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Shadow Minister for Culture Ed Vaizey reveals the principles he thinks should guide public funding of the arts today

11 April 2007 by Jo Saucek 2 comments


Ed Vaizey, Shadow Minister for Culture and MP for Wantage and Didcot

I’m going to do what all politicians do – and not answer specifically the question the Arts Council has put to me.  I’m going to range a little wider, if you’ll forgive me.

I welcome the Arts Council’s decision to have a debate on the arts.  We’re undertaking a similar exercise.  John Tusa is chairing our Arts Taskforce, and he’s looking at a whole range of issues – not just public funding for the arts, but also education, structures (yes, that means you, Arts Council, but not just you), private giving, the role of artists and of institutions.  I hope people reading this will contribute – we’ll be mailing out a consultation document soon.

I don’t want to pre-empt John’s conclusions, nor commit myself to something that would be difficult to get into our manifesto or to implement in Government.  But when we’re looking at public funding for the arts, I have two specific thoughts.

First, if it is possible, I think public funding should be settled on as long-term a basis as it can be.  Arts organisations spend a great deal of time planning events and shows in advance, sometimes as long as five years or more.  Yet the fact is that none yet know what three-year settlement they will receive, and won’t know until this autumn.  That’s causing a huge amount of difficulty.  In the scheme of things, arts funding is not huge, and it should be possible to put it on a more secure footing for a longer period.

Related to this, of course, is the Lottery.  The whole point of the Lottery was to supply the arts and heritage with a ring-fenced source of income.  Of course, we could tinker with some of it, in the sense of the balance between capital and revenue grants.  But not with the principle of why the funds were set up.  So we want to return, when it is possible (and of course the Olympics has changed that for the time being) to a position where the original four good causes are back in place.

Secondly, I think that there is a huge opportunity to increase the amount of private giving to the arts.  Nicholas Goodison published a report way back in 2004.  The issue he was addressing was the difficulty in securing acquisitions for museums and galleries.  Many of the changes he proposed were cost-free, and would have made the bureaucracy simpler.  We will try and implement as many of those changes as possible.  But he also proposed tax changes to make it easier for people to give.  In a way, that is public funding, as it means the Treasury misses out on income.  But it could also be expensive, so we’ll have to look carefully at those proposals. 

But even if we can’t propose tax changes, we can show leadership.  There’s no doubt in my mind that if politicians – and Government – take the arts seriously, then those with the power to give will follow.

You’ll notice that not only haven’t I addressed the question directly, I haven’t addressed the question behind the question – namely, should the arts be publicly funded at all?  My friend Stephen Pollard (not a Conservative) has a splendid polemic against public funding for the arts on his blog.  He sees it as wholly destructive.

For my part, there is no debate. The arts should receive public funds, and what is more, they should be far more assertive about their right to receive them.  It’s funny that few people question the right of the film industry to get tax breaks; no one worries about funding for grass roots sports; no one queries the amount of money put behind our Olympic athletes (the Olympics might be another matter).  Yet it’s easy to say the arts should get nothing.  But without the arts and heritage, where would we be?   You know the economic arguments as well as I do.  But do you say often enough how successful and well run most of our major arts organisations are?  If the arts in Britain were a plc, they could hold their heads up against any FTSE 100 company in terms of overall efficiency and return on investment.

So there you have some of my principles.  Yes to public funding for the arts.  Yes to it being on a long-term and secure basis.  And yes to encouraging the partnership between private and public funding.    

Ed Vaizey is MP for Wantage and Didcot. Visit Ed's website and blog here.

Do you agree with Ed? What principles do you think should guide the public funding of the arts today?

Christopher Gordon said at 7:36 PM, 11 April 2007

A couple of points arising out of the above.

(1) The National Lottery. When it was initiated by John Major/David Mellor many thought that the open application, first come, first served approach imposed on the distributory bodies was daft. It certainly wasn't 'strategic' but it did have a sort of rational principle behind it. Whose strategies is it now supporting? New Labour has increasingly tinkered, 'substituted' and dissembled about the degree of its populist interference in it. And finally the great Olympic Lottery theft is waking people up to the distance from the original (well intentioned, I would say) focus on a limited set of defined good causes. It's complicated, though, since in effect Lottery funds are 'public' needing to be under some form of democratic control. Which seems to spell populism and substitution. This is not just a UK phenomenon: most of the international research points to similar trends in other countries and a decline after the initial euphoria.

The initial focus on capital was partly in response to (a) genuine identified need and (b) what the professional sector seemed to be saying it wanted and needed. Until it got bored, or jealous and changed its script. Progressive thinking in Scotland even got to considering the benefits of using Lottery proceeds to build up endowments for arts organisations, which in time would reduce the regular drain on Arts Council annual revenue funds and open up much more open and innovative policy processes. But - predictably - the dead hand of the Treasury killed that idea, insisting that the 'new' funds should be rapidly recycled in the economy for cheap (party) political dividends.

(2) Private support. The arguments usually draw upon the US parallel - which isn't really a very appropriate parallel at all. The figure we never get to know is how much tax is foregone annually by the US Treasury through tax concessions on individual giving. The giving culture on that side of the pond is just different, and the taxation laws support it massively. When Richard Luce was UK Arts Minsiter, he was gung-ho on what he felt was the substantial potential to the arts and heritage from the Tories' introduction of Payroll Giving tax concessions. But it didn't catch on for the arts at all. Why not? Because this is a European country where the post-war traditions are - like it or not - rooted in the Welfare State. Whatever the legal (charitable) structures of the majority of established cultural organisations, the public in the main regards them as an essential part of public provision underpinning quality of life and civilised values, and not as charitable causes. You support your local cultural offer through paid admission, through council tax and through income tax (and maybe via the Lottery as well). Gordon Brown's recent Budget in lowering basic rate tax has reduced the charitable tax giving benefit. If we are serious about increasing private giving, some government is going to have to grasp the nettle and create some real individual incentives.

Bill Cox said at 7:23 PM, 04 June 2007

If I get some it's good. If I don't it's bad.

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