The Treasury has responded to industry concerns over arts funding in the run up to the comprehensive spending review, by urging organisations to raise issues directly with culture secretary James Purnell.

In a letter to the National Campaign for the Arts, Treasury chief secretary Andy Burnham asserted that the government continued to value the contribution of theatres across the country, and from the wider sector, in bringing cultural experiences to the public.

However, he stressed that it was not the Treasury’s place to determine financial support for the arts. Burnham wrote: “I must emphasise that it will be for the Secretary of State for Culture, Media and Sport to decide the level of funding for his department’s sponsored bodies, including Arts Council England, and I would advise you to make him aware of your concerns.”

The response comes in reaction to a joint letter drafted by Equity, Bectu, Musician’s Union, Theatrical Management Association, Dance UK, NCA and Independent Theatre Council, sent in May to then chancellor Gordon Brown, warning of the damaging consequences of the Olympic’s Lottery raid on the culture sector.

The seven organisations - representing employers, performers, artists, and technical staff - pressed Brown to address as a “matter of urgency” the uncertain financial situation of the arts, which is set to lose £137 million to the 2012 Games.

Burnham reiterated the government’s announcement that no existing Lottery projects would be affected by the cut in grants. He also asserted that the Department for Culture, Media and Sport and Mayor of London Ken Livingstone plan to share profits from the sale of land in the Olympic Park after the Games, with some of the money to be injected back into the Lottery to compensate for its additional contributions.

NCA director Louise de Winter told The Stage: “Of course NCA will be making a strong case to DCMS in support of funding for the arts as part of the CSR settlement, but we will continue to highlight the contribution the arts brings to the UK economy to the Treasury, as part of making the case for public investment in the arts.”