Funding cuts at a local level could result in “cultural cold spots” across Britain, according to the results of a recent government inquiry.

According to the report, between 2010 and 2015, there has been a 20 per cent reduction in spending by local authorities, with further cuts expected through to 2020. Further to this, “downward pressure” on local authority budgets is expected to continue, with the key Revenue Support Grant expected to halve in the next five years from £11.5bn in 2015 to £5.4bn in 2020.

Released in December, Countries of Culture: Funding and support for the arts outside London found that the biggest cultural impact of local authority cuts would fall where offerings were already weak.

The inquiry called for a better regional balance of culture funding, with a significant disparity between London and the rest of the UK, with London receiving the bulk of government funding for the arts despite being in a better position to raise alternative revenue than locations outside of the English capital.

“We are concerned that the largest sums of money that Arts Council England (ACE) allocates, through grant in aid, are still disproportionately given to London-based National Portfolio Organisations (NPO) and Major Partner Museums (MPM), even if many of those NPOs and MPMs tour the country or collaborate with regional and local cultural organisations,” said the report.

“We recognise London as a leading cultural asset, but would still like to see a better regional balance, particularly with regard to ACE grant-in-aid expenditure.

"We believe that cultural organisations in London have more opportunities to increase revenue through alternative streams than organisations in other parts of the country, through sponsorship and philanthropy for example.”

Last year the Museums Association (MA) flagged the risk of cultural cold spots, with areas dependent on public sector investment owing to ”wider socio-economic disadvantage and market failure” the ones to suffer.

“Proposals to increase fundraising capacity and to re-examine tax incentives for museums are welcome, but a more radical approach is needed to protect our most vulnerable museums,” said MA policy officer, Alistair Brown.

"The government should now take a strategic approach to museum funding across the country in order to address the widening gap between the cultural haves and have-nots.”

To read the full report, click here.