Culture secretary Jeremy Hunt has announced plans to introduce new legislation that will see the arts, heritage and sport each receive £50m additional funding each year.

Hunt's proposals will see the share of Lottery funding directed towards arts, heritage and sports good causes increase to 20 per cent, with the Big Lottery Fund (BIG) receiving the remaining 40 per cent.

Under the new proposals, BIG's share will be cut from 50 to 46 per cent in 2011-12, before being reduced to 40 per cent in 2012-13 - once the diversion of funds towards the London Olympics ends.

In a speech to arts leaders and funders at The Roundhouse in London, the culture secretary said legislation would be put before Parliament in September and will see three key principles underpin policy decisions.

Hunt advocated an economy of public and private support for the arts industry with incentives to encourage philanthropy; wider access to high quality arts; and a commitment to the arms-length model.

The gift aid system is set to be reformed, while the new government is set to explore new ways of developing the Acceptance in Lieu scheme to allow donors to contribute works of art during their lifetimes.

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.

"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."

Image: Conservative Party/Paul Toeman