The Bournemouth Symphony Orchestra, Opera North, Royal Philharmonic Orchestra and Welsh National Opera are among 99 of Arts Council England’s National Portfolio Organisations whose entire 2015-18 funding award will originate from the National Lottery.
In total, £69,610,659 per annum of lottery money will be spent on the 99 groups, which make up 15% of the portfolio of 670, announced this week.
The funding arrangements represent ACE’s latest interpretation of the principle of additionality, which dates from the founding of the National Lottery in 1994. Since the National Lottery Act 2006 was passed, ACE has been bound to directly outline its ‘policy and practice in relation to the principle that proceeds of the National Lottery should be used to fund projects, or aspects of projects, for which funds would be unlikely to be made available by … a government department’ in its annual report.
ACE’s latest annual report, for 2012/13, stated: ‘Lottery funding is distinct from government funding and adds value. Although it does not substitute for Exchequer expenditure, where appropriate it complements government and other programmes, policies and funding’.
However, new criteria have been applied to the NPOs announced on 1 July, in what ACE chief executive Alan Davey described as ‘a pragmatic step’.
‘National portfolio organisations funded wholly through Lottery in 2015-18 will be those focusing on touring (more than 50%) or specific types of organisations working with children and young people,’ said an ACE statement released in June.
Music organisations include English National Ballet, English Touring Opera, Glyndebourne Touring Opera and Glyndebourne Education, Music for Youth, Music In The Round, National Children’s Orchestra, National Youth Brass Band, National Youth Choirs Of Great Britain, National Youth Orchestra, Northern Ballet, Opera North, Rambert Dance Company, the Royal Opera House’s Thurrock-based activities, Royal Philharmonic Orchestra and Welsh National Opera.
Alan Davey has said of ACE’s approach: ‘In the last investment process we used lottery funding as part of the overall total budget for our national portfolio. This was for a specific purpose ‒ touring and work with children and young people. In this next investment process some organisations will be funded wholly through the lottery, and the rest wholly through grant in aid. This will allow us to fund a greater number of national portfolio organisations than we could have done with a budget comprising solely of grant in aid.
‘There has been an ongoing debate since the lottery came into being as to what the additionality principle is and how to test whether any proposed funding might breach the principle. We have listened to the current debate and we are confident that the approach we’re taking does not breach the additionality principle.
Grants for the Arts, ACE’s lottery-funded pot for project work offering awards from £1,000 to £100,000, will increase to £70m a year from 2015/16, up from £63m in 2012-15.
The impact of budget cuts will be felt in ACE’s so-called Strategic Funds, the budget for which will go down by £49m to £104m a year from 2015/16. Strategic funds are spent on certain programmes, for instance to encourage touring, particular building projects and fundraising, and on specific projects which include the In Harmony music education project, the ACE-PRS Momentum music fund, and the Digital R&D Fund for the arts and culture. The Space, jointly financed by ACE and the BBC, is also funded by strategic funds.
‘The biggest proportion of our portfolio funding will still come from grant in aid. In using lottery funds to support additional activity we believe that we adhere to the principle that government funding should be maintained and is an essential part of a mixed funding model.’
Full list of NPOs to be funded through Lottery here.
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