Private investment in arts falls by 7%, as recession threatens to further damage UK cultural funding ecology

Arts & Business says ...

“As we anticipated, these latest figures show a reduction, though not a disastrous one. We would like to be optimistic, but predict the worst is yet to come, with 2010/11 being the low-point.

We must remember that despite the economic difficulties, the UK’s arts fundraisers have still secured close to £655 million from the private sector – which is a remarkable achievement.  We must now give them every opportunity to maximise their skills and ideas.

In this fiscal climate there is still enormous pressure on the arts. With much focus on public expenditure budgets, many are looking to the private sector to contribute more – we believe it can. When business’ see that attendances are on average up by 12%; they will profit by targeting these markets and their future consumers.

Arts & Business’ latest market trend report (Autumn 2009) indicated that confidence levels for private sector investment in the arts will begin to pick up by 2013.

Even in these leaner times, public and private money continue to go absolutely hand in hand. Any potential cuts to the public purse will have a detrimental knock-on effect on private investment.

For arts and culture to continue to flourish Arts & Business is calling for three policy initiatives to stimulate private sector funds.  Firstly new far-reaching incentive schemes to encourage businesses.  Secondly, the training and knowledge to deepen a pro-enterprise and innovation culture throughout the arts. Thirdly, we propose new challenge funds to grow and inspire cultural philanthropy, which has huge potential for growth.

Be clear - there is no magic bullet for cultural philanthropy. We need challenge fund programmes to motivate individuals; yet wider recognition and celebration of philanthropists; better use of existing and potentially new tax incentives (the extent to which Higher Rate Tax Paying donors are claiming the tax breaks due to them); a stronger provision of legacies; enhanced donor care and the training of the real skills to make the case for culture to potential donors.  These are all part of any future growth.”
Colin Tweedy, Chief Executive of Arts & Business


"Philanthropy has more than doubled in the last ten years, so, while this small decline due to the global recession is disappointing, I am confident it will be temporary. It emphasises the importance of Government support for culture and the arts and maintaining that support. Britain's culture and the arts have just had their most successful year ever, capping a remarkable decade. Our creative sector is now number one in the world in its importance to our prosperity, so it's vital we continue to support it and thank those generous individuals and organisations who do so too.”
 Ben Bradshaw, Culture Secretary

"These figures are disappointing and reflects the effects of the economic recession.  This is a wake-up call that we need to get our economy back on track, in order to return to the levels of private giving we enjoyed in the 1990s and 2000s.  Economic recovery is as crucial for the arts as it is for all parts of our economy"
Ed Vaizey, Shadow Arts Minister

“With the nation’s arts budgets dwindling, these figures are a significant cause for concern. Philanthropists and private sector organisations are the unsung heroes of arts and culture. Their helping hand deserves greater recognition. The Prime Minister and his cabinet colleagues should publicly celebrate and thank them for their contributions.”
Don Foster MP, Shadow Secretary for Culture, Media and Sport 

“The current health of the arts in this country is due in no small part to its mixed economy of funding – a robust combination of public and private funds, and self generated income, which stands up well in a fluctuating economic environment.

With these latest figures from Arts & Business illustrating the increasing pressures on private investment, sustained levels of public funding becomes even more vital. Private money likes to follow success, not to prop up something that looks vulnerable. Sustained government investment in the arts is therefore key to ensuring the continued support of private philanthropists.

The Arts Council must continue to work with arts organisations to ensure they are best placed to make the most of philanthropic giving.”
Alan Davey, Chief Executive, Arts Council England 

 

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The Spectator - The arts crunch 

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