Following the Scottish Government’s budget announcement last week which proposes a reduction in funding for Creative Scotland of around £7million (more than 10%) - the Board of Creative Scotland met today, 19 December, to discuss the implications of this settlement.
Whilst the Board fully appreciates the challenging context in which the Scottish Government has reached its decision, and the pressures that are being felt by everyone across all parts of society, we are extremely disappointed by the settlement.
It comes at a time of significant pressures for cultural organisations due to the impact of the pandemic, rising inflation, falling income and spiralling operating costs, when the value of culture and creativity to people's lives has never been more important.
In an effort to address this, at its meeting today, the Creative Scotland Board has agreed to use a proportion of its National Lottery reserves to maintain funding for Regularly Funded Organisations (RFOs) at 2022/23 levels.
National Lottery reserves have been accumulated and earmarked to ease the transition to the new funding framework. Using these reserves to cover the reduction in Scottish Government funding means that Creative Scotland will no longer have the flexibility of using these funds for other support, including the potential for an RFO supplementary fund previously referred to in our Future Funding for Organisations update on 3 November.
National Lottery reserves are finite and therefore can only be a time-limited solution to address Scottish Government budget reductions in 2023/24. As the Scottish Government budget does not give any indication of funding for 2024/25 and beyond, we cannot confirm RFO funding levels for 2024/25.
Creative Scotland will continue to act responsibly and pragmatically, however, if Scottish Government cuts continue beyond 2023/24, Creative Scotland will require to pass those on to the sector.
All other 2023/24 budget areas will be reviewed and published in our 2023/24 Annual Plan in Spring 2023.
Background
Creative Scotland receives over a third of its income from The National Lottery as one of the 12 cultural, sport and heritage distributors for good causes. Creative Scotland spends this money on grants through Open Funds, Screen and Targeted awards.
The Scottish Government draft budget for 2023/24 can be found on the Scottish Government website.
The reduction means that Creative Scotland will have £6.6million less in 2023/24 to support RFOs for which £34m is required each year to maintain funding at current levels.