James Purnell, Secretary of State for the Department of Culture Media and Sport. © Crown Copyright

The Arts Council breathed a huge sigh of relief today with the announcement that government investment in the arts is to be boosted over the next three years, with an extra £50m going to Arts Council England by 2011.

James Purnell, Secretary of State for Culture Media and Sport, announced the extra arts funding on October 12 2007 and confirmed the organisation's funding will rise from £417m this year to £467m in 2010/11, a real-terms increase year-on-year of 1.1 per cent (or 12 per cent in cash terms across the whole period).

He also confirmed that grant aid to England's national museums and galleries will increase from £302m this year to £332m in 2010/11, an increase slightly above inflation.

The funding comes from DCMS's settlement in the recent 2007 spending review, and according to Mr Purnell it makes clear the government’s commitment to supporting excellence in the arts in UK.

"The spending review settlement is an excellent deal for arts, museums and galleries in this country, with real terms rises across the sector, plus additional investment through the Arts Council,” said the Secretary of State.

"The extra £50m that the Arts Council will receive by 2010/11 will ensure that artists, performers and companies get the chance to continue producing world-class work for growing audiences."

As well as funding for the Arts Council the government confirmed the new Museum of Liverpool development will receive £1.4m in 2010\11. © NML

"This is fantastic news - the government has acted on the case we have made for the arts,” said Peter Hewitt, Chief Executive of Arts Council England.

“It's a recognition of the work of our artists and arts organisations whose energy and imagination have made our cultural life genuinely the envy of the world.”

Mr Hewitt promised the Arts Council would now move forward to prioritise its continued promotion of excellence and innovation in the arts, and work with the rest of the cultural sector to deliver a “truly creative Cultural Olympiad".

This first settlement for the Arts Council came with some news for the museums and galleries sector that they will also get extra funding for special projects: an additional £2.3m next year, and £2.6m and £4.5m in subsequent years.

Specifically the new Museum of Liverpool development will receive £1.4m in 2010/11; the Natural History Museum's Darwin Centre Phase 2 will receive £0.3m, £0.6m and £1m across the three years for running costs; the Victoria and Albert Museum is to receive £0.69m, £0.73m and £0.77m for running the new Sackler Centre for Arts Education and the Museum of London is to receive £0.3m, £0.31m and £0.32m for the costs of merging with the Museum in Docklands.

Other parts of the heritage and arts sector will now wait to see what funding will be available when the DCMS carves up the remainder of its settlement. Heritage bodies like English Heritage, who are expected to receive details of the allocated funds for the heritage sector at large later next week, will have recieved today’s news with interest.