The Library Association hosted a meeting of interested players in 1996.  A fresh impetus was provided by the establishment of Arts for Everyone, the Arts Council's lottery funding programme.  A4E, as it was known, offered a great opportunity for libraries to be recognised as a player in audience development for literature.  

A steering group was formed and the discussion ranged widely.  Some of the proposals discussed did not fit the A4E criteria but were important in their own right and led to other results, for example, the discussion of the role of a libraries' marketing and advocacy agency led to the creation of The Reading Partnership  in 1998.

At this point the Library Association decided it did not wish to lead the application as it might be making another A4E application in its own right.  However, the LA generously agreed to fund the writing of a bid and the recently formed Society of Chief Librarians agreed to become the lead applicant.  Tom Forrest, Director of Cultural Services for Oxfordshire and the SCL Adviser on Literature took the lead in managing the bid. 

The twin propellers of A4E were 'benefit to end users' and 'additionality'.  These helped to shape the form of Branching Out.  It was necessary to show direct benefit to readers, not just to libraries or librarians.  And the activity proposed had to be additional to the applicant's core activity.  Reaching new audiences with new books became the key here.

The application was submitted in October 1997.  In June 1998 SCL was awarded a grant of £300,000, the largest literature grant made in that round of lottery funding.  SCL appointed a Management Board with Tom Forrest as Chair.  Tenders were invited for the work of directing the project and Opening the Book Ltd won the contract.  Branching Out was under way.