Cash-strapped councils are cutting cultural spending to help plug budget shortfalls, but could desperate local authorities sell off artworks to raise funds? James Goodwin looks at the legalities.
“English councils ‘forced to the pawnshop’ in fire sale of assets” was a recent headline in the Financial Times relaying the worsening news about local authority finances in the country. At least ten councils in England have this year issued section 114 notices—the council equivalent of bankruptcy—and applied to the UK government for exceptional financial support.
In the worst case, Birmingham City Council plans to sell off £750m worth of assets during the next two years to help balance its books. Since 2010, central government grants to local government have fallen by over 50% in real terms, leading to a 30% drop in councils’ net spending power since 2015 as revenue rises have not covered the shortfall. A recent survey in the New Statesman magazine of 528 councils found that a quarter thought they would go bankrupt.
What does a public sector financial drought mean for local culture? Nottingham City Council, while in effect bankrupt, pledged in November 2023 to reduce grants to external cultural organisations, cut the museum budget and review the library service, while retaining the theatre and concert hall. Yet local authorities are the biggest public funders of the arts in ways that aid urban regeneration and contribute disproportionately to the economy, according to Arts Council England (ACE)... Keep reading on The Arts Newspaper.
“English councils ‘forced to the pawnshop’ in fire sale of assets” was a recent headline in the Financial Times relaying the worsening news about local authority finances in the country. At least ten councils in England have this year issued section 114 notices—the council equivalent of bankruptcy—and applied to the UK government for exceptional financial support.
In the worst case, Birmingham City Council plans to sell off £750m worth of assets during the next two years to help balance its books. Since 2010, central government grants to local government have fallen by over 50% in real terms, leading to a 30% drop in councils’ net spending power since 2015 as revenue rises have not covered the shortfall. A recent survey in the New Statesman magazine of 528 councils found that a quarter thought they would go bankrupt.
What does a public sector financial drought mean for local culture? Nottingham City Council, while in effect bankrupt, pledged in November 2023 to reduce grants to external cultural organisations, cut the museum budget and review the library service, while retaining the theatre and concert hall. Yet local authorities are the biggest public funders of the arts in ways that aid urban regeneration and contribute disproportionately to the economy, according to Arts Council England (ACE)... Keep reading on The Arts Newspaper.