Arts Outlook Optimistic Despite Reducing Income

New research published today by the Scottish Arts Council reports declining income in more than 40% of the organisations it supports.

According to the research published today1 (Friday, 4 December 2009) reduced support from a range of public, private and charitable sources affects 61% of surveyed organisations, while 14% of the larger organisations have already, or plan to, draw on existing reserves.

However, optimism within the sector remains high.  Almost 80% expect the future to remain unchanged or that their income will improve - 43% expect an increase in income from catering, bars or other commercial activity, or that existing box office levels will remain unchanged (69%).

Many organisations anticipate that their income from local authorities will remain the same or improve slightly (58%).  However, 21% of organisations describe themselves as ‘pessimistic’ about the future.

The findings of the research aim to increase understanding of the impact of the recession on arts organisations and its implications for national arts funding and planning.  The survey will be repeated in Spring 2010 to monitor and track trends in funding.

Earlier this year, the Scottish Arts Council introduced £1.3 million of resilience funding to provide targeted support to 48 foundation organisations2 and maintain its commitment to stability in the sector during the transition to Creative Scotland.  In addition, Creative Scotland has announced the Innovation3 fund, which will introduce £5 million of new support to the arts during 2009-2011.

Jim Tough, Chief Executive, Scottish Arts Council, who wrote the foreword to the research, commented:

‘Anecdotally, we have been aware for some time that there are darkening clouds on the horizon of many arts organisations and this survey confirms that income levels are dropping.

‘Interestingly, organisations surveyed here are not reflecting the widely-reported expectation of a contraction in public finances4 and they remain buoyant.  We plan to repeat the research in Spring next year, which will be shortly after other funders, such as local authorities, have set their annual budgets.

‘Planning to ensure resilience and stability in the sector began earlier this year and many organisations are already developing new ways of working.  By tracking and sharing experience across the sector, our aim is to sustain the best of our artistic talent and ensure they continue to develop and produce world-class work that cements our reputation as a centre for artistic excellence.’

The Scottish Arts Council commissioned ERS Consulting to survey 70% of its funded organisations during September 2009.  The main areas covered by the study were: income; implications of the recession on artistic programme, financial reserves and business planning; expenditure; expected future impacts; and examples of good practice.

Notes to editors

1. The Economic Recession Study can be found here: www.scottisharts.org.uk/1/information/publications/1006850.aspx
2. The Resilience fund was first announced in May 2009 and has been developed following consultation with Foundation organisations.
3. The focus of Creative Scotland’s Innovation fund is:
• Supporting Scotland’s artists by funding new work, inspirational collaborations and residencies.
• Encouraging and supporting innovative working between public agencies and artists.
• Extending practical help to new creative entrepreneurs.
• Supporting and sustaining Scotland’s artistic community and economy now, at this time of recession, by offering new ways of getting funds into the hands of artists and creative practitioners across a wide range of disciplines
Further information from: www.scotland.gov.uk/News/Releases/2009/06/23120845
4. Audit Scotland, Preparing for the Future,: www.audit-scotland.gov.uk/media/article.php?id=119 and Chartered Institute of Public Finance and Accounting & Society of Local Authority Chief Executives, The Scottish Government's Budget: growth prospects and budget options www.cipfa.org.uk/scotland/news_details.cfm?news_id=60619
5. The Scottish Arts Council is a Non-Departmental Public Body (NDPB) which was established by Royal Charter in 1994 and is also a Lottery distributor. The organisation serves the people of Scotland by fostering arts of excellence through investment, development, research and advocacy. Our corporate aims are: to support artists to fulfil their creative and business potential; to increase participation in the arts; and to place the arts, culture and creativity at the heart of learning. We invest £60m each year, including £15 million of National Lottery funding. For more information visit: www.scottisharts.org.uk
6. A new organisation, Creative Scotland, will be established In the first half of 2010, subject to legislation in the Scottish Parliament. It will inherit the current resources of the Scottish Arts Council and Scottish Screen. Creative Scotland will continue to survey, evidence and intelligence from the creative community.

Contact email(s)

media.office@scottisharts.org.uk

Issued by: Scottish Arts Council