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Arts organisations still in ‘funding limbo’ after crash of Arts Council England online portal

1 day ago
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Arts organisations and artists have said they are still in “funding limbo” with mounting bills and uncertain futures after this summer’s crash of Arts Council England’s grant processing platform,ACE’s online portal, Grantium, was used by artists to submit and manage funding applications,But when it crashed in July, it left thousands of applications for vital funding in doubt – a situation that persisted for several months until applications reopened in late September,Individual artists and leaders of arts institutions have said that, after the crash, they received less money than initially offered by ACE, which is also accused of revoking funding application extensions for organisations affected by the collapse of the portal,ACE claimed the outage was caused by the inability of Grantium to operate with high traffic at a time when the system was being updated.

The arms-length arts funder currently distributes about £500m of public money and more than £250m of national lottery money annually, while employing 650 people.Grantium launched in 2016 and was heralded as a system that would “help to bring [ACE] into the 21st century”.It was supposed to cut out the bureaucracy of the old paper-based system, be “fit for purpose” and create estimated annual savings of £1m for ACE.But many people the Guardian spoke to described chaos and confusion in the aftermath of the Grantium shutdown.Pui-Ka Cheng is the writer, director and fundraiser for Drift, an ACE-funded project that had performances at the Lowry’s Aldridge Studio in Salford earlier this month.

Drift received approval from Grantium on 17 July, according to Cheng.But she encountered difficulties in submitting her bank account details shortly afterwards.When Grantium started having problems, Cheng sent numerous emails, made phone calls and submitted inquiries through the ACE website “without receiving proper assistance.Unfortunately, we only received incorrect links in response.”She added: “We have not received any funding from the Arts Council.

Consequently, none of our team members have received artist fees and I have had to cover all expenses from my personal savings.”Grantium has been criticised for years by those who have to use it.In May 2024, an open letter was sent to Dame Mary Archer, who was at that time heading a review into ACE, which is now led by Margaret Hodge.Figures including Shakespeare’s Globe chief executive, Stella Kanu, Actors Touring Company boss, Matthew Xia, and Live Theatre artistic director, Jack McNamara, called for a “transformation” of Grantium to make the grant process more “streamlined, equitable and transparent”.Pepa Duarte, an actor and theatre maker in London, said the outage caused problems for a £28,000 grant she received from ACE for her touring exhibition Sharing Ingredients.

Duarte said ACE ended up underpaying her by £1,500 – money that would have covered her rent.Grantium collapsed when Duarte was due to file her final report, which includes income and expenditure, and is needed before the final payment is received from ACE.After weeks of being unable to submit her report, Duarte was asked to do it all manually in a Word document.“I had to put my expenditure in line by line,” she said.“You can imagine, with the amount of money these grants signify, trying to do it like that.

I had nothing to support the maths of it all,”Duarte said that previously ACE would assist if an error was made or the final report missed, but after the Grantium crash, she struggled to get replies from ACE, which eventually claimed she had underspent and therefore her final payment was lowered,Sign up to The GuideGet our weekly pop culture email, free in your inbox every Fridayafter newsletter promotion“The difference in the money they’re not paying me might be very little for them, but for me it’s two or three months of rent,” she said,“Artists shouldn’t be paying the price for the chaos they’ve found themselves in,”Other arts professionals have described a “cruel” bureaucratic process where they seemed to be punished because of the extra workload caused by the Grantium crash.

Jo Hunter, the co-founder and chief executive of 64 Million Artists, the Gloucestershire-based arts provider, told the Guardian her organisation had been given an extension to apply for grant funding this summer,But after the Grantium crash, the organisation was told that extension had been revoked, meaning that the company – which is closing its public arm – had to rethink the final few months of its programme and look elsewhere for funding,“It was a ‘computer says no’ moment in which no one could seem to interrupt the system,” she said,The musician Brian Eno eventually stepped in and donated £10,000 but many organisations haven’t been as fortunate,Since the Grantium outage, arts unions have worked to highlight the impact the crash created for artists.

In August, Equity said the “system meltdown is just the latest in a litany of governance failures.Every time it is struggling artists who pay the price.”Reaction to ACE’s new system and whether it offers an improvement on Grantium, has been mixed.Daniel Bernstein, the chief executive of Emergency Exit Arts, said the system “feels clunkier”.Last month, the culture secretary, Lisa Nandy, said there would be no extra financial support available to overhaul ACE’s grant application system.

“It is a matter for them,” Nandy said.“We didn’t get additional money in the spending review to give them a new system.”An Arts Council England spokesperson said: “Following the technical issues we experienced over the summer, we devised new application processes to ensure artists and organisations could access our funding as straightforwardly as possible.We’re sorry for the disruption caused by the original outage and grateful for the patience applicants showed as we worked to put alternatives in place.These are now up and running, and working well.

“Since that point, we have made over 3,900 grant payments totalling over £203m to individuals and organisations around the country,When delivering any grant funding at this sort of scale, it’s invariably the case that a small number of applicants will encounter some issues,Whenever this happens, we work as quickly as we can to put this right, so applications are processed and payments are made as swiftly as possible,”
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Teenage boys using ‘personalised’ AI for therapy and romance, survey finds

The “hyper-personalised” nature of AI bots is drawing in teenage boys who now use them for therapy, companionship and relationships, according to research.A survey of boys in secondary schools by Male Allies UK found that just over a third said they were considering the idea of an AI friend, with growing concern about the rise of AI therapists and girlfriends.The research comes as character.ai, the popular artificial intelligence chatbot startup, announced a total ban on teens from engaging in open-ended conversations with its AI chatbots, which millions of people use for romantic, therapeutic and other conversations.Lee Chambers, the founder and chief executive of Male Allies UK, said: “We’ve got a situation where lots of parents still think that teenagers are just using AI to cheat on their homework

2 days ago
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Microsoft reports strong earnings as Azure hit by major outage

Microsoft blew off concerns of overspending on AI on Wednesday, reporting elevated earnings even as it faced an outage of its cloud computing service, Azure, and its office software suite, 365. The strong earnings report comes a day after a deal with OpenAI pushed the value of the tech giant to more than $4tn.After its Xbox and investor relations pages went down, the company issued a statement that said: “We are working to address an issue affecting Azure Front Door that is impacting the availability of some services.”The outage did not dampen the software giant’s financial outlook. The company reported first-quarter earnings of $3

2 days ago
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Meta reports mixed financial results amid spree of AI hiring and spending

Meta reported mixed financial results for the third quarter of 2025. The company brought in record quarterly revenue but reported a major tax bill that dampened earnings per share, the company announced on Wednesday. The financial results come as Meta ends a multibillion-dollar hiring spree focused on artificial intelligence talent.The tech giant earned $51.24bn in quarterly revenue, beating Wall Street expectations and the company’s own projections for third-quarter sales

2 days ago
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Google parent Alphabet beats forecasts with first $100bn quarter

Google’s parent company, Alphabet, displayed steady growth in its core advertising business and cloud computing division as it reported third-quarter earnings on Wednesday, beating Wall Street estimates as it reported its first quarter of $100bn in revenue.The company thrilled Wall Street – shares rose in after-hours trading – even as it announced that it would spend billions more than previously predicted. Alphabet raised its capital expenditure guidance in financial filings, declaring it would spend between $91bn and $93bn in the upcoming year, nearly all of it on infrastructure like datacenters to support artificial intelligence products, which are becoming an integral part of the company’s business. That estimate is up from an original declaration of $75bn in February and a revised figure of $85bn announced in July.The company reported total revenue of $102

2 days ago
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Nvidia becomes world’s first $5tn company amid stock market and AI boom

Nvidia has become the world’s first $5tn company as the artificial intelligence industry and wider US stock market boom. Just three months ago, the Silicon Valley chipmaker was the first to break through the barrier of $4tn in market value.In comparison, Nvidia’s value is greater than the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund (IMF). It has far outgrown its competitors in the chip industry, gaining momentum as numerous tech stocks have surged in recent days.Shortly after US stock markets opened on Wednesday, Nvidia’s shares touched $207

2 days ago
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Character.AI bans users under 18 after being sued over child’s suicide

The chatbot company Character.AI will ban users 18 and under from conversing with its virtual companions beginning in late November after months of legal scrutiny.The announced change comes after the company, which enables its users to create characters with which they can have open-ended conversations, faced tough questions over how these AI companions can affect teen and general mental health, including a lawsuit over a child’s suicide and a proposed bill that would ban minors from conversing with AI companions.“We’re making these changes to our under-18 platform in light of the evolving landscape around AI and teens,” the company wrote in its announcement. “We have seen recent news reports raising questions, and have received questions from regulators, about the content teens may encounter when chatting with AI and about how open-ended AI chat in general might affect teens, even when content controls work perfectly

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