Local authority arts and culture services face competition over the next year from other services and “declining resources” on the funding front, according to a survey conducted by professional association Arts Development UK.

Earlier this year, 73 of the 375 local authorities in England and Wales responded to the questionnaire about projected spending for 2013-14.

The anlaysis revealed that by comparing authorities that had submitted returns in 2012 and 2013, the average local authority budget for arts spending was £373,951 for 2012-13, with a projected figure of £361,640 in 2013-14.

Arts budgets for half of the authorities canvassed will be frozen for 2013-14 while 15% of participants said they were “considering different mechanisms for contracting out-of-arts services”.

Jane Wilson, chair of Arts Development UK, said in a statement: “The standout issue from this year’s survey is the increasing polarisation of provision, as more smaller authorities find themselves unable to maintain an arts service.”

However, earned income is enabling local authorities to balance arts budgets, with 57 authorities declaring £15.7m in total from sources such as ticket sales and merchandise.

The report also found that capital spending on projects was resuming.

Janita Bagshawe, head of Royal Pavilion and Museums, Brighton & Hove, said: “There are local authorities where earned income is already a substantial part of their revenue budgets, which means that further increases to earned income is tough.”