Arts Council England (ACE), the body responsible for distributing over £700 million in government and lottery funding to the nation’s arts sector, is facing calls for sweeping reform after a major independent review led by Labour peer Baroness Margaret Hodge. The report, published on December 16, 2025, recommends a radical overhaul of ACE’s operations, governance, and funding strategies, with the aim of restoring artistic excellence, reducing bureaucracy, and shielding the arts from political interference.
The review, commissioned by the Department for Culture, Media and Sport (DCMS) and overseen by Culture Secretary Lisa Nandy, was prompted by mounting criticism of ACE’s contentious ‘Let’s Create’ strategy—a ten-year vision introduced to widen access to arts and culture across England. While ‘Let’s Create’ was intended to democratize the arts, critics argued it had become a straitjacket, prioritizing box-ticking and access over innovation and artistic excellence. According to Baroness Hodge, “People felt that ACE was pursuing access to culture in an instrumentalist way and had lowered the priority given to the pursuit of artistic excellence. Art and excellence were sidelined.”
The frustrations weren’t confined to abstract complaints. Earlier in 2025, the renowned London venue Wigmore Hall withdrew from ACE’s annual funding system, describing it as “crippling.” Its director, John Gilhooly, welcomed the review, stating, “This most welcome report vindicates what many of us have been telling the ACE privately for years… ACE must listen, and I urge the government to take on all the recommendations in full. The ACE is meant to be champion of the arts, not our school master.”
The review’s panel included sector leaders such as Dave Moutrey of Manchester City Council and Laura Pye of National Museums Liverpool, who, along with others, provided evidence of the widespread dissatisfaction with ACE’s processes. The panel conducted a comprehensive survey and solicited input from organizations and individuals across the cultural landscape.
Among its 21 recommendations, the review calls for the government to urgently address the chronic underfunding that has plagued the arts over the last decade. It suggests that ACE invest in a “comprehensive overhaul of its systems” following well-documented struggles with its online funding portal, Grantium, which was taken offline after technical failures. The report also urges the creation of a new funding model for National Portfolio Organisations (NPOs), including extending the NPO cycle from three to five years—a move designed to provide greater stability and planning capacity for arts institutions.
One of the most significant proposals is to decentralize decision-making. Baroness Hodge recommends establishing new local and regional boards to decide on funding for local arts organizations, while a national panel would handle grants for organizations of national and international significance. This approach, she argues, would strengthen “the regional voice in decision-making” and ensure that funding is more responsive to local needs and ambitions.
The review also advocates scrapping the ‘Let’s Create’ strategy in favor of a less prescriptive approach. It found “almost universal criticism” of ACE’s current application and reporting processes, describing them as “inappropriately long, complicated, bureaucratic—and expensive.” Hodge wrote, “We all want a rigorous application process and strong accountability for spending public money, but the present processes are… a waste of public money.” Many organizations, she noted, were forced to divert resources away from creative work just to navigate ACE’s procedural demands.
In response to the report, ACE acknowledged the need for change. A spokesperson said, “We are committed to using the review’s findings to improve, so that we can better meet the needs of the people we serve. We have heard clearly that we have been too ‘prescriptive’ in how we implement Let’s Create. We recognise that we must give our artists and organisations more space to articulate their ambition, and that we need to reduce the administrative burden we have placed on them.” Darren Henley, ACE’s chief executive, added, “We want people to spend less time on our paperwork and more time on their creative work. Our mission over the months to come is to roll up our sleeves and make that happen.”
Another key aspect of the review is the reinforcement of the arm’s-length principle, which is designed to insulate arts funding decisions from political meddling. Hodge’s report warns of recent attempts to exert political control over ACE and insists that “this has to stop.” The review’s first recommendation is unequivocal: “The government must retain the Arts Council,” but it must also “rigorously uphold” its independence.
The report doesn’t shy away from the financial realities facing the sector. Britain’s public expenditure on culture, as a percentage of GDP, is lower than in many comparable European countries, including Spain, Italy, Germany, and the Scandinavian nations. To address this, the review calls for the DCMS, the Department for Education, and ACE to collaborate with philanthropists, trusts, and foundations to create a joint fund supporting cultural offerings in schools. This would help pay for specialist teachers and cover transport costs for students to attend theatres and museums—a move intended to reinvigorate arts education and nurture the next generation of talent.
Tax reliefs also feature in the recommendations. The review suggests amending theatre and orchestra tax reliefs to support touring productions both nationally and internationally, and proposes the creation of a commercial arm for ACE to negotiate shares in successful subsidized productions. Hodge also advocates doubling Gift Aid for organizations and events that reach audiences outside southeast England, where the majority of arts philanthropy is currently concentrated.
The music and opera sectors, in particular, voiced strong criticism of ACE’s recent funding decisions. The report notes confusion over the rationale for cutting support to the English National Opera, Welsh National Opera, and Glyndebourne’s touring grants. To prevent such “tone-deaf decisions” in the future, Hodge recommends re-establishing expert panels for each art form, a practice abandoned by ACE nearly three decades ago.
Looking ahead, the government is expected to respond to the review’s findings in early 2026. Culture Secretary Lisa Nandy welcomed the report, stating, “Access to arts and culture is not a luxury—it is a necessity. It shapes our communities and enriches our lives. This review highlights the strengths of Arts Council England’s work, but it also challenges us to do better. It sets out recommendations to strengthen support for artists, reach communities more effectively, and ensure that creativity is accessible to all.”
As the arts sector awaits the government’s formal response, the message from Baroness Hodge’s review is clear: the future of England’s world-class artistic and cultural offer depends on bold reform, renewed investment, and a steadfast commitment to both excellence and access.
