Arts Council England has warned that some of the organisations it provides grants to will lose funding as a result of cuts to its budget.
The government announced in last month’s spending review that the organisation’s grant-in-aid funding would be £342m in 2014/15 and cut by 5 per cent in real terms the following year. ACE said at the time that the outcome was the "best-case scenario" under the circumstances.
Announcing yesterday that applications would open in January for a three-month period for funding between 2015 and 2018, ACE warned that some organisations would lose funding because it did not want to "salami-slice".
Alan Davey, chief executive of ACE, said: "We received an above-average settlement from government – a good result in tough times. There will be an impact from our reduced investment: some organisations will lose funding, but we are confident that we can preserve a strong ecology for the arts and culture across England.
"There is no benefit in ‘salami-slicing’ and spreading the funds too thinly to make a substantial difference to anyone."
But Davey said that some organisations could receive more funding and new organisations would be funded.
"The arts and culture sector has illustrated time and time again the huge contribution that it makes to the quality of life and the economy of this country," he said. "Our message to applicants and to all our partners is that we must continue to be bold, to innovate and to think creatively so that we can continue to keep the work exciting and we can give everyone in England the opportunity to experience arts and culture."
ACE said more details on the funding application process would be made available in the autumn.