Chancellor Rachel Reeves has set out Labour’s plans to “restore economic stability and turn the page on 14 years” of Tory leadership in the new government’s budget announcement, which prioritised essential services, with the culture sector scarcely receiving a mention.
Sector leaders had cautioned low expectations in the lead-up to today’s announcement, with the creative industries only receiving scant direct references.
These included £25m for the North East Mayoral Combined Authority to remediate the Crown Works Studio site and funding for major events and activities commemorating VE Day, VJ Day and victims of the COVID-19 pandemic.
The budget paper reveals more detail on the government’s plans for the sector, such as a £3m investment to expand the Creative Careers Programme and £300m for higher education., but did not refer to the party’s manifesto pledge to reform the apprenticeship Levy into a Growth and Skills Levy.
There was also support for arts and culture in plans to raise grant-in-aid for the national museums and galleries “to help support their long-term sustainability”.
Labour will provide “a package of cultural infrastructure funding that will build on existing capital schemes – with additional capital investment to support cultural organisations across the country,” but did not include figures.
While the Chancellor repeated the party’s mantra of “growth, growth, growth”, to ensure investment is focused on “the growth mission”, the government is “minded to” cancel unfunded Levelling Up Culture and Capital Projects, and the West Midlands culture and inward investment funding, that were announced in the Spring Budget 2024.
However, it added that it would consult potential funding recipients before making a final decision.
Regional cultural spending could benefit from £1.3bn of support by way of additional grant funding for essential services in local government, including £600m for social care, potentially alleviating pressure on strained cultural budgets, as well as integrated settlements next year for Greater Manchester and the West Midlands, which will allow them to take more control of their spending.
At the government level, though, the Department of Culture Media and Sport, which funds the arts councils for England, Wales, Scotland and Northern Ireland, has an annual real terms growth for 2023-24 to 2025-26 listed as -2.5%.
A footnote explains: “The Department for Culture, Media and Sport RDEL growth rate is negative between 2023-24 and 2025-26 due to expenditure funded from self-generated income by Arm’s Length Bodies in 2023-24, and one-off pressures which
are not included within the 2025-26 settlement.”
Difficult choices
Responding to the budget, the Society of London Theatre and UK Theatre acknowledged that Reeves had to make “difficult choices” and praised the Chancellor’s decision to change fiscal rules to unlock capital investment, providing an opportunity for developing a long-term investment model in theatre buildings.
However, SOLT & UK Theatre co-CEO Claire Walker said: “Rises in business costs, including National Insurance and National Living Wage increases, will be challenging for our sector. Productions and venues set budgets, sometimes years in advance, and raise investment or apply for funds to support these projected costs. Unplanned additional costs will put further pressure on our sector.”
“We recognise that the Chancellor and the new government have had to made difficult choices in their first Budget and had to balance a range of competing and urgent demands. However, with 40% of venues risking closure over the next five years without significant capital investment, there is a critical need in our sector which must be addressed.”
Equity’s general secretary, Paul W Fleming, echoed similar concerns but welcomed the “change of tone on industrial strategy for the performing arts and entertainment industries”.
“The centrality of ‘Making Work Pay’ to the budget and the growth mission is also positive,” said Fleming, “But needs to go deeper, and Equity will keep pressing Labour to ensure a positive impact for artists, especially those in precarious work paying freelance tax.”
AP will continue to update this story.