Investment in Scotland's Artists

• The Committee recommends that a new indicator is developed to measure the extent to which self-employed artists and cultural freelancers working in the arts and wider creative sector are paid a fair wage. [para 174]

• The Committee notes the steps taken by Creative Scotland to encourage the organisations and projects that it funds to adopt fair pay practices. The Committee recommends that a more robust approach is required from Creative Scotland and invites it to take action to address this issue. [para 175]

• The Committee recommends that Creative Scotland measures funding that is allocated to artists who are producing artistic work as a proportion of the total amount of funding for each grant that it awards. [para 176]

• The Committee recommends that Creative Scotland consider ways that the funding application process for its grants could be tiered to focus the early stages of the funding process on artistic merit and reduce the burden on applicants who are unlikely to progress to later stages of the application process. [para 188]

• The Committee recommends that Creative Scotland incorporate peer review into its application processes drawing on the experience from comparative countries and funding models highlighted in this report to ensure that diversity and fairness is built into the peer assessment process. [para 189]

• The Committee recommends that there should be no circumstances in which individual artists should be competing against network organisations for funding from Creative Scotland. [para 190]

• The Committee recommends that Creative Scotland should redesign its overall funding framework in a way that recognises and supports artists and arts organisations at different stages of their professional development. The Committee notes, in this regard, that this approach is used in other European countries, including France and Ireland and invites Creative Scotland to consider how comparative approaches, such as bursaries and 'stipends', could be used in Scotland. [para 199]

• The Committee recommends that the Scottish Funding Council in conjunction with relevant partners ensures that the outcome agreements it has with further and higher education institutes with regard to employability and career support is being applied to programmes relevant to the arts. [para 200]

• The Committee recommends that the Scottish Government take steps to ensure that artists and cultural freelancers are included in the range of participants in the ongoing feasibility studies into a basic citizens income. [para 204]

The Current Funding Landscape

• The Committee recommends that the Scottish Government articulate its spending plan for the forthcoming culture strategy, including what funding will be earmarked for the arts from other portfolios to deliver the national outcome on culture in a cross-cutting way. The Committee also recommends that the Scottish Government should give serious consideration to the culture strategy being supported, on a cross-portfolio basis, by a baseline target for national arts funding above 1% of the Scottish Government’s overall budget. [para 24]

• The Committee recommends that the Scottish Government should articulate a long-term strategy for protecting Creative Scotland’s budget from fluctuations in National Lottery income and to do so before its existing commitment in the short-term to protecting Creative Scotland’s budget expires. [para 43]

• The Committee recommends that the Scottish Government should seek to maintain Scotland’s participation in the Creative Europe programme after the UK’s withdrawal from the EU. The Committee also recommends that the Scottish Government should give consideration to arts funding as part of its consultation on the replacement of European Structural Funds after the UK’s withdrawal from the EU. [para 52]

• The Committee recommends that the Scottish Government, its agencies and local authorities need to reset their relationship in relation to arts and culture policy, including approaches to funding. The Committee recommends that the Scottish Government adopt a proactive approach to re-engaging with all local authorities to discuss shared priorities for spending and to share best practice in leveraging investment in the arts. [para 70]

• The Committee recommends that the Scottish Government establish an independent national cultural observatory in consultation with local government, relevant agencies and stakeholders. The purpose of the observatory should be to create and manage an open-source national data resource that will draw together existing information collated by all levels of government and relevant agencies to measure the spread and impact of the public funding of the arts across Scotland. [para 77]

• The Committee considers the data on local authority cultural expenditure to be inadequate as it may currently encompass culture, tourism, heritage and sport expenditure. The Committee also notes that local authorities diverge widely in their approach to cultural expenditure. The Committee recommends that culture spend is disaggregated and provided separately. [para 78]

Re-setting Local and National Policy alignment

• The Committee recommends that the Scottish Government should work in partnership with COSLA to create a new intergovernmental policy framework between local and national government to support the arts as part of its forthcoming culture strategy. The Committee recommends that the new framework should include a requirement for local authorities to plan for culture and to take account of local and national priorities in doing so. [para 95]

• The Committee recommends that the Scottish Government consider introducing legislation, such an ‘Arts Act’, to create the new policy framework and to work with COSLA and local authorities in creating it. If the Scottish Government considers legislation is not required to achieve this aim, the Committee invites the Scottish Government to explain why it holds this view in its response to the Committee’s inquiry report. [para 96]

• The Committee recommends that the forthcoming culture strategy should be underpinned by guidance for local authorities on its implementation, which should be developed jointly with COSLA. [para 100]

• The Committee notes that city region deals vary in their approach to culture and recommends that this be revisited where possible. [para 107]

• The Committee recommends that the Scottish Government work with Creative Scotland to re-establish a programme of funding for regionally-based arts officers where Creative Scotland's funding is significantly below the Scottish average in order to stimulate funding where there are relatively few applications at present, in order to support the arts in a sustainable way and to maximise return on public funding investment. [para 122]

• The Committee commends the success of the Place Programme and recommends that Creative Scotland should articulate to the Scottish Government and the Committee what measures are needed to deliver it with more local authorities and to strengthen its implementation in a way that embeds the benefits of investment for the long term. [para 123]

• The Committee considers it unacceptable that the regular funding round of 2018 did not improve the geographic distribution of regular funded organisations. The Committee recommends that Creative Scotland take action to ensure that its new funding approach improves on the current geographic spread of regular funded organisations. [para 124]

• The Committee recommends that the Scottish Government articulate in its delivery plan for the forthcoming culture strategy how it will create and sustain momentum for its policy implementation in a cross-cutting way bringing onboard local authorities and relevant agencies, including addressing barriers to accessing culture such as transport provision and affordability. [para 138]

• The Committee also recommends that the Scottish Government articulate its funding strategy for delivering the national outcome on culture across wider portfolios, particularly in priority policy areas, such as education and health. [para 139]

• The Committee recommends that the Scottish Government make its existing commitment to “ensure every school pupil in Scotland is offered a year of free music tuition by the time they leave primary school” an indicator for the national outcome on culture within the National Performance Framework. [para 140]

• The Committee recommends that the Scottish Government work with relevant partners to create a refreshed approach for maintaining cultural venues across all parts of Scotland in the forthcoming culture strategy, supported by a clear funding approach. This could include artists that have developed successful approaches to maintaining commercial and non-commercial cultural venues, social enterprises, COSLA and individual local authorities. [para 150]

• The Committee considers that the current approach to funding institutions of national significance (outwith the National Performing Companies and Collections) through the regular funding network is not sustainable. The Committee recommends that the Scottish Government should consider articulating a new, strategic approach to funding these institutions, by first identifying which institutions it considers should be afforded this status, such as a national youth company, and secondly to identify how they can be funded in a sustainable way. [para 155]

• The Committee recommends that the Scottish Government investigate how a percentage for the arts policy could be established in Scotland to create additional investment in arts and culture and to embed it in planning for Scotland’s creative future. This could be included in a future 'Arts Act'. [para 161]

1. This report details the findings of the Culture, Tourism, Europe and External Affairs Committee’s (“the Committee”) inquiry into arts funding. The Committee first considered issues relevant to this inquiry when it scrutinised Creative Scotland’s handling of the Regular Funding 2018-21 round in 2018. Since then, the Scottish Government has formally consulted on a draft culture strategy and Creative Scotland has launched ongoing reviews into how it operates as an organisation and how it distributes funds. The Committee therefore decided to build on its earlier work by launching an inquiry into the funding of the arts more broadly at what it considers to be a pivotal moment.

2. The Committee published a call for evidence on 15 March 2019, which invited respondents to reflect on two overarching themes:

   • What would a sustainable model of arts funding look like; and

   • How should that funding be made available to artists?

3. The scope of the call for evidence was limited to the artforms supported by Creative Scotland, excluding television, film and gaming. The Committee considered the Scottish screen sector in detail in its inquiry earlier in this session of parliament, which is why it has not been considered in this report. The scope of this inquiry has also focused on the support available for artforms and not the ‘creative industries’, although the Committee recognises that the arts and creative industries often overlap in a funding and wider context.

4. The Committee received 69 responses from a range of individual artists and organisations, which were published on its website. The call for evidence also invited respondents to highlight international examples of best practice and the Committee commissioned Drew Wylie Projects Ltd to conduct international comparative research to inform this aspect of the inquiry. The research has been published on the Committee’s webpage and the Committee is grateful to Drew Wylie Projects Ltd for its work in supporting the Committee’s inquiry.

5. The issues highlighted in written evidence and the Committee’s comparative research were scrutinised in detail over 7 evidence sessions. The Committee also undertook fact-finding visits to Ayr and Dunfermline where it spoke with artists at different stages of their careers, local authority representatives and people otherwise working in and with the arts to deepen its understanding of arts funding in Scotland. The Committee is grateful to Ayrshire College and the Fire Station Creative in Dunfermline who hosted these visits.

6. The Committee would like to thank everyone who participated in this inquiry, particularly those who are directly involved in producing artistic work. This report draws extensively on the evidence we have taken from Scotland’s artists and arts organisations and seeks to identify a means of establishing a sustainable model of arts funding. Scotland is a creative country with huge potential to build on artistic excellence but to also improve the lives of its citizens through support for the arts and culture. The Committee presents its recommendations to the Scottish Government in this report, which highlight key measures for the Scottish Government to take forward to ensure Scotland’s provision of the arts and support for artistic excellence is supported in a sustainable way.

7. The Committee launched this inquiry with the aim of investigating how Scotland could strengthen the funding of the arts to make it sustainable for the long term. This section considers the sources of public funding at a national and local level, including additional sources of funding from the National Lottery and the European Union that are administered by public bodies in Scotland. It highlights some of the challenges that the Scottish Government will need to address in order to deliver a sustainable funding model and makes recommendations to the Scottish Government, and other public bodies, for how this could be achieved.

8. The Scottish Government launched the current National Performance Framework in June 2018, which included a new national outcome on culture.ⁱScottish Government. (2018) Delivering for Today, Investing for Tomorrow: the Government’s Programme for Scotland 2018-19, p. 31. The National Performance Framework is intended to help focus the Scottish Government’s activities and spending on outcomes. In this regard, the Scottish Government provides annual funding to support the work of public bodies that are responsible for preserving and promoting the arts and culture in Scotland.ⁱⁱCreative Scotland; Historic Environment Scotland; the National Collections of Scotland; National Performing Companies; Scottish Library and Information Council. In addition, the Scottish Government currently funds a number of initiatives that are administered on its behalf, such as the Expo Fund, the Youth Music Initiative, the Cashback for Creativity Fund and the International Creative Ambition Programme. The Scottish Government also currently provides funding to the youth orchestra charity Sistema Scotland.

9. The Committee considered budget lines relevant to the funding of the arts in the Scottish Government’s budget since 2010-11. Figure 1 below shows an overview of the three main strands of Scottish Government funding for arts-related activities, including the National Performing Companies, Creative Scotland and the Cultural Collections. All real terms figures are calculated using HM Treasury deflators.

   

   Scottish Government budgets and SPICe communication with the Scottish Government.

10. This illustrates that the amount of funding allocated to arts-related activities is relatively small in terms of the Scottish Government’s overall budget (not reaching more than £200 million in the relevant period). It also highlights that for such a relatively small amount of funding, the budget in this portfolio is distributed via a considerably complex matrix of public bodies who use it to support a wide variety of artforms and activities. The relevant budget lines for the three main funding streams (Creative Scotland; National Performing Companies; and Cultural Collections) are considered in turn below.

11. The “Creative Scotland and Other Arts” is a level 3 budget line within the Scottish Government’s budget. Figure 2 below shows financial allocations for this budget line from 2010-11 to 2019-20.

    

    Scottish Government budgets and SPICe communication with the Scottish Government.

12. Figure 2 shows that Creative Scotland’s core revenue budget has reduced over the period by approximately £9.2m at 2019-20 prices. The Other Arts budget line includes revenue funding managed by Creative Scotland. Until recently, this tended to be ringfenced Scottish Government funding (e.g. the Youth Music Initiative). In recent years, this has included funding to make up for a shortfall in National Lottery funds and support for screen, which is reflected in the increase in overall funding in 2018-19. This is considered in more detail in the section on Creative Scotland’s funding below.

13. The Scottish Government also provides funding to Scotland’s cultural collections, which includes the National Galleries of Scotland,ⁱⁱⁱThis includes including the National Gallery, the Scottish National Portrait Gallery, the Scottish National Gallery of Modern Art, the Dean Gallery, and two partner galleries at Duff House and Paxton House. the National Museums of Scotland,^ivThis includes the National Museum of Scotland in Edinburgh, the National Museum of Flight in East Lothian, the National Museum of Rural Life in East Kilbride, and the National War Museum Scotland at Edinburgh Castle. the National Library of Scotland and the National Records of Scotland. Figure 3 below shows selected Level 4 budget lines for the cultural collections since 2012-13; and Figure 4 shows the level 3 cultural collection budget line since 2010-11.

    

    Scottish Government budgets and SPICe communication with the Scottish Government.

    

    Scottish Government budgets and SPICe communication with the Scottish Government.^vFinal year to include RCAHMS, planned funding for this year was £4.5m in cash terms.

14. Figure 3 does not show all lines within the Cultural Collections Level 4 budget, for example it does not show the non-cash budgets (depreciation) or the budget for Royal Commission on the Ancient and Historical Monuments of Scotland. Level 4 figures for the Cultural Collections were also not available before 2012-13, as they were for Level 3 in Figure 4. Between 2015-16 and 2016-17 some of the capital was allocated in the individual national collections, rather than in “Other Cultural Capital”. The figure for 2015-16 “Other Cultural Capital” was particularly high due to costs for the V&A Dundee and other refurbishment projects. In terms of revenue, the national collections budgets have been stable with small cash terms increases, although this translates to real terms decreases of revenue funding for the National Galleries of Scotland, National Museum of Scotland and National Library of Scotland.

15. The Level 3 figures provided in Figure 4 (NB this includes more than just the Level 4 lines included in Figure 3) should be read in light of a discontinuity of funding in 2015-16 where the budget for the Royal Commission on the Ancient and Historical Monuments of Scotland was included for the last time. The budget figures in Figure 4 for 2015-16 is also affected by the unusually high capital budget for that year, as noted above. Notwithstanding these changes, there was a fall in funding between 2010-11 and 2012-13. Since then, taking account of the removal of RCAHMS and the spike in 2015-16, funding has been reasonably stable in real terms.

16. The Scottish Government also funds the five National Performing Companies through annual funding and the International Touring Fund (of which the current funding commitment is £350,000).^viScottish Government (2019). Annual culture funding. Figure 5 below shows the level 3 figures for the National Performing Companies dating back to 2010-11.

    

    Scottish Government budgets and SPICe communication with the Scottish Government.

17. There has been a reduction in funding of the National Performing Companies over the period. Some of this reduction, however, may be due to how and where capital funding is accounted. Some figures are reported differently in different budgets (e.g. the figure for allocation in 13-14) and this appears to be due to the treatment of capital budgets. Nonetheless, the National Theatre of Scotland noted in its written submission to the Committee the negative impact that existing funding levels are having on its provision—

    “The National Theatre of Scotland is in the privileged position of enjoying both an extremely positive relationship with government and also strong levels of financial support. Even given this, funding for the company has reduced by 21% since 2012 in real terms when actual reduction and inflation are taken into account. This comes at a time when costs have continued to rise, affecting our ability to make the sort of cultural provision we believe the Scottish people deserve.”^viiCTEEA/S5/19/AF/25 (National Theatre of Scotland). Written submission, p. 1.

18. The National Theatre of Scotland’s evidence echoes wider concerns expressed in the evidence submitted to the Committee’s inquiry about downward pressure on public finances,^viiiSee, for example, written submissions: CTEEA/S5/19/AF/06 (Nicholas Bone); CTEEA/S5/19/AF/07 (Graham Berry); CTEEA/S5/19/AF/11 (Federation of Scottish Theatre); CTEEA/S5/19/AF/12 (Prof. Richard Demarco OBE); CTEEA/S5/19/AF/18 (Centre for Contemporary Arts); CTEEA/S5/19/AF/20 (Edinburgh International Festival); CTEEA/S5/19/AF/25 (National Theatre of Scotland); CTEEA/S5/19/AF/40 (Edinburgh Festival Fringe Society); CTEEA/S5/19/AF/46 (Norman Bissell); CTEEA/S5/19/AF/48 (Glasgow Life); CTEEA/S5/19/AF/50 (Festivals Edinburgh); CTEEA/S5/19/AF/52 (Angie Dight); CTEEA/S5/19/AF/53 (Aberdeen City Council); CTEEA/S5/19/AF/54 (Claire Stewart); CTEEA/S5/19/AF/57 (Virginia Radcliffe); CTEEA/S5/19/AF/58 (Culture Aberdeen); CTEEA/S5/19/AF/61 (Scottish Contemporary Arts Network); CTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland). particularly the impact this has had on the arts and culture portfolio in Scotland in the past decade.^ixSee, for example, written submissions: CTEEA/S5/19/AF/50 (Festivals Edinburgh); CTEEA/S5/19/AF/52 (Angie Dight); CTEEA/S5/19/AF/35 (Voluntary Arts Scotland). The Federation of Scottish Theatre noted that national funding for the arts in Scotland is currently a very small proportion of overall spend, representing "…much less than 1% of the total budget".^xCTEEA/S5/19/AF/11 (Federation of Scottish Theatre). Written submission, p. 1. The Committee’s comparative research found in this regard that the UK as a whole spends a significantly lower proportion of GDP on culture than is the case in comparator EU countries.^xiDrew Wylie Projects Ltd. (2019). Scottish Parliament - Arts Funding Inquiry Comparative Analysis Ref: 2018-19/01/CTEEA, p. 7.

    

19. In terms of what measures could be taken by the Scottish Government to maintain a sustainable level of funding for the arts, the Musicians’ Union suggested that the Scottish Government should aim to maintain funding levels in line with inflation,^xiiCTEEA/S5/19/AF/14 (Musicians’ Union). Written submission, p. 1. whilst Neo Productions and the Traditional Music and Song Association of Scotland suggested that 1% of the Scottish Government’s budget should be ringfenced for spending on culture in line with the recommendation of the Cultural Commission (2005).^xiiiCTEEA/S5/19/AF/65 (Neo Productions). Written submission, p. 2.

20. The Cabinet Secretary explained to the Committee that she considers the purpose of public funding for the arts is to "…help to ensure that individual artists are supported to produce art for art’s sake, and…The other strand is to help to support excellence in art."^xivCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 19. In relation to overall national spending on the arts, the Cabinet Secretary stated that “I would rather look at ceilings than floors. With baselines, there is a danger that somebody sitting in a finance department who looks at matters from a financial accounting perspective might say, “Well, that’s all you need, so that’s all you’re getting.” Maybe that is not the right approach.”^xivCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 20.

21. The Cabinet Secretary also told the Committee that her priority is on overall government funding for the arts, not simply the amount that is funded directly through her portfolio—

    "I just want to ensure that there is funding. I am less concerned about where it comes from in the Government and more concerned about the total amount that I can get for all my areas. If I fought for the budget through a silo approach, to which Mike Rumbles referred, there would be a risk that I might end up with a bigger line on my budget but with a reduced contribution to the culture budget from other parts of the Government."^xivCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 30.

22. The Cabinet Secretary also suggested that the forthcoming culture strategy will not be supported by additional funding, noting—

    "I caution that the culture strategy will not involve a major funding announcement, as people might expect given the current constraints on budgets. However, it will be a statement of how we can work collectively across not just Government but local authorities, arts organisations and people outside the arts to leverage in more funding."^xivCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Cols 30-31.

23. The Committee notes the real-terms reduction in funding for the arts and the relatively low proportion of GDP spend on the arts compared to other EU countries. The Committee considers that the forthcoming culture strategy should be supported by a spending plan and a clear cross-government approach to supporting the arts and culture.

25. The majority of respondents to the Committee’s call for evidence commented on the national funding that is distributed by Creative Scotland. Creative Scotland’s budget is made up of a grant in aid from the Scottish Government and from income generated by sales from the National Lottery, which Creative Scotland distributes through its National Lottery Distribution Fund. The table below gives an overview of Creative Scotland’s real-terms grants from 2010-11 to 2018-19.

    

    Creative Scotland Annual Reports and SPICe communication with the Scottish Government.

26. It should be noted that the activities funded by the grant in aid shown above cover the full breadth of Creative Scotland’s remit, which includes activities such as screen that are outwith the scope of this inquiry. In real terms, the overall grants issued by Creative Scotland have increased since 2010-11, although there have been fluctuations within the period. For example, total Creative Scotland grant funding reached a high in 2013-14 and the total grant funding in 2018-19 was £17.9m less than in 2013-14 in real terms (18-19 prices). The proportion of the grants distributed by Creative Scotland that are funded through the National Lottery increased between 2010 to 2013-14, but since then the trend has been downward. Accordingly, this fluctuation in the overall level of Creative Scotland grant is largely accounted for by the decline in National Lottery income.

Grant in aid funding

27. The values of grants funded through the Scottish Government’s grant in aid increased significantly in 2018-19. As noted in the previous section, the Level 4 data for the 2018-19 budget includes the following commentary explaining the increase in the Other Arts budget line—

    "Increased investment in screen announced in Programme for Government; increased support for Sistema Scotland and maintaining funding for Youth Music Initiative, both in Year of Young People. Also includes additional funding to enable Creative Scotland to maintain its support for the Regular Funded programme in the light of significantly decreasing lottery income."ⁱScottish Government (2018). Draft Budget 2018-19 (Level 4) (Tab “CTEA”, Cell P30).

28. Iain Munro, then Acting Chief Executive of Creative Scotland, explained to the Committee the extent to which the Scottish Government has restricted the funding available to the organisation when he gave evidence on 2 May 2019—

    "Our current income of £92 million a year consists of two parts: two thirds of it comes from grant in aid from the Scottish Government and a third of it comes from the national lottery. Of the two thirds from the Scottish Government, roughly half is restricted funds that are for specific purposes—I am referring to programmes that the Government wants us to run, such as the youth music initiative, the expo fund and the cashback for creativity programme. We use the other half of the grant in aid—the unrestricted funds—to support other activity. It is important to understand that 86 per cent of the unrestricted grant in aid is what currently funds 121 regularly funded organisations. That leaves very little room for manoeuvre in the current grant-in-aid balance in that equation, and it puts more pressure on national lottery funding."ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 2 May 2019, Col 17.

29. The Scottish Contemporary Arts Network (“SCAN”) expressed concern about the increasing prevalence of the award of funding for the arts from Creative Scotland at standstill levels and the extent to which this is leading to a "…real concern among our members that they will reach breaking point. Standstill will become collapse."ⁱⁱⁱCTEEA/S5/19/AF/61 (Scottish Contemporary Arts Network). Written submission, p. 1. The Federation of Scottish Theatre also commented on the impact of real-terms decline in funding from Creative Scotland and how this is affecting the sustainability of the theatre sector, stating in its written submission that—

    "More than two-thirds of our regularly-funded members received the same cash award from Creative Scotland for 2018-21 as they received for 2015-8, and for several this is the same cash amount as their grant in 2010 when Creative Scotland took over responsibility for funding. This is a real-terms cut of more than 25% in ten years and its impact on sustainability is palpable."^ivCTEEA/S5/19/AF/11 (Federation of Scottish Theatre). Written submission, p. 1.

30. Some respondents commented that declining real-terms public funding for the arts in recent years has led to an unsustainable dependence by some artists and organisations in the sector on funding opportunities administered by Creative Scotland.^vSee, for example, written submissions: CTEEA/S5/19/AF/60 (Culture Counts); CTEEA/S5/19/AF/51 (The Work Room); CTEEA/S5/19/AF/24 (Tricky Hat Productions); CTEEA/S5/19/AF/35 (Voluntary Arts Scotland); CTEEA/S5/19/AF/27. The Ayr Gaiety Partnership noted in this regard—

    "There are many organisations, and much cultural activity in Scotland, which is almost entirely dependent on public funding…The results of the recent RFO decision process are testament to this – where organisations that did not secure funding have either closed, or in some cases have been sustained through substitution of their funding from one Creative Scotland funding stream (RFO) to another (OPF or Touring Fund)."^viCTEEA/S5/19/AF/27 (Ayr Gaiety Theatre). Written submission, p. 2.

31. The Committee is aware of the significant personal and professional impact that unsuccessful funding bids can have on artists and those who are employed by artistic companies. For example, David Leddy, theatre director of the Fire Exit production company, explained that his company ceased operating in June 2019 as a result of not retaining Creative Scotland funding.ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Col 3.

National Lottery funding

32. The National Lottery was created in 1994 with the aim of supporting good causes across the UK in the arts, sport, heritage and community sectors. A proportion of its proceeds are distributed through public bodies, including Creative Scotland, to achieve these aims.^viiiThe other distributors include: Arts Council England; National Lottery Heritage Fund; UK Sport; SportScotland; Sport England; Arts Council Northern Ireland; Sport Northern Ireland; British Film Institute; Arts Council Wales; Sport Wales; the National Lottery Community Fund. The Scottish Government provides directives to Creative Scotland as to how proceeds from the National Lottery are to be distributed.^ixThe Scottish Government (2018). "Directions issued to Creative Scotland under section 26(1) as read with section 26A(1)(a) of the National Lottery etc. Act 1993” as set out in Creative Scotland’s National Lottery Distribution Fund Annual Report and Accounts Year Ending 31 March 2018, Appendix 2 – Policy Direction, pp. 45-46. The National Lottery provides a substantial proportion of Creative Scotland’s overall budget, representing 30% in 2018/19. As noted earlier, Creative Scotland’s core grant is allocated towards its regular funding programme, whilst “…the two remaining funding routes we offer (Open Project Funding and Targeted Funding) are largely only possible through The National Lottery”.^xCTEEA/S5/19/AF/59 (Creative Scotland). Written submission, p. 3.

33. Some respondents, such as Dogstar Theatre, were critical of the Scottish Government’s reliance on the National Lottery as a funding supplement to its own core grant contribution to Creative Scotland’s budget, noting that—

    "The introduction of lottery funding in the late ‘90s was welcomed, by and large, but this has increasingly proved to be a sticking plaster, a fund which has enabled government to reduce its own tax-funded contribution to our arts production and infrastructure."^xiCTEEA/S5/19/AF/43 (Dogstar Theatre Company). Written submission, p. 1.

34. The vulnerability of Creative Scotland’s programme delivery to fluctuations in National Lottery income was demonstrated when the Scottish Government committed up to an additional £6.6 million to Creative Scotland to cover the potential shortfall in lottery funding for 2018-19.^xiiScottish Government (2017). Annual Letter of Guidance - Creative Scotland Draft Budget 2018-19. In addition, the Scottish Government committed to taking "…the exceptional step of guaranteeing this core grant in aid and the additional £6.6 million for each of the next 3 financial years…"^xiiScottish Government (2017). Annual Letter of Guidance - Creative Scotland Draft Budget 2018-19.

35. Despite the short-term measures taken by the Scottish Government to protect the potential shortfall in Creative Scotland’s income from the National Lottery, questions remain over the sustainability of Creative Scotland’s funding package. Potential threats to the sustainability of this model that were highlighted to the Committee include increased competition in lottery sales and changes to lottery regulation,^xivSee, for example, written submissions: CTEEA/S5/19/AF/A1 (Anonymous); CTEEA/S5/19/AF/03 (Creetown Imitative Ltd); CTEEA/S5/19/AF/34 (Drake Music Scotland); CTEEA/S5/19/AF/65 (Neo Productions); CTEEA/S5/19/AF/59 (Creative Scotland). which is a reserved matter. In this regard, the National Lottery’s licence holder, Camelot Ltd, responded to the Committee’s call for evidence arguing that the UK Government’s proposed reforms to society lottery regulation^xvUK Government. (2018) Consultation on Society Lottery Reform on options for amending sales and prize limits for large and small society lotteries. is "a major threat to sustainable funding of the arts in Scotland".^xviCTEEA/S5/19/AF/37 (Camelot Ltd). Written submission, p. 1. This view appears to be shared by Creative Scotland, which noted in its written evidence to the Committee that—

    "The National Lottery has recently been under challenge from competition from other lotteries, particularly Society Lotteries. This has led to fluctuations and volatility in the income being generated and subsequently distributed. The recent impact on Creative Scotland has been a fall in income from The National Lottery of some £6million."^xviiCTEEA/S5/19/AF/37 (Camelot Ltd). Written submission, p. 3.

36. The People’s Postcode Lottery, a society lottery, did not recognise this characterisation of the UK Government’s proposed reforms. It stated in response to the Committee’s call for views that "society lottery reform is not about competing with the National Lottery. It is about increasing the outdated annual sales limit contained in the 2005 Gambling Act…"^xviiiCTEEA/S5/19/AF/21 (People’s Postcode Lottery). Written submission, p. 1. The People’s Postcode Lottery noted that one of the charities under its umbrella, the Postcode Culture Trust, has given a total of £13.8m in funding to 55 organisations in Scotland.^xviiiCTEEA/S5/19/AF/21 (People’s Postcode Lottery). Written submission, p. 1. The Committee is also aware of funding that is awarded by other society lotteries and private trusts towards the arts and culture in Scotland. A key difference with the award of funding from Creative Scotland’s National Lottery Distribution Fund, as opposed to society lotteries and private trusts, is that National Lottery funding must be awarded in accordance with policy directives from the Scottish Government and in line with the National Performance Framework more broadly.

37. The Department for Digital, Culture, Media and Sport (“DCMS”) published the findings of its consultation on society lottery reform on 16 July 2019, in which it announced its intention to progress with its proposed reform of the regulation of large society lotteries. This will involve increasing the individual per draw sales limit from £4 million to £5 million; increasing the individual per draw prize limit from £400,000 to £500,000; and increasing the annual sales limit from £10 million to £50 million.^xxDepartment for Culture, Media and Sport. (2019) Government response to the consultation on society lottery reform. DCMS also stated its intention to run a further consultation to introduce a split tier licence for large society lotteries for an upper tier licence of £100 million.ⁱDepartment for Culture, Media and Sport. (2019) Government response to the consultation on society lottery reform.

38. Given these changes in the wider lottery market, some respondents to the Committee’s call for views called for the Scottish Government to set out a long-term strategy to find a sustainable funding replacement for the National Lottery.^xxiiSee, for example, written submissions: CTEEA/S5/19/AF/A1 (Anonymous); CTEEA/S5/19/AF/03 (Creetown Initiative Ltd); CTEEA/S5/19/AF/43 (Dogstar Theatre Company); CTEEA/S5/19/AF/53 (Aberdeen City Council); CTEEA/S5/19/AF/65 (Neo Productions). Aberdeen City Council suggested, for example, that the Scottish Government should consider establishing new investment funds to supplement or replace the National Lottery, such as through the Scottish Government’s proposals for a Scottish National Investment Bank.^xxiiiCTEEA/S5/19/AF/53 (Aberdeen City Council). Written submission, p. 3. The potential opportunities presented by the Scottish National Investment Bank for innovative investment in the arts was also supported by other respondents to the call for evidence.^xxivSee, for example, written submissions: CTEEA/S5/19/AF/25 (National Theatre of Scotland); CTEEA/S5/19/AF/50 (Festivals Edinburgh); CTEEA/S5/19/AF/51 (The Work Room).

39. The Scottish Government’s draft Culture Strategy outlined a commitment to explore new funding models to support a sustainable culture sector, including through a Scottish National Investment Bank and devolved tax powers.^xxvScottish Government. (2018) A Culture Strategy for Scotland: Draft for Consultation, p. 6. The 2019-20 Programme for Government committed to making the Scottish National Investment Bank operational in 2020 and to "put the transition to net zero at the heart of the Scottish National Investment Bank’s work".^xxviScottish Government. (2019) Protecting Scotland’s Future: The Government’s Programme for Scotland 2019-20, pp. 4, 9. The Economy, Energy and Fair Work Committee concluded in its stage 1 report on the Scottish National Investment Bank Bill, dated 4 July 2019, that "people have such high expectations for the Bank that it is unlikely it can deliver on everything to which its name has been speculatively attached before even a single mission is framed or its first investment made."^xxviiEconomy, Energy and Fair Work Committee. 9th Report, 2019 (Session 5). Scottish National Investment Bank Stage 1 Report (SP Paper 571), para 83.

40. The Cabinet Secretary explained to the Committee that the Scottish National Investment Bank will play a limited role in creating a sustainable arts funding system for the future, noting—

    "We need to be clear that the Scottish national investment bank will operate on a commercial basis, so it will not fund on a grant basis and I expect that its support for the creative industries will be limited…I think that it was Aberdeen City Council that suggested that we could somehow replace national lottery funding with funding from the Scottish national investment bank. I thought that that was a really odd suggestion."ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 12.

41. The Cabinet Secretary noted the kinds of activity funded by the National Lottery is more likely to cover non-commercial activity, when she explained—

    "There is a spectrum of funding—it goes from what is commercial funding to funding art for art’s sake. In that spectrum, the national lottery would be sitting at one end, and anything that was obtained from the Scottish national investment bank would be at the other end for the more commercial creative industries. I therefore caution the committee about how it approaches that issue."ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Cols 12-13.

42. The Committee welcomes the Scottish Government’s approach in the short-term to protect Creative Scotland’s budget from decline in National Lottery income over three financial years. The Committee is not clear from the Scottish Government’s evidence what other measures are being investigated to provide a sustainable funding model for the future in the event of continuing fluctuations in National Lottery income.

44. The Committee’s inquiry also considered the sources of funding available from EU programmes and how Brexit may impact on the sustainability of public funding for the arts.ⁱSee, for example, written submissions: CTEEA/S5/19/AF/59 (Creative Scotland); CTEEA/S5/19/AF/62 (Museums Galleries Scotland); CTEEA/S5/19/AF/14 (Musicians’ Union); CTEEA/S5/19/AF/63 (Traditional Music & Song Association Scotland). Direct and indirect funding of the arts comes from many European sources, including the Creative Europe Programme, Erasmus+ and European Structural and Investment Funds. In this regard, Creative Scotland commissioned UK-based consultancy company, Euclid, to identify EU-funded projects focused on or linked to the arts, media and creative industries in the last ten years.ⁱⁱEuclid (2014). Assessing the European Union’s Contribution to the Arts, Media and Creative Industries in Scotland. The report found that “two thirds of this funding had come from European structural funds rather than culture specific programmes”.ⁱⁱⁱCreative Scotland, Letter to the Culture, Tourism, Europe and External Affairs Committee, dated 14 June 2019.

45. Creative Scotland hosts the Scotland office of the Creative Europe Desk UK, which provides free information and advice to Scottish creative, cultural and heritage organisations on Creative Europe projects, partnerships and applications. The office also signposts potential applicants to information on other EU funding programmes such as Erasmus+, Europe for Citizens and Horizon 2020.ⁱⁱⁱCreative Scotland, Letter to the Culture, Tourism, Europe and External Affairs Committee, dated 14 June 2019.

46. The Creative Europe Desk UK’s written submission explained how EU programmes, such as the Creative Europe programme, provide opportunities to attract additional investment in Scotland’s artists.^vCTEEA/S5/19/AF/67 (Creative Europe Desk UK). Written submission. In this regard, the submission underlined that the Creative Europe programme follows the subsidiarity principle, such that "it extends and adds value to national support". Accordingly, the funding available from the programme "…will always require national co-funding sources". The submission also noted that it is "…important that local, regional and national funding institutions respond to multilateral programmes such as Creative Europe, and understand the leveraging effect of enabling organisations to put themselves forward for these pan European initiatives…"^viCTEEA/S5/19/AF/67 (Creative Europe Desk UK). Written submission, pp. 4-5.

47. Many respondents to the Committee’s inquiry, including the Creative Europe Desk UK, expressed support for Scotland remaining part of the Creative Europe programme and other relevant EU funding programmes if the UK leaves the EU.^viiSee, for example, written submissions: CTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland); CTEEA/S5/19/AF/14 (Musicians’ Union); CTEEA/S5/19/AF/29 (Scottish Artists’ Union); CTEEA/S5/19/AF/59 (Creative Scotland); CTEEA/S5/19/AF/62 (Museums Galleries Scotland). Non-EU countries are able to participate in the Creative Europe programme if they meet certain conditions.^viiiArticle 8 of the Regulation No 1295/2013 establishing the Creative Europe Programme stipulates that countries other than EU Member States may participate in the Programme. This participation is subject to the conditions referred to in the same article. The Creative Europe Desk UK noted in this regard that it has been working with the DCMS to assist them in pursuing the option for the UK to continue participating in the Creative Europe programme after Brexit.^ixCTEEA/S5/19/AF/67 (Creative Europe Desk UK). Written submission, p. 6.

48. Non-EU countries are not able to benefit from European Structural and Investment Funds and for this reason the UK Government proposes to replace this source of funding after Brexit with a new UK-wide programme, the Shared Prosperity Fund. Creative Scotland emphasised to the Committee in its written submission that "…any UK Government funding that replaces EU structural funding is very important to the creative sectors in Scotland."ⁱⁱⁱCreative Scotland, Letter to the Culture, Tourism, Europe and External Affairs Committee, dated 14 June 2019. This view was shared by other stakeholders, such as the Traditional Music and Song Association of Scotland which highlighted that the potential loss of access to this funding could result in a real-terms decrease in available funding because the amount currently invested in the UK is “proportionally greater in return than the proportion of the funding the UK contributes”.^xiCTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland). Written submission, p. 2. See also comments in CTEEA/S5/19/AF/63 (National Theatre of Scotland). Written submission, pp. 1, 3.

49. Creative Scotland has also argued that the existing level of funding available through the European Structural and Investment Funds should continue after Brexit—

    "We strongly advocate that post-Brexit structural funds should, as a minimum, match this current contribution for cultural activity in Scotland. We do, however, believe there is an opportunity for development through establishing priorities and models of support which allow for arts and culture to play a greater role in tackling inequality and supporting inclusive growth."ⁱⁱⁱCreative Scotland, Letter to the Culture, Tourism, Europe and External Affairs Committee, dated 14 June 2019.

50. Creative Scotland has expressed concern over the lack of clarity on what the replacement scheme, the Shared Prosperity Fund, will entail, noting that—

    "Exactly what this fund would be and how it will operate has been difficult to establish and Creative Scotland and the UK Arts Councils have been maintaining a close dialogue to share intelligence on any proposals from the UK Government that continue or replace EU funding."ⁱⁱⁱCreative Scotland, Letter to the Culture, Tourism, Europe and External Affairs Committee, dated 14 June 2019.

51. The Scottish Government launched a consultation on its priorities for the Shared Prosperity Fund after the UK’s withdrawal from the EU on 5 November 2019.^xivScottish Government. (2019) Consultation – the Replacement of European Structural Funds in Scotland Post EU-Exit. The Cabinet Secretary told the Committee in relation to Brexit that—

    "My biggest immediate concern is that programmes that are live just now should continue to be funded. I will do what I can, as part of our Brexit planning, but it would be wrong of the Scottish Government to say that it will be able to mitigate the worst excesses of the UK Government’s actions in not providing detail."^xvCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 32.

53. Local government plays an essential role in the funding of the arts. Local authorities are tasked with interpreting national policy in a local context to deliver cultural services in a way that is responsive to local needs and circumstances. The funding landscape for the arts and culture at a local authority level has been complicated by many factors, including differing interpretations of the duties on local authorities to provide cultural services; the creation of arms-length external organisations (‘ALEOs’) by many local authorities to deliver cultural services; and the impact of wider pressures on local authority finances on policy delivery. These issues are considered in turn in light of overall trends in local government spend for culture and related services since 2011-12.

54. The statutory framework that underpins local authorities’ duties in respect of cultural provision is complex. Generally speaking, local authorities are required to make adequate provision for culture and related services. The 2003 guidance that accompanied the then Scottish Executive’ culture strategy set out the four main statutes that were relevant to ‘adequate provision’, including Public Libraries Consolidation (Scotland) Act 1887; Local Government and Planning Act (Scotland) 1982; Local Government (Scotland) Act 1994; and Local Government in Scotland Act 2003.ⁱScottish Executive and COSLA. (2003) Implementation of the National Cultural Strategy: Guidance for Scottish Local Authorities, para 3.1.3. Accessed at: https://www.webarchive.org.uk/wayback/archive/20180517062125/http://www.gov.scot/Publications/2003/03/16870/20678. Since then, Part 2 (sections 15 to 19) of the Local Government in Scotland Act 2003, relating to Community Planning, has been replaced by Part 2 of the Community Empowerment (Scotland) Act 2015. The Scottish Government has also implemented a policy of public service reform in light of recommendations made by the Christie Commission in 2011 and the launch of a refreshed National Performance Framework.

55. Many respondents to the call for evidence considered that ‘adequate provision’ is a subjective term, which has made the leisure and culture portfolio vulnerable to funding cuts.ⁱⁱSee, for example, written submissions: CTEEA/S5/19/AF/20 (Edinburgh International Festival); CTEEA/S5/19/AF/58 (Culture Aberdeen); CTEEA/S5/19/AF/50 (Festivals Edinburgh); CTEEA/S5/19/AF/26 (conFAB); CTEEA/S5/19/AF/59 (Creative Scotland); CTEEA/S5/19/AF/53 (Aberdeen City Council); CTEEA/S5/19/AF/43 (Dogstar Theatre Company); CTEEA/S5/19/AF/14 (Musicians’ Union); CTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland). Indeed, this issue is not new and was recognised in the implementation guidance for local authorities that accompanied the then Scottish Executive’s National Cultural Strategy in 2000. The guidance stated—

    "In some respects, the legislation is vague in relation to the principal duties and powers, and, in particular, relating to ‘adequate provision’. As a result, it is believed that there is variation between individual local authorities – which have interpreted it differently, in accordance with their own policy priorities and resource availability."ⁱScottish Executive and COSLA. (2003) Implementation of the National Cultural Strategy: Guidance for Scottish Local Authorities, p. 12. Accessed at: https://www.webarchive.org.uk/wayback/archive/20180517062125/http://www.gov.scot/Publications/2003/03/16870/20678. NB: The Strategy was published in 2000 and the accompanying guidance was published in 2003.

56. The then guidance provided some direction to local authorities about how to ensure cultural provision was ‘adequate’ and therefore in line with their statutory duties. Examples of the measures that local authorities were suggested to take included the development of an authority-wide culture strategy and service-specific plans.ⁱScottish Executive and COSLA. (2003) Implementation of the National Cultural Strategy: Guidance for Scottish Local Authorities, p. 13. Accessed at: https://www.webarchive.org.uk/wayback/archive/20180517062125/http://www.gov.scot/Publications/2003/03/16870/20678. There is no Scottish Government guidance currently available^vScottish Government communication with SPICe. as to how local authorities should interpret ‘adequate provision’ and in this respect the local-national policy framework appears to be unclear. This is considered in more detail in the following chapter of this report.

57. The interplay between local authorities’ statutory duties, the local government settlement and the funding allocated by local authorities to specific policy areas, including the arts, was an issued raised by respondents to the inquiry. The Committee notes in this regard that the Scottish Government’s definition of 'ring-fencing' in the context of the local government settlement is different to COSLA’s definition of 'non-discretionary' or 'protected spend'.^viScottish Parliament Information Centre. (2019) Local government finance: facts and figures 2013-14 to 2019-20. SPICe Briefing SB 19-45, pp. 9-10. Notwithstanding this, the Committee heard contrasting views on how local authorities could best utilise their budgets to support the arts and cultural provision.

58. Stewart Murdoch, Director of Leisure and Culture Dundee, told the Committee for example that being outside protected funding put the arts and culture at a 'disadvantage'.^viiCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 4. Glasgow Life agreed that protecting the spending of other portfolios means that the funds available for the arts "…have been disproportionately affected".^viiiCTEEA/S5/19/AF/48 (Glasgow Life). Written submission, p. 1. It cited Canada and Singapore as international examples where cultural spending has been ring-fenced successfully.^ixCTEEA/S5/19/AF/48 (Glasgow Life). Written submission, pp. 1-2. Leonie Bell, Paisley Partnership Strategic Lead for Renfrewshire Council, argued against ring-fencing of arts funding on the basis that it is difficult to define what is meant by the arts and culture in a spending context. In her view, "we need to start with the ambition, the strategy and the policy before we look at budget mechanisms".^viiCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 5.

59. The Cabinet Secretary told the Committee that she remains open to working with local authorities on support for the arts. The Cabinet Secretary stated—

    "I am very keen to meet and encourage all the local authority culture conveners. I need COSLA to engage with me on that, but I have found it to be an increasingly frustrating and difficult exercise. I will keep pursuing that. If we work together in tandem, we can do great things, even in difficult times. It is not all about the level of funding; it is about political will as well."^viiCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 10.

60. Another issue raised by respondents to the inquiry was the impact of ALEOs on funding for the arts at a local government level. A report by the Audit Commission estimates that approximately 20 councils have created an ALEO to deliver cultural services, 13 of which have a joint leisure and culture remit.ⁱAccounts Commission. (2018) Councils’ use of arm’s length organisations, p. 10. A major incentive for creating ALEOs to deliver cultural services appears to be cost saving, which can be made through levers, such as rates relief. Stewart Murdoch, Director of the Leisure and Culture Dundee ALEO, told the Committee "there is no question but that it has enabled the City of Dundee Council to make significant savings."ⁱⁱCulture, Tourism, Europe and External Affairs. Official Report, 27 June 2019, Col 35. This view was also expressed by the Barclay Review, which found that the ALEO model “…allows councils to gain additional funding from the Scottish Government outwith the usual funding arrangements, a fact that was acknowledged by councils themselves as one of the primary reasons they put services into ALEO status in the first place”.ⁱⁱⁱScottish Government. (2017) Report of the Barclay Review of Non-Domestic Rates, para 4.116.

61. The Committee also became aware of potential issues that the ALEO model can give rise to, such as local accountability over policy priorities and spending. In this regard, Stewart Murdoch told the Committee—

    "If the ALEO is not represented on the council’s management team, the leader of the ALEO will not be at the table when the other chief officers have a discussion about budget setting or priorities, and they will not have influence. In the case of Dundee City Council and Glasgow City Council—I am not sure about the situation in other councils—the ALEO is considered. The leader of the ALEO is part of the council’s management team, as well as running the ALEO. There is a visible tension, because the ALEO is independent. It is challenging to take part in those discussions and to separate oneself from that when it comes to the delivery end of the ALEO, but that dual role is important in the ALEO model. Without it, there would be no one in the local authority management team advocating for investment in culture."^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 41.

62. The Committee did not have time within the scope of this inquiry to consider the impact of ALEOs on arts funding and the extent to which any savings made through the use of this model have been reinvested in the arts specifically, as opposed to other policy areas. It noted, however, that national data analysing the savings (or otherwise) derived from ALEOs was not readily accessible. The Committee is not aware of any Scottish Government guidance on the issues highlighted in evidence about local authorities’ management structure in respect of ALEOs.^vSee generally: Accounts Commission. (2018) Councils’ use of arm’s length organisations.

63. The Cabinet Secretary noted that the development of ALEOs and their impact with regard to the governance of local services is not a new issue, as it was the subject of a previous parliamentary committee in Session 4.^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 8. See: Local Government and Regeneration Committee. 7th Report, 2016 (Session 4), Inquiry into arm’s length external organisations (SP Paper 941). The Cabinet Secretary explained that whilst she has had positive engagement with ALEOs, through the umbrella body VOCAL, difficulties in ascertaining how cultural provision is being made at a local authority level through ALEOs persist—

    "I prefer to support people who want to do things. There is a danger in that regard: some local authorities have absolutely decimated their culture funding, while others—East Ayrshire Council, Perth and Kinross Council and Stirling Council—have had positive experiences. It is hard to tell what local authorities are doing because so many of them now work through trusts."ⁱⁱCulture, Tourism, Europe and External Affairs. Official Report, 21 November 2019, Col 8.

64. The figures below show the general trend in local government spend for culture and related services since 2011-12—

    

    2011-12 to 2017-18 Local Financial Returns (LFR 02) HMT Deflators Sept 2019.

65. Figure 7 above shows decreasing real terms net expenditure by local authorities across culture and related services. It also highlights the relatively small amount spent on libraries, as well as cultural and heritage policy, as compared with recreation and sport. The budget line for cultural and heritage spend are very broad in terms of the types of activity that are included within them and so it is difficult to ascertain from local authority budget figures exactly how much is being spent on the arts directly.

66. It should also be noted that Figure 7 presents net expenditure, which is the amount of spend funded by the general revenue grant from the Scottish Government, non-domestic rates income, council tax receipts, and reserves. It does not include expenditure funded through fees or charges. As such, it is not clear from these figures alone whether any decrease in local authority expenditure is being met by increased charges for services. As noted earlier in this report, the figures also do not take account of the impact of ALEOs across Scotland and what impact, if any this has had on spending on the arts and culture in the relevant period.

67. The Committee also examined the relative spending of local authorities on culture and related services per head of population. Figure 8 below provides an illustrative snapshot of local authority spend per head of population in 2017-18 (covering spending on Culture and Heritage, Tourism, Recreation and Sport and Library Services). The snapshot shows that, if you were to analyse the available data, it provides an incomplete representation of expenditure by local authorities on culture. The Committee recognises that there are distinctly different contexts in which local authorities undertake cultural expenditure. For example, Edinburgh has a number of nationally funded institutions, whereas Glasgow supports a range of cultural institutions with a national reach.

68. The type of budget data shown in Figure 8 is routinely used to measure and monitor local authority spending on culture, yet the data itself does not provide a clear or accurate picture of this spending. This is because it includes a wide variety of activities included in the figures (such as those relating to tourism, recreation and sport), as highlighted in Figure 7.

National Records of Scotland, Mid-2017 population estimates Scotland and Question S5W-22384: Angela Constance, Almond Valley, Scottish National Party, Date Lodged: 27/03/2019 Answered by Fiona Hyslop (10/04/2019).

69. Notwithstanding the issue of data quality, the Committee’s inquiry has highlighted the significant disparity in funding and approaches to supporting the arts across Scotland’s local authorities. Indeed, the Cabinet Secretary described the level of disparity in funding between local authorities as “quite striking”.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 9. The Committee considers that this situation threatens the sustainability of support for the arts across all parts of Scotland and must be addressed.

71. It has become apparent in the course of this inquiry that it is difficult to find accessible data that presents an authoritative picture of arts funding at a local and national level. The Committee was informed that individual artists and arts organisations have therefore carried the burden of demonstrating the impact of and outcomes of arts funding in circumstances where an overarching data framework or local and national open-source data resources is lacking.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 19 September 2019, Cols 1-4. It was also noted that extensive data is collected by Creative Scotland (in addition to other public funders) but that it does not have the capacity to “mine the data and learn from it”.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 19 September 2019, Col 3. This has resulted in a number of individual projects being established to address the data gap in a piecemeal way.ⁱⁱⁱSee for example: CTEEA/S5/19/AF/54 (Claire Stewart). Written submission; Culture, Tourism, Europe and External Affairs Committee. Official Report, 19 September 2019.

72. Scotland is not alone in facing this challenge, as the Committee found from its comparative research that other European countries have established cultural observatories that are specifically tasked with addressing this issue, such as France and Ireland. The Committee also received evidence from the Creative Europe Desk UK that there is a proposal for the next EU multi-annual financial framework to establish a European observatory for Culture and Creative Sectors “to collect much needed data and statistics”.^ivCTEEA/S5/19/AF/67 (Creative Europe Desk UK). Written submission, p. 5

73. The Committee was informed that Scotland already benefits from relevant expertise and resources that could be pooled together to address this issue, including (but not limited to) the Scottish Data Lab, the School of Informatics at the University of Edinburgh, and the Scottish Funding Council.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 19 September 2019, Col 4. It was also noted that the Scottish Government could “become a world leader in how culture works” if it was to build on the use of existing data planning tools from elsewhere, such as WhiteBox,^viWhiteBox is an online, outcomes planning tool that enables better planning, execution and evaluation of cultural activities. The WhiteBox platform is a public sector funded initiative led by Cultural Development Network in partnership with the Australian capital cities through their participation in trials and development funded by the Australia Council for the Arts. https://culturaldevelopment.net.au/whitebox/. to support the better data and evidence-based policy making.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 19 September 2019, Col 2.

74. The Scottish Government has expressed an intention to use culture to deliver wider policy outcomes in the National Performance Framework in a cross-cutting way.^viiiThe draft strategy outlines states in this regard: “The strategy…is committed to long term change through greater collaboration and integration across culture, communities and policy development.” See: Scottish Government. (2018) A Culture Strategy for Scotland: Draft for Consultation, p. 15. Whilst this intention is welcomed, it will add another level of complexity to the funding environment meaning that it may be difficult to measure spend and outcomes without better and more accessible data. In this regard, the Scottish Government’s draft Culture Strategy included a commitment to monitor the impact of the Strategy through the establishment of a Measuring Change Group.

75. The Cabinet Secretary noted that she was not able to make policy announcements during the purdah period, but underlined that within the draft culture strategy “…the strand on how we can measure performance and change was a strong one.”ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 24. The Cabinet Secretary also reflected on the evidence from Irish Arts Council and the Committee’s comparative research and noted—

    "I was interested to note that the data gathering and observation that take place in Ireland, which are funded by the Irish Research Council, will be independent of Government. Each country will do these things in a way that suits it, but I am interested in that direction of travel."ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 25.

76. The Committee’s inquiry has highlighted the complex local and national funding framework that supports the arts in Scotland. The National Performance Framework places outcomes at the heart of Scottish policy-making and good quality and accessible data will be key to measuring progress and demonstrating impact. The Committee welcomes the Scottish Government’s proposal to establish a Measuring Change Group to ensure that the impact of the forthcoming culture strategy is captured and measured accordingly.

79. The previous section outlined the existing funding environment and the challenges that must be faced in order to maintain a sustainable arts funding system for the long-term. In this restrained funding environment, the Committee investigated the extent to which national and local government have developed and deployed coherent strategies to articulate their investment priorities and identify additional funding opportunities to maximise and strengthen investment in the arts. This section highlights different loci through which local and national co-ordination occurs and considers means by which this could be strengthened.

80. The National Performance Framework recognises the important role that local government plays in delivering the national performance outcomes. It states that “To achieve the national outcomes, the National Performance Framework aims to get everyone in Scotland to work together. This includes: national and local government…”ⁱScottish Government. (2019) National Performance Framework: How it Works. The delivery plan also notes that, at a local level, community planning partnerships will develop local outcomes improvement plans.ⁱScottish Government. (2019) Improving Public Services: Community Planning. However, the underlying legislation falls short in requiring community planning partnerships to take account of national policy and priorities in the development of these plans.ⁱⁱⁱCommunity Empowerment (Scotland) Act 2015.

81. Audit Scotland’s Local Government in Scotland report recognises the wider role that local authorities play in delivering national outcomes, whilst acknowledging the pressure on them to deliver more for less—

    "Scottish Government revenue funding to councils has reduced in real terms between 2013/14 and 2019/20, while national policy initiatives continue to make up an increasing proportion of council budgets. This reduces the flexibility councils have for deciding how they plan to use funding. At the same time, demand for council services are increasing from a changing population profile. All councils expect an increase in the proportion of people aged over 65 and almost a third of councils expect an increase in the proportion of children under 15."^ivAudit Scotland. (2019) Local Government in Scotland: Challenges and Performance 2019, p. 6.

82. The Cabinet Secretary reiterated in this regard that public funding “…is under pressure for us and for everybody”,^vCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 9. and noted the impact that budgets the Scottish Government have protected are having on culture—

    "…the health budget has been protected, as has the policing budget in the justice portfolio. Because the health budget is so big, all non-protected budgets have had to be reduced to help to continue the support for the health budget in pressured times. That is the reality."^vCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Cols 29-30.

83. The essential role that local government plays in delivering cultural provision has been recognised since the beginning of devolution. The Scottish Executive’s first culture strategy dated 2000, Creating our Future…Minding our Past, noted in this regard that “local authorities are responsible for the majority of public support for cultural provision and guidance”.ⁱScottish Executive. (2000) Creating our Future, Minding our Past, p. 57. The guidance that accompanied the then national strategy noted that local authorities should take action to implement the strategy and develop their own “single authority-wide cultural strategy and consider service-specific plans relating to key areas of provision” in order to ensure that they met their statutory duties.ⁱⁱScottish Executive and COSLA. (2003) Implementation of the National Cultural Strategy: Guidance for Scottish Local Authorities, para 3.1.4. Accessed at: https://www.webarchive.org.uk/wayback/archive/20180517062125/http://www.gov.scot/Publications/2003/03/16870/20678.

84. In the course of its inquiry, the Committee was informed that some local authorities have developed, or are in the process of developing, culture strategies and that this was viewed generally as a positive policy and budgetary tool.ⁱⁱⁱThese included Aberdeen City Council, Dundee City Council, Renfrewshire City Council and Dumfries and Galloway Council. In some cases, such as Renfrewshire and Dundee, the development of a cultural strategy appears to have been strongly influenced by the bidding process for the UK City of Culture scheme.^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Cols 14, 15. Stewart Murdoch, Director of Leisure and Culture Dundee, noted that the development and implementation of a local culture strategy has been very effective in mainstreaming the arts and culture into wider strategic decision-making in Dundee—

    "The one thing that Dundee has done is maintain a cultural strategy… since Government guidance about putting in place such strategies was published. That has helped us. We report our cultural strategy to the Dundee partnership, which is the local community and planning partnership for the city. For more than 15 years, we have been reporting to the community planning partnership on the strategic decisions and our action plan. There is no security for that, which is why it is not common across Scotland. However, it has been really helpful to have that focus, which is reported to the council and its strategic partners."^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Cols 6-7

85. The Committee also received evidence of other initiatives to develop local culture strategies, such as in Aberdeen. Culture Aberdeen, which is a network of local organisations, worked with Aberdeen City Council to develop a ten-year culture strategy for the city. Culture Aberdeen explained in written evidence that this strategy “…has been developed within the context of relevant local and national strategies, including the emerging National Cultural Strategy, the Local Outcome Improvement Plan, the revised National Performance Framework, and Creative Scotland’s strategy”.^viCTEEA/S5/19AF/58 (Culture Aberdeen). Written submission, p. 1. The Committee also heard that Dumfries and Galloway is also currently developing a culture strategy.^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 7.

86. The Committee also undertook two fact-finding visits to Ayr and Dunfermline to understand how culture and the arts is supported at a local level. It was evident from these visits that local priorities play a significant role in shaping funding opportunities for the arts and culture. Fife, for example, has outsourced its cultural services delivery to an ALEO, OnFife. It has a local cultural strategy, which was ‘driven by the Fife Cultural Consortium, a diverse group of 300 members from across its cultural, health, economic and community planning spectrums…”^viiiOn Fife (2019). Fife's Cultural Strategy. One of the three arms of the strategy is focused on “Strengthening and Developing Fife’s Creative Economy”^viiiOn Fife (2019). Fife's Cultural Strategy. and the Committee was informed by some artists during its visit to Dunfermline that the implementation of the local culture strategy appears to prioritise funding of the arts where there are demonstratable outcomes for supporting and growing tourism.^xCulture, Tourism, Europe and External Affairs Committee, Fact-finding visit to Dunfermline, Hosted by Fire Station Creative, 10 June 2019, Note of discussion.

87. It was also clear to the Committee from both visits the impact that local champions of the arts were having on their community. The Committee learned during its visit to Dunfermline, for example, how individual artists in Dunfermline were instrumental in developing the Fire Station Collective, an innovative model for supporting and showcasing local artists, whilst also providing a unique cultural venue for the benefit of local people.^xCulture, Tourism, Europe and External Affairs Committee, Fact-finding visit to Dunfermline, Hosted by Fire Station Creative, 10 June 2019, Note of discussion. In Ayr, the Committee witnessed how Ayrshire College is providing opportunities for young graduates to pursue artistic careers through free rehearsal space and careers guidance.^xiiCulture, Tourism, Europe and External Affairs Committee, Fact-finding visit to Ayr, Hosted by Ayrshire College, 3 June 2019, Note of discussion. The Committee also saw the significant positive impact that individual mentors can have on young artists in their community when it met with young sculptors and visual artists and their mentors in Ayr.

88. In neither area, however, was it clear to the Committee how the local authorities’ priorities for arts funding were influenced by or related to the national priorities for the arts and culture, as articulated in the National Performance Framework or Creative Scotland’s 10-year strategy “Unlocking Potential – Embracing Ambition”. The Committee considered this issue in more detail in an evidence session on 27 June.ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019. Leonie Bell, Paisley Partnership Strategic Lead for Renfrewshire Council, told the Committee at this meeting that more could be done to develop relationships between local and national government around the National Performance Framework in relation to the national outcome on culture—

    "Perhaps there is a bit of work to do with the [national] outcome and how to develop the relationships or the framework around it, rather than creating another system—another set of agreements and structures."^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 6.

89. In this regard, Gary Cameron, Head of Place Partnerships for Creative Scotland, suggested a more robust approach is required to mandate that local authorities should plan for and articulate their priorities for culture—

    "I think that the first step would be to put in place the principle that local authorities are mandated to plan for culture and for them to articulate their priorities. That has been the first step taken in other countries, including in France, where there is a requirement for authorities to have a cultural strategy to show how they are considering culture. We would then consider how Creative Scotland and other national bodies could collaborate to help to deliver that."^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 6.

90. This approach has been embedded within the Irish funding model in which local authorities are required by statute to have an arts plan.^xviArts Act 2003, Number 24 of 2003. This statutory requirement is supported by framework agreements, as noted by Director Orlaith McBride when she gave evidence to the Committee—

    "At the national level, there is the County and City Management Association for all local authorities in the country, of which there are 31. We have a memorandum of understanding at the highest level with that management association, and we have a framework agreement with every local authority at an individual level, which is signed by me and the chief executive—not the arts officer—of the local authority. The agreement is very much embedded in the local authority’s work."^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 9.

91. This framework also provides a basis on which to determine respective responsibilities and priorities between local and national partners, as well as helping to identify opportunities for local and national co-funding—

    “There will be areas of responsibility that are really important at the local level that the Arts Council, as a national agency, might not be that interested in. There will also be particular programmes—for example, development initiatives such as work with older people or young people, or work in very rural or disadvantaged communities—that we are really interested in, because they align with our strategy, and we would co-fund them.”^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 9.

92. The Irish example of local and national policy coordination highlights a wider trend in the Committee’s comparative research, which concluded that the strategic alignment of national and local government priorities is very important to the funding of the arts, noting that "countries do not consider national arts funding in isolation from local governance".^xixDrew Wylie Projects Ltd. (2019) Scottish Parliament - Arts Funding Inquiry Comparative Analysis Ref: 2018-19/01/CTEEA, p. 25

93. The Cabinet Secretary told the Committee that she would welcome a framework of understanding akin to the Irish model, noting "that is what we did with the public libraries national strategy".^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 10. The Cabinet Secretary explained there are differences between the Irish and Scottish context, including the fact that the Irish framework has "…underpinning legislation [that] allows ministerial direction of local authorities in relation to culture, which we do not have." In the Cabinet Secretary’s view, "The political context of our relationship with local government is such that, at this time, I do not think that local authorities, or even some parties in the Parliament, would accept something as direct as a memorandum and framework."^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 11.

94. The Committee considers that the existing policy framework for establishing the respective roles of local and national government in funding the arts, including opportunities for co-funding, is not working well. It notes the positive outcomes that have come from taking a more structured approach to intergovernmental working through the development of the public libraries national strategy.

97. Another area in which culture and investment in the arts could be embedded into strategic planning at a local authority level highlighted to the Committee was in community planning. This policy area, more than any other relevant to arts funding, has arguably undergone the most change in the past decade. Yet it appears that opportunities have been missed in this process to embed the arts within wider public policy making. Gary Cameron, Head of Place Partnerships for Creative Scotland, noted in this regard that Creative Scotland is not a statutory partner in community planning and considered that making this change would strengthen the support for the arts and culture at a local level.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 5. This suggestion was welcomed by Stewart Murdoch, Director of Leisure and Culture Dundee.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 7.

98. The Community Empowerment (Scotland) Act 2015 requires community planning partnerships to develop local outcome improvement plans, but gives the Scottish Government no role to require those plans to reflect any nationally-imposed priorities.ⁱⁱⁱScottish Government communication with SPICe. Mr Cameron was critical of this approach, arguing in the absence of a statutory requirement for culture to be considered a priority in the development of these plans that—

    "The extent to which culture is represented when different groups get together to consider the priorities for the region and develop the local outcomes improvement plans varies."ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 5.

99. This issue was also raised by Aberdeen City Council in its written submission, which called for guidance on how the new outcome on culture and associated indicators should be incorporated into local outcomes improvement plans and whether “…that should have a statutory impact on local authority culture spending”.^vCTEEA/S5/19/AF/53 (Aberdeen City Council). Written submission, p. 3.

101. The Committee received evidence highlighting how local and national policy coordination could support the additional funding of the arts in wider policy development, such as city region deals. City region deals are agreements between the Scottish Government, the UK Government and local government designed to bring about long-term strategic approaches to improving regional economies.ⁱExisting deals include: Glasgow City Region Deal; Aberdeen City Region Deal; Inverness and Highland City Region Deal; Stirling and Clackmannanshire City Region Deal; Edinburgh and South East Scotland City Region Deal; Tay Cities Region Deal: https://www.gov.scot/policies/cities-regions/city-region-deals/. The Committee was informed by witnesses that culture can be successfully incorporated into city region deals to create additional funding for the arts, but this opportunity does not appear to have been capitalised on in all deals concluded to date. Stewart Murdoch, Director of Leisure and Culture Dundee, told the Committee how the Tay cities region deal supports investment in culture—

     "…the Tay cities [region] deal is very much about cultural tourism… It is not about cultural development or art as development but is linked absolutely to ensuring that the investment that Perth and Kinross Council and Dundee City Council in particular have put into culture and regeneration is fully exploited and developed."ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Cols 26-27.

102. Mr Murdoch also noted that the announcement of investment resulting from the Tay cities region deal has ‘…energised artists, the governance bodies of arts organisations and the collaboration between the local authorities in the Tay cities [region] deal’.ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 27. Jude Henderson, Director of the Federation of Scottish Theatre, was also supportive of the additional investment created by the Tay cities region deal, noting that the Pitlochry Festival Theatre has secured a significant amount of funding through it.ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 20 June 2019, Col 9.

103. Despite the opportunities for investing in culture identified in the Tay Cities Region Deal, Leonie Bell, Paisley Partnership Strategic Lead for Renfrewshire Council, noted that this has not been capitalised on in all cases, when she told the Committee—

     "We are part of the Glasgow city region city deal, but culture does not feature in that in the way that it does in the Tay cities [region] deal; it does not really feature in the Edinburgh and south-east Scotland city region deal, either."ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 20 June 2019, Col 26.

104. Ms Bell noted that a greater focus was placed on tourism in the Glasgow city region deal and there may be scope to consider "the role of culture within tourism" in that context.ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 20 June 2019, Col 26. The Committee heard mixed views from artists and other participants in its fact-finding visit to Fife on the extent to which tourism creates opportunities for funding the arts. It was noted that any funding plan should not detract from funding opportunities for the benefit of local artists and residents.^viiCulture, Tourism, Europe and External Affairs Committee, Fact-finding visit to Dunfermline, Hosted by Fire Station Creative, 10 June 2019, Note of discussion.

105. Gary Cameron, Head of Place Partnerships at Creative Scotland, agreed that city region deals can provide opportunities for additional arts funding, but emphasised that they must be relevant to the local area’s strategic priorities and this requires considered leadership—

     "With the city region deals, the issue is leadership, and the same principle applies in the context of culture. That involves looking at how culture and the arts are considered as part of the economic development of the region. An understanding needs to be developed of the fact that, although they might not be the primary driver, they can have a positive economic, social and cultural impact."ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 20 June 2019, Col 32.

106. The Cabinet Secretary acknowledged the role that culture can play in city region deals when she gave evidence to the Committee, noting that "…local authorities in different areas see culture provision as an important part of those deals".ⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 15.

108. A key issue raised in the evidence received last year on Creative Scotland’s handling of regular funding was the geographic reach of national arts funding and the fact that this had not improved since the previous funding round.ⁱCulture, Tourism, Europe and External Affairs Committee, Letter to Creative Scotland, 14 June 2018. The Committee therefore considered this issue in more detail by examining the wider approach being taken by Creative Scotland to work with local authorities and its capacity to address gaps in provision.

109. The main locus for Creative Scotland’s strategic working with local authorities is its Place Partnerships Programme (hereafter ‘place programme’). Local authorities are able to apply to participate in the programme on an invited basis. The programme is a development fund that is delivered over a fixed period of time as part of Creative Scotland’s targeted funding stream and is being, or has been, implemented in a total of 16 local authorities.ⁱⁱCreative Scotland. (2019) Place Programme. The Committee considered the programme in the context of local and national policy coordination during its meeting on 26 June 2019. The Place Programme received praise from witnesses who gave evidence in this meeting, such as Stewart Murdoch, Director of Leisure and Culture Dundee, who noted—

     "I would say that the place programme is almost unquestionably one of the most flexible, helpful and developmental funding programmes that I have been associated with. I would give it straight As: our experience was excellent."ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 14.

110. Leonie Bell, Paisley Partnership Strategic Lead for Renfrewshire Council, agreed that the programme has delivered benefits for local authorities when she explained the impact it is currently having in Renfrewshire—

     "The place partnership has been extremely important. From what we call our big legacy money, we have put in £200,000, which has been matched by Creative Scotland."ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 15.

111. David McDonald, Arts Development Director of DG Unlimited, also agreed that "the place partnership programme is one of the most significant initiatives to come out of the national body for the arts for quite some time."ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 16.

112. There was consensus from the witnesses who gave evidence to the Committee on 26 June that the Place Programme needs to develop in a way that creates a long-term plan for embedding the benefits derived from the programme’s delivery.^viSee the witnesses who gave evidence on behalf of local governance or membership organisations on 27 June 2019, excluding Creative Scotland. Stewart Murdoch explained in this regard—

     "…the place programme funding was great, but when it stops, it is a hard landing. We have worked really hard to maintain the partners’ commitment to the place partnership. Dundee City Council is under financial pressures, the leisure and culture trust has run a deficit for the past two years, and the universities are under financial pressures. They are saying, “If we’re not getting anything back from the Government, why should we put in our bit?” We have managed to persuade them to stick with the level of investment that they put in during the place partnership for another three years, but there is a real question about incentivising investment in culture-led regeneration."ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 15.

113. David McDonald agreed with Stewart Murdoch, noting that “Phase 2 is really important, because—as Stewart Murdoch said—there is a sudden stop.”ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 16. Mr McDonald mooted that enhancing Creative Scotland’s capacity would be a means to strengthen phase 2 of the Place Programme.ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 16. Gary Cameron, who leads the programme in Creative Scotland, also acknowledged that the resources available to Creative Scotland to deliver the programme could be enhanced, when he stated—

     "We do not have the resource base to provide what each of the 32 local authorities would ideally like us to do, but we are being proactive and we are continuing to consider how we can work more collaboratively."ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 29.

114. Mr Cameron also noted that many local authorities are not as well-resourced with specialist staff to support local artists and to work with national partners in promoting the arts and culture as they were previously—

     "We have touched on local authority budgets being under pressure. On the ground, that often means that the roles—the arts development officers or cultural co-ordinators—that have historically been in place across Scotland are no longer there or have changed radically. I have been in one of those roles, and they are really important. They are the conduit between artists and community representatives. They are connectors; they help things to happen. They are also the link to Creative Scotland. There is a patchwork of posts—the picture across Scotland is not uniform. Our ability to have on-the-ground expertise and to work with communities and artists locally where there is no arts development officer is more challenging than it was 10 years ago…"ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 31.

115. The apparent decline in expert local authority staff was also raised as a concern by respondents to the Committee’s call for evidence and other witnesses.^xiiSee, for example, written submissions: CTEEA/S5/19/AF/03 (Creetown Initiative Ltd), CTEEA/S5/19/AF/35 (Voluntary Arts Scotland), CTEEA/S5/19/AF/64 (Barrowland Ballet). See also Rhona Matheson commentary – Culture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Col 28; Janie Nicoll commentary – Culture, Tourism, Europe and External Affairs Committee. Official Report, 6 June 2019, Col 6. For example, Creetown Initiative Ltd commented on this issue that—

     "Another by-product of this reduced funding is that staff who are not qualified to support the arts are shoe-horned into arts posts as a result of council re-organisation (something which seems to happen on a weekly basis). So, you end up with the wrong people in the wrong jobs which weakens the depth of knowledge and support available."^xiiiCTEEA/S5/19/AF/03 (Creetown Initiative Ltd). Written submission, p. 2.

116. Creative Scotland administers other funding programmes that are intended to support the arts locally, including regular funding, which currently takes up 86 percent of Creative Scotland’s unrestricted grant in aid.ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 2 May 2019, Col 17. In its Regular Funding 2018-21 inquiry, the Committee considered the extent to which the organisations awarded funding were spread across Scotland’s 32 local authority areas. It was noted that only 21 local authorities have a regular funded organisation based in their area and that this figure is unchanged from the previous funding round.^xvThe local authority areas without an RFO include: Clackmannanshire; East Ayrshire; East Renfrewshire; Falkirk; Midlothian; North Ayrshire; Renfrewshire; South Ayrshire; South Lanarkshire; West Dunbartonshire; West Lothian. NB: Overall applications from organisations based in 21 local authority areas were successful; applications from a further 3 outstanding local authority areas were received but were unsuccessful; and no applications were received from 8 local authority areas. Creative Scotland has emphasised previously to the Committee that 74% of the organisations in the current regular funding network operate beyond their home postcodes.ⁱⁱCreative Scotland. (2018) Regular Funding Network 2018-21: The Network. Nonetheless, the issue of geographic spread of national arts funding was also raised by respondents to this inquiry.^xviiSee, for example, written submissions: CTEEA/S5/19/AF/47 (Monika Alff); CTEEA/S5/19/AF/58 (Culture Aberdeen); CTEEA/S5/19/AF/53 (Aberdeen City Council); CTEEA/S5/19/AF/48 (Glasgow Life); CTEEA/S5/19/AF/46 (Norman Bissell); CTEEA/S5/19/AF/45 (Applied Arts Scotland); CTEEA/S5/19/AF/22 (Kirsten Gow); CTEEA/S5/19/AF/32 (John Scott MSP); CTEEA/S5/19/AF/10 (Mary Bourne); CTEEA/S5/19/AF/03 (Creetown Initiative Ltd); CTEEA/S5/19/AF/07 (Graham Berry); CTEEA/S5/19/AF/A1 (Anonymous); CTEEA/S5/19/AF/23 (Imaginate); CTEEA/S5/19/AF/27 (Ayr Gaiety Partnership).

117. The Irish Arts Council explained to the Committee how the long-standing joint-working framework between local and national partners, which was formalised in the Arts Act 2003, in Ireland helped reduce the impact of the financial downturn on local authority support for the arts. It noted that that its relationship with local authorities began in 1985, when the Arts Council funded the first arts officer in a local authority. These posts continued to be funded by the Arts Council up until approximately fifteen years ago, by which time “they became mainstreamed in the local authorities”.ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 8. Orlaith McBride, Director of the Irish Arts Council, noted how the system weathered the financial downturn—

     “During the boom years before the recession, teams with, for example, a youth arts officer, a public arts officer and an arts and health co-ordinator would have been built up in local authorities. Those teams would have been developed but, as the recession hit, local authorities went back to skeletal staff of just an arts officer. In every local authority, at the senior management level, there would be a director of culture. That was to ensure that all the cultural provisions—the arts, heritage, the language and the Gaeltacht—were under one directorate in a local authority.”ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 8.

118. Ms McBride noted that local authorities’ provision of the arts is not a statutory service, but that the Arts Act 2003 requires local authorities to have an arts plan. The Act requires local authorities to “take account of policies of the Government in relation to the arts”.^xxArts Act 2003, Number 24 of 2003, s. 6(1).

119. Scotland has previously had similar policies to support arts officers within local authorities. For example, the Scottish Arts Council’s “Creative Links Programme” was a partnership project between the Scottish Arts Council’s Education Department and individual partner organisations (i.e. local authorities or national youth/education umbrella bodies).^xxiNational youth/education umbrella body partners that participated in the scheme included YoungScot; YouthLink Scotland; Children in Scotland; The Scottish Adult Learning Partnership; and Imaginate. The programme created time-limited positions known as ‘links officers’ who were stationed in partner organisations. Their role was to act as a liaison between the local authority departments and external agencies; liaise directly with artists and arts organisations; create and manage projects and programmes; provide information and advice to teachers; and identify additional funding opportunities.^xxiiScottish Executive and COSLA. (2003) Implementation of the National Cultural Strategy: Guidance for Scottish Local Authorities, para 6.7.20. Accessed at: https://www.webarchive.org.uk/wayback/archive/20180517062125/http://www.gov.scot/Publications/2003/03/16870/20678

120. According to a guidance document published jointly by the then Scottish Executive and COSLA in 2003, a pilot programme of links officers showed that the officers “boosted the spending on arts education in those areas by 4,500% (to achieve a total of £6,341,000).”^xxiiScottish Executive and COSLA. (2003) Implementation of the National Cultural Strategy: Guidance for Scottish Local Authorities, para 6.7.20. Accessed at: https://www.webarchive.org.uk/wayback/archive/20180517062125/http://www.gov.scot/Publications/2003/03/16870/20678 In August 2002, the programme was rolled out across all Scottish local authorities with the aid of National Lottery funding.^xxiiScottish Executive and COSLA. (2003) Implementation of the National Cultural Strategy: Guidance for Scottish Local Authorities, para 6.7.20. Accessed at: https://www.webarchive.org.uk/wayback/archive/20180517062125/http://www.gov.scot/Publications/2003/03/16870/20678 The Scottish Arts Council reported that “the officers have also brought additional funding to the arts within their education authorities with up to a £4000 return for every £1 invested initially by the Scottish Arts Council.”^xxvScottish Arts Council. Creative Links Programme. Accessed at: http://www.scottisharts.org.uk/1/artsinscotland/education/priorities/creativelinks.aspx

121. The Cabinet Secretary noted the positive impacts of Creative Scotland’s place programme, and the challenges in ensuring that the investment made during the programme continues to have a lasting legacy, when she told the Committee—

     "…one of the challenges relates to whether the activity continues once the period of initial engagement is complete—when the engagement moves on to another local authority, there is a question about whether the activity is sustainable."ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 9.

125. The potential for investment in the arts and culture to support a range of policy outcomes across the National Performance Framework, such as education, children and young people, health, communities and poverty, is well understood and is a stated aspiration of the Scottish Government’s draft Culture Strategy.ⁱScottish Government. (2018) A Culture Strategy for Scotland: Draft for Consultation, p. 15. This ambition is relevant to local and national policy coordination because many of these services are delivered by partners at a local authority level. In the course of its inquiry, the Committee considered how the Scottish Government is approaching this ambition with specific reference to education in light of the targeted funding provided by the Scottish Government to support its youth arts strategy.

126. Many respondents to the Committee’s call for evidence emphasised that strategic investment in artists and the arts cannot be achieved without a more holistic approach to funding, including investment in arts education.ⁱⁱSee, for example, written submissions: CTEEA/S5/19/AF/60 (Culture Counts); CTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland); CTEEA/S5/19/AF/12 (Prof. Richard Demarco CBE); CTEEA/S5/19/AF/43 (Dogstar Theatre Company). This issue was highlighted by Scottish theatre company, Dogstar Theatre, when it argued in written evidence that a sustainable public funding model for the arts must start with children’s education—

     "We need our mentality towards the arts to change, to stop seeing the arts as a luxury, an added extra, and to start seeing the arts as fundamental… This requires a more central role for the arts, first in the education of our children and following on from there."ⁱⁱⁱCTEEA/S5/19/AF/43 (Dogstar Theatre Company). Written submission, p. 2.

127. The arts are widely understood to have benefits for society at large and the preventative policy agenda in supporting children’s development, including critical thinking and mental health.^ivEducation and Skills Committee. 1st Report, 2019 (Session 5). A note of concern: The future of instrumental music tuition in schools (SP Paper 450); CTEEA/S5/19/AF/43 (Dogstar Theatre Company). Written submission. The provision of arts education for young people can also serve a more specific benefit for the arts sector as a stepping stone in the development of Scotland’s future artists.^ivEducation and Skills Committee. 1st Report, 2019 (Session 5). A note of concern: The future of instrumental music tuition in schools (SP Paper 450). It was also highlighted to the Committee that funding arts education can create additional employment opportunities for artists, as teachers or creative freelancers,^viCulture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Col 31. although this will depend on interests and talents of each individual artist.^viCulture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Col 31.

128. The Scottish Government launched a youth arts strategy “Time to Shine” on 8 November 2013.^viiiCreative Scotland. (2003) Time to Shine: Scotland's Youth Arts Strategy For Ages 0-25. The strategy set out a 10-year vision to support Scotland’s young people to access the arts with a commitment to review the strategy every two years. This strategy is underpinned by targeted funding programmes, including the Youth Music Initiative and the Cashback for Creativity Open Fund.^ixA more recent funding initiative announced in the Programme for Government (2018-19), the Cultural Youth Experience Fund, has not yet been delivered by the Scottish Government: Culture, Tourism, Europe and External Affairs Committee. Official Report, 26 September 2019, Col 9-10. The Youth Music Initiative has three funding streams, one of which (“school-based music making”) has the specific aim of delivering on “the Scottish Government’s commitment to every school pupil in Scotland [being] offered a year of free music tuition by the time they leave primary school”.^xCreative Scotland. (2019) Youth Music Initiative Funding. It is not clear to the Committee how the delivery of the programme is measured against the existing indicators in the National Performance Framework, either for culture or related outcomes for education (such as educational attainment; confidence of children and young people; engagement in extra-curricular activities; and young people’s participation).^vNB: the provision of music tuition in schools has been the subject of a recent inquiry by the Education and Skills Committee. 1st Report, 2019 (Session 5). A note of concern: The future of instrumental music tuition in schools (SP Paper 450). This perhaps suggests that there is a mismatch in the alignment of national outcomes and the way in which the aims of individual policies are set.

129. Whilst some artists who responded to the Committee’s inquiry expressed support for targeted funding programmes, such as the Youth Music Initiative,^xiiCTEEA/S5/19/AF/60 (Culture Counts). Written submission. others explained how the annual cycle of targeted funding programmes can impede artists’ ability to deliver and develop projects in a sustainable way.^xiiiThe Committee received written evidence from other stakeholders who expressed wider concerns about the use of targeted funding generally and the risk that it can be overly prescriptive in directing artistic development, rather than enhancing artistic freedom: CTEEA/S5/19/AF/06 (Nicholas Bone); CTEEA/S5/19/AF/07 (Graham Berry); CTEEA/S5/19/AF/10 (Mary Bourne); CTEEA/S5/19/AF/12 (Prof. Richard Demarco OBE); CTEEA/S5/19/AF/54 (Claire Stewart). For example, A.R.Ts Afternoon explained in written evidence to the Committee how the annual funding it has received through the Youth Music Initiative has enabled it to “work with young people and put music into their sphere when it may have been something that would have passed them by”.^xivCTEEA/S5/19/AF/55 (A.R.Ts Afternoon). Written submission, p. 1. It expressed concern, however, that the annual nature of the funding is not a sustainable model and makes organisational planning and development challenging.^xvCTEEA/S5/19/AF/55 (A.R.Ts Afternoon). Written submission.

130. The Committee met with young artists as part of its fact-finding visit to Ayr, which was hosted by Ayrshire College. The expressive arts is one of eight curriculum areas within the Curriculum for Excellence and the Committee heard from young people who had been inspired by their drama schoolteacher to pursue careers in theatre and acting. Despite the many positives of studying the arts in school, the Committee was informed that many schools in Ayrshire no longer offer arts subjects, such as drama, and that there is a perception by some stakeholders that the attractiveness of the arts has come under increasing pressure as a result of the Science Technology Engineering and Maths (‘STEM’) agenda.^xviCulture, Tourism, Europe and External Affairs Committee, Fact-finding visit to Dunfermline, Hosted by Fire Station Creative, 10 June 2019, Note of discussion.

131. The Scottish Government’s Programme for Government 2018-19 committed to “launching the Cultural Youth Experience Fund with a view to supporting a number of pilots in the next year, with a focus on areas of deprivation, helping to ensure that location is not a barrier to experience the best of Scotland’s culture.”ⁱScottish Government. (2018) Delivering for Today, Investing for Tomorrow – The Government’s Programme for Scotland 2018-19, p. 113. This funding was specifically intended to support the second phase of its Time to Shine Strategy. The Cabinet Secretary explained to the Committee in pre-budget scrutiny that the Scottish Government had not been able to fund the Cultural Youth Experience Fund as intended due to additional pension costs borne by the public bodies supported by the Scottish Government.^viCulture, Tourism, Europe and External Affairs Committee. Official Report, 26 September 2019, Cols 2, 9. The Cabinet Secretary noted that the Scottish Government had not yet identified how much to allocate to the Cultural Youth Experience Fund because it still “…needed to work out the most effective way of doing it”. The Cabinet Secretary also noted the challenges identified by the Scottish Government in scoping the delivery of the Cultural Youth Experience Fund—

     "…we wanted to focus on primary school children. However, when we worked with partners to look at what we could do, we found that there are good facilities and provision of culture experience, but the big issue is transport. That comes up everywhere I go, which suggests that I should be running buses. The offer of free participation exists—as I said, it is better for active participation—and art and cultural experiences go to communities, but, more importantly, communities and individuals, particularly children, can also express and develop their own cultural experiences."^viCulture, Tourism, Europe and External Affairs Committee. Official Report, 26 September 2019, Col 10.

132. The difficulty in delivering on policy outcomes, such as culture, in a cross-cutting way was recognised by a number of witnesses, including Stewart Murdoch, Director of Leisure and Culture Dundee. Mr Murdoch argued that despite good intentions, cross-cutting policy delivery can lose focus and available funding can be diluted if it is not managed with effective leadership—

     "The way that the cake is cut and divided among the strategic and the transversal is challenging; I think that culture has been downgraded. In my experience in recent years, the reporting on the cultural sector’s impact on national outcomes—not just the specific culture outcome, but outcomes across the board—has become lower in profile."^viCulture, Tourism, Europe and External Affairs Committee. Official Report, 27 June 2019, Col 13.

133. Orlaith McBride, Director of the Irish Arts Council, explained to the Committee that the Irish Government underwent a sea change in its approach to using the arts in cross-cutting policy delivery following centenary commemorations for the Easter rising in 2016, noting—

     "One of the biggest legacies that came out of that was how schools became involved. Young people told stories about 1916 and the revolution, but they did it in interesting ways, with artists, in their local communities and schools. The whole country was transfixed by young people owning a story that was 100 years old and retelling it in exciting ways."^viCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 24.

134. Ms McBride noted that the Irish Government’s response to this shift in public attitudes was to launch “Creative Ireland”, which she explained—

     "…puts the arts and culture at the centre of what we do as a state. That means that not just the culture department, but every department, whether the health department or the education department, must look at policy making through the lens of culture."^viCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 24.

135. The Irish Arts Council launched a “Creative Schools” project at this time, in which institutions (including primary and secondary schools, youth-reach centres, special schools and, in the Gaeltacht, Irish-language schools) across the country apply to take part. The project creates a placement for a creative associate (a mixture of teachers and artists) to work with the school community to develop a creative plan for the school that is informed by local priorities.^viCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Cols 22-23. Ms McBride noted that a second major stream of the Irish Arts Council’s work with the Department for Education to embed this new cross-cutting approach to policy delivery has focused on teacher training, noting that—

     “Teachers will be in classrooms for 40-odd years. Therefore, the big thing for us was training teachers differently from the beginning, so that when they go into a classroom, they will have 40 years of teaching generations of young people differently.”^viCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 24.

136. The Cabinet Secretary underlined her commitment to cross-government working when she gave evidence to the Committee, noting that “the most effective way of doing things is not in silos but by looking for opportunities right across the different portfolios.”^viCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 17.

137. The Committee welcomes the Scottish Government’s aspiration to embed culture in the delivery of wider policy in a cross-cutting way. In order to be successful, this approach must be supported across government and with momentum. Local authorities and relevant agencies must also be brought onboard from the outset as key strategic partners in its delivery. The Committee is not convinced that this level of commitment currently exists or that strategic partners have been brought onboard.

141. Another policy area highlighted to the Committee where local and national policy coordination could be strengthened is the development of a sustainable approach to maintaining arts venues across Scotland. The Committee was informed that artists in many parts of Scotland are finding it increasingly difficult to showcase their work locally in the absence of a local and national framework for supporting capital infrastructure for the arts.ⁱSee, for example, written submissions: CTEEA/S5/19/AF/14 (Musicians’ Union); CTEEA/S5/19/AF/62 (Museums Galleries Scotland); CTEEA/S5/19/AF/48 (Glasgow Life); CTEEA/S5/19/AF/46 (Norman Bissell); CTEEA/S5/19/AF/36 (Catherine Wheels Theatre Company); CTEEA/S5/19/AF/07 (Graham Berry); CTEEA/S5/19/AF/18 (Centre for Contemporary Arts); CTEEA/S5/19/AF/31 (Music Venue Trust). In this regard, the Centre for Contemporary Arts noted in its written submission that capital investment in Scotland’s cultural venues has been in decline in recent years—

     "From 1996-2014 there were large capital investments in Scottish arts venues and substantial lottery funding to support artists and programmes in those venues. As that has disappeared, the venue and the support infrastructure have begun to crumble. The international reputation of Scottish arts and culture, created by the initial investment, will quickly fade at this rate."ⁱⁱCTEEA/S5/19/AF/18 (Centre for Contemporary Arts). Written submission, p. 2.

142. Catherine Wheels Theatre Company commented on the practical impact this wider trend is having on artists, when it noted in its written submission that the provision of free facilities owned by local authorities has been in decline placing additional commercial pressure on artists.ⁱⁱⁱCTEEA/S5/19/AF/36 (Catherine Wheels Theatre Company). Written submission. Ken Mathieson, jazz musician, and the Music Venue Trust echoed these concerns, noting the commercial focus of venues is having a severe impact on professional musicians outwith popular commercial genres.^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Cols 8-9. The Music Venue Trust, noted in this regard, that grassroots music venues are in significant decline and facing a ‘crisis’.^vCTEEA/S5/19/AF/31 (Music Venue Trust). Written submission.

143. The Committee visited the Fire Station Creative in Dunfermline and experienced first-hand the innovative approach it takes to supporting local artists and connecting them to the local community. The Committee understands that this model is quite innovative. Respondents suggested a number of ways that a strategic approach to this issue could be taken forward. Graham Berry, an individual who responded to the call for evidence, suggested that arts buildings owned by local authorities should be put under the control of a central trust for arts and public money should be used to support a network of venues of various sizes.^viCTEEA/S5/19/AF/07 (Graham Berry). Written submission. Norman Bissell, a poet, identified other ways public funding could be used to support arts venues in Scotland’s rural areas and islands and observed that—

     "The lack of guaranteed funding for rural and island arts venues adversely affects the range and quality of artistic work available to rural and island communities. A register of existing arts venues in Scotland, other than RFO funded ones, should be created and each should be allocated as much funding as can be afforded, e.g. about £5k per year for their events programmes, on condition that they guarantee artists' union rates and report annually. This would make sizeable savings on Creative Scotland application and assessment costs."^viiCTEEA/S5/19/AF/46 (Norman Bissell). Written submission, p. 3.

144. The Music Venue Trust called for the creation of a National Trust for Venues to support sustainable investment in grassroot venues across Scotland.^vCTEEA/S5/19/AF/31 (Music Venue Trust). Written submission. It has developed a 10-year proposal setting out how this could be achieved, including by acquiring—

     "...freehold ownership of these buildings and create a protected network of spaces."^ixCTEEA/S5/19/AF/31 (Music Venue Trust). Written submission, p. 10.

145. The Committee’s comparative research noted that France has implemented a citizen’s equal right to arts and culture, which has recently been reviewed. It found that—

     "A commitment to a ‘one size fits all’ programme resulted in 500 cultural houses (out of a target of 1,000), but this approach has been amended and made more flexible. In response cultural institutions are being tasked to ‘go outside of their walls’ for wider geographic impact."^xDrew Wylie Projects Ltd. (2019) Scottish Parliament - Arts Funding Inquiry Comparative Analysis Ref: 2018-19/01/CTEEA, p. 18.

146. The Irish Arts Council informed the Committee that it jointly commissioned a review of arts centres with the umbrella organisation for local authorities in Ireland in 2018-19.^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 26. This considered “local infrastructure provision, the different models and the ways in which the centres were funded and staffed”.^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 26. The Irish Arts Council explained why it approached this review in partnership with the umbrella body for local authorities, noting—

     "It has to be done in partnership and very gently, because there cannot be any sense of our trying to force local authorities’ hands. We are a national agency, but they are statutory local agencies, so it is a very delicate dance. By co-commissioning that report, we are now in a position to begin to look at how we will change the model with regard to the funding piece that you mentioned over the next few years. As an arts council, the first thing that we had to do this year was commit to significantly increasing our funding for arts centres next year. We could not sit across the table from local authorities and have a conversation about increased spend if, from their perspective, we were not doing the same. That commitment will allow us to start having bigger, more strategic conversations next year, when at least we will have in front of us the co-commissioned report that gives us the analysis and the evidence."^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 26.

147. Creative Scotland informed the Committee in writing that it has commissioned an external research body to investigate amongst other things “the current position of local authority support for arts, culture and creative industries across Scotland”.^xivCreative Scotland, Letter to the Culture, Tourism, Europe and External Affairs Committee, 14 June 2019. It is not clear from the letter whether the provision of arts venues across Scotland is within the scope of the research being undertaken. Creative Scotland notes that—

     "Given the scale of the challenges, this development work will provide a foundation for our future collaboration with local authorities. However, this does not preclude taking practical steps now, for example, in looking to realise the potential for joint-funding approaches with local authorities and future place partnership related activity."^xivCreative Scotland, Letter to the Culture, Tourism, Europe and External Affairs Committee, 14 June 2019.

148. The level of cooperation between local authorities and Creative Scotland appears to be less integrated than the programme of work being undertaken in Ireland. For example, the scoping research being undertaken has not been commissioned jointly with COSLA and it is not clear to what extent COSLA or individual local authorities have been involved in scoping the project to date. The research is also not supported by a funding commitment from Creative Scotland or the Scottish Government, as it has been in Ireland.

149. The Cabinet Secretary noted that the provision of arts venues and studios by local authorities is very important and an issue which she feels “strongly” about—

     "I go back to the issues with local authorities. There is huge demand for artists’ studios. Bringing artists together is one of the best ways to enable peer support and networking so that people understand how to do things. A big way in which we could support individual artists is by encouraging local authorities in different areas to develop artists’ studios in what were previously high street shops or former industrial units."^ivCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Cols 27-28.

151. The Committee also understands from its previous work on the Regular Funding 2018-21 round that there are funding pressures on institutions that are considered to be of ‘national significance’ to Scotland, which are not part of the National Performing Companies and Collections. This issue was also raised in responses to the call for evidence for this inquiry.ⁱSee, for example, written submissions: CTEEA/S5/19/AF/65 (Neo Productions); CTEEA/S5/19/AF/53 (Aberdeen City Council); CTEEA/S5/19/AF/48 (Glasgow Life); CTEEA/S5/19/AF/44 (Playwrights' Studio, Scotland); CTEEA/S5/19/AF/43 (Dogstar Theatre Company); CTEEA/S5/19/AF/18 (Centre for Contemporary Arts); CTEEA/S5/19/AF/24 (Tricky Hat Productions); CTEEA/S5/19/AF/28 (YDance). The written submissions identified a number of perceived ‘gaps’ in the type of institutions that currently receive direct funding. It was noted, for example, that a national youth performing arts company would be a welcome addition to the existing portfolio.ⁱⁱCTEEA/S5/19/AF/28 (YDance). Written submission; CTEEA/S5/19/AF/60 (Culture Counts). Written submission. Another suggestion was to add organisations to the portfolio that focus on innovative or experimental productions.ⁱⁱⁱCTEEA/S5/19/AF/18 (Centre for Contemporary Arts). Written submission; CTEEA/S5/19/AF/48 (Glasgow Life). Written submission. Venues, including the Royal Lyceum and the Traverse Theatre, were highlighted as relevant examples of institutions considered to be of national significance that do not currently receive direct funding.^ivCTEEA/S5/19/AF/A2 (Anonymous). Written submission.

152. The Committee is also aware of examples where the Scottish Government has stepped in on an ad hoc basis to providing funding support to institutions, such as the Scottish Youth Theatre, that have been unsuccessful in obtaining regular funding.^vIn 2018, the Scottish Government committed £150,000 in match-funding for the Scottish Youth Theatre after it was unsuccessful in obtaining regular funding for the 2018-21 funding round. The Committee notes in this regard that the independent report commissioned by Creative Scotland into its handling of regular funding last year also raised this issue, stating that—

     "One of the recurrent themes in consultations with staff and Board members was an issue of whether certain organisations were ‘too big to fail’, or in other words, whether some organisations would always be funded regardless of the outcome of an assessment process. This issue was also raised by staff in the internal survey on the Regular Funding process with specific reference to a previous intervention by the Scottish Government on behalf of the Scottish Youth Theatre after the organisation was unsuccessful in the 2015-18 RFO process."^viWavehill. (2008) Evaluation of the 2018-2021 Regular Funding Process, para 4.5.5.

153. The independent report recommended that Creative Scotland and the Scottish Government address this issue as part of Creative Scotland’s ongoing review of its funding approach—

     "The approach to funding and supporting key organisations that are deemed to be integral to the national cultural infrastructure needs to be factored into the design of future funding models and requires a wider dialogue between Creative Scotland, Scottish Government and the sector."^viWavehill. (2008) Evaluation of the 2018-2021 Regular Funding Process, para 4.5.5.

154. The Cabinet Secretary noted in evidence that in the past the national performing companies were removed from other funding programmes to be funded directly by the Scottish Government to create a fairer and more sustainable funding framework for individual artists and smaller organisations—

     "As I remember—this was before my time as culture secretary—part of the argument for removing the national performing companies from funding by the Scottish Arts Council and instead having a direct funding relationship with the Government was that that would end the arrangement whereby the big national companies were seeking funding from the same funding pots as individual artists and other organisations."^viiiCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 6.

156. Percentage for the arts schemes create a requirement for a percentage of the overall cost of a construction project for new public buildings, places or spaces to be spent on public art. It was noted during the Committee’s fact-finding visit to Ayr that this model has been used in Bolton and Guernsey.ⁱCulture, Tourism, Europe and External Affairs Committee, Fact-finding visit to Ayr, Ayrshire College, Ayr Campus, 3 June 2019, Note of discussion, p. 6.

157. The Committee’s comparative research found that the Netherlands has implemented a percent for the art scheme for public buildings whereby 2% is applied to projects between €1 and €7 million and for projects worth more than €10m 0.5% is applied in addition to €120,000.ⁱⁱDrew Wylie Projects Ltd. (2019) Scottish Parliament - Arts Funding Inquiry Comparative Analysis Ref: 2018-19/01/CTEEA, p. 48. The Irish Arts Council also informed the Committee that it has a percentage for the arts scheme, which is tied into public infrastructure projects.ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 10. Orlaith McBride, Director of the Irish Arts Council, told the Committee—

     "In the 1980s, 1990s and the 2000s, that would have resulted in, for example, public art sculptures on the side of a dual carriageway. Thankfully, we have moved away from that model to a more engaged understanding of public art. Now, if a local authority is undertaking a public housing project in a particular community, it will initiate and develop programmes in which artists will work with the community to develop a piece of theatre or undertake a writing project, for example. The practice is much more socially engaged and participatory than was the case heretofore, when there would simply be a piece of sculpture placed on the side of the road or in a schoolyard."ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 10.

158. Ms McBride explained further that the Irish Government has recently reviewed the scheme and increased its investment, as follows—

     • Projects below €5,000,000: 1% of the cost of the project to a maximum of €50,000 (1% of upper limit);

     • Projects between €5,000,000 and €20,000,000: 1% of the cost of the project to a maximum of €125,000 (1% at median);

     • Projects between €20,000,000 and €50,000,000: 1% of the cost of the project to a maximum of €350,000 (1% at median);

     • Projects in excess of €50,000,000:- up to €500,000 being 1% of the lower level scale and declining as projects increase in scale.^vDepartment for Culture, Heritage and the Gaeltacht. (2019) Minister Madigan announces measures to significantly increase funding for Public Art.

159. The Cabinet Secretary noted that the Scottish Government would be interested in principle to consider a percentage for the arts scheme, stating—

     "We are interested in the principle of such a scheme, but we have not done anything about that at this stage. That might change if we can get a period of sustained economic growth—and growth in construction in particular. The draft culture strategy places a big focus on the issue, so there are future opportunities in that regard."ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 14.

160. The Cabinet Secretary added that legislation may be required to introduce a percentage for the arts scheme, noting "…otherwise people could say that they are not doing it."ⁱⁱⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 15.

162. The previous sections of this report outlined the respective roles played by national and local government in funding the arts to ensure that it remains sustainable for the future. The second strand of the Committee’s inquiry invited views on how individual artists and arts organisations navigate the complex public funding system and the extent to which the funding that is in place provides the right support for them to create sustainable careers and artistic ventures.

163. It was clear from the responses to the Committee’s call for evidence that the needs and circumstances of individual artists and arts organisations who apply for funding are diverse and ensuring that the funding system treats all applicants fairly is a considerable but important challenge. The type of diversity highlighted to the Committee included the experience of artists with protected characteristics; artists and organisations at different stages of their careers or organisational development; as well as artists and arts organisations of different means and aspirations – be they professional, amateur or voluntary. This section outlines different aspects of diversity in the arts sector and how the administration of public arts funding may be able to address some of the concerns that were raised with the Committee.

164. A significant and longstanding issue highlighted to the Committee is the availability of paid work and the lack of fair pay for artists and cultural freelancers.ⁱSee, for example, written submissions: CTEEA/S5/19/AF/61 (Scottish Contemporary Arts Network); CTEEA/S5/19/AF/53 (Aberdeen City Council); CTEEA/S5/19/AF/51 (The Work Room); CTEEA/S5/19/AF/39 (Really Interesting Objects); CTEEA/S5/19/AF/04 (Harry Josephine Giles); CTEEA/S5/19/AF/36 (Catherine Wheels Theatre Company); CTEEA/S5/19/AF/10 (Mary Bourne); CTEEA/S5/19/AF/08 (Katriona Holmes); CTEEA/S5/19/AF/18 (Centre for Contemporary Arts); CTEEA/S5/19/AF/11 (Federation of Scottish Theatre); CTEEA/S5/19/AF/19 (Fire Exit); CTEEA/S5/19/AF/22 (Kirsten Gow); CTEEA/S5/19/AF/29 (Scottish Artists’ Union); CTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland); CTEEA/S5/19/AF/01 (Alec Finlay). A cultural freelancer may be defined as a freelancer working in the cultural sector. The Committee heard concerning evidence about the apparent downward pressure on artists’ and creative freelancers’ pay, as highlighted, for example, by the written evidence from craft social enterprise, Really Interesting Objects CIC, which noted—

     “Financial pressures on funding means many cultural freelancers (who are often also artists) are working at a rate of pay which is lower than the rates paid ten years ago. This is evidenced in the recent Art Professional UK research on pay which also shows that pay and fee rates in Scotland are lower than the rest of the UK with a freelancer in Scotland averaging £11,481 a year compared to a UK average £16,000 a year.”ⁱⁱCTEEA/S5/19/AF/39 (Really Interesting Objects CIC). Written submission. See also: Arts Professional, “Arts Pay 2018: A summary of pay and earnings in the arts and cultural sector”: https://www.artsprofessional.co.uk/sites/artsprofessional.co.uk/files/artspay_2018_report.pdf

165. The Committee is aware that trade unions, such as the Scottish Artists UnionⁱⁱⁱArtists Union. (2019) Rates of Pay. and the Musicians Union^ivMusicians Union. (2019) Fees and Payment. have published suggested rates of pay for the artforms represented within their membership but that problems with the availability of paid work and fair rates of pay persist. The Scottish Artists Union informed the Committee that "three out of four members consistently fail to be paid rates equivalent to the union’s published rates. At 76%, this is the highest figure in recent years".^vCTEEA/S5/19/AF/29 (Scottish Artists Union). Written submission, p. 2. The Musicians Union noted that the availability of paid work is a "critical issue" for its members and that publicly funded projects should be "remunerated fairly and ideally in line with minimum suggested union rates".^viCTEEA/S5/19/AF/14 (Musicians Union). Written submission, p. 2.

166. Whilst many respondents to the inquiry welcomed guidance on minimum pay rates, Catherine Wheels Theatre Company explained that this approach may not have alleviated wage stagnation as intended, when it observed—

     "Companies and artists are keen not to be seen to ask for too much money because this might hinder their chances of being successful. One knock-on effect is that performers and artists employed through the funding grant are offered Equity minimum rates only as a normal practice. The result is that a performer that has been working for the past 10 years in shows, receiving the same rate of pay for those 10 years. Equity minimum rates are there to set standards for the minimum wage you can pay an actor. It is not normal in any other profession for the rate of pay not to increase due to experience over a 10-year period."^viiCTEEA/S5/19/AF/36 (Catherine Wheels Theatre Company). Written submission, p. 3.

167. Self-employed and freelance artists appear to be the most vulnerable to downward pressures on fair pay compared to other types of professionals working in the arts, not least because the national minimum wage/national living wage legislation does not apply to individuals with this employment status. Writer and performer, Harry Josephine Giles, noted in this regard that there appear to be inequalities within the sector regarding pay and job security—

     "Those in administration and management have the most stable jobs and wages, while those actually making art have the least access to jobs and stability, with producers somewhere in the middle."^viiiCTEEA/S5/19/AF/04 (Harry Josephine Giles). Written submission, p. 2. See also: CTEEA/S5/19/AF/10 (Mary Bourne). Written submission; CTEEA/S5/19/AF/18 (Centre for Contemporary Arts). Written submission.

168. The Committee was informed that publicly funded grants and awards for projects can contribute to the wider problem if day rates are not calculated using the actual hours worked or required,^ixCTEEA/S5/19/AF/22 (Kirsten Gow). Written submission. and if aspects of artistic production, such as producer fees, are not included in the funding package.^xCTEEA/S5/19/AF/08 (Katriona Holmes). Written submission. Other challenges posed to fair pay and funding that were highlighted in written evidence, included the lack of maternity leave and childcare for freelancers, particularly for those from underprivileged backgrounds;^xiCTEEA/S5/19/AF/08 (Katriona Holmes). Written submission; CTEEA/S5/19/AF/18 (Centre for Contemporary Arts). Written submission. as well as a lack of sick pay, holiday pay and travel expenses.^ixCTEEA/S5/19/AF/22 (Kirsten Gow). Written submission. Specific examples provided included the Visual Artist and Craftmaker Awards, which "do not fund artists’ time".^xiiiCTEEA/S5/19/AF/53 (Aberdeen City Council). Written submission, p. 2.

169. The Committee understands that Creative Scotland has published guidance on rates of pay and commits to paying funded artists fairly. This guidance also specifies the limits of Creative Scotland’s role on this issue, noting that "it is not Creative Scotland’s role to prescribe the rates of pay that any organisation applies when employing staff or when working with and/or commissioning artists and creative practitioners".ⁱⁱⁱCreative Scotland. (2019) Commitment to Fair Pay.

170. Some respondents argued that more could and should be done by public agencies, such as Creative Scotland, to tackle the issue of fair pay.^xvSee, for example, written submissions: CTEEA/S5/19/AF/19 (Fire Exit); CTEEA/S5/19/AF/14 (Musicians’ Union); CTEEA/S5/19/AF/04 (Harry Josephine Giles); CTEEA/S5/19/AF/29 (Scottish Artists Union) . An approach highlighted in the evidence was to consider moving beyond a flat recommended rate of pay to setting a scale as a means of recognising the relevant skills and experience of artists at different stages of their career. For example, an individual quoted in the Catherine Wheels Theatre Company’s submission noted that this approach to pay is used in France where actors are paid according to their age and experience. This individual suggested that a similar approach could be adopted in Scotland "…as a charter to be followed by companies, an endeavour to move towards".^viiCTEEA/S5/19/AF/36 (Catherine Wheels Theatre Company). Written submission, p. 3.

171. The Committee understands that one of the indicators for the national outcome on culture is “people working in arts and culture”, which measures the number of jobs in the Creative Industries Growth Sector. The Scottish Government’s website explains that this indicator—

     "…is a temporary measure for People working in Arts and Culture. Analytical work is required to define this indicator as there is not an internationally agreed definition for culture. The intention is to explore a new methodology or source for Arts and Culture employment (rather than Creative Industries jobs) working with stakeholders."^ivScottish Government. (2019) People Working in the Arts and Culture.

172. The Cabinet Secretary noted Creative Scotland’s guidance on fair pay and stated—

     "We expect those who receive funding from the Scottish Government, via Creative Scotland or other organisations, to pay the living wage, as is set out in the Creative Scotland documentation. I would expect Creative Scotland to scrutinise that closely. If the committee were to recommend that in its report, it would be very welcome."^xviiiCulture, Tourism, Europe an External Affairs Committee. Official Report, 21 November 2019, Col 4.

173. The Committee welcomes the national outcome on culture and the steps taken by the Scottish Government to measure its performance through the national indicators, including the number of people working in the arts and culture. The Committee considers it is imperative that the work to improve the data that supports these indicators is undertaken as a matter of priority.

177. A common criticism of the current funding system operated by Creative Scotland from respondents to this inquiry was that it does not appear to go far enough in creating a level playing field for access to its funding opportunities.ⁱSee, for example, written submissions: CTEEA/S5/19/AF/A1 (Anonymous); CTEEA/S5/19/AF/06 (Nicholas Bone); CTEEA/S5/19/AF/15 (Cove Park); CTEEA/S5/19/AF/27 (Ayr Gaiety Theatre); CTEEA/S5/19/AF/A1 (Anonymous); CTEEA/S5/19/AF/06 (Nicholas Bone); CTEEA/S5/19/AF/15 (Cove Park); CTEEA/S5/19/AF/27 (Ayr Gaiety Theatre); CTEEA/S5/19/AF/33 (Impact Arts (Projects) Ltd). The concerns expressed to the Committee included the considerable unpaid time needed to complete applications;ⁱⁱSee, for example, written submissions: CTEEA/S5/19/AF/30 (Keira Brown); CTEEA/S5/19/AF/15 (Cove Park); CTEEA/S5/19/AF/17 (Starcatchers); CTEEA/S5/19/AF/09 (Anita Govan); CTEEA/S5/19/AF/01 (Alec Finlay). the disproportionate burden of the funding application process on smaller organisations;ⁱⁱⁱCTEEA/S5/19/AF/16 (Ken Mathieson). Written submission; CTEEA/S5/19/AF/65 (Neo Productions). Written submission. the disparity in available resources to apply for funding between organisations that employ paid staff versus volunteer-led organisations;^ivCTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland). Written submission. CTEEA/S5/19/AF/35 (Voluntary Arts Scotland). Written submission. individual artists lacking the necessary skills to complete bureaucratic application forms;^vSee, for example, written submissions: CTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland); CTEEA/S5/19/AF/61 (Scottish Contemporary Arts Network); CTEEA/S5/19/AF/53 (Aberdeen City Council); CTEEA/S5/19/AF/38 (Craft Scotland); CTEEA/S5/19/AF/02 (TRACS); CTEEA/S5/19/AF/17 (Starcatchers); CTEEA/S5/19/AF/19 (Fire Exit); CTEEA/S5/19/AF/20 (Edinburgh International Festival); CTEEA/S5/19/AF/09 (Anita Govan) . and concerns about ‘network organisations’ competing against their members in the same funding streams.^viFor commentary on network organisations, see for example, written submissions: CTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland); CTEEA/S5/19/AF/61 (Scottish Contemporary Arts Network); CTEEA/S5/19/AF/38 (Craft Scotland); CTEEA/S5/19/AF/02 (TRACS); CTEEA/S5/19/AF/17 (Starcatchers); CTEEA/S5/19/AF/19 (Fire Exit); CTEEA/S5/19/AF/20 (Edinburgh International Festival).

178. Neo Productions outlined these challenges in its written submission to the Committee, when it stated—

     "…Having the time and skills to create and submit funding applications especially when you are unfunded to do it and expected to do it on a voluntary basis. It has been shown that along with working class people, BAME people are often disadvantaged in this manner in not having the resources to support them while they try and create a career in the arts. It is not easy (or fair) when you are competing against/being judged at the same level with established organisations that have paid fundraising teams to create their applications."^viiCTEEA/S5/19/AF/65 (Neo Productions). Written submission, p. 1.

179. The Committee’s comparative research found that Scotland is not alone in facing the challenges highlighted by Neo Productions and other respondents to the call for evidence. The research noted in this regard that "the balancing of technical requirements of applicants required to ensure objective assessment with the barriers that can be introduced to smaller or less experienced applicants is a common challenge".^viiiDrew Wylie Projects Ltd. (2019) Scottish Parliament - Arts Funding Inquiry Comparative Analysis Ref: 2018-19/01/CTEEA, p. 11. The Irish Arts Council concurred with this finding, noting that "the approach is really difficult to balance".^ixCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 15.

180. The Committee received suggestions as to how Creative Scotland’s funding systems could be strengthened to address these issues. Many respondents to the call for evidence suggested, for example, that tiered funding processes could be introduced whereby applications are sifted at an earlier stage and more detailed applications are only required for later stages.^xSee, for example, written submissions: CTEEA/S5/19/AF/23 (Imaginate); CTEEA/S5/19/AF/64 (Barrowland Ballet); CTEEA/S5/19/AF/53 (Aberdeen City Council); CTEEA/S5/19/AF/52 (Angie Dight); CTEEA/S5/19/AF/46 (Norman Bissell); CTEEA/S5/19/AF/36 (Catherine Wheels Theatre Company); CTEEA/S5/19/AF/08 (Katriona Holmes); CTEEA/S5/19/AF/17 (Starcatchers); CTEEA/S5/19/AF/19 (Fire Exit). The Committee heard, for example from artists in Dunfermline, that this approach is often used by private trusts and local authorities who often have an open and applicant-friendly approach.^xiCulture, Tourism, Europe and External Affairs Committee, Fact-finding visit to Dunfermline, Hosted by Fire Station Creative, 10 June 2019, Note of discussion. Imaginate explained the potential benefits of Creative Scotland embedding this approach in its funding process, when it noted in its written submission that—

     "Currently Creative Scotland applications seem to put a tiny emphasis on the actual idea for the artwork, and a huge amount of emphasis on management, marketing, public benefit and equality issues. Surely the first stage should be just about the artwork, then if successful, all the other questions can be answered – ideally by the National Producing Network and the National Marketing Network."^xiiCTEEA/S5/19/AF/23 (Imaginate). Written submission, p. 3.

181. There was strong agreement from witnesses and respondents to the call for evidence that artistic merit should be at the heart of decisions about funding. Ken Mathieson, jazz musician, explained to the Committee in this regard that the sector’s confidence in the decision-making process is affected by the extent to which they consider the assessment is made by someone with a deep understanding of the artistic work that is the subject of the application. Mr Mathieson cited this as a weakness in the current system, noting: "I question how much knowledge the people who do the assessments have about genres and the lives of working artists of whatever genre."^ixCulture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Col 9.

182. It was suggested to the Committee that this aspect of the funding process could be strengthened through the use of peer review.^xivSee, for example, written submissions: CTEEA/S5/19/AF/61 (Scottish Contemporary Arts Network); CTEEA/S5/19/AF/10 (Mary Bourne); CTEEA/S5/19/AF/41 (Dudendance); CTEEA/S5/19/AF/46 (Norman Bissell); CTEEA/S5/19/AF/64 (Barrowland Ballet). It was noted that peer review works well when the panel of reviewers is rotated.^xvCTEEA/S5/19/AF/18 (Centre for Contemporary Arts). Written submission; CTEEA/S5/19/AF/41 (Dudendance). Written submission. David Leddy explained what measures can form part of a robust and credible peer review process when he gave evidence to the Committee—

     "The pitfalls of peer review are quite easy to mitigate: there can be rolling panels, so people do not sit on panels for long periods; there can be panels that are large enough that individual members do not have undue influence; there can be split panels where the first round of decision making is carried out by a very large group that offers brief feedback before it goes to second panel of 10 who sit round a table; and people can be asked to formally declare any interests that they may have. All those things mitigate the pitfalls more than the current system does, where a small number of people who have been in post for a long time make all the decisions."^ixCulture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Col 13.

183. Harry Josephine Giles agreed that peer review would strengthen the assessment of funding applications and explained how the use of diversified panels can support equality in the sector—

     "If the panels are actively diversified and we ensure that they are not just representative but take affirmative action, we will also start to undo the power structures in decision making. Currently, that is left to whoever is employed by Creative Scotland and so it is subject to exactly the same power structures as everything else. If peer review is diversified beyond populations, that can be addressed, too."^ixCulture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Col 13.

184. The comparative researched commissioned by the Committee found that the Creative Europe Programme has a peer review model that could be used as an established model to inform a Scottish approach. It noted—

     "Evaluation teams are led by ‘lead’ peer assessors, and ‘quality’ assessors work with the Creative Europe team to ensure consistency and improvement. Assessors are supported through the evaluation process and with online networking and assessment tools. The approach offers sectoral credibility, transparency and depth to the evaluation process. Experts are increasingly embedded into the assessment process, at every level. Applicants can view the scoring and commentary of the assessors, to ensure transparency and to inform future applications or re-submissions."^viiiDrew Wylie Projects Ltd. (2019) Scottish Parliament - Arts Funding Inquiry Comparative Analysis Ref: 2018-19/01/CTEEA, p. 17.

185. The Irish Arts Council told the Committee that its use of peer review works well and is an established part of its funding system. In this regard, the Irish Arts Council facilitates 60 to 70 peer review panels per year with an average decision time of 16 weeks from the date of application.^ixCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Cols 17-20. Panel members receive a fee for their work, which the Arts Council views as "another way in which we can support individuals and artists". In terms of personnel, the Arts Council noted that it is supported by four full-time staff, which it considers "…as money well spent with regard to our relationship with the sector in the long term".^ixCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 20.

186. As part of its inquiry into regular funding last year, the Committee also invited Creative Scotland to consider funding network organisations in a way that does not mean they are seen to compete with their members for funding.^xxiCulture, Tourism, Europe and External Affairs Committee, Letter to Creative Scotland, 14 June 2018. This issue was also raised by respondents to this inquiry.^xxiiSee, for example, written submissions: CTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland); CTEEA/S5/19/AF/61 (Scottish Contemporary Arts Network); CTEEA/S5/19/AF/38 (Craft Scotland); CTEEA/S5/19/AF/02 (TRACS); CTEEA/S5/19/AF/17 (Starcatchers); CTEEA/S5/19/AF/19 (Fire Exit); CTEEA/S5/19/AF/20 (Edinburgh International Festival); CTEEA/S5/19/AF/14 (Musicians’ Union). The arts sector was often described as an ‘ecosystem’ in this context, in which individual artists, other professionals (such as producers), arts organisations and network organisations play a part.^xxiiiSee, for example, written submissions: CTEEA/S5/19/AF/56 (Strident Publishing); CTEEA/S5/19/AF/44 (Playwrights' Studio, Scotland); CTEEA/S5/19/AF/48 (Glasgow Life); CTEEA/S5/19/AF/50 (Festivals Edinburgh); CTEEA/S5/19/AF/58 (Culture Aberdeen). Many network organisations reiterated the role they play in supporting artists,^xxivSee, for example, written submissions: CTEEA/S5/19/AF/61 (Scottish Contemporary Art Network); CTEEA/S5/19/AF/13 (Collective); CTEEA/S5/19/AF/38 (Craft Scotland). but some considered that it would be preferable for them not to be seen to compete against their own members for the same funding opportunities.^xxvCTEEA/S5/19/AF/61 (Scottish Contemporary Art Network). Written submission, p. 4.

187. The Cabinet Secretary acknowledged when she gave evidence to the Committee that some of the issues raised in evidence had been part of the previous funding system under the Scottish Arts Council, noting "It is sometimes necessary to revisit changes that were made five or 10 years ago, for which there was a rationale at the time."^ixCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 6. The Cabinet Secretary also noted the pros and cons of using peer review and that Creative Scotland has used it in its recent open project funding round.^ixCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 22. The Cabinet Secretary concluded that—

     "There is scope and potential to reintroduce more effective peer-review working. However, that must be a recommendation from Creative Scotland. As a Government minister, I should not tell it how to go about that business."^ixCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 22.

191. Respondents to the call for evidence also suggested that Scotland’s arts funding framework could be strengthened through the use of progressive or development funding programmes that are aimed at artists and organisations at different stages of their development (e.g. early career/starter organisation; mid-career/developed organisation; established artists and organisations). Visual artist Janie Nicoll expressed concern about the drop-off in the number of people who are working as artists within five years of leaving art school, noting how a progressive funding approach could help address this issue—

     "…artists at all stages of their careers are competing for the same type of funding and it feels as though the fact that some are younger or recently graduated is probably not taken into consideration. That makes the process more intimidating for younger artists, I would think."ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 6 June 2019, Col 12.

192. The Committee met with young artists from a range of disciplines who had graduated from both further and higher educational institutions as part of its fact-finding visit to Ayr.ⁱⁱCulture, Tourism, Europe and External Affairs Committee, Fact-finding visit to Ayr, Hosted by Ayrshire College, 3 June 2019, Note of discussion. The young people had very different experiences of careers guidance during their further and higher education. Those who had graduated from colleges appeared to have received advice about business skills that would assist them to build a career as an artist, whilst those who had graduated from higher education institutions, such as the Glasgow School of Art, did not appear to have received the same level of training and support during their studies.

193. All of the young artists who participated in the Ayr fact-finding visit considered more guidance on applying for funding and other core business skills, such as managing clients, income generation and completing tax returns, would be helpful in supporting them to build sustainable careers. The Committee notes in this regard, that the Scottish Government’s most recent guidance letter to the Scottish Funding Council stated that “one of the most significant social interventions our colleges and universities can make is preparing people for work…”ⁱⁱⁱMinister for Further, Higher Education and Science to the Scottish Funding Council (2018). 2019-20 Outcome Agreement Guidance, para 29.

194. The Committee also received views from respondents to the call for evidence, such as Alison Bell, Cove Park, and Kirsten Gow, who called for more funding opportunities for established artists.^ivCTEEA/S5/19/AF/05 (Alison Bell). Written submission.; CTEEA/S5/19/AF/15 (Cove Park). Written submission; CTEEA/S5/19/AF/09 (Kirsten Gow). Written submission. Festivals Edinburgh suggested that a progressive funding model could also help to address a more equal prevalence of professional artists from different economic backgrounds, noting in its submission—

     "To change this profile for the better, a sustained pipeline of support is important for talented people to develop and progress as well as to enter the culture sector. Focused and co-ordinated support opportunities to provide long-term pathways for individuals, albeit limited in number, may prove more effective in growing a diverse new generation of cultural leaders than a higher volume of interventions that do not systematically address gaps and transition points."^vCTEEA/S5/19/AF/50 (Festivals Edinburgh). Written submission, p. 2.

195. Other means to provide funded opportunities for artists at different stages of their careers that were highlighted in the evidence received included doctoral programmes,ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Col 21. sabbaticals, residencies,^viiCTEEA/S5/19/AF/49 (Patricia Cain). Written submission; CTEEA/S5/19/AF/42 (Literature Alliance Scotland). Written submission. and secondments^viiiCTEEA/S5/19/AF/07 (Graham Berry). Written submission. (including for artists within Creative Scotland),^ixCTEEA/S5/19/AF/57 (Virginia Radcliffe). Written submission; CTEEA/S5/19/AF/19 (Fire Exit). Written submission. mentoring programmes^xCTEEA/S5/19/AF/08 (Katriona Holmes). Written submission, p. 2. and apprenticeships.^xiCTEEA/S5/19/AF/45 (Applied Arts Scotland). Written submission. The Irish Arts Council informed the Committee that “a significant proportion of our funding is specifically earmarked for individual artists.” This includes a national programme for mid-career artists called “Aosdána”, which supports 250 artists at any one time, as well as programmes, such as the “next generation programme” aimed at emerging artists.^xiiCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Cols 1-2. Overall, the Irish Arts Council explained that it offers between 300 and 400 bursaries per year, with an average value of €20,000.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 14 November 2019, Col 2.

196. The Committee heard that these initiatives can offer positive opportunities for artists, but care should be taken in how they are developed and implemented. Emma Jayne Park told the Committee, for example, how the amount offered for bursaries or the way they are designed can have unintended consequences for artistic output when she explained—

     "There has been a massive kickback in terms of programming dance, because a lot of what is being done is solo work. The reason for that is that many residencies for people to develop their work come with a £500 a week bursary, which is one person’s fee. That means that people just work on their own, which I would argue does not make the best art."ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 6 June 2019, Col 26.

197. The Cabinet Secretary told the Committee that cross-party support would be required to implement schemes designed to support the development of individual artists—

     "Until now, there has been great focus on supporting new and emerging artists, but what happens afterwards, on that journey? That is about sustainability, which runs through much of the evidence that the committee has heard. It would be interesting to consider how we might approach those different stages, but that would mean a shift… If we, as a country, wanted to take that approach, we would need cross-party endorsement."ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Cols 4-5.

198. In relation to artists emerging from further and higher education and their employability, the Cabinet Secretary noted—

     "The creative industries advisory group, which I co-chair, has taken a keen interest in the subject. One of our most recent sessions was with the Scottish Funding Council; we talked about types of education funding, the council’s focus and how it keeps in touch with what the industry needs. The group’s view is that it much prefers youngsters to have the professional skills training in their art, because people can pick up the practicalities of doing business when they are working."ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 26.

201. The Committee’s call for evidence sought views on how Scotland could be innovative in its support for the arts. Individuals who attended the Committee’s fact-finding visit to Ayr noted that social security and the Enterprise Allowance Scheme played an important role in supporting artists in the 1980s.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Col 10. More recently, it was noted that the Scottish Government has funded a feasibility study into a basic citizens’ income working with four local authorities: Fife Council, City of Edinburgh Council, Glasgow City Council and North Ayrshire Council.ⁱⁱScottish Government. (2019) Basic Income Scotland: Creating A Fairer Scotland.

202. A number of submissions suggested that a basic citizens’ income should be made available to artists,ⁱⁱⁱSee, for example, written submissions: CTEEA/S5/19/AF/65 (Neo Productions); CTEEA/S5/19/AF/54 (Claire Stewart); CTEEA/S5/19/AF/53 (Aberdeen City Council); CTEEA/S5/19/AF/46 (Norman Bissell); CTEEA/S5/19/AF/43 (Dogstar Theatre Company). Regarding a basic income system for artists with a track record, see for example, written submissions: CTEEA/S5/19/AF/06 (Nicholas Bone); CTEEA/S5/19/AF/08 (Katriona Holmes). and this idea was also supported by many artists who gave oral evidence to the Committee.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 30 May 2019, Cols 31-33; Culture, Tourism, Europe and External Affairs Committee. Official Report, 6 June 2019, Cols 8, 33-36. A potential benefit of this approach that was highlighted in the written submissions included promoting greater diversity within the arts.^vCTEEA/S5/19/AF/65 (Neo Productions). Written submission, p. 4. It was also noted that systems for providing financial support to individual artists would require careful design to encourage artists to continue to develop ‘onto other funding or business models’.^viCTEEA/S5/19/AF/53 (Aberdeen City Council). Written submission, p. 4.

203. The Cabinet Secretary explained to the Committee that she has had discussions with those who are conducting the pilots, noting that including artists would be “a very good route to go down”.ⁱCulture, Tourism, Europe and External Affairs Committee. Official Report, 21 November 2019, Col 5.

The Committee's membership changed in the reporting period, as follows:

• Tavish Scott MSP stood down as a member of the Scottish Parliament on 15 July 2019.

• Mike Rumbles MSP joined the Committee on 10 September 2019.

• Donald Cameron MSP replaced Jamie Greene MSP as a member of the Committee on 10 September 2019.

• Minute of 16th Meeting, 2019 (Session 5), Thursday 30 May 2019

• Minute of 17th Meeting, 2019 (Session 5), Thursday 6 June 2019

• Minute of 18th Meeting, 2019 (Session 5), Thursday 20 June 2019

• Minute of 19th Meeting, 2019 (Session 5), Thursday 27 June 2019

• Minute of 21st Meeting, 2019 (Session 5), Thursday 19 September 2019

• Minute of 27th Meeting, 2019 (Session 5), Thursday 14 November 2019

• Minute of 28th Meeting, 2019 (Session 5), Thursday 21 November 2019

• Minute of 30th Meeting, 2019 (Session 5), Thursday, 5 December 2019

Official Reports

• Official Report of 16th Meeting, 2019 (Session 5), Thursday 30 May 2019

• Official Report of 17th Meeting, 2019 (Session 5), Thursday 6 June 2019

• Official Report of 18th Meeting, 2019 (Session 5), Thursday 20 June 2019

• Official Report of 19th Meeting, 2019 (Session 5), Thursday 27 June 2019

• Official Report of 21st Meeting, 2019 (Session 5), Thursday 19 September 2019

• Official Report of 27th Meeting, 2019 (Session 5), Thursday 14 November 2019

• Official Report of 28th Meeting, 2019 (Session 5), Thursday 21 November 2019

Notes of Fact-Finding Visits

• Compiled notes from Ayr, Ayrshire College, 3 June 2019

• Compiled notes from Dunfermline, Fire Station Creative, 10 June 2019

All written submissions have been published on the Committee's webpage. A list of the written submissions is provided below:

• Aberdeen City Council

• Monika Alff

• Anonymous A1

• Anonymous A2

• Applied Arts Scotland

• A.R.Ts Afternoon

• Ayr Gaiety Partnership

• Barrowland Ballet

• Dr Alison Bell

• Graham Berry

• Norman Bissell

• Nicholas Bone

• Keira Brown

• Mary Bourne

• Patricia Cain

• Camelot Ltd

• Catherine Wheels Theatre Company

• Centre for Contemporary Arts

• Collective

• conFAB

• Cove Park

• Craft Scotland

• Creative Europe Desk UK

• Creative Scotland

• Creetown Initiative Ltd

• Culture Aberdeen

• Culture Counts

• Professor Richard Demarco CBE

• Angie Dight

• Dogstar Theatre Company

• Drake Music Scotland

• Dudendance

• Edinburgh Festival Fringe Society

• Edinburgh International Festival

• Federation of Scottish Theatre

• Festivals Edinburgh

• Alec Finlay

• FireExit Theatre Company

• Fruitmarket Gallery

• Harry Josephine Giles

• Glasgow Life

• Anita Govan

• Kirsten Gow

• Katriona Holmes

• Imaginate

• Impact Arts (Projects) Ltd

• Literature Alliance Scotland

• Ken Mathieson

• Museum Galleries Scotland

• Musicians' Union

• Music Venue Trust

• National Theatre of Scotland

• Neo Productions

• People's Postcode Lottery

• Playwrights' Studio, Scotland

• Virginia Radcliffe

• Really Interesting Objects CIC

• John Scott MSP

• Scottish Artists Union

• Scottish Contemporary Art Network

• Starcatchers

• Claire Stewart

• Strident Publishing Limited

• TRACS

• Traditional Music and Song Association of Scotland

• Tricky Hat Productions

• Voluntary Arts Scotland

• The Work Room

• Ydance (Scottish Youth Dance)

Supplementary submissions

• Fire Station Creative supplementary submission

• Drew Wylie Projects Ltd. (2019) Scottish Parliament - Arts Funding Inquiry Comparative Analysis Ref: 2018-19/01 CTEEA

Graphic quotations

• p. 14 - Virginia Radcliffe: CTEEA/S5/19/AF/57 (Virigina Radcliffe), p. 1.

• p. 15 - Traditional Music & Song Association of Scotland: CTEEA/S5/19/AF/63 (Traditional Music & Song Association of Scotland), p. 1.

• p. 20 - Harry Josephine Giles: Culture, Tourism, Europe and External Affairs. Official Report, 30 May 2019, Col 33.

• p. 22 - Mary Bourne: CTEEA/S5/19/AF/10 (Mary Bourne), p. 2.

• p. 24 - Starcatchers: CTEEA/S5/19/AF/17 (Starcatchers), p. 3.

• p. 31 - Emma Jayne Park: Culture, Tourism, Europe and External Affairs. Official Report, 6 June 2019, Col 29.

• p. 36 - Bryan: comments made during fact-finding visit to Ayrshire College, 3 June 2019.

• p. 40 - Georgia: comments made during fact-finding visit to Ayrshire College, 3 June 2019.

• p. 40 - Janie Nicoll: Culture, Tourism, Europe and External Affairs. Official Report, 6 June 2019, Col 6.

• p. 44 - David Leddy: Culture, Tourism, Europe and External Affairs. Official Report, 30 May 2019, Col 35.

• p. 50 - Raymond Vilakazi: Culture, Tourism, Europe and External Affairs. Official Report, 30 May 2019, Col 50.

• p. 53 - Professor Richard Demarco CBE: Culture, Tourism, Europe and External Affairs. Official Report, 30 May 2019, Col 3.