The National Audit Office has announced that it has published its report into its investigation of the £1.57 billion Culture Recovery Fund (CRF) in England.
The investigation examined the CRF, covering the period up to 19th February 2021 to present a factual summary of the government's support for the arts, culture and heritage sector.
Looked closely
It looked closely at the process for awarding the CRF, progress in distributing the funding, and oversight and governance of the funding.
The COVID-19 pandemic meant that most of the arts, culture and heritage sector was required to by law to close its doors on 23rd March 2020 — with many remaining closed for almost a year.
The Department for Digital, Culture, Media & Sport expected numerous large-scale financial failures within the sector and announced its £1.57 billion Culture Recovery Fund in July 2020 (£188 million to be used by the Devolved administrations) to help institutions survive the pandemic and to support their long-term sustainability.
Primary objective
The fund's primary objective was to rescue cultural and heritage organisations at risk of financial failure due to COVID-19.
The funding could be used to prepare business plans to cover future viability, for costs towards enabling re-opening and keeping venues in good condition and for capital projects such as conservation works.
It could not be used to cover costs that could be met from other government support schemes (such as the Coronavirus Job Retention Scheme).
75% target
Although the report covers the CRF in England only, and that it has not assessed the impact of the funding had on bodies that received assistance, it did state that it had met its target to support the survival of 75% of the organisations deemed at risk.
Its worst-case scenario assumed that social distancing measures would remain until the end of March 2021 and that demand would remain at 40% of pre-COVID-19 levels. As of the end of February 2021, the current situation exceeded this worst-case scenario.
It found that applications for both revenue and capital grants were oversubscribed in the first funding phase (which invited applications up to the end of November 2020). Loans funding was undersubscribed.
Overall, 59% of the £510 million was awarded by Arts Council England to theatre, music and combined arts organisations4BR
Where it went
Overall, 59% of the £510 million was awarded by Arts Council England to theatre, music and combined arts organisations. By location, London received 31%, followed by the North West and South East which each received 12% of the total.
The Cabinet Office's Government Counter Fraud Function reported in January 2021 that three reports of fraud were made through the COVID Fraud Hotline relating to two grants administered by ACE.
The Department has not yet paid out any funding from its second phase of funding, totalling £400 million.
