by Simon Page BBC News Online

BBC News Online ends its investigation into lottery funding by looking at the changes being proposed to rectify this imbalance.

"It could be you" should become a reality for more lottery bidders

In 2002 the government conducted a review of the lottery, consulting with distributors, applicants, local authorities, players and non-players.

The findings will lead to proposals for changes to lottery funding in the summer of 2003.

But the reforms have already begun, particularly in terms of reaching areas of the country which have faired relatively badly in terms of funding.

Richard Caborn, Minister of State at the Department for Culture, Media and Sport, said: "Fair shares is an initiative which is run jointly by the Community Fund and the New Opportunities Fund.

"The scheme aims to target extra resources on disadvantaged areas that have received less than the average amount of Lottery money.

"For each area, a financial target has been set which aims to bring the area up to a median level of funding."

Making a difference

Richard Buxton, Chief Executive of the Community Fund, explained further: "Fair shares is not going to solve all the problems but will help us direct funds to areas which haven't done so well from the lottery.

"We are targeting the top 100 most deprived areas in Britain to ensure they do get their fair share.

"But we don't just want to throw money at schemes. It's about long-term change as a result of our funding."

The national lottery has been a tremendous success, raising more than �12bn for good causes. It is one of the most successful lotteries in the world. Richard Caborn MP Department for Culture, Media and Sport

This is perhaps the biggest change in the way lottery money is distributed. At its inception, the lottery tended to fund huge capital schemes, some of which failed in a high profile manner.

"In the past we have funded projects but we are now funding outcomes", said Mr Buxton.

"We want to know what difference the project will make. It's a different way of looking at projects which many people aren't used to, but we need to see a value and benefit from projects."

It is a view backed up by David McNeill of the Arts Council who said: "A priority now is filling in the gaps both geographically and culturally to reach the people and areas we have missed so far.

Small is beautiful

"All the distributors are making efforts to spread money evenly, but it's not just a case of slicing the cake and splitting it equally to the regions. They have to be the right projects in the right places."

Smaller grants are in fashion now. Through Awards For All and the merging of the New Opportunities and Community funds, the lottery is targeting community groups. To assist this aim further, the application forms are becoming less daunting.

The single enormous project may lose out to smaller schemes

Richard Caborn said: "In the past a common concern has been that application processes for Lottery funding were complicated and unclear.

"This was seen as a particular difficulty for smaller organisations and community groups who are less likely to be experienced in making applications for funding."

However, by focusing on smaller community based projects, the lottery risks losing the publicity which comes from the grand schemes.

Participants in last year's consultation recommended placing the lottery crossed fingers symbol on all projects which have benefited from grants.

Mr Caborn told BBC News Online: "It's very clear from the consultation process that people don't feel they know enough about how lottery money is spent, or that there is enough transparency in funding decisions.

"But you know, the national lottery has been a tremendous success, raising more than �12bn for good causes. It is one of the most successful lotteries in the world."