MA FINAL PROJECT

According to the Covid-19 report published by the House of Lords in September 2020, the UK Arts & Culture sector was the most severely effected by the Covid-19, after the Accommodation and Food Sector, and had required a £1.57 Billion support package, in order to be sustained during what has become a period of great economic instability for the sector.

According to The Office of National Statistics, the sector as a whole saw a 44.5% reduction in GDP output in the months leading up to June 2020, due to forced temporary closures and limitations placed on the gathering of large groups (See Diagram 01, Below). These, obligatory measures had contributed to a fall in foot traffic and a reduction in revenue-streams, thereby making it incredibly difficult for many of the Theatres, Galleries, and Entertainment venues to operate, or indeed look ahead. And as the pandemic has continued to progress and further impact the UK economy, there is growing concern from all involved, as to whether or not the UK Arts & Culture sector can recover, in the years ahead.

With 70% of the workforce furloughed under the Governments’ Furlough scheme, with many of those facing uncertainty regarding the security of the jobs in the coming months, it is not difficult to empathise with those working across the sector.

In the preceding decade investment in the arts has fallen 35% per head of the population of England, whilst income from Arts based organisations increased by 47%. In-part, I believe that we can attribute this decline in investment to the Governments decade-long austerity campaign, which many of those working in-industry would affirm has had a detrimental impact on there respective organisation. We must also consider the shift towards private sector funding and how this accounts for much of the budgets, for the majority of venues within the sector. In the wake of the pandemic it is likely that such contributions are to be greatly reduced, if not withdrawn, altogether. For smaller organisations such a move could prove to be detrimental to the continuation of their operations.

As well as the initial response package of a £160 Million, in July of 2020 the Government allocated a further £1.57 Billion rescue package for the Arts, Culture, and Heritage sector. That package breaks down, as follows:

£1.15 billion support pot for cultural organisations in England delivered through a mix of grants and loans. This will be made up of £270 million of repayable finance and £880 million in grants.
£100 million of targeted support for the national cultural institutions in England and the English Heritage Trust.
£120 million capital investment to restart construction on cultural infrastructure and for heritage construction projects in England, which was paused due to the coronavirus pandemic.

The new funding will also mean an extra £188 million for the devolved administrations in Northern Ireland (£33 million), Scotland (£97 million) and Wales (£59 million).

The Chair of the Arts Council England, Sir Nicholas Serota, acknowledged that the funding was a positive development that would help many of the countries world leading organisations survive the current economic shits, however, the critics of the proposal suggest that the plan does not take into account the disparity between business models, and that a one-size-fits-all approach does not fully consider the specific needs of the venues, or the employees.

The House of Commons Digital, Culture, Media, Sport committee suggested that for many organisations the funding had come too late, and would do little to prevent the now inevitable job losses and the closing of venues.

In my view, such oversights, only contribute to the continued erosion of our national cultural heritage, and consequently, our cultural footprint on the world stage. The reduction in the infrastructure of the Arts & Culture sector stands to dictate the relevance of the sector in the years to come, not just as a source of revenue, but also as a tool in the development of international relations, and geo-political alliances. How often do we see a world leader parading a gifted item of cultural significance, or recollecting a state visit on which they had been the guest at an exclusive performance, or at the opening of a gallery?-Can we really risk losing our cultural institutions, during a period in which they play such vital roles?

The Committee proposed the following measures be considered, and that the Government should seek to tailor their response, so that it better accommodates the specific needs of a broader range of parties.

An extension to the furlough scheme for affected businesses until mass gatherings are permitted under the Government’s and devolved administrations’ Covid-19 guidelines.

Continued workforce support measures, including enhanced measures for freelancers and small companies.
Clear, if conditional, timelines for when they will be able to reopen, and technological solutions to enable audiences to return without social distancing.

Long-term structural support to rebuild audience figures and investment in an uncertain economic climate. This should involve new, sector-specific tax reliefs as well as an extended VAT cut for the sector.

Beginning with the official data, as released by, and in accordance with, the British government, I had set-out to establish an overview of the events of the last nine months, in regards to how the pandemic had been impacting the relevant sector, and in order to establish a set of firm data that could then be used to inform the next phase of the project. The report for the period of the 19/10/20-1/11/20. Detailing the insights gathered from participating organisations and their relevant territories, with further information provided, on the economic impact of the pandemic, specifically in relation to the Arts and Entertainment sector.

The purpose of this on-going study is to establish an array of data that can then be used to contribute to the Covid-centric policies that are put into place, by the British government. This body of work allows the government and their partners to monitor and respond to the ever-changing economic landscape, providing valuable insights into each sector, subject to region. This is particularly of use, to those responsible for the strategic implementation of the new, Tier system.

During the period in which this study had taken place, 22.4% of businesses within the relevant sector had stated that they had paused trading and did not intend to reopen in the subsequent two weeks, this amounts to almost a quarter of the participating businesses within the sector that are closed, during a period in which many of them would have been their most profitable period of the year.-How could they resolve this issue?

Bibliography:

Office for National Statistics, 2020. Business Impact of COVID-19 Survey (BICS) results. London: OFNS, pp.1-81.

Department for Digital, Culture, Media and Sport, 2020. Impact of COVID-19 on DCMS sectors: First Report. London: DDCMS, pp.Sections 1,3.

artscouncil.org.uk. 2020. A faster recovery for arts and culture. [online] Available at: <https://www.artscouncil.org.uk/news/faster-recovery-arts-and-culture&gt; [Accessed 6 October 2020].

CEBR, 2020. The impact of the Cultural Recovery Fund on the Arts and Culture sector. A Cebr report for Arts Council England. [online] London: CEBR, pp.1-18. Available at: <https://www.artscouncil.org.uk/sites/default/files/download-file/CEBR%20Report%20-%20The%20Impact%20of%20the%20Cultural%20Recovery%20Fund%20on%20the%20Arts%20and%20Culture%20sector.pdf&gt; [Accessed 1 October 2020].