Private investment in culture: the sector in and post recession

Abstract

During the so-called “golden age” for culture in the UK, the sector raised record levels of private investment championed by increasing levels of public funding and complementing healthy streams of earned income. However, the funding landscape for the arts and heritage has recently been challenged as market forces are putting pressure both on the public purse and the private sector's levels of investment. The financial year of 2008/09 brought the first real impact of the recession on culture, with a moderate 7 per cent decrease of private investment across the board (from business, individuals and trusts and foundations). This was followed by another smaller decrease in 2009/10 of 3 per cent. However, within these headline figures are hidden several parallel stories and trends – indicators such as region, artform and size of organisation directly affect the nature and scope of private investment received, which we explore in more depth. Based on Arts & Business’ annual Private Investment in Culture survey, the paper will provide an analysis of private investment received by the sector, exploring where it is coming from and going to. This will be complemented by year-on-year comparisons, which will also enable an assessment of the impact of the recession on private investment in arts and heritage, and the challenges they will be facing in a post-recession economy and with a new government. Additional and contextual information about the past, present and future state of arts and heritage and their relationship with the private sector will highlight the potential for this income source going forward, as well as ongoing and upcoming trends in light of the recession and beyond. These will respectively feed into policy recommendations for any future government, and suggestions for cultural organisations to collectively emerge from the recession as a stronger and more sustainable sector.