The total figure for private sector investment in culture for 2008/09 fell from its record high in 07/08 to £654.9 million in the UK, decreasing by 7 percent (above inflation). Investment from all three private sector sources declined from the previous year, according to analysis published recently by Arts & Business. Business investment fell by six percent (a smaller decrease than last year) and now stands at £157 million and accounts for 24 percent of the overall contribution from the private sector.
In 08/09, investment from individuals dropped to £363 million, a seven percent decrease of £19 million, that ends the trend of fast-paced growth that began to accelerate in 05/06. Individual giving now accounts for 55 percent of the total private investment received in the sector.
The amount of support from Trusts and Foundations also fell from £141 million to £135 million, also experiencing a 7 percent decrease from last year and accounting for 21 percent of the total private investment in the cultural sector.
Colin Tweedy, Chief Executive of Arts & Business, said: “As we anticipated, these latest figures show a reduction, though not a disastrous one. We would like to be optimistic, but predict the worst is yet to come, with 2010/11 being the low-point. We must remember that despite the economic difficulties, the UK’s arts fundraisers have still secured close to £655 million from the private sector – which is a remarkable achievement. We must now give them every opportunity to maximise their skills and ideas.
“In this fiscal climate there is still enormous pressure on the arts. With much focus on public expenditure budgets, many are looking to the private sector to contribute more – we believe it can. When businesses see that attendances are on average up by 12 percent; they will profit by targeting these markets and their future consumers.”
He continued: “Arts & Business’ latest market trend report (Autumn 2009) indicated that confidence levels for private sector investment in the arts will begin to pick up by 2013.
“Even in these leaner times, public and private money continue to go absolutely hand-in-hand. Any potential cuts to the public purse will have a detrimental knock-on effect on private investment.”
According to the respondents of Arts & Business’ Private Investment in Culture Survey, private investment in 08/09 accounted for an average of 15 percent of their organisation’s total income. Public sector funding, including funding from the arts councils, the UK Ministries of Culture, other governmental departments, local authorities, other public subsidies and lottery funding, made up 53 percent of the total income of cultural organisations. The remaining 32 percent was raised through earned income, including ticket sales and trading.