A damning independent review has called for urgent reforms to protect Arts Council England (ACE) from political interference and to rebuild trust with the cultural sector it funds. The report, authored by the Labour peer Margaret Hodge, warns that perceived political meddling and an overly bureaucratic, prescriptive approach have severely damaged the funding body's reputation.
Core Findings: A 'Loss of Trust' and Political Pressure
The review, commissioned in March 2024 by the then culture secretary Nadine Dorries, found a profound "loss of respect and trust" for ACE among the organisations it supports. A central cause identified was the "perceived political interference in decision-making."
Hodge's report states unequivocally that attempts to exert more political control over ACE's decisions in recent years "have to stop." It argues that the arm's-length principle must be strengthened to shield arts funding from politicisation, which is vital for protecting artistic freedom, preventing censorship, and maintaining public trust.
The report also highlights a critical incident that occurred shortly before its commissioning: ACE was forced to amend controversial "reputational risk" guidance that had suggested "overtly political or activist" artwork could breach funding agreements. This episode was cited as emblematic of the pressures facing the organisation.
Key Recommendations: Scrap Strategy and Slash Red Tape
The review presents a series of major recommendations aimed at overhauling ACE's operations. Firstly, it calls for the replacement of ACE's flagship 'Let's Create' strategy, which runs until 2030. Evidence gathered described the strategy as "a straitjacket; stifling artistic innovation and creativity." Hodge urges a new, less prescriptive model.
Secondly, the report demands a radical reduction in bureaucracy. It recommends:
- Simplifying complex application and reporting processes.
- Reducing the number of funding streams.
- Extending the National Portfolio Organisation (NPO) funding cycle from three to five years.
- Introducing a rolling application programme and guaranteeing certain organisations at least 80% of their previous funding in the next round.
Furthermore, the report suggests the government must find innovative solutions to chronic underfunding, including amending theatre and orchestra tax reliefs to cover the increased touring costs exacerbated by Brexit. It also proposes enabling ACE to have a trading arm and creating a mechanism for the body to share in the commercial success of shows it has funded.
Sector and Official Reactions
The strain in ACE's relationships was a recurring theme. The report concluded that people viewed ACE "as a command-and-control funding body, rather than a leader and facilitator." This sentiment was echoed earlier this year when the prestigious Wigmore Hall voluntarily withdrew from ACE funding, with its director criticising the body's direction.
In response, ACE said it was "heartened" by support for its principles but had "heard clearly" it was too prescriptive. Chair Sir Nicholas Serota said the report offered "an opportunity to listen, learn, and improve," while Chief Executive Darren Henley vowed to ensure people spend "less time on our paperwork and more time on their creative work."
Culture Secretary Lisa Nandy acknowledged the review, stressing the necessity of access to the arts and stating it "challenges us to do better." The government is expected to publish its formal response in the new year.
Margaret Hodge concluded by reaffirming that ACE remains "a vital national body" whose independence is essential to protect artistic freedom and promote excellence across the country. The coming months will test the sector's willingness to enact the sweeping changes her review demands.
