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The Arts Council of England, English National Opera

  • The value of the subsidy is £11.46 million. The purpose of the subsidy was to address a funding gap in ENO’s costs and revenue since they were not listed on the ‘Levelling Up’ agenda.
  • Our key takeaways from the SAU report are:
    • When the subsidy is part of a wider strategic policy, care should be taken to link high-level objectives to specific policy objectives relevant to the subsidy.
    • If a subsidy is in the context of on-going operational funding, authorities should seek to estimate if, and to what extent, the activities could continue on a commercial or self-funded basis. This estimate can then be used as part of the counterfactual assessment and can be used to assess how the subsidy leads to a change of economic behaviour.
    • If the subsidy is seeking to fill a funding gap, the assessment should not focus too closely on this, as it may preclude fuller consideration of alternative options to address an identified market failure or equity objective

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