When the cold, hard cash runs out

What will 2015 bring for London’s arts and culture scene? Walk through the throngs lined every night on the Southbank, brave the bright lights of the West End, or head over to the Dulwich Picture Gallery on a lazy Sunday afternoon and you would think everything was thriving. Yet, there is no doubt that the sector experienced huge challenges in 2014 with funding reductions affecting organisations of all sizes, and potentially there are more cuts to come.

To lay all the blame for the sector’s financial woes at the door of local authorities, however, misses the broader picture. While it is true, spending by London boroughs on cultural services has fallen, it is worth pointing out that their investment remains significant.

London boroughs spent collectively £220.5m on arts and culture in 2013/14 despite cuts to central government funding which will amount to 44% by the end of 2015/16. That is because London boroughs recognise the role that arts and culture plays in creating healthier, happier and more cohesive and prosperous communities.

More than 90% of London boroughs make some of the property they own available as free or subsidised space for arts and culture organisations

As a region, London boroughs spend more per head on arts and culture than the rest of the country: £26.07 per head, compared to £21.84 for the national average. Many of the activities they support are specifically targeted at improving the mental and physical wellbeing of residents, as well as enhancing economic growth and educational outcomes. For example, in my own borough of Hackney, we ran a membership scheme last year aimed at residents aged 60 and over. The scheme, entitled Hackney Circle, offered free events, activities and discounts at cafes, restaurants and cultural venues in and around Dalston Square. The initiative, developed with a group of local designers, proved to be a great way of introducing residents to spaces they may never have visited before and to people from other age groups. In Richmond a member-led group supported by the council called Art and Soul works with people who are experiencing mental health problems. The group hold workshops and every other year put on an exhibition of their work at the council’s Orleans House Gallery.

Councils help arts and cultural organisations in a myriad of ways. Our recent report London local government’s support for arts and culture explores some of those avenues and considers their impact. One of those ways is through the local authority’s role as landlord. More than 90% of London boroughs make some of the property they own available as free or subsidised space for arts and culture organisations. This includes the subsidised short-term hires of galleries, theatres, offices and storage space, as well as long-term leases at peppercorn rents. While this kind of support can be taken for granted, it represents a significant financial commitment from boroughs. On average, boroughs forfeited between £3,000 and £6,700 worth of income per venue in the last financial year in free hires, and that calculation is based on charitable rates rather than the full commercial rate. They also offer rent grants or rent-free leases worth between £40,000 and £200,000 a year.

In the case of the Battersea Arts Centre, this form of support from the London Borough of Wandsworth has been the key to unlocking crucial funding. The arts centre secured a £500,000 Big Lottery Fund grant after the borough agreed to extend the rent-free lease from 10 to 20 years. In exchange, the centre managers pledged to carry out essential works on the building and undertake any upkeep. This arrangement was recognised with a Public Sector Partnership award by Third Sector magazine.

And it is not just access to their own spaces that boroughs can provide for arts and cultural organisations. A third of boroughs have policies in place to support temporary occupation of third-party spaces, such as buildings scheduled for redevelopment or empty high street shops. This arrangement can benefit all involved as the organisation has a home, at least for a limited time, and the third party often benefits from a tax break or another incentive during an otherwise fallow period of business. And then the community benefits by seeing a once derelict area come to life.

In Brent the local council worked with Locality, a community enterprise network, to set up the Meanwhile Foundation. The foundation takes over the tenancies of empty properties, which it then offers at reduced rates or for temporary rent-free use to cultural and creative projects. In exchange, the landlords are relieved of their business rates obligations. The programme has seen creative start-ups flock to places such as South Kilburn Studios. Instead of paying rent, the organisations offer workshops and training to local people and put on free events.

Another vital tool which many local authorities use for the benefit of arts and cultural organisations is their planning powers. Under recent legislation introduced by central government, each borough can charge developers a set amount per square metre for any new development in the local area. They are also required to publish a list of the type of infrastructure they will spend the proceeds of these charges on. A total of 21 London boroughs have included cultural infrastructure and provision, such as libraries and public art, in their published or draft lists. A further five have cited community infrastructure which could include cultural provision.

Money derived from developer contributions has been used for years to fund creative activity across all boroughs. In Westminster the council used the funding to commission a community film project by artist Layla Curtis. Using thermal imaging cameras, Layla worked with traceurs, people who practise parkour and young people learning parkour, to capture the white heat residue they left on surfaces. The finished films were screened in a gallery in Westminster which is also supported by developer contributions. Developer contributions have also been vital to setting up a business hub at Redbridge Central Library. The hub offers a programme of business support for creative start-ups, such as advice sessions, networking opportunities, workshops and training programmes.

And this leads to another often overlooked resource of local councils that perhaps is their greatest asset. Boroughs have connections to a wide, diverse range of groups, from local businesses and community groups, to colleges and universities and healthcare providers, landlords and housing associations. These networks can be and are regularly exploited for the benefit of arts and cultural organisations, for everything from introducing artists to commissioning opportunities, securing road closures for outdoor arts events, and helping artists to access archives, images and other materials that they need for their work.

So back to our original question – what does the future hold? We cannot pretend that things will improve or even that austerity measures for councils will ease. London local authorities are bracing themselves for further budget cuts. The Local Government Finance Settlement announced in December confirmed that boroughs will lose £670m or 15% of their core funding in 2015/16. Estimates by London Councils, which represent all 32 boroughs and the City of London, are that boroughs could see a £3.4bn funding shortfall by the end of the decade.

While it is true that direct financial support is dwindling, arts and cultural organisations have the potential to gain so much through developing and sustaining strong relationships with boroughs. Boroughs may not be able to offer them cold, hard cash, but the forms of support they can offer remain valued and valuable to the sector, and most importantly benefit the communities they serve. In the words of the playwright George Bernard Shaw: “Without art, the crudeness of reality would make the world unbearable.”

Councillor Guy Nicholson is London Councils’ representative on the Arts Council England Area Council for London and on the Mayor’s Cultural Strategy Group.
www.londoncouncils.gov.uk