Art funding policy in the new government

If only the new government could… restore funding for the arts, believe in the arts, defend the arts…

But it is unlikely that the arts will be at the top of the new government’s agenda, however much we might wish or however much political will there is to change. The prevailing needs in society mean that a return to the status quo or the “good old days” is unlikely.

At Arts Fundraising & Philanthropy, we have tried to reframe the question as: What kind of future are we preparing for? And how can we best prepare for this new reality, especially when it comes to funding?

Current financing context

While I don’t want to join those who preach doom – it’s definitely not in my nature – the image of the financing Is defiant.

A recent report commissioned by Equity found that funding for the UK’s arts councils fell by 16% in real terms between 2017 and 2022 to around £190m. But the main funder of arts in England is not the Arts Council, but local authorities. Here the picture is particularly bleak. Local authority investment in the arts in England, in terms of capital and revenue expenditure, has fallen by more than 30% in real terms over the past decade.

Current political manifestos look to philanthropy to invest in the arts or to raise new money from “other investments.” Of course, there is potential to increase philanthropy despite the prevailing economic climate, but the rate of individual giving has remained stubbornly static for the past decade or more.

Similarly, we are seeing spending by several major foundations and trusts being cut, and corporate philanthropy is facing a range of ethical challenges as activism underpins the withdrawal of sponsors such as Baillie Gifford and Barclays from funding festivals.

Planning for the future

This is not an easy position for arts organisations to plan for. However, amid concerns about the growth of the UK economy and the social problems inherent in inequality and devolution, there are some policy areas that seem very likely to absorb the new government’s 2030 agenda and where effective positioning for arts organisations will be helpful.

• Place-based investing with a stronger focus on local

This programme looks set to remain. Looking ahead to 2030, there will be more devolved powers, with cities and regions having a greater say. There will be more devolved powers and devolution. This trend is already evident in the funding strategies to 2030, from the place-based approach of Arts Council England and the National Lottery Heritage Fund, to the large trusts and foundations.

The challenge for the arts is how to effectively participate in these local and regional conversations and be part of the solution. We need new models for compiling data to be able to compete quickly for funding distributed from non-artistic sources, such as matching funds.

• Cooperation

This is nothing new, we have been speaking the language of collaboration for years. However, with the emphasis on place-based investment, coupled with less money to spend, this is coming to the fore. Arts organisations need to ask which partnerships add the most value and how collaborations best support our artistic practice and work. What should be left out?

We need a sharp focus on ROI and how organizations add value to their space, whether virtual, local, regional, or national/international. Funders are interested in coordinated strategies, and are likely to see collaboration as non-negotiable.

• Digital infrastructure

It is predicted that 5G mobile networks will be available to over 90% of the UK population by 2030. Improved digital infrastructure will increase GDP and support the facilitation of new services and art delivery options across multiple platforms. It is likely that digital divides will persist or widen due to poverty or poor digital literacy.

In addition, issues of data, AI, governance and ethics will involve organisations and policymakers. However, it is very likely that funds will be available to support emerging digital infrastructure and its creative application, as well as investments to support current and future workers in upskilling.

• Protection of growth and workforce

Think tanks such as the Future Agenda predict that the creative sector will be worth £150bn a year to the UK economy by 2030, creating an extra million jobs in film, TV and music. They also predict that by 2030 the UK will have the fastest growing and second largest population in Europe.

But the forecast is matched by more people living alone, craving connection and social networking. While investment in fundraising is currently low, the creative industries – or parts of them – are poised to flourish. Arts organisations are likely to connect with their communities and be at the centre of engagement between audiences, communities and employees, which will provide long-term dividends – funding, loyalty and space.

• Accelerating to Zero Carbon Emissions

Net zero emissions projections are a hot political topic. DNV’s forecast shows the UK’s annual emissions will fall by 85% by 2050 compared with 1990 levels – not the 100% reduction predicted in 2019.

But whatever the pace of change, arts organisations need to be part of this momentum to deliver change at the heart of supply chains, secure investment and build partnerships that can sustain this work. This will require support from both government and funders to deliver the experimentation and innovation required.

In times of uncertainty, finding ways to focus on, understand, and leverage the policy areas that will be a priority for the new administration will be critical.

Michelle Wright is CEO of Cause4 and Program Director of its Arts Fundraising and Philanthropy Program.
fundraising.org.uk
@artsfundraising | @MWCause4

This article is part of a series on fundraising for the future from Arts Fundraising & Philanthropy.