Think twice before cutting arts funding, LGA tells councils
In the midst of austerity-driven cuts to council budgets, the Local Government Association says investing in the arts is generating growth and creating jobs.
(Basingstoke Festival 2012)
In a new report, the LGA, which represents councils in England and Wales, says for every £1 invested in the arts by local authorities, another £4 is generated.
As the government strives to cut the deficit, councils are struggling with cuts of 33 per cent and some have announced plans to take an axe to their arts budgets.
Moray, in the Highlands, is scrapping its entire £94,000 arts budget – the first council in Scotland to take action as drastic as this.
Somerset is also making 100 per cent cuts, while Newcastle, which had considered a 100 per cent cut, has now rowed back and is proposing to reduce its budget by half instead.
Westminster is proposing a 100 per cent cut, Wakefield and East Lindsey are increasing their culture budgets, and Bristol has decided to maintain its current spending on the arts.
The LGA’s message to councils is while cutting arts budgets is understandable under the circumstances, it may not be the right thing to do.
This coincides with a warning from the new chairman of Arts Council England, Sir Peter Bazalgette, who told the Financial Times last month that 100 per cent cuts were a “terrible mistake” that would damage councils’ relationships with his organisation.
‘Huge’ rewards
Councillor Flick Rea, chair of the LGA’s culture, tourism and sport board, said the rewards from investing in the arts “can be huge”, adding: “Different councils are facing very different pressures on funding, but what this report shows is there’s great potential out there to turn diminished arts budgets into local growth. Investment in the arts can deliver an impressive rate of return.”
But Cllr Rea said funding the arts “could become near-impossible were councils to suffer further budget cuts”.
The report says the arts provide almost a million jobs, while 67,000 cultural businesses contribute £28bn to the economy every year.
The tourism and hospitality industries are the main beneficiaries of arts investment, it says, with the “visitor economy” growing at over five times the rate of the economy as a whole in 2011 to the tune of £115bn.
Cllr Rea said: “A theatre, museum or festival draws visitors who do not simply spend money on their ticket or entrance fee, but also buy meals in local restaurants, go to local shops, or perhaps stay in hotels as part of their visit.
“These people might never have visited that location without the pull of its cultural attractions.”
(Basingstoke Festival 2012)
The case studies mentioned in the report include the Basingstoke Festival, which generated up to £1.42m, and the Milton Keynes summer of culture and international festival, which attracted 160,000 visitors.
Elstree studios in Borehamwood, where Dancing on Ice and the King’s Speech were filmed, is another example of a successful partnership that makes Hertsmere Council more than £1m in rental income – the equivalent of 20 per cent of the borough’s council tax.
Arts funding
The arts in the UK are funded by councils, the Arts Councils and Creative Scotland (which receive central funds), the lottery, and private philanthropy.
As well as the cuts to council budgets, Arts Council England is receiving 30 per cent less grant-in-aid from the government during the current parliament, but lottery funding is rising.
According to the government, grant-in-aid totals £1.9bn over this parliament, with lottery funding accounting for a further £1bn.
Arts Council England accepts the figure for lottery funding, but says the £1.9bn figure includes £0.5bn from the last year of the previous Labour government.