The recession has forced private arts investment down by 7%, according to Arts & Business, including individual giving. And A&B chief executive Colin Tweedy has warned there is worse to come.

The figures announced this week for 2008/9 show a £31m slump from the previous year’s record overall high of £686m to £655m.

While business investment was already in decline last year, individual giving in 2007/8 had defied the trend and risen by 25%. A year later the graph has reversed its direction, heading down by 7% with a £19m drop from the record level of £382m to £363m.

All three private sectors have fallen, with business investment down 6% - a slowing decline on last year - and standing at £157 million, 24% of the overall private sector contribution.

Trusts and foundations, a sector which had been a reliable friend to arts organisations and had also continued on the up in the previous figures, have also lessened their contributions by 7%, down from £141m to £135m.

“We would like to be optimistic, but predict the worst is yet to come with 2010/11 being the low-point” Tweedy said. “But we must remember that despite the economic difficulties, the UK’s arts fundraisers have still secured close to £655 million from the private sector – which is a remarkable achievement. We must now give them every opportunity to maximise their skills and ideas.

“In this fiscal climate there is still enormous pressure on the arts. With much focus on public expenditure budgets, many are looking to the private sector to contribute more – we believe it can”. He said that businesses seeing attendances up on average by 12% will also see potential gain for them in targeting these markets and their future consumers.

‘New policies are the way forward’
Colin Tweedy and A&B are calling for three policy initiatives to stimulate private sector support for arts and culture:
1. New far-reaching incentive schemes to encourage businesses.
2. The training and knowledge to deepen a pro-enterprise and innovation culture throughout the arts.
3. New challenge funds to grow and inspire cultural philanthropy, which has huge potential for growth.

“Be clear” Tweedy said, “there is no magic bullet for cultural philanthropy. We need challenge fund programmes to motivate individuals; yet wider recognition and celebration of philanthropists; better use of existing and potentially new tax incentives (the extent to which Higher Rate Tax Paying donors are claiming the tax breaks due to them); a stronger provision of legacies; enhanced donor care and the training of the real skills to make the case for culture to potential donors. These are all part of any future growth.”