The arts world is threatening to withdraw cooperation from the Olympic Games as it fights funding cuts implemented by the Culture Secretary.

The Times has obtained figures that show the reduction in lottery funds to the arts since Labour came to power: from £356 million in 1997 to £275 million in 2006. This will drop further over the next five years after Tessa Jowell sanctioned a £675 million raid on “good causes” to pay for the 2012 Games.

Criticism of the funding cuts is being led by Peter Hewitt, the chief executive of Arts Council England. He said that the £63 million hole from his budget from 2009 will affect the arts at local level in every corner of England.

The criticism comes only weeks after Tony Blair made a speech at Tate Modern in which he heralded a “golden age” of arts in the ten years since Labour came to power. His claims that culture was core to the Government’s work has provoked disbelief among many in the arts world. Campaigners against the cuts said that they were a betrayal of the promise that there would be no going back to “boom and bust” arts funding.

Privately ministers say that the arts have had ten good years, and must face a squeeze to pay for the Olympics.

Mr Hewitt called on Ms Jowell to put more towards culture from the Olympics budget, and called on the Treasury to consider an above-inflation increase to the Culture Department. He said: “Anything less and the arts sector may, sadly, have to tell the Government that it is not able to deliver a large proportion of the much-vaunted cultural Olympics.”

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