West Midlands Enquiry finds decline in cultural investment requires immediate action
Culture Central and West Midlands Cultural Compacts Network launched their Growth enquiry into the future of cultural investment in the West Midlands, which calls for government, local authorities, cultural organisations, and private sector partners to take immediate, collective action to safeguard the future of the region’s cultural sector.
The research, undertaken by City-Region Economic Development Institute at the University of Birmingham, maps regional trends in public investment in culture, and provides a stark view of diminishing funding levels and associated risks for the region’s position as a cultural powerhouse.
Key findings of the enquiry include:
Public investment in the West Midlands culture sector has fallen drastically since 2016, with a projected funding gap of £102 to £126 million by 2030, representing a 40-49% shortfall.
If public investment had kept pace with inflation, the West Midlands culture sector would contribute £500m in Gross Value Added [GVA] to the UK economy, by 2028.
This sharp decline is expected to lead up to 2,650 fewer Full-Time Equivalent (FTE) jobs by 2030, with wider implications for part-time and freelance workers.
Public investment in culture in the West Midlands was £155 million in 2024, 33% lower than it would have been had it kept pace with inflation.
Professor Rebecca Riley, Deputy Pro Vice Chancellor for Regional Engagement at the University of Birmingham & Co-Director for City-REDI at the University of Birmingham, says:
"The work shows the significant impact that the sector makes on local economies. Public investment in cultural assets creates positive benefits and spillovers in GVA and employment which stay local for the good of places. Our recommendations point to how this impact could be harnessed and create the potential for the sector to innovate and build resilience.”
The enquiry calls for immediate support for the sector through the establishment of a high-level cultural compact for the region, with representatives from local authorities, funders and major private sector infrastructure partners, working together to drive forward growth. Specific recommendations for investment focus on:
The sector: Driving a series of fiscal interventions in addition to the impact of tax incentives, reforms to VAT and recognition of the impact of upcoming National Insurance increases. This would be accompanied by Joint Cultural Needs Assessments and introducing long-term, stable funding models for cultural organisations to combat the instability created by short-term funding cycles.
Artists: Including the launch of a new initiative focused on developing creative skills, capacity building, and business development for artists across the West Midlands.
Young people: for example, introducing a cultural voucher scheme targeted at young people in deprived areas, aimed at increasing access to culture and fostering creative engagement.
Community-wide approaches: with the DCMS establishing a cost-neutral regional endowment to support cultural projects that deliver social value, matched with philanthropic and corporate investment. The creation of a dedicated task force to assess and prioritise cultural regeneration projects, could also ensure that culture is embedded in wider regeneration plans across the region.
Erica Love, CEO of Culture Central, says: “We know the power that culture has on people and places. We believe in the strength of working collectively. We do this to support a dynamic, resilient, inclusive cultural ecology. We know public investment in culture is of benefit to the economy and to society; this investment is at risk. This enquiry looks at public investment in culture in the West Midlands to understand the impact it has on the sectors capacity to deliver against social and economic growth for the region and the UK. Culture is a connector of people and ideas, centring our stories, real and imagined. It makes us proud of the places we live and work in and brings joy to people’s lives. The cultural sector is a driver of innovation and creativity and is deeply connected to the wider creative industries, supporting their innovation and growth. Without public investment in culture, all these benefits and our potential are limited.”
The West Midlands' investment story remains one of resilience, as demonstrated by high-profile projects such as Coventry’s City of Culture and the Birmingham 2022 Commonwealth Games, which attracted unprecedented investment and bolstered the region’s cultural capacity. This enquiry highlights the pressing need for sustained investment in the region’s cultural landscape to maintain its significant contribution to the local and national economy.