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The arts spending crunch is prompting a new climate of collaboration among former rivals, with organisations clubbing together to share knowledge and resources, says James Pickford.

It came as a serious blow to the Nottingham Playhouse last month when its entire funding from Nottinghamshire county council was cut as a result of the public spending crunch.

The Midlands theatre, whose rich history includes performances by actors such as Ian McKellen and Peter Ustinov, said the slashing of the £94,500 annual grant was “likely to mean smaller-scale plays, with fewer actors”.

It is a predicament shared by a growing number of arts organisations across the UK. Theatres, galleries and local arts groups have been severely challenged by government cuts, which have reduced the grant funding for Arts Council England, the main public funding body, by one-third over the past four years... Keep reading on Financial Times