ACE criticised for ‘lack of foresight’ on portfolio extension plans

Cultural organisations are facing a “period of extended uncertainty” following Arts Council England’s (ACE’s) decision to extend the current National Portfolio by a further year, theatre campaigners have warned.

On Friday (21 March) the public funder announced that it has halted the launch of the application process for its next National Portfolio and will ask government to extend the current portfolio by a further year to 2028.

Detailed applicant guidance had been due to be published next month with a two-month window for applications scheduled to open on 2 June.

Instead, ACE will recommend to government that the 2023-2027 National Portfolio is extended through to 31 March 2028.

‘Lack of strategic foresight’

SOLT & UK Theatre co-CEO Claire Walker said that while her organisation welcomes the decision to extend the current portfolio to 2028, ACE’s “delay” in making a decision “reflects a concerning lack of strategic foresight” at a time of significant challenge for the sector.

“We recognise the complexities of the current public funding landscape, particularly in light of the forthcoming Government Spending Review and the review of Arts Council England itself,” Walker said.

“It is therefore deeply regrettable that the National Council has only now reached this decision, leaving organisations in an extended period of uncertainty.

“Moreover, this extension effectively precludes any new applicants from joining the National Portfolio or any opportunity for organisations to have their funding allocation re-assessed.

“Organisations have already made substantial preparations for the now-abandoned June deadline.”

Significant uncertainty

ACE has acknowledged that the news “creates significant uncertainty” for cultural organisations – both those who are currently members of the portfolio, and those seeking to join in the future.

It has also said it will increase its investment in the current portfolio by 1.61% from 2025/26, based on an increase of £7.63 in its grant-in-aid funding for 2025/26 from the Department for Culture, Media and Sport.

For an organisation receiving funding of £200,000 a year form ACE, this would mean a £3,200 increase.

Walker said that while the 1.61% funding increase is welcome, it remains below inflation, representing an “especially pressing challenge given the escalating financial pressures on theatres, including the substantial rise in National Insurance contributions”.

“Under this extension, National Portfolio Organisations will be expected to operate under funding agreements based on applications submitted in May 2022 until 2028 – an extraordinary situation that raises serious concerns about the sustainability of current funding structures.”

“Chronic underinvestment remains at the root of many of the issues facing our sector,” she said.

“Arts Council England plays a critical role as an arm’s-length body and national strategic funder.

“We therefore welcome [Dame Margaret Hodge’s] independent review that will not only examine the need for renewed public investment but also assess how the organisation’s leadership can best deliver the long-term, strategic funding solutions our sector so urgently requires.”