Arts Council England has published a new report, The contribution of the arts and culture to the national economy. The report was commissioned from the Centre for Economics and Business Research (CEBR).
Arts Council England says “The report is the first comprehensive analysis to determine the value of art and culture to the modern economy at a national scale. This is an independent report, which uses methodology the Treasury will recognise and respect.”
Key findings from the research include:
There are strong links to the tourism sector, with at least £856 million per annum of tourism being linked to arts and culture.
The government’s 0.1% of spend on the arts yields 0.4% of GDP.
Arts and culture generate more money per pound invested than health, retail, professional and business service sectors.
The sector grew from 2008 – 2010 with some decline as the economy shrank in the last 3 years. However the greatest sum of money supporting the sector is earned income.
110,000 are directly employed in the arts – 0.45% of the total workforce.
Arts had a turnover of £12.8 billion in 2011.
Responding to the report Chief Executive of ACE, Alan Davey writes: “With this report we can confidently confirm the impressive scale of the arts and culture industry and its distinctive strengths and contribution. It is an undeniably vibrant sector with strong links to the wider economy and a key part of our economic future.”
The study was co-commissioned with the NMDC but unfortunately, as detailed in the report, museums had to be excluded from Cebr’s macroeconomic impact analysis due to difficulties in accurately capturing the wide range and complexity of their activities. The report does demonstrate however the important role of museums in spillover impacts such as attracting tourists, supporting creative industries and contributing to national productivity through education, research and skills development. ACE and NMDC are using the report’s findings and possible solutions suggested by Cebr to consider options for further work to fully assess the macroeconomic impact of museums.