Plans to merge Sport England and UK Sport have been revealed as part of a wider shake-up of the Department for Culture, Media and Sport's (DCMS) 55 arms-length bodies.
The Museums, Libraries and Archives Council (MLA) is set to be abolished along with the UK Film Council under the proposals, which were confirmed by culture secretary Jeremy Hunt yesterday (26 July).
Hunt's plans form part of the government's bid to reduce public expenditure and increase transparency, accountability and efficiency, with the functions of the axed bodies to be taken on by other organisations.
The decision to abolish the MLA is part of a bid to "focus efforts on essential front-line, essential services" and ensure "greater value for money", while the merger of UK Sport and Sport England is designed to increase efficiency.
Hunt said: "The government is committed to increasing the transparency and accountability of its public bodies, while at the same time reducing their number and cost.
"The changes I have proposed today would help us deliver fantastic culture, media and sport, while ensuring value for money for the public and transparency about where taxpayers' money is spent."
UK Sport chair Baroness Sue Campbell said that the announcement "goes further" than the organisation had been expecting, but said it would strive to ensure the "best solution" for UK sport.
Baroness Campbell said: "We will as always play our part in seeking the best solution for sport and seeking to make the delivery system as efficient as possible
"But equally we are very aware not only of the existing effectiveness of our operation but the incredible strides we have taken in high performance sport over the past decade."
Sport England chair Richard Lewis added: "We are clear that any solution must be one which benefits sport as a whole, particularly as we approach the milestone of two years to go until the London Olympic and Paralympic Games.
"We hope that discussions over the summer with the government, UK Sport and other Home Country sports councils will look at how best to maximise the combined expertise and efficiency of our organisations."
MLA chair Sir Andrew Motion and chief executive Roy Clare said: "Stormy seas call for cool heads and steady hands. The team in the MLA have worked tirelessly and with commendable commitment to develop the capacity of the organisation since 2007.
"Now, faced with an unforeseen degree of economic pressure, government has chosen to balance the books and to prioritise the rationalisation of its existing cultural agencies as a contribution."
Hunt's proposals also include a review of the role of English Heritage, the Heritage Lottery Fund and the National Heritage Memorial Fund, while also considering whether to alter the functions of VisitBritain and VisitEngland.
Elsewhere, The Theatres Trust will be declassified in order to allow it to act as an independent advisory body; a move that has been welcomed by the organisation.
A spokesperson for the trust said: "In recognition of the important role of The Theatres Trust, we are pleased to have received the assurance that we will continue as the national advisory public body for theatres, operating as an independent statutory advisory body.
"We will be working with the DCMS to ensure that this process is managed smoothly and there will be no impact on the trust's statutory work."
