Dance Mapping - Arts Council England

6. Arts and business: Private sector investment
A report by Arts & Business 38 in late January 2009 stated that:
‘In 07/08 private investment (PI) in culture increased year-on-year by 12%, reaching an all
time high of £686.7million. As PI is nearing the £700 million mark, there are early warning
signs suggesting that this will be the peak of the boom, at least for the foreseeable future.’
Overall business investment has decreased by 7% from 2006/07, culminating in a total of
£163.4 million. Business investment accounts for almost a quarter (24%) of the total private
investment in the UK, most of which comes from business sponsorship. However, the
decrease in business investment could be misleading, if we immediately attribute it to the
challenging economic climate. Although this may have been a contributing factor for the
decline in business investment (mainly cash sponsorship), we cannot afford to ignore the
biannual decline of business investment since 2002, which suggests that there is a 'natural
cycle' for this.
Overall individual giving in 2007/08 reached record levels, experiencing a 25% increase and
amounting to £382.1 million, which makes up more than half of the total private investment
received in the UK. 2008 saw the reception of what is thought to be the largest individual
contribution, towards a single capital project.
Funds from trusts and foundations increased by 7% in 07/08, reaching £141 million – 21% of
all private investment comes from trusts and foundations.
‘According to the respondents of Arts & Business' “Private Investment in Culture Survey”,
private investment (PI) in 07/08 accounted for an average of 13% of their organisation's total
income. Public sector funding, including funding from the Arts Council England, the UK
Ministries of Culture, other governmental departments, local authorities, other public
subsidies and lottery funding, made up 54% of the total income of cultural organisations. The
remaining 33% was raised through earned income, including ticket sales and trading.
‘The cultural sector enters this downturn in a position of unprecedented strength, but we need
to work together to maintain this long-term security. Public and private money go absolutely
hand in hand. Arts & Business will continue to lobby for both public and private funding and
deliver the very best leadership and learning for culture throughout the UK.’ (Colin Tweedy
Arts & Business 2009)
38 The comments in this section of the research draw heavily upon the Arts & Business 2009 report
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