Arts funding joint statement

Public funding for theatres and orchestras

1. We write on behalf of organisations representing all sides of the British theatre and orchestral industries.
2. The theatre sector as a whole - encompassing both subsidised and commercial theatre - makes a major contribution to the British economy. The Arts Council's recent Economic Impact Study showed that, for an Arts Council subsidy of some £120 million a year, the sector has an annual economic impact of £2.6 billion. The Culture, Media and Sport Select Committee, in its 2005 Report on Theatre, emphasised that 'British theatre is vibrant, diverse and renowned across the world'; it is 'invariably cited as one of the key attractions' for visitors; and 'it has an enviable record in terms of the creativity and technical skills of its people on, off and behind the stage; critical acclaim and intellectual challenge; and taking risks in pushing the boundaries of national discourse.' Significantly, the Select Committee noted that 'These elements are more likely to be evident, or originate, within the subsidised sector.'
3. Similarly for Orchestras the quality and range of their activities is greater than ever. The turnover of the sector is some £126m with over 3,000 concerts at home and abroad attended by over 2 million people, including specific education and outreach programmes for 300,000 under 18s.
4. We readily acknowledge this Government's record of support for the sectors. The theatre settlement for the three years from 2003/04 was widely welcomed as reversing the previous deep cuts in arts funding and represented a hoped-for end to the historic pattern of stop-start funding for theatre. The Recovery and Stabilisation programmes for British Orchestras have transformed a sector on the edge of collapse into a secure, vibrant and artistically world class industry, widely perceived to be the most dynamic of its kind.
5. Having said that, however, the subsequent settlement for the two years from 2005/06 was hugely disappointing to the sector. We now face the forthcoming spending round with an increasing level of concern. As the Select Committee indicated, 'a policy of stop-go-stop� is not a prudent approach to the long-term investment in the arts to which the Government claims to be committed.'
6. We are well aware of the tight constraints on the next spending round across the board. Nevertheless, we strongly urge you to give consideration to the structural problems facing the theatre and orchestral sectors and to ensure that the next settlement, in contrast to the last, builds on the investments made to date and makes good the less than inflationary increases for 2006/07 and 2007/08.
7. We ask you to take into account the structural fragility of the theatre and orchestral sectors. These industries by their very nature, are extremely labour intensive. They are far from high-wage sectors (indeed the Select Committee recognised 'the extraordinary commitment and capacity of those working in the theatre to accept low wages to pursue their careers'). There is little or no scope for productivity improvements beyond what has already been achieved. There is no foreseeable prospect of significant cost-savings through the application of new technology. This means that any further squeeze in funding will inevitably lead directly to a reduction in activity and thereby in theatre/orchestral employment. It is also bound to have an adverse impact on the number, range and quality of performances available to audiences.
8. It would be all too easy to undermine the progress that has flowed from the generous settlements implemented in 2003/04 and the efforts that all our members (be they actors, musicians, technicians or managements) have made to bring theatre and orchestral music to a larger audience and at a constantly increasing quality. The quantum of public funding which makes the difference between theatres and orchestras thriving and not just surviving is minuscule - especially when set against public spending as a whole. We therefore seek a settlement for 2008 and beyond which will at least match inflation and which pays due regard to the fact that our two sectors are a global success story for the UK.
9. We would welcome the opportunity to discuss these issues with you.

BECTU, Equity, Musicians Union, ABO (Association of British Orchestras), SOLT/TMA (Society of London Theatre/Theatrical Management Association)