Cash freeze on capital arts

The arts in London could face a cash freeze after a government report revealed millions of pounds of Lottery money have been squandered on projects that spiralled over budget.

From the building of Shakespeare's Globe Theatre to the restoration of the Royal National Theatre, the Commons Public Accounts Committee report highlights a series of publicly funded projects that went wrong.

The report criticises Arts Council England and urges it to spend less cash in London - even though it is the nation's artistic and cultural hub. It warns: "Arts Council England needs to achieve a more equitable distribution of funding across the country. It should reach beyond the large, well-established arts organisations concentrated in London."

The committee scrutinised 15 major Arts Council Englandbacked projects funded with Lottery cash, and concluded most of them did not go to plan. Nine were completed late and six went over budget by at least 20 per cent.

In all, an extra £94 million had to be spent to make sure the projects were completed, and £32.5 million of that was provided by the Arts Council itself.

The report paints a damning picture of Arts Council England's ability to identify sustainable cultural projects in which to invest Lottery cash. It said: "With nearly £19 million of its Lottery money spent on two projects that have closed, and a further £78 million tied up in five projects experiencing financial difficulties, Arts Council England does not have a strong track record in project viability."

Of the over-budget schemes approved by Arts Council England and funded by Lottery cash, six are in London.

They include the redevelopment of the Royal Court Theatre which cost £7.7 million more than estimated.

Shakespeare's Globe Theatre went £1.5 million over budget, works to the Royal Albert Hall went almost £13 million over budget-and there was a £26 million overspend on the Royal Opera House. Ongoing works to the Royal National Theatre were also included in the list - the project is already £700,000 over budget and counting.

Worst, though, was Sadler's Wells in Islington. It was originally estimated that a comprehensive reconstruction would cost £30 million in Lottery cash. However, the original design failed to meet planning restrictions for listed buildings, and the delays dramatically pushed up the cost.

The Arts Council had to pump in an extra £17.3 million - more than 50 per cent of the original funding - to get the building finished. It opened a year late. However, the Royal Academy Of Dramatic Art was £600,000 under budget.

An Arts Council England spokesman admitted mistakes had been made. He said: "The lessons we have learned from these projects have been taken on board for the future. But the Lottery has had a transforming effect on the arts and, compared with commercial property development these developments do not have a particularly bad record."

The report did praise Arts Council England moves to discourage this kind of bad project management, such as releasing cash for major projects in staggered amounts, rather than all at once.