Organisations funded by the Department for Culture, Media and Sport must cut at least 3 per cent from their budget by March 2011, the new coalition government has demanded.

Plans announced on Monday as part of the £6.2bn cuts hit Arts Council England worst, with the new government demanding savings of £19m (4 per cent) from its budget within the next financial year.

Arts Council England will now face the task of cutting services to individual art organisations at the same time as trying to protect frontline services.

“We will do our utmost to minimise the impact on the frontline but we cannot guarantee that there will be no effect,” said Dame Liz Forgan, chair of Arts Council England.

The 3 per cent across-the-board drop in funding will mean that English Heritage will lose £4.8m; the Tate £2.1m and the British Museum £1.8m.

“Putting the economy back on its feet and restoring the nation's finances are in the interests of all our sectors, particularly the arts and culture sectors,” said Culture Secretary Jeremy Hunt.

The budget for the 2010 Olympics has also been cut for the first time, with £27m worth of savings expected to be made.