Spring Statement: Chancellor confirms DCMS budget reductions

Government departments including the Department for Culture, Media and Sport (DCMS) will be required to reduce their administrative budgets by 15% by the end of the decade, Chancellor Rachel Reeves has confirmed.

Delivering the Spring Statement in parliament today (Wednesday 26 March), Reeves said benefit cuts announced last week would be extended after the Office for Budget Responsibility said they would not raise as much money as the government had expected.

While the statement which is meant to be a routine update on the public finances did not involve any announcements directly related to the arts and culture sector, DCMS will be required to make savings.

Government departments will all be required to reduce their administrative budgets by 15% within the next five years.

“[Combined] savings on back-office functions will total £2.2bn in 2029/30 and ensure that front line services are prioritised,” a Treasury report detailing the range of measures being taken states.

The government will set out its plans for spending for the four years to 2028/29 and key public sector reforms at the Spending Review, which it says will conclude on 11 June.

Meanwhile, the Treasury has said that it has accepted early recommendations from the Covid Counter Fraud Commissioner to improve incentives for departments and local authorities to recover fraud from Covid schemes.

‘Cause for concern’

Responding to the Spring Statement, SOLT & UK Theatre co-chief executives Claire Walker and Hannah Essex said that while they recognise the difficult economic choices government has had to make, further real terms cuts to DCMS budgets is a “cause for concern”.

“As we look to the Comprehensive Spending Review, we need to ensure that programmes which support theatre, and underpin the government’s mission to ensure the arts remain accessible for all, are protected,” they said.

“Theatre remains a vital pillar of the UK’s economy and cultural identity. In the past five years, our sector has worked tirelessly to keep venues open and productions running despite rising costs, including the upcoming National Insurance increase.

“The government’s own industrial strategy rightly identifies theatre and the creative industries as key drivers of economic growth.

“We hope the upcoming Comprehensive Spending Review will provide a firm commitment from government to invest in theatre – not just as entertainment, but as an economic powerhouse that fuels communities, businesses, and the wider creative industries.”

‘Falling behind’

Paul W Fleming, general secretary of Equity, said many of the trade union’s members would be disappointed by the government’s “continued commitment to austerity through the cuts to support for disabled people, the shrinking of the public sector, and narrowing of commitments for a just and green transition”.

“Despite some welcome investment in social housing, this is not the change they were promised,” he said.

“The government’s recognition of the importance of the arts and entertainment to their growth plans through their industrial strategy is important.

“But this recognition must be backed up by increased public investment into the arts and entertainment across the UK, including in our much-loved continuing dramas such as [the BBC’s] River City, which is currently threatened with closure.

“We have not seen that today. As a result, investment in our sectors will continue to fall behind our European neighbours.”