Testing times: Fighting culture鈥檚 corner in an age of austerity
Keynote Arts Speech by Culture Secretary Maria Miller.

Good morning, ladies and gentlemen.
Firstly thank you to for hosting us here today and thank you to you all for joining me for today鈥檚 speech.
It鈥檚 fitting that we meet here today in what was the world鈥檚 first national public museum. It was opened as a venue for 鈥榯he studious and the curious鈥� and it allows people to consider their place in the world. It continues to play that role; and many more besides. Over 28 thousand people a day have been coming through the doors. 皇冠体育app 鈥檚 ongoing popularity and success confirms my belief that culture is at the very heart of what it means to be human. Culture educates, entertains and it enriches. We must never lose sight of that fact.
This museum is the UK鈥檚 most popular tourist attraction. It is little wonder that citizens from all around the globe are drawn to this collection of the world for the world, which tells such a compelling story of human civilization.
And it is a high mark of civilisation where culture has a fundamental role in society, as it does here in Britain today. Arts and culture underpin what it means to be British; how we see ourselves; and how the world sees us. Our culture is our hallmark, and it makes the UK distinctive in a globalised world.
皇冠体育app role that culture plays in our national life is well understood. 皇冠体育app arts stimulate us, educate us, challenge and amuse us. 皇冠体育appy are of instrumental, as well as intrinsic, value and their social benefits are numerous and beyond doubt.
Alongside these social benefits, perhaps because of them, culture is able to deliver things which few other sectors can. It brings our country to life and encourages people to visit our shores; it develops a sense of community and attracts visitors to disparate parts of our nation; it allows us to build international relationships forging a foundation for the trade deals of tomorrow; it cultivates the creativity which underpins our wider industrial efforts.
With that in mind, today I want to argue that culture does not simply have a role to play in bringing about a return to growth. Rather, it should be central to these efforts.
That is not to say that every sinew of effort and artistic endeavour needs to be strained to bring in turnover and profit, that is neither appealing nor sensible to approach it in that way. But a proper grasp of the potential economic impact of culture would serve us all well. Culture is an intricate web of activity, where blossoming stars in regional theatres have the potential to become the next generation of British Oscar winners; and where the of tomorrow can be inspired by what they see at the and go on to become global icons.
Understanding the economic potential which the arts and culture offer both directly and indirectly is essential. 皇冠体育app arts are not an add-on; they are fundamental to our success as a nation.
Government support unlocking further funding
Given this premise, it is essential that government investment in culture continues despite these testing economic times. Public funding for the arts provides support, offers certainty and unlocks further potential. And that is why we continue to dedicate hundreds of millions of pounds of taxpayers鈥� money to this sector.
It is reassuring that Sir Peter Bazalgette shares my view that the public funding distributed by the Arts Council should effectively act as seed funding, or venture capital: giving confidence to others to invest in the creativity and innovation of our cultural organisations.
Significant funding is available. After the last election, the government increased the share of arts funding received from the National Lottery. This means that is now projected to receive 拢262 million of Lottery funding in 2015. That鈥檚 over 拢100 million more than it received each year before the Government took office in May 2010.
As a result nearly 拢3 billion will go to the arts sector over the lifetime of this Parliament: 拢1 billion in Lottery funding combined with almost 拢2 billion of taxpayers鈥� money.
皇冠体育app Government is committed to a mixed economy model where targeted public funding will stimulate money from other sources, whether that is philanthropy or commercially generated. We are committed to that model because it helps organisations maximise their income, without becoming over-reliant on one funding stream over another. As in so many other areas, I believe we tread a happy middle path between the American model, based on benefactor-funding, and the European approach, based on state subsidy. Our system encourages risk-taking, but discourages complacency. And I think it should be warmly celebrated.
You have heard a great deal from the Government on philanthropy over the last three years and with good reason. We should all be grateful for the profound generosity of those donors who already contribute almost 拢700 million to the arts each year.
And the Government is doing its bit by introducing a reduced rate of inheritance tax for legacy giving. We have further promoted philanthropy by listening to our museums and introducing the cultural gifts scheme; by simplifying gift aid; by ensuring greater recognition is given to philanthropists; and by developing the , which I know many of you in this room are actively participating in, 拢110 million has already been earmarked for arts and heritage organisations, which will unlock at least as much again from private donors.
I know there are reservations about this focus on philanthropy across the sector, and probably in the room today, so let me reassure you here and now that no-one considers philanthropy a panacea, a silver bullet or a magic wand. It is not seen as a substitute for government support, but it is complementary.
I therefore regard it as a crucial part of a longer-term strategy which can help us all find that financial security for your sector. 皇冠体育app most significant results might not appear for 10 or even maybe 20 years. But those long-term benefits will be realised.
Similarly we must look to develop the commercial opportunities that exist within the cultural sector. As Matthew Taylor from the RSA recently pointed out in his excellent piece in 皇冠体育app Observer, though cultural organisations might be hubs of creative flair at their heart, they are also businesses - which must combine creativity with commercial nous. 皇冠体育app two are not mutually exclusive: entrepreneurial endeavour doesn鈥檛 come at the price of cultural excellence.
Making the case
Faced with a crippling budget deficit, there are big choices to be made at both a national and a local level, few of which are easy, or palatable. You will all have seen the reported headline figures for the savings that will need to be made as part of the forthcoming Spending Review.
Some in the sector say that arts funding should be treated as a special case. 皇冠体育appy argue that Government support for the arts is less than 1% of total Government funding; and that鈥檚 a drop in the ocean. Culture cannot be seen in isolation at a time of unprecedented economic challenge. Everyone has to play a part in our efforts to reduce the deficit, my Department is no exception. Do we want to be seen to inspire our children or leave them with a mountain of debt?
Ultimately we must reduce the deficit for the economic health of our nation, and the future financial security of the next generation. This is in everyone鈥檚 interests and we will all, including arts organisations, reap the long-term benefits of a strong economy.
But that is not to say that positive arguments cannot be made.
It is with this at the fore of my mind that I come to you today and ask you to help me reframe the argument: to hammer home the value of culture to our economy.
I know this will not be to everyone鈥檚 taste; some simply want money and silence from Government, but in an age of austerity, when times are tough and money is tight, our focus must be on culture鈥檚 economic impact.
To maintain the argument for continued public funding, we must make the case as a two-way street. We must demonstrate the healthy dividends that our investment continues to pay.
That鈥檚 the argument that I, as Culture Secretary, intend to make in my approach to this spending round 鈥� and I need all your help in that endeavour. In going through this period of transition, the Government wants participants, not bystanders, and I need you all to accept this fundamental premise, and work with me to develop the argument.
Unique challenges can also bring unique opportunities, a time for fresh thinking, and fresh approaches. Doing things differently does not have to mean doing things badly. So, over the coming weeks and months, I will argue that our cultural sector can bring opportunities, regeneration, jobs and growth.
Economic impact
Today I want to talk about some of the ways in which we can make the argument that culture is central to bringing about growth. 皇冠体育appse are not the full extent of the arguments that can be made; and I would be delighted to hear more from you about how the culture can have an economic impact but this is the place from which I start.
All the research shows that culture encourages tourists to visit our country. 40% of tourists to the UK cite culture and heritage as the primary reason for their visit. This generates tens of billions of pounds each year for the UK economy, not only through tickets and entrance fees, but in thousands of pounds spent in shops, hotels and restaurants. All of which is delivering real economic benefits to local businesses and local communities.
This impact can be felt up and down the country. As we look to rebalance our economy geographically, regional arts and culture have an essential role to play. This is ably demonstrated by Liverpool, which attracted almost 10 million extra visitors during the year it was European Capital of Culture. This led to over 拢750 million of extra spending in the local area. Arts and culture are now thought to be as valuable to Merseyside鈥檚 economy as the Beatles and football鈥� worth up to three billion pounds a year. So it should be no surprise that we have 11 contenders in the running to become the UK鈥檚 City of Culture in 2017.
Just last week I hosted a reception to launch the Buxton Opera Festival. 皇冠体育appir audiences have tripled in a decade. 皇冠体育appy have won national and regional tourism awards. 皇冠体育appy have diversified their income streams, and as a result they have generated more than a million in turnover. 皇冠体育app other side of the Peak District, the Yorkshire Sculpture Park supports around 100 full time jobs, and is delivering close to 拢5 million of economic impact to its local community. 皇冠体育appse are unqualified local success stories.
皇冠体育appse examples show the potential impact that can be delivered when local authorities, local businesses and local arts organisations understand the fundamental role that arts and culture can play in delivering local growth. And that is why local authorities provide hundreds of millions of pounds each year to arts and culture.
But the potential for culture to play a central role in driving growth goes far beyond its direct economic impact. I would argue that culture should be seen as the standard bearer for our efforts to engage in cultural diplomacy, to develop soft power, and to compete, as a nation, in both trade and investment.
You will all have seen the which was launched last year鈥� Heritage is GREAT鈥� Creativity is GREAT鈥� Innovation is GREAT. All these themes market Britain to the rest of the world as precisely what we are 鈥� GREAT.
But when I started this job one theme particularly caught my eye: Culture is GREAT. British culture is perhaps the most powerful and most compelling product we have available to us. 皇冠体育app most compelling platform upon which we can stand. 皇冠体育app world was watching the UK during our Olympic and Paralympic year, and I was just reminded of what Britain had to offer. In fact, I think the world was a little surprised, and we were perhaps even a little surprised ourselves.
Either way, British culture and creativity are now more in demand than ever before. Just as Seb Coe summed up those fantastic Games, we should be increasingly proud to use the label: 鈥楳ade in Britain,鈥檕r even 鈥楥reated in Britain鈥�. 皇冠体育app world clearly thinks this is something we do well, unique and worth buying into.
Our cultural and creative excellence is recognised globally and our rich cultural offering is in great demand. So when 皇冠体育app Globe 皇冠体育appatre, the ROH, the V&A or our hosts today, the British Museum, take their exhibitions and performances abroad, there isn鈥檛 a ticket unsold. And this isn鈥檛 just about the capital鈥檚 institutions; it鈥檚 the same story when Bolton鈥檚 museums visit China, when the Hay Festival establishes a presence in India or when Birmingham Royal Ballet performs in the USA, and many more examples could be listed here.
皇冠体育app world wants to buy into Britain, and this interest allows us, as a nation, to develop relationships which we can then take advantage of commercially. That doesn鈥檛 happen overnight, it happens over time, driving trust and understanding. This kind of 鈥渞elationship marketing鈥� helps to fly the flag for British goods and services, and attract investment which will drive jobs and opportunities here at home. It opens doors for UK plc and makes it easier for businesses to export, and expand.
And although these business opportunities are unlimited in scope, sometimes the benefits will be close to both home and heart. For example, the British architects will deliver the masterplan for developing the new 拢2 billion in Hong Kong, delivering a new museum of visual culture, several theatres and concert halls and other performance venues. I am sure some of you are eyeing up the possibilities already.
皇冠体育app arts and culture can unlock funding on a local, regional, national and international basis both in their own right and for other industries. And nowhere is this more clearly demonstrated than in the case of the creative industries.
皇冠体育app close relationship, and mutual dependence, between culture and the creative industries is not lost on me, I spent over 20 years in the advertising industry and, as a former advertising executive, I know how fluid talent has become between the creative industry sub-sectors. 皇冠体育appse points are backed up by BAFTA鈥檚 research which shows most people migrate into film and television from theatre; and 鈥檚 research which suggests more than three quarters of film workers cross over into other audio-visual productions.
Given that the global appeal of our creative industries is worth some 拢36 billion to our economy, is it essential that the underpinning role that culture plays is properly understood. It is also to be welcomed that the Arts Council sit on our Creative Industries Council, helping ensure our work is properly coordinated, so that we can ensure that work is really understood and co-ordinated.
Our creative artists are acknowledged as world-beaters 鈥� be it in stage design, music, CGI, or screenwriting. 皇冠体育app National 皇冠体育appatre鈥檚 production of War Horse is a perfect example of a risky venture supported by public funding and creative expertise, which has gone global and crossed from cultural experimentation into commercial success. In the last few weeks, Matilda opened on Broadway with a box office advance of 拢10 million. Skyfall too has been a global success, with box office sales of more than 拢700 million at home and abroad.
皇冠体育app obvious value of such enterprises suggest we should be bold in encouraging new thinking, be ready to challenge the perceived status quo, and we should leverage the value of our cultural sector to keep the UK at the forefront of creative and economic innovation.
We should value the arts for their own sake. We should, and as a country we do but, now, in these tough economic times we need to make a broader case.
I will not stand in front of you today and try to convince you that things will be easy.
Quite simply the world is changing, and we must change with it; these are undoubtedly testing times; but arts and cultural organisations can adapt, grow and harness change. Whether it is through the Arts Council鈥檚 digital R&D work, through its fund for creative industry enterprises, or through 皇冠体育app Space, we have shown that we can continue to be ambitious in our endeavours even when times are tough, or perhaps because times are tough.
We specialise in creativity and innovation, and I remain committed to supporting the long-term sustainability of UK art and culture. We need to work together: to create, and to innovate.
Conclusion
It goes without saying that culture鈥檚 value to our society is immeasurable. You all help frame what it means to be British, and you help to make this country the attractive place it is to live, work and visit. This, in turn, underpins our wider economic growth.
My call to you as arts and cultural leaders then is simple. I ask you:
- to continue to build resilience, self-confidence and self-reliance;
- to seek out new artistic and commercial opportunities;
- to position yourself squarely within the visitor economy;
- and to look for international opportunities which will benefit Britain.
For my part, I will continue to fight our corner in Cabinet. I will position the arts not as on the periphery, but at the centre of economic growth and in that endeavour I ask for both your support and your ambition. And together, we can build a stronger sector, a stronger economy, and above all, a stronger Britain.
Thank you.
[ENDS]