The Stage

Arts expects cuts from whoever wins election

Published Thursday 26 November 2009 at 11:05 by Lalayn Baluch

Almost three quarters of UK arts organisations fear the industry will be hit by funding cuts following next year’s general election, irrespective of which party is voted into power.

Research undertaken by think tank Arts Quarter has also revealed that 60% of arts organisations believe the 2012 Olympics will have a negative impact on their fund-raising capabilities.

The research was carried out to explore the impact of the recession on the cultural and not for profit sectors, and is the second of its kind to be undertaken by AQ, which carried out its first survey in March.

AQ founder John Nicholls, who was previously managing director of London Arts Calling and director of development at Shakespeare’s Globe Theatre, said: “Our respondents are sending out a clear message that they foresee two further threats to fund-raising looming, by way of the wider impacts of government spending cuts post a 2010 general election and beyond that, ongoing effects of the London 2012 Olympics, notably on organisations’ capabilities to generate private sector fund-raising income.”

The report - which is based on responses by 388 organisations, including 92 theatres, 19 dance companies and 28 music organisations - showed that 69% of those surveyed believe government support for the arts will fall in real terms next year.

It said that many cultural organisations, in anticipation of cuts, are now looking to political parties to provide incentives for alternative funding solutions - such as creating tax breaks for those supporting the industry or changes to taxation regulations for arts companies.

According to the report, there is concern that the possibility of increased personal taxation will lead to a decline in individual support and participation - such as ticket sales, subscriptions and gifts - as consumer spending declines.

Meanwhile, the research revealed a more positive outlook within the theatre industry on projected sponsorship incomes for next year, compared to AQ’s first survey, although the respondents were less positive about estimated ticket sales.

Figures reveal that across the cultural sectors, people are hopeful that fund-raising capabilities will improve by 2011/2.

However, 62% of theatres fear that sponsors will be more inclined to invest in sport in the run-up to the Olympics.

London-based organisations are more positive about the impact of the 2012 Games than those in the regions.

In the capital, 39% of respondents feel that the 2012 Olympic Games will boost their earned income, while only 4% of those based outside of the city feel the same.

Nicholls added that a combination of the recession, next year’s election and the 2012 Olympics meant that the UK’s arts sector was potentially set to enter “the greatest period of change seen in a generation”.

National Campaign for the Arts director Louise de Winter said it was “heartening” to see that organisations were more optimistic about their future earnings and donations, which she believes is a result of “the increasing appetite for cultural experiences in the current economic climate”.

She added: “It makes it more pertinent and vital, however, that the government keeps faith with the sector and maintains current levels of investment. A cut to the culture budget would seriously undermine the prospects for the sector to deliver economic benefits.

She explained: “It is important that we, as a sector, resist forming an expectation of cuts which would then become self-fulfilling.

“We have a good story to tell and we must continue to make positive and reasoned arguments about the value of what the arts bring to people’s lives.”