By Andrew Holt

Sport, the arts and heritage will get more National Lottery funding, but less will go to the Big Lottery Fund, which supports community groups and projects that improve health, education and the environment, under plans outlined by new Culture Secretary Jeremy Hunt.

Hunt said: "The lottery was set up to fund grassroots initiatives, not as a pot of money for ministers to dip into. At times like this it is even more important to the arts, heritage and sports sectors which is why I am wasting no time in making these changes."

Hunt was keen to stress that he would be focused on the work of voluntary and community organisations.

"And, because I want to see a rise in the amount going to voluntary and community organisations, I will make sure that funds to that sector are protected with the Big Lottery fund focusing its support exclusively on that sector."

Commenting, Stuart Etherington, chief executive of the National Council for Voluntary Organisations (NCVO) said : "We will be looking carefully at the proposals and consulting our members about them, when they are published later this week.

"However we would be very concerned at any change which resulted in less money for voluntary and community organisations, particularly given the role our organisations will need to play in helping to make the vision of the 'Big Society' a reality."

Hunt said arts and heritage would benefit by £50m a year each from changes to the share of cash allocated to them.

Changes are set to be be done in stages with arts, heritage and sport receiving an increase to 18% in 2011-12 and then 20% the following year.

Hunt also promised reform of the Gift Aid scheme, to make it simpler and less restrictive.

But tax breaks for philanthropic giving, set-out in the 2004 Goodison Report, are currently not on the table.

Hunt added: "For me culture is not just about the jobs in the creative industries, not just about its economic impact, and not just about the thing that's enjoyed by the millions who go to the cinema, theatre and concerts every week, or visit our museums and galleries.

"Rather, it's what defines us as a civilised nation. It helps us understand the world around us, explain it and sometimes escape from it - and we are all the better for it."

There will now be a three month consultation on the changes in the way Lottery cash is handed out.

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