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| Lottery grants drop as costs soar | Lottery grants drop as costs soar |
| (41 minutes later) | |
| National Lottery grants to sport and heritage projects have dropped by over 50% in a decade while administration costs have soared, figures reveal. | National Lottery grants to sport and heritage projects have dropped by over 50% in a decade while administration costs have soared, figures reveal. |
| Sport funding fell from £461.5m in 1997-8 to £217m in 2007-8, and heritage grants dropped from £464.6m to £217m. | Sport funding fell from £461.5m in 1997-8 to £217m in 2007-8, and heritage grants dropped from £464.6m to £217m. |
| Meanwhile, National Lottery Commission administration costs rose by 132% from 271,000 in 1999-2000 to £628,000m in the period 2007-8. | Meanwhile, National Lottery Commission administration costs rose by 132% from 271,000 in 1999-2000 to £628,000m in the period 2007-8. |
| The Tories accused the lottery regulator of becoming "bloated". | The Tories accused the lottery regulator of becoming "bloated". |
| But the government said the administration costs had been higher than normal between 2004 and 2008. | |
| Arts projects saw funding fall 52% from £449m to £214.5m in the same period. | Arts projects saw funding fall 52% from £449m to £214.5m in the same period. |
| But grants for health, education, the environment and charitable expenditure rose 9% from £596m. | But grants for health, education, the environment and charitable expenditure rose 9% from £596m. |
| 'Special responsibility' | 'Special responsibility' |
| The National Lottery Commission spent £1.367 million on staff salaries and paid out no bonuses in its first year. | The National Lottery Commission spent £1.367 million on staff salaries and paid out no bonuses in its first year. |
| But by 2007-8, salaries had gone up 94% to £2.65m and £72,000 was paid in bonuses. | But by 2007-8, salaries had gone up 94% to £2.65m and £72,000 was paid in bonuses. |
| Barbara Follett, minister for Culture, Creative Industries and Tourism, revealed the figures in response to questions from Shadow Culture Secretary Jeremy Hunt. | Barbara Follett, minister for Culture, Creative Industries and Tourism, revealed the figures in response to questions from Shadow Culture Secretary Jeremy Hunt. |
| Mr Hunt said: "Why on earth has the Lottery regulator allowed its costs to become so bloated when Lottery good causes are desperate for every penny they can get? | Mr Hunt said: "Why on earth has the Lottery regulator allowed its costs to become so bloated when Lottery good causes are desperate for every penny they can get? |
| "The Lottery was set up partly to help charitable organisations get through tough times so the regulator has a special responsibility to keep their costs under control." | "The Lottery was set up partly to help charitable organisations get through tough times so the regulator has a special responsibility to keep their costs under control." |
| It is perfectly legitimate for a large-scale organisation like the National Lottery to spend a small proportion of its income on administrative and core function costs Department for Culture, Media and Sport | |
| A spokeswoman for the National Lottery Commission said it existed to protect the interests of players and to ensure returns to good causes were as great as possible. | A spokeswoman for the National Lottery Commission said it existed to protect the interests of players and to ensure returns to good causes were as great as possible. |
| "Our typical operating costs are around £4.6m per annum. We also run the competition for the operator's licence and have just delivered a 10-year licence that will, at current levels of sales, generate between £60m and £100m each year in extra funding for good causes. | "Our typical operating costs are around £4.6m per annum. We also run the competition for the operator's licence and have just delivered a 10-year licence that will, at current levels of sales, generate between £60m and £100m each year in extra funding for good causes. |
| "Without the competition and the regulation that underpins it, good causes would be significantly worse off. Full details of our costs are reported annually on our website." | "Without the competition and the regulation that underpins it, good causes would be significantly worse off. Full details of our costs are reported annually on our website." |
| A Department for Culture, Media and Sport spokeswoman said administration costs had been higher than usual between 2004 and 2008. | |
| This was due to staffing and legal costs needed to run the competition to award the third operators' licence, she said. | |
| She added: "It is perfectly legitimate for a large-scale organisation like the National Lottery to spend a small proportion of its income on administrative and core function costs. | |
| "To ensure grants are awarded fairly and equitably, the Lottery must spend money, for example, on outreach and websites to support people who apply for funding. | |
| "It is not a case of just handing out a cheque and it is important to guard against potential fraud. We need to check Lottery money is being spent and that it represents good value for money." |