Update following Arts Council England's Emission of Grants - December 2021

Following our October Update, on December 15 the Arts Council of England wrote to us stating that, as a reply to our concerns regarding the criteria, “each application to the CRF fund was assessed on six points: ‘Management of Covid-19’, ‘Supporting your cultural operation’, Adaptable plans’, ‘Cultural significance’, ‘Opening up access’ and also, ‘Financial viability and sustainability’. Therefore, the process did include a consideration of what measures organisations taking to control expenditure and any future income.”

Our reply indicated that with regards to the 1st point, ‘Management of COVID-19, it has been disastrous, especially by “leading” cultural organisations. With regards to “Opening up access”, that’s also a cause of numerous concerns as such organisations have most often worked with the same people, paying inadequate fees to those not part of their niches. 

In relation to the ‘Adaptable plans’, how far have such organisations (both digital and physical) adapted?!
All we have seen is pretty much the same old conditions, with some using funds to renovate their premises, just for the sake of it.

‘Financial viability and sustainability”, as previously indicated, they have all the financial assets to sustain closures, even more so if we take into consideration the various:

- The Job Retention Schemes;
- The launch of subscription services;
- Public donations;
- Selling items/products (even new ones created during these challenging times);
- Corporate Sponsorship Deals;
- Charging for services that were meant to help artists and those working in the sector, such as live-streams, editorial coverages, marketing space/s on their websites/magazines;
- Low Paid/Unpaid Staff Members/Interns;
- Selling tickets (and charging booking fees) to plague raves around the world.:

With regards to organisations who sell tickets “not being ‘artistic’ or ‘cultural’” ACE has argued that “organisations were not precluded from making an income whilst applying for these funds.”

They have also argued that they “take reports about money laundering and breaches of health and safety very seriously”, yet nothing has been done.

With respect to the concern that the Arts Council England grants to Boiler Room were necessary, even more so now that they have been acquired by Dice FM, they “do appreciate that has been a tough period for the Arts Sector and know will have been disappointing for many of our applications to CRF & ERF funds to hear that we were unable to fund their organisations while other organisations did receive support.”

However, nothing has been done to avoid all of that, with ACE not agreeing that “we should ask the Boiler Room, or Dice FM, to refund the money that we have provided to them for redistribution to other unsuccessful applicants”, despite the fact that Dice FM has also received public funds through the Government’s Future Fund programme, as this article indicates, underlining the absolute waste of public money towards organisations, who were in no particular need of such funds.

We pointed out that nobody really sees a comprehensible rationale with regards to awarding  £750K to Resident Advisor - a digital outlet whom directly profited from plague events, while also contributing to causing more COVID-related cases around the world (together with all other live venues, and those performing, booking and organising these events), and the implementation of mandatory COVID passes, by offering its services to promoters and venues, cashing in an average of 12.5% per ticket, while in 2019 it paid out at least £255.657 in remuneration and dividends, receiving money in October 2020 for being primarily an international ticket sales company, highly criticised for their whitewashing of the industry, despite the fact that too many artists, professionals, and independent organisations did not receive any, or adequate support. 

While their grant application claimed that funds would be used for essential business expenditures, it is important to note that Resident Advisor Ltd and Resident Advisor Tickets Ltd were making, and still do, payments to the trust owned by its directors. Publicly available financial statements from Resident Advisor Ltd and Resident Advisor Tickets Ltd mention that rental payments have been made to that trust for an amount of £100,000 in 2016 and £130,000 in 2017. Overall, the directors received millions in dividends, salaries, freelance fees, and rental payments between 2015 and 2018 according to financial statements submitted to Companies House.

Another £398K to Village Underground (contributor to COVID-related cases and potential deaths via the scheduling of live events), who cashed in £33,000 and 38,500 in crowdfunding while operating as a bar & cycle park during the lockdown/s and registering £1,065,430 and £775,084 in Net assets between 2018 and 2017.

A further £967K to Paradigm Agency (an agency whose staff can largely work from home, contributor to COVID-related cases and potential deaths via the scheduling of live events), who had a turnover of £13,301,496 in 2018 and £11,717,736 in 2017 and registered assets of £13,381,668 (2018) and 11,261,060 (2017)

£1.5 million to Fabric (another contributor to COVID-related cases and potential deaths via the scheduling of live events), where an individual has died of overdose (what is the cultural contribution there), which registered assets for £3,289,688 in 2017, and £2,727,436 in 2016.

£125,320 to Crack Magazine (a digital platform) with assets of £3,760 in 2019 and £7,228 In 2018 – indicating a disproportionate sum of money. 

£50,000 to Ransom Note (another digital platform), with registered assets of £73,767 in 2018 and £81,556 in 2017.

£791K to Boiler Room (another digital platform, contributor to COVID-related cases and potential deaths via the scheduling of live events), acquired by Dice FM, the latter recipient of public funds, through the Government’s Future Fund programme, whom Notting Hill Carnival’s involvement in 2017 raised numerous protests, being described as “white, elite colonial appropriation of Notting Hill Carnival”,  registering assets of £3,760,906 for 2018, and £6,088,223 for 2017.

Another £975K to Ministry of Sound (another contributor to COVID-related cases and potential deaths via the scheduling of live events), a conglomerate that donated money to a political party in both 2018 and 2017, and registered profits for £87,500 in 2018 and £102,877 for Ministry of Sound Licensing Limited, with a turnover of £8,967,954 in 2018 and £8,327,702 in 2017.

Mission Mars (£1 Million), which sold 2 venues, having opened new restaurants around the country during 2020/21, received another £46,000 from the government, while registering assets of £9,130,415 for 2018 and £5,360,984 for 2017.

£52,997 to FOLD, an organisation been investigated for £200,000 in fraud and money laundering.

All of the above indicate a rather solid financial viability, and sustainability, concerning individuals/organisations, a lack of ‘adaptable plans’, a very minimal cultural significance, deficient ‘Management of Covid-19’, and a latent approach towards ‘Opening up access’, thus not matching most of the 6 points included in the criteria.

We kindly informed ACE of the enormous discontent regarding such unevenly distributed grants, not to mention those granted to numerous questionable theatres, museums, festivals – most of which are located between London and the South East, especially those receiving vast sums of money -, active contributors to the spread of the virus, the rise in cases, and potential deaths, due to inadequate health and safety measures, and financial pressures to reopen as quickly as possible.

These are not our suggestions, but rather what the ERP reports, indicating that “numerous factors were likely to have contributed to the higher transmission risk at these events, including high rates of unvaccinated attendees, community prevalence at the time of the events studied, the structure of the events, and the behavior of attendees leading up to and after attending these events.”

Luckily there are some, including us, who have decided to stay away from such unnecessary public gatherings in order to safeguard the health and safety of all those involved, until adequate protocols have been discussed, developed, and ultimately implements.

Yet, such organisations and individuals have been largely neglected, rather than appraised for their exemplary conduct, with numerous very questionable others awarded more than they actually deserved.

We understand that ACE might not have completed knowledge of some of the arts and culture, which is totally understandable seeing its complexity, hence why it is essential that ACE listens to what people have to say, especially those working in the sector, who are thoroughly independent - thus not having any ulterior motives other than creating a safe-guarded, equal, healthy environment - and those who have come in contact with certain organisations and individuals, thud knowing and understanding how they operate, and the fields in which they navigate.

The fact that decisions have been made does not mean that they cannot be reserved. If there’s something that the pandemic has taught us is that decisions have, unfortunately, been inadequate thus requiring constant reassessments.

Furthermore, with new discussions regarding potential new furlough schemes, we argued that it is of vital importance that ACE safeguards independent artists, professionals, and organisations, who form the backbone of the sector, rather than corporates who exploit them for profit-making purposes.

We need your help to Redirect ACE’s Cultural Recovery Funds towards helping independent organisations & artists Please sign our petition here.