The British Film Institute’s budget is to be cut by 15% over four years, it was announced today (Oct 20) as part of the UK Government’s Spending Review.

On first glance, the grant in aid cut is not as significant as the BFI’s previously predicted 25%, although a spokesman for the organisation said that it was “still too early to say what the full impact is.”

Reacting to the news, the BFI’s director Amanda Nevill said that whilst the organisation had been “looking at the best options to protect our staff and all key activities, the reality is that the BFI will have to change shape and re-scale considerably over the next 12-18 months.”

She added that the organisation would “approach this challenge with imagination and courage and remodel the BFI so that its contribution to this country’s film success remains vital and valued.”

It is not clear at this stage whether any redundancies will be made.

The news comes during the middle of the BFI’s London Film Festival.

Today’s Spending Review also revealed that the total budget for the Department of Media, Culture and Sport will be reduced from £1.4bn to £1.1bn by 2014/2015.

Chancellor George Osborne said that there would be a 41% reduction in administration costs at the department. As part of the cuts, The Arts Council England will also see its budget being slashed.

He confirmed the abolition of 19 of the 55 DCMS-sponsored quangos. However the review shed no further light shed on a potential UKFC successor for the administration of the tax credit and lottery funding.

Secretary of State for Culture, Olympics, Media and Sport Jeremy Hunt, said of the cuts: “To deal with an unprecedented financial deficit we have been forced to make some incredibly difficult decisions. By cutting bureaucracy and waste and prioritising the services valued by the public we will be able to protect our sporting and cultural core for the long term.”

The Arts Council England is having its budget cut by almost 30%.