North East culture chief Mark Robinson to leave the Arts Council

Jul 24 2009 by David Whetstone, The Journal

£100m arts shortfall revealed

ARTS projects face a £100m shortfall in funding, it was reported yesterday.

The problem is said to have arisen as a result of commitments from the Department for Culture, Media and Sport officials, headed by Culture secretary Ben Bradshaw, to back more projects than its budget can afford.

It was not known last night if the £100m national shortfall will cause difficulties for projects in the North East.

Yesterday’s report stated that the problem had become apparent in the DCMS’ capital budgets for the financial years 2009-10 and 2010-11.

It quoted unnamed sources within the arts establishment as describing the funding shortfall as "quite astounding" and "a hopeless cock-up", while another said it was indicative of "hopeless management".

Another unnamed source was said to have told of a letter being sent to financial directors who’d had dealings with the department, which stated that it was £100m overspent on capital and that it was seeking the return of monies that had not yet been spent.

A spokesman for the DCMS was quoted as confirming: "Our capital budget is currently over committed.

"Ministers are examining the reasons for this and looking for solutions.

"It is possible that difficult decisions will be needed, but none has been taken yet."

While speculation spread quickly through arts circles in the North East, it was not immediately apparent if the shortfall will be particularly felt in the region.

It is a different story elsewhere where, it was reported, projects like the redevelopment and expansion of Tate Modern in London could be set to one side, as could the major development scheduled at the British Museum, which only yesterday was seeking planning permission for a £135m project to which the Government two years ago had pledged £22.5m in support.