Green shoots emerge for private funding for the arts in London, but business involvement continues to decline
Business support for the arts continued its downward trend last year, falling by seven percent to a seven-year low of £134m, but this was more than compensated for by rises in individual giving and grants from trusts and foundations. According to the latest figures from Arts & Business, which is now a part of the business-led charity Business in the Community, overall private sector investment in culture grew to £686m, four percent up on last year. Individual giving rose by £23m and funding from trusts and foundations by £16m, an increase of ten percent on 2010/11. Investment from trusts and foundations is now higher than business investment for the second year in a row and accounts for 25 percent of the total private investment received in the cultural sector.
The fortunes of the countries and regions of the UK varied dramatically last year. London, which captured 81% of all individual giving, was the biggest winner, reporting a nine percent increase in private investment over the previous year, amounting to over £40m; but at the same time private funding in the South West fell by over £7m, representing a 32 percent fall, and the overall figures for the rest of England, excluding London, showed a drop of over 11 percent. Of the other UK nations, only Scotland showed a gain: private giving rose by over £6m, representing a 13% rise. Private funding fell marginally in both Wales and Northern Ireland.
Of all artforms, the visual arts lost the most private investment, suffering a decline of over £12m; but as a percentage of total investment, community arts fared the worst, losing 28% of its funding, worth nearly £6m. Theatre also showed a major decline worth over £5m. The growth areas for private investment were primarily museums and heritage, which between them accounted for an additional £50m.
Culture Secretary Jeremy Hunt appeared to focus on the overall picture rather than the implications of the figures for the arts. He said: “This confounds the critics who said it was a waste of time trying to boost philanthropic giving when times are tough. It is also a real tribute to the determination of the cultural sector to boost its fundraising and strengthen the financial resilience of arts organisations.”