News – Business support for the arts weakens

Total business investment in the arts fell last year by 1%  a real terms fall of 3.2%  compared with 2004/05, according to the latest annual figures for private investment in the arts, published by Arts & Business (A&B). In kind sponsorship, corporate membership, corporate donations and awards and prizes to arts organisations all fell, while cash sponsorship rose by just 2.1% to £96.6m. The picture is brighter for individual investment in the arts, with friends schemes and individual donations together rising by over 10%, although legacies and bequests fell by 12% to £61m. Investment from Trusts and Foundations was the only type of private funding to show a significant increase, rising from £102m to £114m. Fifty organisations received over £1m in private investment, accounting for nearly three-quarters of all private investment in the UK. Thirty-three of these organisations were London-based.
In the regions, the South West made the most progress, with total private investment growing by 57%, while its neighbours in the West Midlands suffered a 39% downturn. A&B interprets the figures for business support for the arts as constituting a minor blip rather than part of a downward drift, and comments that the figures can be partly explained by the growing competition for corporate donations and sponsorships from other charitable causes and the appeal of other sponsorable events such as sports and TV shows. In his introduction to the report, A&B Chief Executive, Colin Tweedy, said, I believe that Liverpool 08 and the build up to the Cultural Olympiad will give us the spark we need& A&Bs role is to light this spark. But Liberal Democrat Arts and Culture Spokesman, Paul Holmes MP, warned, Tessa Jowell should take note of the falling contributions from business and pledge not to siphon off extra funds from arts and heritage to the Olympics on the assumption that business will pay for the shortfall. Culture Minister David Lammy said, These are fantastic figures. They testify yet again to the generosity of individuals and companies in this country.