IPA and DBA respond to George Osborne's spending cuts including Department of Culture, Media & Sport 7% resource cut

She added: “Converting innovative ideas into marketable, commercial products and services is the remit of the design industry in the UK, the engine for future growth. And I should think that a cut in funding of only 7 per cent for DCMS will come as a relief to many who were expecting something closer to 15 per cent. What is disappointing is that the real blow will be felt by many local arts organisations who will struggle to mange on a further cut of 10 per cent coming their way.”

Meanwhile, the IPA’s director of marketing and reputation management, Janet Hull, told The Drum that commercial creativity organisations such as itself and its membership received no subsidy from DCMS. “In fact in the current climate, just the opposite,” she stated.

“We give substantial amounts of support in cash and in kind to the work of the Creative Industries Council, Creative Skillset and UKTI to support the broader Government agenda.

“Everyone these days has to work harder for less and be smarter - finding new revenue streams and new ways of working,” continued Hull.

“I suppose I see no reason why the cultural sector should be exempt. It's not as though the writing has not been on the wall for sometime.

“Peter Bazalgette is one of the brightest, most savvy, commercial operators in the business. I have high hopes that, as head of the Arts Council, if anyone can, he can make the difference the arts and culture sector needs to continue to flourish despite the cuts.”

Visit Britain has reportedly been braced to see a double digital cut in funding from DCMS as a result, but no confirmation of this has yet been received.