HUNDREDS of arts organisations have lost their funding in what Arts Council England's (ACE) chairwoman Dame Liz Forgan described as "a series of painful decisions".

Around 1,300 theatres, galleries and arts groups applied for funding under the new regime imposed after the Government spending review cut ACEs annual grant.

Dame Liz said: "This is about a resilient future for the arts in England. We have taken the brave path of strategic choices, not salami slices which has meant some painful decisions, and it is with great regret that we have to cease funding some good organisations."

ACE announced 695 organisations had been successful in their applications for funding from 2012 to 2015, including 110 new groups.

But that is down on the 849 organisations funded under the old regime.

Of the groups that previously received funding and continue to do so, more than 300 face a cut in real terms in their grants.

One of the biggest losers was the Institute of Contemporary Arts in central London which faces a cut of 42.5 per cent.

ACE chief executive Alan Davey said the group, which will receive £900,000 a year under the new settlement, was still getting a good amount of money.

He said: "It's an amount of money with which they can do some significant work."

The DCMS said a rise in lottery funding meant ACEs budget would reduce by 11.8% in real terms over four years.

It will receive an increase in lottery money from £149m in 2010/11 to £223m in 2014/15 but it faces restrictions, which were set down when the lottery was created, on how it can be used.

Lottery funds of £18m will be spent to support touring groups and more than £10m will be spent on education projects.

The Government has also asked ACE to cut the amount of money it spends on its own administration by 50 per cent.

A spokesman for the Department for Culture, Media and Sport (DCMS) said the Government had worked hard to ensure long-term financial viability of the arts.

He added: "That includes minimising the impact on frontline arts organisations, cutting back on admin costs, increasing the amount of lottery funding going to the arts, and increasing the amount of private finance invested in arts and culture."

The organisation said eight of the nine groups which received the most funding under the old regime would see a cut in their grants.

Mr Davey said large organisations had to act as good citizens, adding: "It could be helping smaller organisations with fundraising, spreading the expertise and knowledge in those organisations."

Shadow Culture Secretary Ivan Lewis said the cuts would have "a chilling impact" and warned some organisations would close down and others would have to increase ticket prices.

He said: "I fear a return to the 80s and 90s when the arts were for the few, not the many."

Has your organisation been hit? Call Paul Cook on 01325-505069 or email newsdesk@nne.co.uk