Press release - 27 March 2002

NCA welcomes government response to Budd report

NCA welcomes government's sensitive response to the Budd report on the future regulation of gambling, but warns that community arts projects may still suffer cutbacks

Yesterday's announcement by Secretary of State Tessa Jowell on the future of gambling regulation in the UK may provoke a sigh of relief from some of the good causes benefiting from National Lottery proceeds. However, while much of the sting has been taken out of the tail of the recommendations made by Sir Alan Budd in his Gambling Review report of July 2001, the decline in income from Lottery proceeds to 'good causes' will have a significant and detrimental effect on many community arts initiatives.

Rejection of Budd's recommendation that side betting be allowed through betting shops on National Lottery winning numbers is extremely welcome and the Government's report states a commitment to ensuring the continued success of the National Lottery. This will help to avoid the losses entailed in a full implementation of Budd's recommendations, predicted at up to £2.2 billion over the course of the next Lottery license period.

However, the Government admits that up to £70 million a year can still expect to be lost to the 'good causes' as a result of the implementation of other of Budd's recommendations. Whilst Lottery money represents only a tiny fraction of funding for some of the newer areas targeted, such as health and education through the New Opportunities Fund, the Lottery accounts for around half of all funding received by the arts sector. The loss of the arts' share of £70 million will certainly be felt. Whilst large flagship capital projects will, in all likelihood, continue to secure funds, it will be the smaller community projects which suffer as a result of this loss - a loss compounded by the current downward trend in lottery ticket sales.

Victoria Todd, NCA Director, said: "We are pleased to see that the Government has taken heed of the arts communities concerns about the loss of funding resulting from changes to the gambling laws. However, we are still concerned that further safe-guards need to be put in place to forestall the curtailment of community arts programmes resulting from Lottery losses. Lottery distributors' spending plans for the next three year period anticipate a reduction in overall budget levels. When this situation is viewed in the context of a general squeeze on Government spending in all areas outside health, the threat to the sustainability of current levels of investment in the arts and culture is plain."

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