Arts funding policy under the new government

If only the new government could… restore funding to the arts, believe in the arts, champion the arts… 

But the arts are unlikely to be top of the list for the new government, however much we may wish it or whatever the political will for change. The prevailing needs in society mean any restoration of the status quo or the ‘good old days’ is unlikely. 

At Arts Fundraising & Philanthropy we’ve been looking to reframe the question to: What sort of future are we preparing for? And how do we best prepare for this new reality, especially where funding is concerned?

The current funding context

While not wanting to join the doomsters - definitely not in my nature - the picture for funding is challenging. 

A recent report commissioned by Equity outlined that funding of UK arts councils has fallen 16% in real terms between 2017 and 2022 to c.£190m. However, the principal funder of the arts in England isn’t the Arts Council, but local authorities. Here the picture is particularly bleak. Local authority investment in the arts in England in capital and revenue expenditure has fallen by more than 30% in real terms in the last decade.

The current political manifestos look to philanthropy to invest in the arts, or to draw new money from ‘other investment’. Of course, there is potential for increased philanthropy despite the prevailing economic climate, but the dial on individual giving has remained stubbornly static for the last decade or so. 

Likewise, we are seeing a spend down by several major trusts and foundations, and corporate philanthropy is facing a raft of ethical challenges with activism underpinning the withdrawal of sponsors such as Baillie Gifford and Barclays from festival funding.

Planning for the future

It is not an easy position for arts organisations to plan from. However, amid concerns for growth of the UK economy and the social issues inherent in inequality and devolution, there are certain policy areas that look very likely to consume the agenda of a new government through to 2030 and where effective positioning by arts organisations will be helpful.

•    Place-based investment with more emphasis on the local 

This agenda looks here to stay. As we look to 2030, more devolved power with cities and regions having more say will sustain. There will be more devolution and decentralisation. This trend is already evident in funding strategies to 2030, from the place-based approach of Arts Council England and National Lottery Heritage Fund, to major trusts and foundations. 

The difficulty for the arts is how to be part of these locally and regionally based conversations effectively, and part of the solution. We need new models for compiling data to be able to compete quickly for funding that distributed from non-arts sources, such as levelling-up funds. 

•    Collaboration 

This is not new, we’ve been talking the language of collaboration for years. But with an emphasis on place-based investment, coupled with less money to go round, this comes to the fore. Arts organisations need to be asking which partnerships add the most value and how does collaboration best support our artistic activities and practice What should be dropped? 

We need a razor-sharp focus on return on investment and how organisations add value to their place, be that virtual, local, regional or national/international. Funders are keen on joined-up strategies, they are likely to see collaboration as non-negotiable.

•    Digital infrastructure 

By 2030, 5G mobile is predicted to be available to 90%+ of the UK population. The enhanced digital infrastructure will drive up GDP and will support the facilitation of new services and options for multi-platform delivery in the arts. It’s likely that digital divides will continue or get starker, due to poverty or poor digital literacy. 

Additionally, questions of data, AI, control and ethics will subsume organisations and policy makers alike. However, it’s very likely that funding will be available to underpin the emerging digital infrastructure and its creative application, as well as investment to support current and future workforces to upskill.

•    Protection of growth and the work force

Think tanks such as Future Agenda are predicting Creative Industries growth worth £150bn a year to the UK economy by 2030, creating an extra one million jobs in film, TV and music. They also foresee that, by 2030, the UK will have the fastest growing and second largest population in Europe. 

However, the prediction goes alongside more people living alone, craving connection and social networks. While fundraising investment is low on the agenda currently, the creative industries – or parts of it - are set to prosper. Arts organisations are most likely to connect to their communities and be at the heart of engagement between audiences, communities and workforce that will secure longer-term dividends - of funding, loyalty and place. 

•    Accelerating to zero carbon

Predictions for net zero are a political hot potato. DNV’s forecast shows the UK’s annual emissions will reduce by 85% by 2050 relative to 1990 levels – not the 100% reduction legislated for in 2019. 

However, whatever the speed of change, arts organisations need to be part of this push, to ensure change at the heart of supply chains, secure investment and build partnerships that can sustain this work. This will require support from government and funders alike to realise the experimentation and innovation required.

At such times of uncertainty, finding ways to focus, to understand and tap into the policy areas that will be front of mind for a new administration will be essential. 

Michelle Wright is CEO of Cause4 and Programme Director of the Arts Fundraising & Philanthropy Programme. 
 artsfundraising.org.uk
@artsfundraising | @MWCause4

This article is part of a series on the theme Fundraising for the Future, contributed by Arts Fundraising & Philanthropy.