Local authorities are still the biggest funder of art and culture in England, and the Arts Council's most significant strategic partner. We share a belief in the importance of the arts in our lives and the lives of all our communities - and local authorities are integral to the delivery of our national strategy.

Over the years, we have worked well in partnership. But in recent times, local authorities have been under considerable financial pressure and have had to make hard decisions about priorities, resulting in a less funding for art and culture. It's a dilemma for the Arts Council. We sympathise, but we cannot fill the gaps in funding.