Pre-budget scrutiny 2027-28: Culture Committee findings and recommendations

On Thursday 5 November the Europe, External Affairs and Culture Committee wrote to the Scottish Government outlining its findings and recommendations following its pre-budget scrutiny 2027-28. The report focusses on the Committee’s exploration of the pressures currently facing the culture sector and the sector’s main priorities for the 2027-28 Budget. The report makes 35 recommendations based on the evidence it has heard. You can read Culture Counts’ input into this process here.

Highlights of the Committee’s findings and recommendations include:

  1. There is clear articulation of the financial pressures that continue to affect the sector, including with regard to the funding landscape, the wider economic context, and falling culture budgets within local authorities. The report cites Culture Counts’ evidence that the Scottish Government‘s increased investment since 2013 is largely being offset by inflation-driven cuts at local authority level. The Committee’s recommendations include a request for detail as to how the Scottish Government plans to allocate additional funding, and in particular how it will provide support to “parts of the sector and geographical areas that have not yet benefitted substantially from previous uplifts”. The Committee sets out a clear recommendation that local and national government funding should be considered together, and requests detail on how Scottish Government will work with COSLA to enable that.

  2. As a prospective opportunity for local authorities to generate increased revenue, the Committee heard evidence from City of Edinburgh Council about the visitor levy. Their report notes that 35% of the net income from the Levy is invested in Edinburgh’s culture, heritage and events. The Committee recognises in its recommendations that “the Visitor Levy may provide additional support for culture, but that it is not a substitute for sustainable core funding”.

  3. The Committee notes the urgent need to invest in cultural infrastructure, to address accessibility and climate adaptation needs, as well as to maintain, repair and restore the cultural estate. The committee notes the absence of a targeted investment programme or infrastructure development plan, though highlights a “potential future capital investment plan” from Creative Scotland. Wider concerns with cultural venues relate to the closure of cultural venues, the ongoing risks to local authority-owned venues, and the limitations of options that support community buy-outs. The Committee’s recommendations ask that ‘at risk’ venues be identified, that community buyouts are better supported, and that “the Scottish Government identifies how the 2027-28 Budget will address urgent capital requirements, and how the 2027-28 and future budgets will support the longer-term capital requirements of the sector”.

  4. The report cites Culture Counts’ evidence with regard to Creative Scotland’s Open Fund for Individuals, noting that demand significantly outstrips supply, that grants have failed to keep pace with inflation, and that uncertainty with regard to both National Lottery income and Scottish Government Grant in Aid allocation to the Open Fund risks undermining the vital role that independent artists and freelances play in the cultural ecosystem. The report also captures Creative Scotland’s evidence that it plans to “implement a streamlined, lighter-touch approach” to the next Multi-Year Funding application process for organisations that are doing well, and that it “wishes to move to a rolling programme”. The Committee’s recommendations ask that “the Scottish Government confirms whether consideration is being given to the calls from stakeholders for predictable and more transparent grant in aid funding to be provided to Creative Scotland’s Open Funds and set out in the budget”.

  5. There is considerable discussion of funding for National Performing Companies, noting that planned funding uplifts in 2028/29 would be significantly offset by rising costs and addressing expected deficits incurred in 2027/28. Ongoing uncertainties are expressed surrounding the proposal to establish a new National Performing Company for traditional music. The Committee’s recommendations include transitional support for 2027/28 for the National Performing Companies, and sets out a series of requests for clarification about the rationale, funding and delivery of the proposed new National Performing Company.

  6. The report captures evidence of the potential for culture to contribute to preventative and cross-portfolio working (such as with health, education and community cohesion), but suggests cross-portfolio working needs to be more expressly enabled by Scottish Government, as recommended by the CEEAC Committee throughout the previous session. The Committee’s recommendations ask the Scottish Government to set out “how opportunities for cross-portfolio working and funding between culture and other portfolios more generally will be supported by the 2027-28 Budget and future budgets”.

  7. With regard to cultural legislation, the Committee records evidence that the development of cultural legislation could enable cross-portfolio and strategic decision-making with regard to policy, outcomes and investment. Potential impacts noted include greater parity of cultural spend and provision in local authority areas and the setting of statutory duties and obligations to support cultural outcomes. The Committee “request that the Scottish Government keeps the[m] updated on how culture – including strategic, cross-portfolio and legislative considerations – will be considered and adapted by the PSR programme”.

  8. The Local Culture Scotland report is noted as a potential opportunity to “address some of the concerns around the sustainability of cultural venues and spaces by bringing decision-making closer to communities”, to “address the disconnect between local and national strategies”, and to “encourage local decision-making, [enable] funding allocation through negotiation rather than competition, and [to create] a national network to support coordination and strategic connection”.

Additionally, Culture Counts were interested to note recommendation #146, that “the Committee believes that the Scottish Government should set out what outcomes it expects from the significant increase in culture funding and how these will be measured. These outcomes and measures should be published alongside the 2027-28 Budget”. Culture Counts have repeatedly made the case that improved clarity over culture funding intentions and outcomes would strengthen the case for support. Making clear the impact and purpose of culture funding could result in better recognition of the impact of cultural funding on our lives, communities and economy, rather than simply recording that investment as a line of financial expenditure. We will watch with interest whether the Committee’s recommendation on this matter is realised in the 2027/28 Budget.