Dame Liz Forgan will not serve another term as chair of the Arts Council England, the Culture Secretary announced today, advising that he will appoint a replacement by the end of her tenure on 31 January 2013.

A spokesman for the Department for Culture Media and Sport told civilsociety.co.uk that the decision by Jeremy Hunt not to reappoint Dame Forgan (pictured) is due to the changing landscape in which the Arts Council has to operate:

"There are particular challenges facing the Arts Council going forward, not least in the digital and philanthropy agendas. He thinks that Liz Forgan has been an outstanding chair, has done an excellent job, but he thinks that somebody with experience of those particular challenges will be better to take the Arts Council forward," said the spokesman.

Dame Liz has chaired the Arts Council since 1 February 2009, when she was appointed for a four-year term. 

As part of the government's austerity measures in 2010 the Arts Council suffered a funding cut of 29.6 per cent. Although these cuts have been buffered by additional funding from the Big Lottery Fund, the overall budget for the Arts Council will still be reduced by 11.8 per cent over the four-year term starting 31 March 2012. As a result it has been forced to inflict painful funding cuts on more than 200 organisations.

In addition to its funding cuts the Arts Council assumed responsibility over work with regional museums and libraries in October 2011 following the abolition of the Museums, Libraries and Archives Council.  

In December 2010, following the government's austerity measures, a report into philanthropy in the arts was published recommending a major match-funding scheme to boost the philanthropy in this area. Catalyst Arts, a lottery-funded scheme was subsequently launched by the Arts Council and the DCMS, aimed at generating an estimated £25m of new money by private giving by 2015.

Through the scheme some £30m of match-funding is made available to fundraising arts organisations. An additional £7m of grant funding is provided to increase fundraising capacity for organsations with less experience in fundraising and £3m will be invested in providing practical advice on fundraising for arts organisations.  

Commenting on the up-coming departure of Dame Liz, Alan Davey, chief executive of the Arts Council, said: "Liz has been an outstanding chair and will be much missed. I have valued her passion, insight and strong leadership as we worked together through challenging times to deliver a sustainable future for the arts in England and to maintain their world standing.

"When Liz departs in January, she will leave behind a transformed Arts Council - one whose greater transparency and efficiency has been recognised in its being entrusted with a wider remit that includes museums, libraries and cultural educations alongside the arts. And that is down, in no small part, to her stewardship."