Arts funding has been criticised by the Liberal Democrats for failing to encourage all talent and ability.

Launching a new arts policy for the party on Monday, Charles Kennedy claimed that artists and artistic diversity was not being encouraged by the government.

The leader of the Liberal Democrats, speaking during a visit to the Mountview Academy of Theatre Arts in London, pledged to restore funding for free instrument tuition to "at least" 1990-levels and to train more specialist art teachers.

Other key commitments included lowering the cost of maintaining listed buildings by cutting VAT on renovation work and establishing a fund to bring artists to schools, hospitals and prisons.

Kennedy also called for the devolving of all funding decisions, except those involving national companies, from the Department of Culture Media and Sport to the regional arts boards.

He pledged to establish free internet access in libraries and to replace the Millennium Commission with a Local Initiatives Fund which would give grants to local projects.

"The arts are central to a strong economy and thriving communities. Our creative industries boost employment through exports and tourism, and enhance Britain's international prestige," Kennedy said.

Kennedy added: "The case for the arts is about more than economics. Promoting equality of opportunity means encouraging everybody's talents and abilities. Everyone should have the opportunity to explore their creativity through access to the arts."