Arts Council England plans to introduce an online application system for funding as it attempts to overhaul its operations in the face of a funding cut of nearly 30 per cent.

In what the organisation describes as “the biggest transformation of arts funding for a generation”, the existing system that sees the Arts Council choose which organisations are funded, will be replaced by an open application process where all recipients will have to apply.

It expects that around 100 of the 850 groups that currently receive money, will lose their grant by 2015.  But it adds that it will open up the process to groups that have never received Arts Council funding before, and will make all recipients more accountable.

The Council’s current annual grant of £449m will fall to £349m by 2014 as a result of the spending review.

Applications must be lodged online by 10am on 24 January 2011 and decisions will be announced at the end of March 2011 with grants beginning in April 2012.

Grants will normally be for three years but may last anywhere from two years to six. Funding will be awarded based on “clear published criteria and shared goals” and funding agreements will be either ‘strategic’ or ‘programme’ relationships, unlike the ‘one-size-fits-all’ model used now.
The ‘strategic’ organisations will “take responsibility for the development of the arts and demonstrate leadership at a national or local level” while ‘programme’ recipients will “deliver outstanding artistic work in their field”.

Arts Council England said: “Funded organisations must have an outstanding track record of achievement or outstanding potential and so the first stage of decision-making will take place following an assessment of the organisation itself and its ability to deliver against the goals set out in the strategic framework, Achieving great art for everyone.”

The funder will aim to ensure that its portfolio of grant recipients will be balanced in such a way that it helps it achieve its long-term vision, such as in terms of artform, size of organisation and geographical spread.

It added: “The new portfolio will be smaller than the current one, with the potential loss of more than 100 organisations by 2015.  This is preferable to maintaining a large portfolio that will be progressively debilitated by cuts over the course of the settlement.”

For guidance on applying, see The national portfolio organisation funding programme.

In Scotland, Wales and Northern Ireland the devolved governments decide how much they will spend on the arts, out of the total money they are given by Westminster.