Arts Council England (ACE) has announced that the launch of its next investment process will not go ahead in April as planned – instead, it has called on the UK Government to extend its current National Portfolio until the end of March 2028.

In December, the arts council said it would open applications for its next round of portfolio investment in April 2025 but warned this was subject to review. Its national council met last Wednesday to discuss the timeline and decided that changes to the “external context” meant a delay was necessary.

In a statement, it gave three key reasons for the change to its timeline.

“Firstly, the scope of the government’s imminent spending review has become clearer,” it said. “It will now be a zero-based review, meaning that every budget line across all departments will be reviewed from scratch, including the money the arts council receives.

“Secondly, the government's independent review of the arts council, led by Baroness Margaret Hodge is now underway, and is due to report to government in the autumn, with publication due in 2026. 

“Thirdly, the government has published a white paper in which it outlines its proposed devolution framework. This is likely to have a significant impact on local government structures, and on how we work with them.”

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The arts council has also confirmed that its investment in the current National Portfolio will increase by 1.61% from 2025/26, following the £7.63m increase in its grant-in-aid funding.

The current National Portfolio is made up of nearly 1,000 organisations including 82 museums, 18 libraries, and 159 combined arts. It also supports some sector bodies and cultural trusts.

“Recent data shows more than 73 million people attended over 84,000 events put on by arts organisations, libraries and museums during 2023/24,” the arts council said in a statement. “A further extension is an opportunity to continue this progress.”

While the extension of portfolio funding will offer potential stability for some, it means that non-ACE funded organisations will have to wait to apply for support.

ACE said it is currently in discussions with the government but recognised that a decision is unlikely until after the spending review concludes in June.

In January 2024, the arts council extended its 2023-26 National Portfolio Investment Programme to the end of March 2027 in order to provide existing recipients of its funding with financial certainty.

All National Portfolio and Investment Principles Support Organisations were eligible to apply for the extension year.