A comprehensive study of over 300 theatres across Britain has established that the theatre industry contributes £2.6bn annually to the UK economy.
The survey, the first of its kind to be carried out nationally, took into account factors such as audience members? spending on food, transport and childcare in addition to expenditure pumped into local economies through salaries and the theatres? own expenditure.
The only previous UK research into this area, the 1998 Wyndham Report, examined the economic impact of the West End, calculating that West End theatre was worth £1.1bn to the UK economy. The new study puts this figure at £1.5bn. Theatres beyond the West End have a total economic impact of £1.1bn.
The key components in the calculation of the headline figure are spending by theatres on staff salaries, subsistence payments to freelance workers, and goods and services spending by theatre audiences, described as ?additional visitor spend?. This figure is based on estimates supplied by venues and includes travel, food and drink, and childcare. The report estimates that each audience member spends an average of £7.77 per visit to a non-West End theatre, and West End theatregoers spend an average of £53.77.
The survey also reports on volunteers working in theatre. The total of 16,000 volunteers working in the UK theatre sector is described as a ?significant invisible contribution by theatres to their local economies?. For fear of duplication, the report, which was commissioned by Arts Council England (ACE) and carried out by Dominic Shellard, a Professor of English Literature at the University of Sheffield, did not look into the impact of touring theatre, although it recommends that research into this sector is carried out as a priority.
Further research, also commissioned by ACE and published on the same day as the economic impact survey, has established that the 2000 Theatre Review has had an immediate effect on theatre. The MORI survey which looked at 16 theatre companies which had benefited from increased funding since the Theatre Review, found a significantly improved degree of stability within the industry. Financial security had enabled theatres to plan further ahead, improved employment opportunities and raised morale.
ACE has been quick to throw the two reports into current debates on arts funding, and to present the economic impact figure of £2.6bn against the £121.3m of government subsidy for theatre across the UK. Sir Christopher Frayling, Chair of ACE said, ?These important pieces of research show us that with relatively little public subsidy, theatre can contribute an enormous amount to our economy and society. In a very short time, the Theatre Review investment has enriched our cultural landscape and its impact has been immediate.? The reports are expected to be used to boost the case for further increases in funding for ACE in the current spending review, the results of which are due to be unveiled by the Chancellor, Gordon Brown, in July.