My view is far from cynical.
The funding of entertainment should not be a taxpayers matter.
Entertainment that is good thrives. Glastonbury (attended by a large number of people who post on these boards) requires not a penny of public funding, despite costing £40m to stage. Glastonbury Festival: Everything you want to know! - Helpful Holidays.
If orchestras and opera groups require public funding in order to exist, then their time has ended. There is no rational reason to produce 'entertainment' that people don't want to go and see being subsidised at public expense. Arts Council funding is 'luvvies' looking after the interests of other 'luvvies'. If it was a government contract being given to a relative of a member of the government, there would be howls of outrage, yet when it is one of the cultural elite doing the same thing for a similar person, silence.
We have people sleeping on the streets who could benefit from the money spent on arts funding, but obviously they are much less important than a theater being funded.
You believe that there are people sleeping on the streets that are not benefiting from money because it is going to arts funding?