BIRMINGHAM ARTS PARTNERSHIP Submission of Written Evidence to House of Commons Culture, Media and Sport Select Committee Inquiry into the work of Arts Council England 1. Executive Summary 1.1. Birmingham Arts Partnership (BAP) is delighted to submit evidence to this Inquiry and contribute to an important national debate. 1.2. We welcome the work of ACE; value our relationship with the organisation and continue to support the principle of arms-length funding. 1.3. Birmingham is a regional capital which enjoys a unique collection of cultural assets unsurpassed outside of London. The city lies at the heart of highly interconnected city region. 1.4. Birmingham s cultural sector relies on a complex ecology of funding and working relationships, built over many years. It is impossible to isolate principal funding sources without impacting on the expectations of other funders and income streams. 1.5. We underline the key findings of the 'Rebalancing Our Cultural Capital' report and welcome the response of the chair of ACE to achieve a better funding balance over the next two years. 1.6. Cities are regional capitals and need to benefit from public policy approaches that recognise their strategic role. 1.7. We believe ACE needs to develop approaches that recognise the growing importance and relevance of cities and city regions, both on the ground and in policy terms. 1.8. We want to see ACE develop a strategic partnership with Birmingham, through Birmingham City Council and BAP, to ensure the continuing stability and development of the cultural sector for local, national and international audiences in support of economic impact and quality of life. 1.9. We want to see ACE formally employing more devolved decision making and delegated funds. 1.10. Overall, ACE needs to make more room for the strategic and pro-active in its way of working. Formal application systems and limits are not always conducive to the ambitious, innovative and the extraordinary. 1.11. We believe there is a need for a more developed understanding of the economic impact of culture within the ACE approach, policies and funding framework, better aligning with the priority given to economic aspects by national and local government as well as LEPs. 1.12. ACE needs backing from Government to re-establish capacity and in particular to provide greater relevant expertise to support the cultural community in commercial exploitation and artist support.
1.13. We want to re-ignite our work with ACE to establish a Museum Quarter in the city, including a contemporary art gallery, in the Eastside quarter as part of the Creative City initiative. As well as fulfilling a partial gap in the city region's cultural provision, it could provide a permanent home for the ACE Collection, particularly those parts not on permanent display. 1.14. ACE - and national government - needs to develop policies and approaches that provide a better balance between London and the rest of the country in thinking as well as funding. This might be assisted by re-locating further functions outside of the capital where possible and, perhaps even more importantly, to move collections and other national assets to strategic places like Birmingham. 2. Introduction 2.1. Birmingham Arts Partnership (BAP) is delighted to have the opportunity to submit written evidence to the Inquiry into the work of Arts Council England (ACE). 2.2. BAP is a high profile group of cultural standard-bearers representing all the major city based arts companies and venues (fourteen organisations, as identified at the top of our notepaper) with a strong tradition of collaborative working. 2.3. BAP members are funded by a mixture of public and private sources and all enjoy strategic relationships with Arts Council England. Taken together, they add up to a closely interlinked cultural ecology with turnover of more than 70m annually and generating over 1,000 full-time-equivalent jobs. This successful ecology is pump-primed and fuelled by public sector investment: it could not survive in anything like its current form without such support. 2.4. BAP members support the founding principles of the Arts Council and the continuing use of arms length funding for culture by national government. 2.5. BAP members value their relationship with ACE on an individual basis as well as through BAP. Cuts in public funding have clearly had an impact, not just on the investment which ACE is able to make into the arts, but in the capacity of the organisation to support development. The application of funding cuts across the board in recent years has obvious merits, but it is possible that a more strategic approach may have been preferable in some areas. 2.6. Across a range of funds, ACE investment is critical to Birmingham s cultural infrastructure. We believe many of the funding streams work well, including strategic funding. In addition to funding for the arts, key research and development programmes such as ACE s work on Opera and Ballet Analysis make a significant contribution to the development of art forms. Page 2 of 7
3. Birmingham s Cultural Sector Over 3 million people were engaged in the arts in Birmingham as audiences and participants in 2011 12 (Birmingham City Council Arts Survey). BAP members turnover more than 70M per year and generate over 1,000 Full Time Equivalent jobs (Birmingham s Cultural Capital). Our sector contributes around 300M to the regional economy every year. For every 1 invested in the arts by Birmingham City Council generates a 29 return on investment through jobs created, services bought and visitor spend in the city (Birmingham s Cultural Capital). Total turnover of the sector has reduced by 13% since 2008 09 (Birmingham City Council Arts Survey). BAP members have already removed nearly 5M in the collective cost base in the last three years. Based on 2010/11 funding levels, members will experience an effective shortfall of 26.5% ( 38.5M) in funding from BCC and ACE by 2015/16. 3.1. Birmingham has a unique concentration of cultural assets outside the capital with arts companies and venues across the artistic spectrum. We enjoy a range of world class facilities and a reputation for excellence in the arts. The cultural fabric of the area is bound up in the very identity of the city. 3.2. Birmingham is at the heart of a vibrant city region where culture is important to both quality of life and to economic prosperity. 3.3. The city is a regional capital, serving audiences far beyond the city s boundaries including a region of over five million which look to Birmingham for major cultural events. 3.4. The city s cultural infrastructure is the product of an understanding of the contribution of the arts to economic and social regeneration over many years. As well as investment and innovation, it has relied on partnerships and collaboration. 3.5. Birmingham s cultural sector is increasingly important to the city region s offer to leisure and business visitors, attracting investment, supporting jobs and growth as well as serving the residents of the city. 3.6. Birmingham is strongly connected to the wider city region through artist and audience development, touring and community engagement. The people who work in the city s cultural sector are part of communities across the region. 3.7. Birmingham is not only one of the most diverse cities in the UK but one of the youngest. Birmingham is the place where people from different places and cultures meet to fashion something new and innovative. Page 3 of 7
3.8. The city is continuing to diversify at a significant pace. We believe our members and the wider artistic and cultural community of Birmingham have an important role to play in exploring new notions of identity and community within the city of the 21st century. Arts and culture in Birmingham will help shape the city of the future and will provide important points of reference, not only for Birmingham but for those other UK cities which will be following a similar path in years to come. 3.9. Birmingham s cultural sector relies on a complex ecology of interdependencies, including through the funding of larger organisations by arts council and local authority sources and the indirect impact on smaller voluntary arts organisations and independent artists. 3.10. BAP s Sustainability Report (March, 2013) identified a number of initiatives that BAP members are now actively pursuing with a focus on closer collaboration, efficiency savings and new income streams. We have just appointed our first Strategic Director who is now responsible for driving these initiatives across the Partnership. Key workstreams include: further sharing and possible commercial exploitation of our extensive creative learning expertise and activities; joint database exploitation, marketing and/or ticketing initiatives including a shared app ; further sharing of appropriate back office functions; and shared approaches to new and/or untapped sources of funding. 3.11. To celebrate the opening of the new Library of Birmingham and the return of Birmingham REP to Centenary Square in September 2013, BAP presented 4 Squares Weekender. A unique series of events staged across the city centre, it was the first time that BAP has conceived, produced and promoted such a major platform of activity, backed by funding from Arts Council England as well as Birmingham City Council. It is estimated that 4 Squares Weekender generated economic activity just short of 1M and an estimated economic impact of nearly 350,000. The September weekend witnessed 95,000 attendances and achieved a media value of nearly 250,000 through coverage. 3.12. Greater Birmingham was largely built on its industrial sector. Whilst these industries play a different role in the economy today, both established and advanced manufacturing remain essential features of the area. The city region s cultural sector is also characterised by 'makers', producing a range of new and original work. We want to develop the strength of the Made in Birmingham stamp with even more production in the coming years. 3.13. Birmingham s designation by Government as the Creative City, with the involvement of ACE as well as the BBC, represents a key opportunity. In particular, the BBC s recognition of the city region as a centre of excellence for digital media and the forthcoming re-location of the The Space to Birmingham, are particularly welcome. 4. Interdependence and Sustainability 4.1. Birmingham s cultural sector relies on a complex ecology of funding and working relationships, built over many years. It is impossible to isolate key funding sources without impacting on the expectations of other funders and income streams. Income for the ACE National Portfolio Organisations (NPOs) from local authorities in the West Midlands region, but excluding the national companies, is the greatest by proportion across England (19%, according to ACE Key Indicators for 2011/12). Page 4 of 7
4.2. Many BAP members are funded by both arts and local council, but the responsibilities demanded by the respective agreements often do not synchronise. ACE has made clear, not only that it cannot make up any shortfall left by a local authority, but that any withdrawal of funding may result in disinvestment by ACE. 4.3. Many BAP members have responsibilities in terms of artistic provision that go far beyond Birmingham's borders. The city s cultural infrastructure includes not just organisations serving local and regional audiences, but a number of national organisations that play a key role in the distribution of art across the UK. Without such regional hubs, national distribution would be significantly diminished. The long term future of Birmingham's cultural provision and the wider work of our companies must take account of both bodies and planning would be considerably better with closer alignment between the two in terms of vision, policy and funding frameworks. 4.4. Local authority funding is important in Birmingham as a regional capital, particularly when compared to London. London s Boroughs, in general, do not invest in culture in the same way as Birmingham City Council, but many arts organisations in the capital benefit from both ACE as well as the Mayor of London/Greater London Authority. Effectively, Birmingham tax payers are funding the arts twice, through national and local taxation, or three times accounting for disproportionate lottery funding compared to London taxpayers who pay once. While London has only 15% of the population, it receives 49.2% of the nation s funding for arts. In 2012-13, the West Midlands region received 16m in ACE Lottery funding, 14m less than the region would have received if based on the national average per head for ACE Lottery funding in England. London received 63m more than the national average. http://www.lottery.culture.gov.uk/advancedsearch.aspx Whilst Treasury monies award nearly 70 of public funding per head to the arts in London, the rest of England receives just over 4.50. Lottery funding of the arts shows a similar disparity, with 165 spent per head in the capital and under 47 elsewhere. Data published by Arts and Business showed 82% of private sector funding of the arts was awarded to London-based organisations (Rebalancing our Cultural Capital, Peter Stark, Christopher Gordon and David Powell Peter Stark, October 2013). Arts & Business reports that 90% of individual giving is made in London to London organisations http://artsandbusiness.bitc.org.uk/research/latest-private-investment-culture-survey-201112 ). 4.5. The concentration of public and private sector investment in London is a self-repeating phenomenon, with private and other income streams often following the lead of ACE and the largest funders. Strong leadership is needed from ACE, as well as Government through DCMS and other public sources, to encourage private investment outside the capital. 4.6. We underline the key findings of the 'Rebalancing Our Cultural Capital' report. Whilst there might be marginal differences in a small number of calculations and interpretations, the principles of the report and the vast majority of the data represent the reality of the current funding imbalance. We note the response of ACE, in particular its chair, to the report's key findings and the commitment to achieve a better balance over the next two years. Page 5 of 7
4.7. Like the report, BAP members also believe strongly that as a major global capital and one which is particularly rich in cultural excellence, London should be viewed as a special case. London relies on the rest of the country and the rest of the country relies on the capital. 4.8. As the report suggests, we believe there is potential to redirect lottery funding in the future to achieve a better balance. We would point to the approach used for the Cultural Olympiad as a good starting place. 5. Developing a Vision for Culture 5.1. Cities are regional capitals and need to benefit from public policy approaches that recognise their strategic role. As might be anticipated, given Birmingham's own size and that of the wider area it serves and accounting for the unique strength in breadth and depth of the city's cultural assets, we would argue that our city is a particularly special case. 5.2. Participation in the arts is dominated by cities, including the work of city-based companies which invest in audience and artist development, community engagement and educational outreach across the wider urban and rural areas. 5.3. As we stated earlier, cities and their cultural infrastructure rely on a complex ecology with high levels of interdependence. That needs careful attention when the sector has suffered from significant cuts in public investment. 5.4. We believe ACE needs to develop a pro-active, strategic relationship with Birmingham rather than the currently loose and reactive one. The strength of Birmingham's cultural infrastructure is largely testimony to the informal partnership between the local authority and the then Arts Council more than two decades ago. Birmingham's cultural stakeholders would benefit from the return of that energy; and spirit this time at an even more strategic level. 5.5. ACE needs to take account of increasing city and city-regional structures and policies, rather than delivering an operating model based upon a weakened regional organisation. 5.6. We want to see ACE formally employing more devolved decision making and delegated funds, as utilised by many comparable funding bodies and distributors. 5.7. Overall, ACE needs to make more room for the strategic and pro-active in its way of working. Formal application systems and limits are not always conducive to the ambitious, innovative and the extraordinary. 5.8. We believe there is a need for a more developed understanding of the economic impact of culture within the ACE approach, policies and funding framework, better aligning with the priority given to economic aspects by national and local government as well as LEPs. We note that the Select Committee itself recently recognised the substantial contribution of the arts, not just to the country's cultural life, but to our economic life, providing an important economic stimulus. (John Whittingdale, Chair, CMS Select Committee, introducing report of committee into the role of Creative Industries in the British Economy). 5.9. ACE needs backing from Government to re-establish capacity and in particular to provide greater relevant expertise to support the cultural community in commercial exploitation and artist support. Page 6 of 7
5.10. To support our ambitions to expand Birmingham's production base, we believe a more strategic partnership with ACE will provide for better long term, collaborative thinking. 5.11. Our members and the wider sector would benefit from a greater focus on supporting our international and investment ambitions, from world touring to the development and attraction of the best cultural talent. 5.12. We want to re-ignite our work with ACE to establish a Museum Quarter in the city, including a contemporary art gallery, in the Eastside quarter as part of the Creative City initiative. As well as fulfilling a partial gap in the city region's cultural provision, it could provide a permanent home for the ACE Collection, particularly those parts not on permanent display. 5.13. Understandably, the national cultural sector will continue to be dominated by London, not just in terms of investment and provision, but also at a much more strategic level with many national artistic leaders, policy makers and funders benefitting from their close proximity in the capital. 5.14. ACE - and the national government - need to develop policies and approaches that counterweight a continuation of this trend and ensure the country achieves a better balance in thinking as well as funding. This might be assisted by re-locating further functions outside of the capital where possible and, perhaps even more importantly, to move collections and other national assets to strategic places like Birmingham. 6. Conclusion and Contact We trust that this submission is helpful to the Committee s work. Representatives of BAP would be more than pleased to provide oral evidence to a session of the Inquiry. For further information please contact: Andy Howell Strategic Director for Birmingham Arts Partnership M: 07976 263 698 T: 0121 245 2000 andy.howell@me.com 24 th February 2014 Page 7 of 7