Baroness Hodge, former chair of one of Westminster’s most influential select committees, is being lined up to lead a review of Arts Council England’s use of public money amid a growing backlash in the cultural sector over the direction of its funding.

Sky News has learnt that the Labour peer, who chaired the public accounts committee and was a minister during Gordon Brown‘s premiership, is close to being appointed by Lisa Nandy, the culture secretary.

Sources said her appointment to head the review of ACE’s use of taxpayers’ money was likely to be announced before Christmas.

It will place Baroness Hodge at the helm of what is expected to be a closely scrutinised inquiry, with the distribution of ACE’s funding outside London having become a particularly contentious area.

Many leading cultural figures have attacked the government’s decision to divert a chunk of the money away from the capital, where many of the most prominent arts institutions are based.

In March, the Department for Culture, Media and Sport (DCMS) announced that Dame Mary Archer, wife of the novelist Jeffrey, would lead the review, saying it would be the first such initiative since 2017.

The review was postponed, however, as a result of Rishi Sunak‘s decision to call the general election.

ACE is receiving an annual sum of £445m during the 2023-26 funding period, an increase from £410m in the last round.

A DCMS spokesperson said: “We do not comment on speculation.

“We will announce next steps on the review of Arts Council England in due course.”

Baroness Hodge has been contacted for comment.