SCOTLAND'S Culture Secretary has warned the nation's arts funding body that she expects it to "take seriously" the views of artists and arts companies over its controversial funding changes.

Fiona Hyslop has written a new letter of guidance to Creative Scotland's chairman, Sir Sandy Crombie, which although broadly supportive of the body's work, contains several strongly worded explanations of what she expects from its work in the coming year. One of these is "greater emphasis to listening" to the concerns of the sector, which she expects the body to work with "collaboratively, exemplifying relationships of trust and respect".

A Government source last night said the "refreshed" letter of guidance had not been specifically prompted by the controversy over the removal of Flexible Funding to more than 40 arts companies, but was due as a matter of course, two years into the body's existence.

The source denied the letter was a "rap on the knuckles" for the arts body, which has around £60 million to spend on the arts and creative industries every year, but is a guide to what Ms Hyslop expects and what she thinks needs to be addressed in the future.

The Culture Secretary says in the letter that Creative Scotland should "anticipate and respond" to emerging issues and should have effective and early responses to artists and arts companies concerns.

The communication and language surrounding the funding changes, which were last week postponed, have been criticised by artists. Creative Scotland chief Andrew Dixon has also admitted the changes had failed.

Praising the body for its achievements, Ms Hyslop adds: "I also recognise the challenges for all in moving to a new delivery model and I know you are taking, and will continue to take seriously, the feedback from the sector. You are right to do so and it is what I expect from you. I fully recognise the role of the board and the actions of the chief executive [Mr Dixon] recently in heeding the concerns of the sector and adjusting approaches accordingly. This will need to be monitored.

"It is important Creative Scotland's planning and risk management processes anticipate and respond to any emerging issues and that effective communications and stakeholder engagement is given early consideration to ensure on an on-going basis effective and early response to the concerns of the sector."

Last week, Mr Dixon announced the fixed-term Flexible Funding for the arts companies had been extended for six months to next September to give companies more time to plan and for Creative Scotland to complete its reviews of the various arts sectors in its remit.

The companies can now apply for Lottery project funding in autumn this year and early next year.

In a section of the letter on "wider relationships", Ms Hyslop again stresses listening to the concerns of the sector. "Creative Scotland needs to give even greater emphasis to listening to and, wherever appropriate, acting upon, the concerns of the sector.

"It is important relationships are maintained, not just with those you fund, but with the whole sector - this is important in Scotland where our cultural activity is so valued and out cultural community inter-connected.

"Partnership with artists, and with local government recognising its key role, is a fundamental part of this."

A spokesman for Creative Scotland said there would be no comment on the letter.