George Osborne announces Arts Council will be protected from cuts

National museums will also remain free to enter, but the Department for Culture Media and Sport (DCMS) will have its administration budget cut by 20 per cent.

Osborne said in his speech yesterday: "One of the best investments we can make as a nation is in our extraordinary arts, museums, heritage, media and sport."

He continued to say: "deep cuts [to the arts] are a false economy" and that the area returns one quarter of a trillion pounds from a £1 billion investment.

He also promised a tax credit to support museum exhibitions.

Arts Council England's grant is expected to rise by between 1-2% over the next five years.

The settlement means it can continue to fund its 684 theatres, museums, galleries, dance, opera and ballet companies and other cultural organisations at current levels until 2018.

Minister of State at the DCMS, Ed Vaizey, said the Comprehensive Spending Review settlement for his department was "the best news the [subsidised] arts have had for six years," adding: "The arts have proved their worth to The Treasury. Ask any visiting dignitary or tourist in the street and they want to go to our museums and theatre."

People took to Twitter to discuss the announcements.

Almost more important is Chancellor's quote about arts being "the best investment we can make". That's gold dust for future negotiations.

Am I hearing this right. No cut to the arts council?! Unspecified increase? #spendingreview #unexpected