Speech by Ed Vaizey, Minister for Culture, Communications and the Creative Industries
Delivered at the Local Government Association Conference 7 March 2013

Ladies and gentlemen
I鈥檇 like to thank Flick Rea for her kind introduction and for inviting me to speak at your annual conference, bringing together so many of you who work so hard to promote British culture, heritage, tourism and sport.
皇冠体育appse are not easy times to be in Government, at either national or local level. Faced with a crippling budget deficit, we are faced with difficult choices, some of which are painful to make. But we have to cut our cloth.
But unique challenges also bring unique opportunities. While we must all learn how to do more with less, it offers us the chance to think differently about how we go about delivering. Yesterday鈥檚 model may not necessarily be the right template for tomorrow.
That said, our creative and cultural sector is in rude health. 皇冠体育app success of last year鈥檚 Olympic and Paralympic Games and the Cultural Olympiad demonstrated to the world the richness of what it is to be British in the 21st Century, with all its quirks and eccentricity.
That鈥檚 why our creative and cultural sector is such a vital element in delivering economic growth, by encouraging economic investment through tourism and business. We have seen this at the Sage and Baltic in Gateshead, the Turner Contemporary in Margate and the Liverpool City of Culture. 皇冠体育appse are perfect examples of local regeneration being driven by culture.
So in tough economic times, the Government is committed to safeguarding and nurturing our investment in culture, heritage and sport.
In order to do this, we restored the share of arts and heritage funding from the National Lottery from 16% to 20% each. This increased chunk, combined with growing Lottery sales, means Arts Council England is now projected to receive 拢262 million in 2015, that鈥檚 over 拢100 million more than it received prior to May 2010.
皇冠体育app Heritage Lottery Fund too, is now projected to receive 拢379 million in 2015, 拢160 million more than prior to 2010.
And Sport England鈥檚 projected income will be 拢235 million compared with 拢134m prior to 2010.
This all means that almost 拢3 billion will go to the arts over the lifetime of this Parliament, a billion in Lottery funding combined with almost two billion in direct Government funding.
But state support is only one side of the coin, so to speak. Arts, culture and heritage cannot exist in isolation at a time of unprecedented economic challenges. As I said a moment ago, we must seize this opportunity to take a fresh look at how we deliver.
That鈥檚 why the Government is supporting the sector to develop a stronger emphasis on philanthropy, including the 拢100m Catalyst Fund with Arts Council England and the Heritage Lottery Fund.
We鈥檝e also introduced a reduced rate of inheritance tax from 40% to 36% for those estates where 10% or more is left to charity, to encourage legacy giving to cultural organisations. This was also the focus of one of three reports published by the Government at the end of 2012, alongside proposals to boost fundraising capacity outside of London, and exploring the scope for harnessing digital technology.
皇冠体育app pursuit of philanthropy is not a sticking plaster solution. It is about the pursuit of a long-term strategy to strengthen the financial resilience of the cultural sector.
In the case of endowments, this might take a century to bear full fruit, and it is for that very reason we must get cracking, to promote a broader culture of giving.
It is our ambition that that the four strands; philanthropy, earned income, commercial revenues, and state funding; brought together, will in turn attract other sources of investment.
I see so many excellent examples of how this partnership approach, combined with fresh thinking, is delivering results.
皇冠体育app Royal Shakespeare Company鈥檚 production of Matilda is a perfect example of how edgy, innovative and publicly-supported art can flourish into a critical and commercial hit.
It took seven years of development by the RSC to create Matilda. Public subsidy enabled the company to take the risk on two brilliant writers, new to musicals. Today, total sales now exceed 拢24 million, with the advance standing at 拢4.5 million. It is the latest in a long line of valuable cultural exports that emerged as a result of public investment.
That鈥檚 why I can assure you that culture and the arts are important to the Government. It seems ridiculous that I would have to state such a self-evident truth. I believe it is regrettable to observe some of the scaremongering, suggesting our arts and cultural sector is somehow 鈥渁t risk.鈥�
So where does all this rubbish suggesting: 鈥溁使谔逵齛pp Arts are in Crisis,鈥� come from? Let鈥檚 look at the facts:
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This year鈥檚 Arts Development UK survey, looking at local authority arts spending, found that the average local authority budget for the arts is a fraction under 拢385,000 鈥� an increase in cash terms on last year鈥檚 levels.
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Every 拢1 spent by local authorities on the arts brings in an extra 拢3.83 of additional funding. That suggests leverage funding of almost 拢1.5 million per local authority.
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Local authorities remain one of the major funders of arts in England and Wales, with an estimated spend of 拢134 million on direct arts services.
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During the five years of this parliament, Arts Council of England will put more than 拢90 million into the 28 English regional producing theatres.
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And in 2011 a 拢45 million Strategic Touring Programme was launched, to bring arts to people all around the country not just those in main centres.
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Plus the 拢37 million Creative People and Places fund will focus investment in parts of the country where involvement in the arts is below average.
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And just yesterday I announced that 11 areas of the UK are bidding to become this country鈥檚 City of Culture in 2017.
British culture in crisis? I don鈥檛 think so.
In this context I welcome the LGA鈥檚 publication on the relationship between arts and growth. It demonstrates that where local authorities recognise this relationship, investment at a local level has been maintained. Arts and heritage and its links with tourism are fundamental to supporting growth.
To give you an example of this: Milton Keynes Council invested 拢197,000 in the 2012 Summer of Culture and International Festival, which in turn levered an additional 拢1 million from participating organisations. 皇冠体育app total economic impact is estimated to be 拢6.4 million.
Another is the 2010 economic impact study of the Anvil Arts Trust in Basingstoke, which runs 皇冠体育app Anvil, 皇冠体育app Haymarket and 皇冠体育app Forge. I highlight this one not simply because it is in the Secretary of State鈥檚 constituency, but rather because it gets most of its funding from the local council, which found that the Trust generates a gross economic impact of 拢6.2 million. 皇冠体育app study went some way to help councillors understand the importance of Anvil Arts as a sizeable economic entity, generating income and jobs.
And in their year as European City of Culture, Liverpool received 9.7 million additional visitors to the city which in turn resulted in over 拢735 million in additional visitor spend. Derry-Londonderry hope to have 2800 tourism jobs by 2020 as a legacy from their year as the first UK City of Culture.
Yesterday I announced the 11 cities and places which have put themselves forward to be the UK鈥檚 City of Culture in 2017. 皇冠体育appy are the ones that 鈥淕et It鈥�. It鈥檚 only a shame that more don鈥檛.
皇冠体育app recently signed partnership between VisitEngland and Arts Council England will result in both organisations jointly championing England鈥檚 cultural offer, enabling us to better co-ordinate activity, and supporting destinations with the potential to grow their economies by nurturing local culture.
Last November I met the Local Authority Heritage Champions at Painters Hall, and was particularly impressed at the work they do to ensure that heritage is underpinning their local authorities鈥� plans.
皇冠体育appy are yet more examples of innovative thinking and working in partnership, to deliver real economic benefit.
Our rich heritage is rightly a source of great national pride. Our heritage is our hallmark and makes the UK distinctive in a globalised world. It is a tremendous draw for visitors too: 40% of leisure visitors to the UK cite our heritage as the major drawcard, a sign of our heritage delivering very real economic benefits. 皇冠体育app heritage tourism sector is worth 拢12.4 billion a year to the UK, not only in entrance fees, but in pounds spent in shops, hotels and restaurants. That means jobs.
A fine example is Wakefield which has become a major visitor destination for Yorkshire. 皇冠体育app area offers excellent attractions including the Hepworth Wakefield, the Yorkshire Sculpture Park, the 皇冠体育appatre Royal, the National Coal Mining Museum for England and the National Trust鈥檚 Nostell Priory. 皇冠体育appse attractions combined received over a million visits in 2011/12, delivering 拢323m to the local economy, and creating 9,000 jobs.
So in growing our economy, our heritage and history give us an edge. And having an edge can sometimes make the difference between winning and losing.
But innovation and fresh thinking is delivering results in other parts of the cultural sector also: our libraries, where digital technology is being exploited to support economic growth and development.
Now, libraries; or the public library service to be precise, are another area which are occasionally deemed to be 鈥淚n Crisis.鈥�
So let鈥檚 look at some examples. Libraries in Northamptonshire are hosting Enterprise Hubs offering business start-up advice, job clubs and training workshops which are supporting the economic growth and development of the county.
In fact the concept has been so successful, the council is planning to extend the concept by setting up a 鈥榟atchery鈥� space in their libraries, providing business incubation for up to one year.
To help encourage young entrepreneurs they are allocating one of the Library business spaces to under 25s.
I鈥檓 delighted our library service continues to thrive and modernise. Local Authorities invested 拢820 million in libraries last year. Birmingham, Liverpool and Manchester are all making major investments in their central libraries, and Birmingham鈥檚 will soon be the largest library in Europe when it opens this year.
In the spirit of fresh thinking, the Public Service Mutual model is offering another way to maintain the delivery of library, and other services. In York, work is underway developing the first staff-led, public service mutual in library and archive services, with help from the 拢10 million Mutuals Support Programme.
It鈥檚 an impressive undertaking: York鈥檚 libraries and archive service has around 120 staff and a budget of 拢2.4 million a year, providing 17 libraries, as well as archive and local history services. 皇冠体育app project is developing a final business plan and aims to get council approval to spin out in June, and we will be sharing what can be learned from the project with other providers.
To support this growth, the Government has appointed a specialist adviser on libraries to work with local authorities and Arts Council England. I encourage you to engage with Yinnon Ezra over the coming months to consider different approaches to library service provision, and new ways of thinking about sustainability.
皇冠体育app Arts Council has established a 拢6 million fund to support culture in libraries. We have published the CIPFA comparative profile reports for the first time. We are piloting automatic membership for school children and young people.
And we are supporting a pilot 拢1.2 million project to turn six libraries into 鈥榠ncubators of innovation鈥� - to see them roll-out business support to towns and villages.
Libraries 鈥淚n Crisis鈥�? Again, I don鈥檛 think so.
But there can be no finer place to discuss arts and heritage than here in Chester with its rich cultural history.
Since becoming a new authority in 2009 Cheshire West and Chester has developed a clear plan to make the area economically and culturally richer by using culture as a catalyst to drive economic, social and community regeneration.
皇冠体育appy will utilise the cultural offer to enhance the attractiveness and distinctive nature of market towns and rural area within the Borough, with a vision to deliver a new theatre and library complex, a Roman museum, and improvements to the visual arts infrastructure.
It鈥檚 yet another example of ambition and innovation delivering both cultural benefits and economic growth. And yet another example of the arts in the UK waving, not drowning.
Thank you.
[ENDS]