Labor Talks Up British Art While Cutting the Budget
Britain's new Labor Government, which committed itself during election campaign to respecting budget ceilings fixed by Tories, has cut Government spending on the arts for coming year and indicates that it will do so again in 1998 and 1999; theaters, orchestras and opera companies are demoralized; photo of Chris Smith, new Secretary of State for Culture, and Nicholas Serota, director of Tate Gallery, burying time capsule at Tate's new $120 million modern art museum, being built beside Thames (M)