Baroness Hodge’s review includes conversations with 700 people, with government response expected in the New Year.
An independent review of Arts Council England’s work has been welcomed by the culture secretary.
The review, by Baroness Hodge, includes a series of recommendations, which are now to be considered by the government, with a response expected in the New Year.
A strategic framework
The report’s recommendations include that Arts Council England (ACE) should work with DCMS and the whole museum sector, including national museums funded by DCMS, to develop a strategic framework and create a specific long-term plan for museums.
It suggests ACE should take “a more proactive role in raising awareness of the Acceptance in Lieu, Cultural Gifts scheme and the Government Indemnity Scheme’, and that it should “adopt a more pragmatic approach to risk appetite in relation to the Government Indemnity Scheme, and this should be supported by the government.”
Positive feedback was received regarding ACE’s support for museums, particularly funding streams and the Museums Team. However, further efforts are needed to ensure museums are not perceived as less important than other arts sectors, and a strategic framework and long-term plan for museums, it said.
The review said those interviewed expressed “a strong desire for ACE to create and own a strategy for museums that would clarify its role and define its aims.”
‘System overhaul’
The review includes a summary of conversations with 700 people, including artists and those working at institutions.
It reports “almost universal” criticism of both the funding application processes and the reporting demands.
It said “throughout the review, there was almost universal criticism of the systems that ACE uses” with Grantium, its online grant application system introduced in 2016 “receiving the bulk of the complaints”.
“Grantium has become such a byword for complexity that one group of artists told us that people had been put off from applying for funding simply because they had heard it was so difficult to navigate the process,” the report said.
“The burden is disproportionately felt by individual artists and smaller organisations who have less capacity to devote the time required.”
On ACE’s reporting system, Illuminate, the review said it is designed for conducting surveys connected to ‘events’, which does not fit well with how museums operate.
The report suggests that ACE should invest in an overhaul of its systems, opting for ‘off the shelf’ software solutions, and the government should consider supporting it to do so with additional funding.
It also recommends simplified guidance to help applicants navigate the process.
Stricter indemnity rules ‘a ticking time bomb’
Arts Council England’s administration of statutory schemes including Acceptance in Lieu and the Cultural Gifts Scheme was praised by the review, but it said the Government Indemnity Scheme has become significantly less effective post-pandemic due to tightened risk assessment, with one stakeholder warning of a “ticking time bomb” as fewer works reach venues. Independent museums report feeling excluded from these schemes, with recommendations calling for ACE to proactively raise sector awareness and adopt a more pragmatic approach to risk.
Capital crisis threatening closures
The review paints a picture of a severe capital crisis facing cultural institutions, with over three-quarters of arts centres unable to complete planned building work and 60% having undertaken no significant refurbishment in over a decade. The maintenance backlog has forced venues to close.
The situation has been compounded by insurance costs for listed cultural buildings rising by up to 200%. In several cases, the cost of repair has been deemed so high that demolition is being recommended, demonstrating what the review calls “the critical urgency of this challenge.”
While the government’s £85 million Creative Foundations Fund for 2025-26 provides some relief, sector analysis cited in the review suggests these sums are insufficient to address the sheer scale of need. More capital funding is required, but the review also explores innovative solutions to leverage private investment.
Proposed solutions include reviewing legacy capital charges and title restrictions that currently prevent organisations from securing private finance for capital investment. The review also recommends the government consider deferring Culture Recovery Fund loan repayments for charitable organisations, conditional on them matching every deferred pound with philanthropic fundraising specifically earmarked for urgent capital needs.
Next steps
Culture secretary Lisa Nandy said a response to the review will be published in the New Year. Some of the recommendations within the review are within ministerial control, while others will include the Treasury. No specific implementation timeline was given in review.
