A THREAT of “cultural carnage” across Scotland’s creative scene appears to have been lifted, with spending for the arts due to be protected in today’s Budget.

After fears of significant jobs losses in the sector because of falling National Lottery funding, The Herald understands the Scottish Government will step in to make up the shortfall.

Finance Secretary Derek Mackay will set out the plan at Holyrood this afternoon.

It follows a high-profile campaign by leading figures in Scotland’s arts scene, which supports 70,000 jobs, and the funding body Creative Scotland.

A key concern has been a steep decline in lottery funding, which supplied 40 per cent of Creative Scotland’s grant income last year. In 2012/13, the lottery provided £40.8 million while the Scottish Government gave £45.9m.

But by 2016/17 this had fallen to £26.9m from the lottery and £40.3m from government.

Last month Creative Scotland chairman Ben Thomson wrote to UK Culture Secretary Karen Bradley warning that expected further declines would be devastating.

He told her: “We estimate the impact of the reduction will lead to the significant loss of jobs and some £30m of revenue generated from other sources to the arts in Scotland.

“We believe it will negatively impact the vibrancy of Scotland’s arts sector, is of critical concern and has a high public profile.”

Ruth Wishart, journalist and Creative Scotland board member, also revealed in The Sunday Herald that a presentation of several funding scenarios at the funding body had been a “truly jaw-dropping moment”.

She said: “The worst-case scenario could best be described as cultural carnage – a whole swathe of our artistic community unable to be funded, many of whom would inevitably go to the wall as a result.”

She said the slide in lottery cash was “utterly crucial” to the bleak outlook.

In the last three-year funding cycle Creative Scotland gives £100m to 118 regularly funded organisations (RFOs), such as theatres, galleries and festivals, of which £15m came from lottery funding.

However the money is due to run out in March, and the squeeze on lottery funds had led to Creative Scotland warning of a tight budget for RFOs in future years.

Government sources said they had made a conscious effort to “back the arts”.

The Herald understands that, although the Budget will not provide a major uplift in funding, cultural expenditure has not been targeted for cuts. One source said some may have thought arts funding was an “easy target”, but the Scottish Government has made an effort to maintain funding.

Officials have been working for a year to find ways to support cultural funding, including urging the UK Government to take measures to offset falling Lottery revenues.

The talks with Westminster have led to no change, however, so measures to offset the losses have been considered for the Scottish Budget instead.

One insider said the arts world, which has been lobbying for protected budgets, would be “pleasantly surprised” by the measures to be announced.

The source said not to expect a bonanza for the arts, but the creative industries and the cultural world’s importance for the country would be duly recognised.