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Thanks for your comments – I think you encapsulated the circular nature of funding re. research v. research support v. undergrad really well and as you say, if undergrad numbers (and abilities) drop the answer will need to be found.
I couldn’t help but relate prizes as being a form of funding (future funding at least) and always think of the Turner prize in the UK which always causes controversy with the ‘general public’ and perhaps that taints politicians’ views towards arts funding?
Cheers, Sarah Ross