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Department for Culture, Media and Sport faces unprecedented cuts after Treasury steps up emergency cost-cutting across public sector.

Government departments have been ordered by the Treasury to plan for unprecedented cuts of 40% in their budgets as the coalition widens the scope of its four-year austerity drive.

Health and international development are the only departments to escape the Treasury cuts after they were 'ringfenced' for the current parliament. Education and defence are the only other departments to be let off lightly.

The chief secretary to the Treasury, Danny Alexander has told all other departments - including the DCMS, Home Office, and the Department for Work and Pensions - to produce plans showing the impact of cuts of 25%, and at worst 40%.

In addition, all departments have been asked to show how they would slash day-to-day administration costs, excluding salaries, by 33% at the lower end and 50% at the higher end. This includes cuts to department websites which amount to a ridiculous £94.4m annually. The DCMS site is one of the cheapest to run, but still costs £119,000 each year.

However, some ministers have played down the demands. Philip Hammond, Secretary of State for Transport said: "We're not just going to take a salami slice off every department. Some areas could even see cuts lower than 25%".

Norman Smith, Chief political correspondent, BBC Radio 4 accused the government of scare-mongering. He said: "There's a standard trick used by car salesmen known as 'the hot water cold water' technique. Could these cuts possibly be the hot water to make us much more amenable to the rather less scorching prospect of 25% cuts?"

Nevertheless, the capability of the DCMS to handle any level of cuts efficiently is questionable. Speaking at the recent Learning at the Interface conference at the V&A, Culture Minister Ed Vaizey admitted "our in-year cuts were pretty unsophisticated...we didn't have much time to work them out. I tend to think in rather crude and superficial terms."

What is certain is there is a pressing need for a radically different approach to how the arts are effectively supported. Our reliance on state funding is dwindling by the day and we cannot wait for these further cuts to hit. Now is the time to collaborate and network efficiently in developing new ways of thinking about how the arts are sustainably funded. We must work together throughout this challenging period.

Click here » for video of Transport Secretary Philip Hammond addressing media speculation about 40% cuts to budgets.

The cost of government websites can be found here »

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First published: a-n.co.uk July 2010