The Arts Council has hit back at criticism by MPs over the way it has used lottery cash.

Chiefs at the Arts Council England rejected claims on Friday by the influential Commons public accounts committee that money from the National Lottery had been wasted.

The council, which allocates arts funding, pointed to the committee's finding that "sensible" things had been done since it was last investigated by MPs in 1996.

MPs found that since 15 Arts Council England initiatives were assessed in December 1999, improvements have been made to management of good causes cash.

Late

Of the 15 projects examined then, nine were completed late, six went over budget by 20 per cent or more and the total cost overrun was £94 million.

The council came in for criticism over two projects including the National Centre for Popular Music which had collapsed and for the fact that £78 million has been spent on five other schemes which are in "financial difficulty".

Its chief executive claimed the National Centre for Popular Music was only one out of 2,000 projects to have closed and its own research had found cost over-run levels below that of the private sector.

A second project which had closed, the Dovecote Arts Centre in Stockton-on-Tees, which cost the national lottery £19 million has now reopened.

Defence

"Most of these projects date back to 1996. We have acted on all the PAC recommendations made since then," said Arts Council chief executive Peter Hewitt.

"Almost all of the 15 projects considered by the PAC, including the Sadler's Wells Theatre, the Royal Court Theatre, the Royal Opera House, Milton Keynes Theatre and Gallery and Manchester Royal Exchange are a fantastic success with the public."

MPs also urged the council to switch its focus away from projects in London.

Committee chairman Edward Leigh said gamblers would not be impressed by the findings and that the money should be spread more widely.

"Lottery players will be rightly unimpressed that £19 million has been spent by Arts Council England on two projects that have closed, denying that money to other good causes," he said.

"Arts Council England must make sure the changes it has made to its approach pay off in delivering viable projects based on a proper strategy and realistic projections of visitor numbers.

"I also want to see Arts Council England getting more lottery funding to small bodies and communities outside London."

Praise

However since the 1999 report the agency has taken action to ensure that a more rigorous approach is taken to the allocation of lottery funds and this was applauded by the MPs.

"All in all the things that Arts Council England has done are sensible and in the spirit of the committee’s previous report on these projects," they concluded.

But the Department for Culture, Media and Sport was told to ensure that the lessons learned by the Arts Council were passed on to other lottery distributors.