A faster recovery for arts and culture
We’ve commissioned research from the Centre for Economic and Business Research (CEBR) that has indicated that the Government’s Culture Recovery Fund will help the cultural sector return to pre-Covid levels of growth earlier than expected.
The report predicts that the sector’s Gross Value Added (GVA) will return to its pre-lockdown level of £13.5bn by 2022, a full year earlier than was anticipated without government intervention. The research also shows the sector is set to be worth £15.2 billion to the economy by 2025.
CEBR’s reports come at the same time as another piece of research by Metro Dynamics, on the links between culture and the wider creative industries that found culture “acts as an R&D lab for the creative industries, encouraging experimentation and in turn driving innovation and commercial activity”.
Together the reports show the importance of the Government’s timely action to support that sector and allow it to continue to provide ideas and talent to the UK’s creative industries, which brought over £100bn to the economy before lockdown.
Further analysis highlighted the huge contribution the arts and culture sector made to the UK economy prior to the pandemic, finding the sector:
- Was worth £13.5 billion to the UK economy in 2018, up from £12.8 billion the previous year, and contributed £3.4 billion in tax. The research shows the sector is set to grow to £15.2 billion by 2025.
- Created good jobs, employing 233,000 people. These roles were on average more productive than those in sectors such as manufacturing and professional, scientific and technical activities, with an average of £72,000 GVA per full time equivalent worker, compared to the UK average of £56,700. The sector also supported £28.9 billion of GVA and 454,000 full time equivalent jobs through its supply chains.
- Supported the wider creative industries, one of the fastest growing areas of the economy, and brings visitors to high streets near cultural attractions.
- Contributed to the Government’s “levelling up” agenda by supporting the economy in the North and Midlands. In these areas the sector generated £3.3billion GVA and supported 44,000 full time jobs, and boosted productivity in the wider creative industries.
- Was larger than the agricultural, forestry and fishing industries combined.
Culture Secretary, Oliver Dowden said: “I know that recent months have been challenging and uncertain times for the arts, culture and heritage sectors but the findings in this report are welcome news.
“Thanks to our £1.57 billion Culture Recovery Fund these hugely valuable sectors will be able to build back from this crisis sooner, boosting the country’s economic recovery and more importantly, enriching people’s lives.”
Darren Henley, CEO of Arts Council England said: “Thanks to the government’s Culture Recovery Fund, we’re helping cultural organisations to continue to be the beating hearts of their communities. We know that creative professionals and creative organisations enrich lives in villages, towns and cities across the country. Through this Fund we’re determined to continue to deliver on the government’s plans for levelling up opportunities for people across the country”.
Sir Nicholas Serota, Chair of Arts Council England said: “These figures demonstrate that the cultural sector is an economic force in its own right, as well as an essential pipeline for talent and ideas into the wider creative industries – one of our fastest growing sectors before the pandemic. By investing through the Culture Recovery Fund, the Government is helping to protect the sector, ensuring that it can bounce back more quickly and play a vital role in the national recovery as we emerge from this crisis.”
We’re working to distribute the governments Culture Recovery Fund as quickly as possible. £3.36million has already been invested in 136 live music venues across England, with more announcements to follow in the coming weeks.
You can take a look at the research reports from CEBR and Metro Dynamics below.
