The Chancellor’s autumn statement has included news that DCMS grants are to be cut by around 3 per cent over the next two financial years.

Both Arts Council England (ACE) and DCMS-funded museums, in receipt of grant-in-aid, will receive a 1 per cent cut in 2013/14 and a 2 per cent cut in 2014/15. This will mean a loss of £3.9m for ACE in the first year and £7.7m in the second year.

Sport England’s allocation will reduce by 1.08 per cent in the first year and 2.12 per cent in the second year. Visit Britain will also receive a cut of 1.08 per cent and 2.12 per cent.

ACE chief executive, Alan Davey, said: "We must now look closely at the figures and decide how we will pass these cuts on. Some organisations are also having to deal with local authority cuts and so the situation is extremely challenging.”

Culture Secretary, Maria Miller, acknowledged that the cuts would be painful: “We hope that by passing these cuts on in as swift a fashion as possible, we are able to maximise the time our sectors have to prepare for the tough decisions they will face in making these savings.”

Miller was keen to emphasise the £50m for super connected cities and £22m to continue the GREAT tourism marketing campaign.