Two fifths of creative organisations estimate their income has dropped by 100% since the coronavirus outbreak, new data from the Creative Industries Federation has revealed.
The data comes alongside an open letter to the government from CIF, calling for urgent grant support for creative businesses and charities that “fall between the gaps” for existing financial support, to “ensure the UK doesn’t become a cultural wasteland post-Covid-19”.
According to the survey of 2,000 creative businesses and individuals, 42% of organisations estimated their income has decreased by 100% since the outbreak.
One in seven creative organisations believe they can last less than four weeks on existing reserves, while 63% of creative organisations predict a decrease in annual turnover of more than 50% by the end of 2020.
Among creative organisations, 45% said they did not understand the government’s Coronavirus Business Interruption Loan Scheme, which offers loans of up to £5 million to small and medium-sized companies.
According to the Creative Industries Federation, early evidence suggests that the government’s business support measures will not reach a large proportion of creative businesses and charities.
The open letter to the government states: “Despite welcome changes to the Coronavirus Business Interruption Loan Scheme, we know from our previous experience with the Enterprise Finance Guarantee – on which CBILS is based – that many creative businesses will still struggle to access these loans, and for those who do, this finance will come too late.
“Many charities are also still not eligible because their trading income falls beneath the 50% threshold […] Grant support is needed now.”
Creative Industries Federation chief executive Caroline Norbury said: “The crux of it is that creative businesses need money now, and they can’t wait another month.
“Through no fault of their own, many creative industries businesses are on the brink of collapse – with all the economic knock-on effects and hardship that entails. And more will follow. The government must act rapidly to get grants to where they are needed most.”