Arts Council England (ACE) has shown its commitment to institutions outside of London and smaller arts organisations, after revealing details of its four-year National Portfolio for funding.

In October, ACE announced announced “ambitious” investment plans for 2018-2022, totalling £622m a year for its three main funding streams, with a record £409m designated to the National Portfolio’s annual budget.

Following numerous calls in recent years to overhaul the framework for cultural funding in England – particularly in addressing the funding disparity between London and the rest of the UK – the new National Portfolio promises a more diverse and regionally-balanced arts landscape.

Covering 831 organisations – an increase of 183 from 2015-2018 – the portfolio also for the first time includes museums and libraries, with 72 of the new applicants being museums and seven libraries.

In terms of funding for London and the rest of England, there has been a significant shift in recent years. For the 2012-2015 budget the split was 54-46 in favour of the rest of the country. For 2015-2018, the gap stands at 56-44. The 2018-2022 budget increases that gap again to 60-40.

According to a report from January, between 2010 and 2015, there has been a 20 per cent reduction in spending by local authorities, with further cuts expected through to 2020, creating “cultural cold spots” across Britain.

ACE has addressed this in its portfolio, with an extra £170m (US$218m, €191.5m) to be spent over the four year period outside of the capital – a 4.6 per cent increase to regional funding, with significantly increased investment in places like Reading, Bradford, Plymouth, Northumberland and Stoke.

The “big four” arts institutions – The National Theatre, the Royal Opera House, the Southbank Centre and the Royal Shakespeare Company – had all been asked by ACE to submit applications for 3 per cent less money, with that funding being reallocated across the UK.

“We’ve focused on ensuring that this is a diverse portfolio that will produce work relevant to the world we live in, as well as supporting fresh talent and artists from many different backgrounds and representing different perspectives. The arts, and society generally, urgently need to draw on the huge resources of our national diversity,” said ACE chief executive, Darren Henley.

“This portfolio has emerged from an exhaustive and rigorous process, from initial consultations with the sector, through to the final balancing decisions. Financially, we’ve committed all we can to this new portfolio because we believe that this is the right time. Up and down England there are organisations, villages, towns and cities that will benefit hugely from this investment.”