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The Government wishes to restore the National Lottery to its original purpose.    A priority element of this is the restoration of the shares of the National Lottery Distribution Fund to 20% for each of the good causes of sport, heritage and the arts.
   
l am seeking your views on this proposed change.   The change will be effected by means of a Statutory Instrument made under Section 28 of the National Lottery etc. Act 1993.   A draft is enclosed for your information.  
   
I want to ensure that, in making the transition to the new Lottery shares,  the levels of grant available to the voluntary and community sector are protected, so I propose to make the change in two stages:

On 1 April 2011, to increase the share apportionment for arts, heritage and sport to 18% each of the Lottery and reduce the Big Lottery Fund to 46%.  
Then on 1 April 2012, to increase the shares for arts, heritage and sport to 20% each of the Lottery and to reduce the apportionment share for the Big Lottery Fund to 40%.   

I would be interested to have your views on the proposal and the timing for its implementation, and how the change is likely to affect you or the sector/s you represent.  In particular I would be grateful for your views on the following:

•	How would the change benefit you or the sector you represent?

•	How would the proposed change disadvantage you or the sector you represent?
For Lottery distributors:
•	What change, if any, would you expect to make to planned levels of grant budgets and payment forecasts.

For voluntary and community sector organisations:

•	What impact would the changes have on member organisations’ ability to deliver previously identified priorities or projects?

•	In your view will the change have any adverse or positive impact on particular groups,   taking into account race, gender, disability, age, faith/belief, sexual orientation, gender identity and socioeconomic equality?  How could impacts be avoided or mitigated.   Please provide evidence if possible.     

•	I will arrange for an initial draft Impact Assessment to be placed on the DCMS website (link below) and would be grateful for any evidence to inform that.

•	Do you have any other observations?
A list of the bodies I am consulting is annexed to this letter.  If you think there are further bodies which may be particularly affected and with whom I should consult, please send details to the email address below.   I will be making this letter, the draft Order, and a draft impact assessment available on the DCMS website shortly at http://www.dcms.gov.uk/consultations/7070.aspx

I would be grateful if you could respond, including any supporting material, within three months of the date of this letter (21 August 2010).   

Please send all responses to: lottery@culture.gsi.gov.uk

I will consider the responses to the consultation very carefully.   I anticipate being in a position to  lay the draft Statutory Instrument before Parliament after the Summer recess and it will be subject to Parliamentary scrutiny under the affirmative resolution procedure.

JEREMY HUNT