Arts Council England: Funding

Florence Eshalomi Excerpts

Wednesday 18th January 2023 Westminster Hall

[Sir Robert Neill]

The hon. Gentleman’s point encapsulates why I think the former Secretary of State was right to say what she said: the decision absolutely negates the Government’s own policy. As the hon. Gentleman said, the result of the way Arts Council England has handled this issue is that there is now no opera in Liverpool, because the WNO cancelled its tour. Glyndebourne has cancelled its touring as well—that was touring in the regions of the UK. The WNO toured across the north-west, parts of the west of England, Bristol, Southampton and so on. All those places will now have no opera—not thanks to the policy decisions, but thanks to the way they have been handled and implemented by Arts Council England.

Ministers should not allow the situation to stand, and the same applies to other elements of the arts sector. There is no strategy that informs the approach to prose theatre, to concerts or to museums and galleries. Nowhere is there a fully-fledged strategy, and we certainly ought to have one for opera. In that case, we are talking about £50 million of public money simply going to the opera companies. Think how much more is going to other sectors as well—but no strategy!

When one tries to find the audit trail for this decision, the board minutes that are published are perfunctory in the extreme. None of the board papers is published, and there are considerable redactions to what is published. That is not a level of accountability or transparency that would be accepted in any local authority in this country, and it should not be accepted in a public body such as Arts Council England. It is letting the public down, and it is letting the Government, as the overseeing body, down as well. That is why there is another cause for intervention.

Finally, because I know others want to speak, we need to look at the lack of an economic analysis.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

The hon. Member is making a vital point about the economic impact. These cuts will impact organisations not in receipt of Arts Council funding that rely on smaller grants. However, organisations that have now come out of the NPO portfolio will also be drawing on that funding, such as the Omnibus theatre in my constituency and the White Deer theatre in Kennington. Should the Government not recognise the importance that these smaller independent organisations, working with the big national organisations, bring to our local economies in terms of jobs, employment, training and getting our young people involved in the arts sector?

[Sir Robert Neill]

It is certainly right that the arts offer real economic opportunity for many young people, and some of those smaller organisations are the breeding ground from which people come. That is true of ENO itself. Many international stars started at the English National Opera, and that is also true of smaller organisations. That reinforces the point I was making: there is not a strategy for any of that. The Arts Council does not appear to have a strategy for anything.

It seems that the funding decisions in this round were to meet a financial envelope. Fine—let us have a proper discussion then with the Department about how we produce a strategy to meet that financial envelope. But none of that was done. That is why we need a much more strategic approach; this is a serious matter.

Looking at the overall potential economic risk, the 2020 report from the Centre for Economics and Business Research found that in a single year—2018; that is the latest we have—the arts and culture industry directly generated £28.3 billion in turnover, £13.5 billion in gross value added, 190,000 full-time equivalent jobs and £7.3 billion in employee compensation in wages and fees: in other words, into the economy. This is big business; for the UK, this is big business that we excel in and which drags in people to visit us. Also, it enables people throughout the UK to have their lives enriched.

What I do not want to see as part of a levelling-up strategy is a cut-down English National Opera or equivalent doing a reduced orchestration, reduced cast and no-proper-chorus version of one of the great operas, be it “Carmen”, “La Traviata” or “Tosca”, in a shed somewhere outside one of our major cities. That is short-changing the people in regional England. They are entitled to see a proper performance like those we get from WNO and the Glyndebourne tour and which ENO would happily do.

ENO has always made it clear that it is more than willing to do more work outside London. Funnily enough, it was planning to do a performance in Liverpool, of all places, before the covid panic, and none of that seems to have been taken into account by Arts Council England. It is short-changing people in the regional parts of England to suggest that they should get a second-rate version of that which is available in London. No wonder the former Secretary of State, my right hon. Friend the Member for Mid Bedfordshire, was so angry at the way her policy had been misinterpreted—all the more reason for Ministers to intervene.

Let us look at ENO as an example of the economic benefit that one company can bring. It produces £1.75 for every £1 of spend—it actually brings money into the economy with all the knock-on expenditure that comes from people going to the theatre, and that is true across most of the theatrical world. To put all that at risk without a proper strategic basis seems ridiculous. The loss of touring by Glyndebourne and WNO means that some 23,000 fewer people will have the chance to see high-quality opera in this country than before. That is a funny type of levelling up.