At the end of close to 15 years during which the country was governed by a succession of prime ministers and colleagues responsible for the arts, every one of whom seemed to regard culture as a dirty word, the election of a Labour Party that has historically been far more favourably disposed towards our sector will have been warmly welcomed.
Although they have now been in office for close to four months, the first real opportunity to make a noticeable difference to the cultural industry was always likely to be Rachel Reeves’s inaugural budget. However, as she has been at pains to explain—repeatedly—the new Chancellor of the Exchequer has found herself with what she estimates to be a £22 billion black hole at the end of a long period of austerity. Further, she is an advocate of fiscal responsibility, simultaneously looking to build stability and engender growth, which could sound like a contradiction in terms.
Given the underlying financial pressures, it would then take a strong Secretary of State for Culture, Media and Sport to fight her corner when so many other ministers have what they would regard as more pressing claims to a greater share of the pot. To date, Lisa Nandy has not shown herself to be the advocate that we need, appearing to take a backseat in a fashion similar to so many of her uninterested predecessors over the last 15 years.
It is not too late for her to step up to the plate, although there has been no indication so far of any interest in the performing arts, with hints that film and television, along with sports might be closer her heart. She’s only four months in the so there is still plenty of time for her to prove this assessment wrong, and the sooner the better.
Despite nine pages listing documents that underpin a mammoth 80-minute budget speech filled with detail, it is hard to find any that directly relate to the cultural industries, with the single exception of an announcement of support for animation. Therefore, this Budget’s impact on the sector will be determined by the consequences of announcements that have a more widespread effect.
Those in the sector will offer a somewhat circumspect welcome to the prospect of a 2% real-terms uplift in spending on the public sector. The circumspection lies in the way in which this is carved up, since it is an average, not a minimum allocation. Given commitments on defence, health, education, construction and other areas of desperate need, one fears that the dear old arts may not get their fair share.
Perhaps more promisingly for some, there is also a serious desire to increase devolution and thus the powers of mayors and others responsible in the regions. Those lucky enough to find themselves in a location where those with influence favour the arts might just hit the jackpot.
One other sign of hope for some lies in a limited giveaway on business rates for smaller businesses. Some in our sector will undoubtedly feel the benefit, although that will be of no comfort to those that cannot. These measures could be desperately needed, since various other announcements will be bad news to those whose finances are already over-stretched thanks to the pandemic and cost of living crisis.
It is hard to believe that anybody could feel bad about a significant uplift in the National Living Wage, which still sounds woefully low. While this might be good news for many working in the arts, it will also increase costs for organisations that are already struggling to keep their heads above water.
To compound the pain, the biggest news story coming out of the budget and the highest earner for the government surrounds employer’s National Insurance Contributions. Early leaks or rumours had suggested that the rate would be increasing from 13.8% to 15.8%, but, in an attempt to appease business owners, the new level is only going to be 15%. However, the current starting point of £9,100 will reduce to £5,000 next year, which will be an added burden for many in the theatre industry, although there are some compensating reliefs for small companies.
These days, it sometimes seems as if every silver lining has a cloud, and that comes in the form of improved workers’ rights. In principle, we all applaud efforts to make life better for the disadvantaged but, once again, this comes at a cost and will be felt most significantly by small businesses.
Unless additional funds are provided to the cultural sector, which seems unlikely in the short term, the consequences of Rachel Reeves’s first Budget are unlikely to be positive for many creatives, which is a pity.
One has to hope that the economy stabilises and grows, at which point the government will have an opportunity to look more benignly on the beleaguered arts, which are in desperate need of an injection of optimism (and cash).