Arts Council England Funding Strategy 2025: Navigate the New Investment Principles
Arts Council England's 2025 transformation introduces Investment Principles that fundamentally change how cultural funding works. Our insider analysis reveals the strategies that win in this new landscape.
ACE 2025 Overview:
Total Annual Investment:
- • Portfolio organisations: £445M
- • Project funding: £89M
- • Creative Communities: £67M
- • Development funding: £23M
Key Changes:
- • Investment Principles framework
- • Creative Communities programme
- • Enhanced diversity requirements
- • Community-led decision making
When Arts Council England announced its Investment Principles in late 2024, it marked the biggest shift in cultural funding philosophy since the creation of the National Lottery. Gone are the days of purely artistic merit driving decisions—ACE now prioritises cultural democracy, community agency, and systemic change.
For arts organisations, this represents both unprecedented opportunity and significant challenge. Success now requires understanding not just what to create, but how to embed your work within communities and contribute to broader cultural transformation.
Understanding the Investment Principles
ACE's Investment Principles represent a fundamental shift from project-focused to systems-focused thinking. Every funding decision is now evaluated against four core principles.
Principle 1: Creativity and Culture
What This Means:
- • Excellent cultural work that enriches lives
- • Innovation in artistic practice and delivery
- • Cultural experiences that matter to communities
- • Quality that resonates beyond elite audiences
Success Indicators:
- • Community testimonials and engagement evidence
- • Artistic risk-taking with clear purpose
- • Cultural relevance to local contexts
- • Measurable impact on participants and audiences
Principle 2: Inclusivity and Relevance
Key Focus Areas:
Demographic Representation:
- • Leadership reflecting community diversity
- • Programming relevant to local populations
- • Accessible pricing and venues
- • Multi-language and cultural approaches
Economic Accessibility:
- • Free or low-cost participation options
- • Transport and childcare consideration
- • Multiple engagement pathways
- • Digital access alternatives
Principle 3: Dynamism and Ambition
This principle has created the most confusion among applicants. ACE defines dynamism as "forward-thinking approaches that challenge conventions and create positive change."
"We're looking for organisations that don't just respond to community needs—they help communities reimagine what's possible. The strongest applications show how arts practice can be a catalyst for broader transformation." - ACE Programme Director
Principle 4: Environmental and Social Responsibility
Environmental Requirements:
Carbon Footprint
- • Net zero plan by 2030
- • Annual emissions reporting
- • Sustainable transport options
Waste Reduction
- • Circular economy principles
- • Digital-first communications
- • Reusable production elements
Social Impact
- • Local economic contribution
- • Skills development pathways
- • Community ownership models
The Creative Communities Revolution
Replacing the Project Grants programme, Creative Communities represents ACE's most radical experiment in democratising arts funding.
How Creative Communities Works
Community Assemblies
Local assemblies of residents identify cultural priorities and needs for their area.
- • 25-30 community representatives
- • Demographic quotas ensure representation
- • Professional facilitation and support
- • £5,000-£15,000 budget allocation per assembly
Priority Setting
Assemblies define what cultural activity their community needs and wants.
- • Asset mapping of existing cultural provision
- • Gap analysis and opportunity identification
- • Vision development for cultural future
- • Success criteria definition
Artist and Organisation Selection
Communities choose which artists and organisations to work with based on their priorities.
- • Open application process to assemblies
- • Community interviews and selection
- • Collaborative planning and development
- • Community oversight and evaluation
Success Strategies for Creative Communities
For Established Organisations:
- • Demonstrate genuine community relationships
- • Show flexibility in artistic approaches
- • Highlight community capacity-building experience
- • Present collaborative rather than extractive methods
- • Evidence shared decision-making processes
For Community Groups:
- • Build coalitions with other local groups
- • Develop relationships with professional artists
- • Create clear governance and accountability structures
- • Document community assets and cultural needs
- • Plan for long-term sustainability beyond funding
Portfolio Organisation Strategy
ACE's core Portfolio remains highly competitive, but the Investment Principles have changed what success looks like for both new applicants and renewal applications.
2025 Portfolio Priorities
| Priority Area | Investment Focus | Success Indicators | Funding Range |
|---|---|---|---|
| Community-Led Arts | Organisations with community governance and decision-making | Community ownership, local relevance, democratic participation | >£150k-£800k |
| Cultural Innovation | Experimental practices challenging traditional arts boundaries | Artistic risk, new audience engagement, sector influence | >£100k-£1.2M |
| Place-Based Excellence | Organisations central to their local cultural ecosystem | Economic impact, cultural leadership, community anchor role | >£300k-£2M |
| National Significance | Organisations with UK-wide cultural influence and reach | International profile, sector leadership, innovation dissemination | >£1M-£5M+ |
What's Changed for Existing Portfolio Organisations
Critical Changes for Renewals:
- • Community Governance: Must demonstrate meaningful community involvement in decision-making
- • Local Anchoring: Need to show how you're embedded in and essential to local cultural ecology
- • Diversity Leadership: Leadership and governance must reflect community demographics
- • Economic Justice: Pay ratios, living wage compliance, and economic democracy measures
- • Environmental Action: Credible net-zero plans with interim targets and annual reporting
Development Funding: Your Gateway Strategy
Development funding has become crucial for organisations needing to build capacity around the Investment Principles before applying for larger grants.
Strategic Use of Development Funding
Organisational Development
- • Community engagement strategy development
- • Governance restructuring for inclusion
- • Environmental impact assessment and planning
- • Digital capacity building for accessibility
- • Partnership and collaboration frameworks
Artistic Development
- • Community-responsive artistic research
- • Collaborative creation processes
- • Accessibility innovation in artistic practice
- • Cross-cultural artistic exchange
- • Technology integration for inclusion
Application Success Strategies
Winning ACE applications in 2025 require fundamentally different approaches than previous years. Success depends on demonstrating genuine community connection and systemic thinking.
The Community Evidence Framework
Essential Evidence Types:
Relationship Evidence:
- • Letters from community leaders and residents
- • Documentation of ongoing partnerships
- • Evidence of community-led decision making
- • Testimonials from previous participants
Impact Evidence:
- • Quantified community outcomes
- • Case studies of individual transformation
- • Economic impact data
- • Cultural asset development evidence
Narrative Structures That Win
1. Community-First Narrative
Start with community voice and need, position your organisation as responsive partner rather than leader.
"Residents of Brookfield estate identified a lack of intergenerational connection as their primary concern. Through our listening sessions, they proposed..."
2. Systems Change Narrative
Demonstrate understanding of how your work contributes to broader cultural and social transformation.
"This project doesn't just create performances—it builds the cultural infrastructure that enables communities to tell their own stories sustainably..."
3. Innovation Through Inclusion Narrative
Show how inclusive practices drive artistic innovation and create new forms of cultural expression.
"By centering neurodivergent perspectives in our creative process, we've developed entirely new approaches to collective storytelling that..."
Common Application Mistakes to Avoid
The shift to Investment Principles has created new failure points that even experienced applicants are falling into.
❌ Mistake 1: Artist-Centric Language
Using language that positions the artist or organisation as the primary agent of change.
Instead of:
"We will bring high-quality theatre to underserved communities"
Try:
"We will support communities to develop their own theatrical voices and stories"
❌ Mistake 2: Vague Community References
Generic mentions of "community engagement" without specific relationships or evidence.
Solution:
Name specific community partners, include direct quotes, provide evidence of ongoing relationships.
❌ Mistake 3: Tokenistic Diversity Approaches
Surface-level diversity initiatives without addressing power, representation, or systemic change.
Solution:
Demonstrate concrete changes to governance, leadership, and decision-making processes.
Timeline and Tactical Planning
Success with ACE requires long-term relationship building and strategic positioning. Here's how to approach the 2025 funding calendar.
2025 ACE Funding Calendar
Portfolio Renewal Decisions
March 2025Current Portfolio organisations learn renewal outcomes
Creative Communities Launch
April 2025First community assemblies begin, artist applications open
New Portfolio Applications Open
September 2025Limited new Portfolio places available, highly competitive
Development Funding
RollingApplications accepted year-round, 6-week decision turnaround
Strategic Preparation Timeline
Six Months Before Application
- • Begin community relationship building
- • Apply for development funding if needed
- • Start governance and leadership development
- • Engage with ACE relationship managers
Three Months Before Application
- • Gather community evidence and testimonials
- • Develop collaborative project proposals
- • Complete environmental and accessibility audits
- • Begin application writing with community input
One Month Before Submission
- • Community review and approval of application
- • Final budgets and partnership agreements
- • External review by ACE-experienced assessors
- • Submission preparation and checking
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Key Takeaways
ACE 2025 Success Strategy:
- Investment Principles require genuine community partnership, not just engagement
- Creative Communities programme democratises arts funding through community assemblies
- Development funding essential for building Investment Principles capacity
- Environmental and social responsibility now mandatory for all funding levels
- Success requires 6+ months of strategic relationship building and evidence gathering
Arts Council England's transformation represents the future of cultural funding—community-led, environmentally responsible, and systemically focused. Organisations that embrace this shift will thrive; those that resist will find themselves increasingly marginalised.
The Investment Principles aren't just funding criteria—they're a manifesto for cultural democracy. Success requires genuine commitment to these values, not just tick-box compliance.