Still stinging from public sector cuts, the majority of arts and cultural organisations expect it will take another four years to return to the financial state they were in before government reduced arts funding.

Only 30 per cent of arts and culture bodies believe they will be able to make up the income lost in public sector cuts before 2015. This figure does not include expectations about recovering from decline in other income as a result of the wider economic downturn.

Arts Quarter reported the findings of its survey of more than 450 arts organisations in Impacts of the Recession on the UK Cultural Sector today, and declared the future does not look bright for a large proportion of them. “The sector is broadly in the throes of a second recessionary wave brought about by public sector cuts and continuing disappointing levels of private sector fundraising growth,” the report said.

Ninety-one per cent of organisations are now engaging in fundraising, an increase on last year; some of this growth is in response to the cuts and government attempts to boost fundraising capacity within the sector. But while most expect to see “modest” year-on-year growth in fundraising income next year, a large proportion believe income will be at a standstill across all fundraising streams.

There is a disparity in optimism between cultural organisations in London and those operating outside the capital. Of London cultural institutions, which are arguably more experienced and mature in their fundraising, just over a third (35 per cent) expect fundraising income to rise next year, compared with 45 per cent of organisations working outside the metropolis.

More competition for finite funds

Government attempts to soften the impact of cuts to arts funding, in particular slashing the Arts Council budget by 29.6 per cent, have not provided inspiration to sector fundraisers. Last December Jeremy Hunt announced an £80m arts endowment match fund, but the Arts Quarter report found that this, and the government encouragement that cultural bodies improve their fundraising, has instead merely created increased competition for finite funds.

“We are seeing perhaps for the first time, the failure of any attempts by government to grow levels of philanthropy in the wider community at the same pace as organisations are scaling up their capacities to seek support.”

Arts Quarter went on to warn that the sustainability of the sector could be under theat. “The current position is merely causing greater number of arts organisations to compete for the same levels of funding which has to be to the detriment of the sector generally.”