
Birmingham during the 2022 Commonwealth Games
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West Midlands region faces ‘cultural funding gap’ of £100m
Research indicates that if public investment in the West Midlands culture sector continues to fall compared with previous levels, up to 2,650 full time equivalent jobs could be lost by the end of the decade.
There will be a public investment funding gap of between £102m and £126m for the West Midlands culture sector by 2030, according to new research.
The research, Regional Growth Enquiry into the Future of Cultural Investment in the West Midlands, was undertaken by the University of Birmingham’s City-Region Economic Development Institute and released by Culture Central and West Midlands Cultural Compacts Network.
It found investment in culture in the West Midlands has fallen to “significantly below 2016 levels”. Public funding in 2024 stood at £155m in the region, 33% lower than it would have been had it kept up with inflation.
This trajectory is expected to continue throughout the decade, with a forecast for 2030 projecting investment in culture to be between £133m and £155m, well down on the £257m that would have been invested if funding had been maintained at 2016 levels.
The research says the drop in cultural investment could lead to a loss of almost a quarter, or up to 2,650, full-time equivalent jobs in the region’s cultural sector by 2030. It adds that due to the high level of part-time and freelance work in the sector, more people are likely to be impacted than the calculation would indicate.
Cultural investment in the West Midlands is on course to contribute between £761m and £807m in output to the UK economy by 2029, the research adds, but it stresses that if funding had kept pace with inflation, the output would reach £1bn.
“The cultural sector is a driver of innovation and creativity and is deeply connected to the wider creative industries, supporting their innovation and growth,” Erica Love, Culture Central CEO, said.
“Without public investment in culture, all these benefits and our potential are limited.”
Existential threats
The research also features results of a survey and interviews with people working in the West Midlands culture sector.
Respondents said the difficulties facing local cultural organisations are a result of funding not keeping pace with inflation, deficit budgets, rising building costs and a lack of growth, even in instances where ticket sales have increased.
“It’s not a very positive picture at the moment. I think there’s a huge reduction in subsidy, there hasn’t been any uplift for a very, very long time, in real terms,” said one interviewee.
“So certainly, in [our] world we’ve had 10 years of funding at a standstill, which is because it’s based on headcount. So that hasn’t taken into account inflation. It hasn’t taken into account the rising costs in staffing, all of those kinds of things.”
Another interviewee added: “I think a lack of long-term strategic investment in the region means that it isn’t as well equipped to manage the different short-term shocks to the cultural sector”.
Some respondents said they are seeking to mitigate challenges through greater collaboration, partnership working and diversifying funding streams. Others focused on a difficult funding landscape, with some sharing that application processes are complex and take great capacity.
Call to action
The research calls for immediate support for the West Midlands culture sector through a series of recommendations, including the establishment of a high-level cultural compact for the region.
The cultural compact should include West Midlands local authorities, West Midlands Combined Authority, Culture Central and DCMS, the research says, and work on identifying and addressing regional priorities and challenges, while also ensuring the role of culture is considered in strategic development and large-scale infrastructure projects.
Fiscal interventions are also recommended to address the immediate funding crisis, alongside tax incentives, reforms to VAT and recognition of the impact of upcoming National Insurance increases.
The research also calls for long-term, stable funding models for cultural organisations to combat instability created by short-term financial support.
Other recommendations are targeted at artists, such as the launch of initiatives focused on creative skills, capacity building and business development across the West Midlands, and young people, such as the introduction of a cultural voucher scheme for those in deprived areas.
“The work shows the significant impact that the sector makes on local economies. Public investment in cultural assets creates positive benefits and spillovers in GVA and employment which stay local for the good of places,” said Professor Rebecca Riley, deputy pro vice chancellor for regional engagement at the University of Birmingham.
“Our recommendations point to how this impact could be harnessed and create the potential for the sector to innovate and build resilience.”
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