Decade of austere financing in local government cultural sectors
In a significant move for the global creative industry, Marta Foresti takes the helm as Chair of the Cross-cutting, Global Creative Economy Council. Foresti's tenure comes at a time when the creative economy is being unsettled and reordered through conversations between the Global North and South.
The creative industries are facing challenges, with average grants from central to local government reducing by 49.1% in real-terms over the period 2010-2018. This reduction has led to a near 30% decrease in real spending power. However, it's important to note that no specific local authorities in England experienced a reduction of more than 75% in cultural and heritage spending between 2009/10 and 2018/19.
The shift towards earned income is a trend that complicates the picture of London and the South East benefiting the most. Our analysis reveals that local authorities seeing comparatively higher levels of income in 2018/19 are spread relatively evenly across the country.
The creative industries are being encouraged to drive environmental sustainability, with the 2025 Spending Review having implications for the sector. Meanwhile, AI is reshaping the way culture is created and shared, raising questions about who gets to create and whose voices are heard.
The Department for Digital Culture Media and Sport (DCMS) spent £452 million on museums and galleries and £723 million on 'Arts, Culture and Libraries' in the same year. While most areas have reduced the amount spent on 'Culture and Heritage', cuts range from 1% to 94%, with a minority increasing spending over time.
Long-term investment is needed, but so too is a strategic approach that supports local authorities to develop services which resonate with today's concerns. Higher education plays a crucial role in the arts, culture, and heritage sectors, and accredited qualifications are important, particularly in journalism.
Our analysis, published open access in the journal Cultural Trends, shows a combined total spend of £818.5m on 'Culture and Heritage' amongst English local authorities in 2018-19. However, the data only tells part of the story. Contextual factors enable and constrain the capacity of local authorities to adapt.
Demand for statutory services such as social care, children's services, and homelessness has increased due to widening inequalities and policy inertia on the crisis in social care. This, coupled with the Equity Gap in Britain's Creative Industries, as discussed by Professor Nick Wilson, raises questions about the way austerity has played out unevenly and differentially across England.
The Creative Industries Sector Plan has made several sector-wide announcements, and the blog draws on a research article published in Cultural Trends. In conclusion, the creative economy is undergoing significant changes, and international cooperation, strategic investment, and a focus on education and skills will be crucial in navigating these shifts.
Written by Dr Bethany Rex and Dr Peter Campbell.
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