Artists are to be handed unprecedented influence over British cultural life under proposals published by the Government tomorrow.

James Purnell, the Culture, Media and Sport Secretary, told The Times that all arts organisations hoping to qualify for public funding would need at least two artists on their board in future.

At the same time, peer review bodies of artists and arts administrators will play a crucial role in reviewing Arts Council grants. They will support a move “from measurement to judgment” in which subsidies will reward “excellence” rather than the fulfilment of targets such as audience size and ethnic-minority participation.

The changes were broadly welcomed by leading figures in the arts world. However, there were warnings of potential conflicts of interest and a period of turmoil. Arts funding is a particularly sensitive topic. Under plans announced last month, three quarters of the 990 bodies that receive Arts Council England grants will receive inflation-level or above-inflation increases this year but nearly 200 have had theirs cut altogether from April.

The new recommendations are contained in a policy review, Supporting Excellence in the Arts, written by Sir Brian McMaster, a former director of the Edinburgh International Festival. It suggests that what is at stake is “a true Golden Age” in which Britain produces “the greatest art yet created . . . We could be on the verge of another Renaissance”. If this is to be a realistic ambition, the report states, “the governance structure of cultural organisations and in particular the role of the board is fundamental”.

Mr Purnell said: “In the last ten years we have formed an idea that the arts belong to everyone. The next step is, having achieved that, how can we empower artists to become even better? We want to put a real emphasis on artists being at the heart of this.”

Nicholas Hytner, the director of the National Theatre, was among those consulted. He said that the idea would force artists to accept “responsibility, as well as money” from the Government.Alistair Spalding, the artistic director of Sadler’s Wells, welcomed the emphasis on quality but added: “I wouldn’t want to be dictated to and there are sometimes conflicts of interest.”

For smaller regional organisations, the hazards are different. Gavin Stride, the artistic director of Farnham Maltings, a community arts centre in Surrey, expected a period of disruption while artists adjusted. “It will take a leap of faith but it has to be a really good thing in the long term.”

Nick Brace, the artistic director of Actiontrack in Somerset, added: “Just having an artist is not enough. You need someone who is sensitive to what you’re doing. These people are increasingly hard to find.”

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