Creative Scotland to use National Lottery reserves to maintain funding levels after government cuts

Creative Scotland will use a portion of its National Lottery reserves to maintain funding for its Regularly Funded Organisations (RFOs), including the likes of Edinburgh International Book Festival and Publishing Scotland, at 2022/23 levels after the Scottish government announced it would reduce the organisation’s funding by more than 10%. However it has warned that this is only a measure for the short term.

Last week the Scottish government’s draft budget proposed cuts to Creative Scotland of around £7m. The board of Creative Scotland met on Monday 19th December to discuss the implications of the settlement, warning that using the Lottery funds to counteract the cuts means it will no longer be available for other areas of support. The body also warned that if cuts continue beyond 2023/24, Creative Scotland will have to pass them on to the sector.

In a press statement, the organisation said: “While the board fully appreciates the challenging context in which the Scottish government has reached its decision, and the pressures that are being felt by everyone across all parts of society, we are extremely disappointed by the settlement. 

“It comes at a time of significant pressures for cultural organisations due to the impact of the pandemic, rising inflation, falling income and spiralling operating costs, when the value of culture and creativity to people’s lives has never been more important.” 

It continued: “National Lottery reserves have been accumulated and earmarked to ease the transition to the new funding framework. Using these reserves to cover the reduction in Scottish government funding means that Creative Scotland will no longer have the flexibility of using these funds for other support, including the potential for an RFO  supplementary fund previously referred to in our Future Funding for Organisations update on 3rd November. 

“National Lottery reserves are finite and therefore can only be a time-limited solution to address Scottish government budget reductions in 2023/24. As the Scottish government budget does not give any indication of funding for 2024/25 and beyond, we cannot confirm RFO funding levels for 2024/25. 

“Creative Scotland will continue to act responsibly and pragmatically, however, if Scottish government cuts continue beyond 2023/24, Creative Scotland will be required to pass those on to the sector. 

“All other 2023/24 budget areas will be reviewed and published in our 2023/24 annual plan in spring 2023.”