Where is the money coming from to fund Britain's creativity?

Article
The National Campaign for the Arts, the United Kingdom’s only independent lobby group representing the arts has recently released its 2015 Arts Index. The report serves as a health assessment of the arts sector, comparing data gathered since 2007. We take a look at the most interesting facts and figures that can be drawn from this study.

‘… Could do better’
The overall results seem positive, the arts sector is said to have thrived despite a tough economic climate, yet a closer look at the 20 criteria show that the future could be bleak and that funding is diminishing. “Funding for the arts has fallen further and faster than ever before in this country,” confirms Samuel West, Chair of the National Campaign for the Arts. The information is particularly pertinent given that this year the UK faces a general election, with spending cuts potentially playing an important role in policy proposals that would have a knock-on effect to arts funding.

Public Funding
Public funding is divided into three areas: Treasury funding for the Arts Council; Lottery funding for the arts and local government funding for the arts. This year public funding is at an all time low of £14.99 per person, down from an all time high in 2009/2010 of £19.46. Whilst local government funding is weak but stable, it remains under threat from imminent austerity cuts.

The Treasury cuts however have been far graver, dropping by 35% since 2008/9. “The severity of the cut of almost half the budget of the Arts Council was a policy decision, not even the fair share of austerity measures,” explains Ruth Mackenzie CBE Interim Launch Director of The SPACE and Artistic Director of the Holland Festival, going on to call the cuts “unforgivable”.

Lottery funding represents a positive funding source for the arts with finances being focused back towards the arts since the end of the 2012 London Olympics.

Where else is the money coming from?
The report continues to outline the contributions of a series of other sources, beginning with seemingly positive statistics concerning the earned income by revenue funded arts organizations which has been steadily on the rise since 2009/10. Yet as Michael Smith, Founding Director of Cog Design points out, if this increased income is generated by more expensive entrance tickets for example, we could be inciting elitism in our effort to replace lost funding.

Whilst there is a gap in data for the last two years, previous studies show that despite government initiatives, business contributions to the arts dropped by 30% between 2007 and 2012. The issue of corporate funding in the arts is a polarizing debate, with many contesting the morality of accepting funding from businesses with an unethical practice.

Similarly there is missing data concerning trust and foundation contributions yet this revenue stream seems to be filling gaps left by businesses, representing a contribution of £2.87 per person.

Equally there has been a shift in the way that individual giving has operated in recent years, over the first five years of studies, individual contributions were greater than those made by businesses and trusts and foundations combined. This figure dropped to £5.38 per person in 2009/2010 yet seemed to be steadily on the rise until the moment when data collection stopped in 2012.

Ironically all this missing data is accountable to Arts Council England cuts, meaning that Arts & Business lost significant revenue preventing them from carrying out research.

An artistic education crisis 
A study of the number of students in arts-related higher education shows that numbers have dramatically decreased. In fact the arts have fared far worse than any other subject in terms of growth. This news comes as no surprise, a logical progression from the fact that there has been a 25% drop between 2003 and 2013 in GCSE entries for art studies (according to a study conducted by Warwick University in 2015).

The arts are still well-loved
The true positive of this report is the year-on-year increase in attendance and participation of arts events. Attendance has been on the rise every year since research began with a slight dip this past year. This seems to largely be thanks to ‘digital participation with 44% of the population digitally attending an arts activity in 2012/2013. This figure dropped to 38% in 2013/2014, but still represents a huge increase since data collection began in 2008/2009. 

Art’s role in the economy
For every £1 invested by Arts Council England in 2010/11, a further £2.11 was spent by ACE; this figure increased to £2.49 in 2011/12. However due to massive funding cuts to multiple organizations supported by Arts Council England, their overall contribution to the economy decreased.

Employment in the creative sector is also on the rise; last year 63% of self employed workers (who represent 14% of the UK labor force), were working in the creative sector.

It’s good news after all
Whilst funding cuts still represent a real danger to the functioning of the arts sector, it continues to be a domain that has fed economic recovery and remained popular amongst the public in the face of austerity.  The Centre for Economics and Business Research’s 2013 report found that “arts and culture generate more per pound invested than the health, wholesale and retail, and professional and business services sectors,” so why are the arts still undervalued?

The full report can be found here