I agree with John Adams. This does represent a strategic decision to centralise folk funding in areas with more metropolitan connections. The EFDSS is nominally a national body, but it has in recent years focussed itself more and more on London connections and initiatives (while totally reinvigorating itself). I totally agree with the idea of its archival and research roles being capiatal based, I am not at all clear that it's a good idea to keep the performancer and educational strings in centrist hands.
This discussion, of course, exactly mirrors the debates about the Arts Council itself which have gone on for decades. In which debates, incidentally, our very own library founder Vaughan Williams was hotly engaged. He wanted a grassroots devolved hedge-priest/barefoot-doctor kind of Arts Council. Maynard Keynes wanted the other London/ballet/classical kind. We all know who won!