to arts and culture organisations.
The Edinburgh Evening News reports that the quango, which funds venues, arts organisations, events and festivals, has said that maintaining standstill funding is “increasingly unviable” because of soaring additional costs.
Instead, it said it may have to cut back the number of organisations it provides long-term funding to in the future.
In a submission to Holyrood’s culture committee, which is taking evidence on how the Scottish cultural sector is currently funded, Creative Scotland said: “At the time of writing, there is no certainty as regards the Scottish Government budgets that will be allocated to Creative Scotland. The indications are that significant cuts are likely.
"We anticipate we may have to fund fewer organisations on a multi-year basis, but aim to fund them at a more sustainable level."