NORTH-EAST arts groups could be forced go cap-in-hand – like Oliver Twist – to the regional development agency as the Government considers spending cuts.

As ministers prepare spending targets for the next four years, the Arts Council says cultural projects may lose out.

Culture minister Margaret Hodge admitted the Department of Culture Media and Sport (DCMS) may have no choice but to ask regional development agencies – such as One NorthEast – to supplement their funding.

But a spending review may leave ONE with less money itself.

The predicted funding crisis comes as the DCMS prepares for a shortfall in the Comprehensive Spending Review, to be announced later this year.

The Arts Council is already suffering from a 35% cut in funds after lottery money was diverted to pay for the 2012 London Olympic games. Ms Hodge said in an interview with The Stage that her department may have to ask RDAs to help fund arts locally.

She said: “If we can place theatre and culture more strongly at the heart of regeneration, if we can persuade the RDAs of that, I hope that we can attract greater investment than we have in the past from them.”

The DCMS currently provides development agencies with a nominal amount – and that is set to fall as spending is tightened.

Newcastle Central MP Jim Cousins said: “We will have to decide what projects have worked and which ones we can continue to support in order to ensure we have the funds in place.”

Gateshead councillor John McElroy was a member of the cultural partnership board which supported various arts initiatives in the region. He said: “Much of our region’s future is dependent upon cultural growth, so it is very important that – whatever happens with funding – we maintain the impressive achievements already reached.

“We are already reaping the benefits of the new arts and culture focus in Gateshead and Newcastle and we really want to continue in that direction, because the benefits are not just from what the people in the region gain from this but also the economic gain as well.”

The DCMS has backtracked since the minister gave the interview, and insists it is still forming the plans.

A spokeswoman said the minister was too inexperienced to understand the issue.

She said: “Three weeks into the job, new Culture Minister Margaret Hodge, discussed with The Stage what her priorities are for the autumn. Among other things, she said she would like to explore the links between arts, culture and regeneration, as when she worked at the RDA arts and culture were not on her radar.

“Arts and culture clearly have a role to play in regeneration and community cohesion and she would like to explore this.

“What form this will take and any impact on funding are speculative at this stage. “

A spokesman for ONE said it would await the spending review before deciding on priorities.

He said: “In recent years the agency has been a key player in the creation of some of the North-East’s major cultural attractions, such as the Baltic, Sage Gateshead, and mima in Middlesbrough.”

A spokeswoman for the Arts Council North-East said: “We continue to make a strong case to Government for continued investment in the arts and for an above inflation settlement from the spending review.”

Comment: Page 10