CULTURE bodies face “deep challenges” over funding, the head of Creative Scotland has told MSPs.

Iain Munro, acting chief executive of the nationwide agency, said it would take more than double the current level of Scottish Government funding to transform the country’s cultural sector.

The statements came as Munro gave evidence to the Scottish Parliament’s Culture Committee, which is holding an inquiry into the future of arts funding in Scotland.

He took over the top role at Creative Scotland after former head Janet Archer stepped down in the wake of a funding row.

The Holyrood inquiry was announced following earlier scrutiny of Creative Scotland’s handling of its cash allocation.

Munro told MSPs that Creative Scotland’s current direct funding package of £63 million – around 0.2% of the Government’s overall budget – is “not in tune with the actual potential here in terms of the creative industries being a growth sector for Scotland”.

That rate is less than that of Ireland, Norway and Sweden, MSPs were told.

Munro went on: “Realistically to get up to even 0.5% would be transformational enough in itself, which would take us up to £160m or so.

“We’ve got a very supportive Scottish Government and Cabinet Secretary and I’m very grateful for all that they continue to do to recognise culture and creativity and the resources that are there.

“But it is very clear to us that given the demand that we see coming through the organisation every day and the limitations on our resources and indeed the frustrations we have about our desire to fund even more, enhanced resources would definitely enable a transformational effect within what culture and the creative industries mean to the country.”

An evaluation Creative Scotland commissioned on its 2018-21 regular funding process called for a longer funding period, and a consideration of how to deal with groups which have been turned down for cash.

Munro said there may be a debate around organisations considered too important to Scotland’s cultural life to fail as cutbacks continue to affect the sector.

The cross-party panel heard: “There are deep challenges there in terms of the available resource versus the very clear demand.

“We’re at quite a sensitive tipping point because of the contraction of other resources that are available within the equation, local authorities in particular.”