Liverpool City Council (LCC) is to decide whether it will increase the number of arts organisations that receive annual funding following a four-month bidding and consultation process.

A report to the council's executive board has recommended that annual grants worth £7.33m be provided to 33 arts bodies over the next two years, a 25 per increase on the previous three-year programme. LCC has announced that a total of 67 organisations have been successful in obtaining funding, although nearly 90 arts bodies are set to miss out due to the new grants process being heavily oversubscribed.

The council's overall arts grants budget currently stands at £8.45m, and funding levels will be maintained until April 2011, which represents a 6 per cent increase year-on-year from 2005-06 to 2010-11. LCC has also earmarked an additional £900,000 for a strategic development fund to enhance the business plans and strategic direction of 11 arts organisations, while £200,000 will go towards 27 community art projects.

Three categories have been outlined by the council for when it approves the allotted grants for each successful organisation. They include cultural drivers, where an organisation's work is integral to the city's annual cultural offer; cultural contributors, organisations that help develop world-class arts provision; and grass roots innovators. Warren Bradley, LCC leader, said: "This city is looking to annually fund the greatest number of arts organisations in our history. To be able to say that after Capital of Culture should leave no-one in any doubt of the council's commitment to fostering a successful '08 legacy."

LCC executive member for enterprise and tourism, Gary Millar, added: "We have developed a robust, fair and open assessment process that will help develop a programme befitting an internationally renowned city of culture."