Memorandum submitted by the National Campaign
for the Arts
SUMMARY
The National Campaign for the Arts (NCA) suggests
that, while theatre is thriving in this country, there is much
more that could be done both to co-ordinate existing policy and
initiatives and to ensure that theatres themselves are in a position
to work as effectively as possible, particularly in terms of buildings
and funding. There needs to be an appreciation of the different
needs of the various parts of subsidised and commercial theatre,
but also of how they complement and support each other.
Key recommendations:
— Ensure that public funding of theatres
is consistent.
— Invest in encouraging black and minority
ethnic individuals into the theatre.
— Consolidate recent investment in
theatre capital and design a programme of future funding that
will ensure value for money. This might include investing in renovation
of commercial theatres.
— Ensure that new writers and new writing
is fully supported.
— Government must clarify its evaluation
of the place of theatre in its priorities and work to support
this, both in the lead given to local authorities and the Arts
Council and in terms of policy.
— Co-ordinate arts and education provision,
particularly through DCMS and DfES.
— Make provision for professional training,
beginning with those interested in a career, through to a Continuing
Professional Development scheme.
— Examine the practical application
of the principle of additionality in relation to National Lottery
funding.
— Simplify process of individuals'
donation to theatre and encourage personal donation.
1. INTRODUCTION
1.1 The theatre in Britain is vibrant and
world-renowned. It is often cited as one of the greatest attractions
the country has to offer, particularly by visitors to London and
the West End. This is an asset that must be nurtured and encouraged
by all involved, whether profit is immediately realisable or not.
1.2 There is already high awareness within
the sector of a number of key issues affecting theatre in the
UK. Many of the schemes and initiatives in place need to be developed
and the attitudes that drive them need to be embedded in Government,
Arts Council and policy thinking in relation to the theatre. This
includes appreciation of the value of the theatre both intrinsically
and more generally to Britain; emphasis on developing the sector
in terms of new audiences, new professionals: writers and those
in front of or behind the stage, and education.
1.3 One particular issue that needs to be
addressed is that of diversity in theatre. While currently some
work is being done to address the fact that there are disproportionately
few black and minority ethnic led theatre companies, playwrights,
actors and other theatre employees, there is a great deal further
to go. It is essential that time and money is invested in encouraging
black and minority ethnic individuals into the theatre. One way
to nourish this area of theatre is to raise the profile of positive
role models, and to establish mentoring schemes that will offer
young people a model to aspire to. This is vital for the vibrancy
and health of British theatre.
1.4 Another way to address the issue of
diversity in theatre would be to increase the number of places
in vocational training schools for black and minority ethnic individuals.
This is a two fold process, not only does the selection procedure
need to be appropriate, but also more work needs to be done to
encourage individuals to apply in the first place; to believe
that this is a career they can succeed in.
1.5 There is a perception in the theatre
sector that some organisations are much more heavily funded by
the Arts Council than others, which leads to an unhealthy imbalance.
Alongside the Government's re-evaluation of its theatre priorities
must be review of the Arts Council's relationship with theatre.
2. THE RELATIONSHIP
BETWEEN PUBLIC
AND COMMERCIAL
THEATRE
2.1 The relationship between commercial
and state funded theatre is vital to the current state of theatre
in the UK because of its symbiotic nature. As a result, the impact
of change to any part can have far reaching implications. In recent
years a significant number of plays and people have begun in publicly
funded theatres, have worked through the system and finally transferred
to the commercial stage. This is particularly true of the West
End. Moreover, much theatre either begins in regional theatres
and transfers to London, or the process takes place in the opposite
direction. The Government must be aware of the interdependent
nature of the various parts of this valuable sector when making
changes.
2.2 As a result of the close links between
the different parts, and the well-documented financial problems
facing a number of theatres, particularly in the West End, there
seems a persuasive argument in favour of making financial allowances
for the West End theatres, for example in terms of rates. Not
only are they a vital component of the UK theatre sector, but
they contribute approximately £1.1 billion to the British
economy annually.[12]
3. ECONOMIC IMPACT
3.1 The NCA does not have access to a wide
range of figures relating to the economic impact of theatre, but
those it does have suggest that the impact is significant. A number
of reports have highlighted the impact of the theatre industry,
including the Wyndham report[13]
and the Arts Council England's Economic Impact Study of UK
Theatre. [14]
3.2 Once established, institutions contribute
significantly to the local community. Independent research carried
out by ARUP Economics in 2001 found that the Royal Shakespeare
Company (RSC) directly contributes at least £32 million to
the local economy in Stratford-upon-Avon. Moreover, The RSC has
been presenting a season in Newcastle-upon-Tyne for over 25 years.
RSC performances are seen to be directly responsible for generating
approximately £1.1 million in the local economy. Such a significant
factor in local economies should be nourished and encouraged to
secure the direct and indirect benefits it brings.
3.3 The fact that theatres can play such
a significant part in a local economy suggests that to as great
an extent as possible, they should be built into the local infrastructure.
This is particularly true of regional theatres where accessibility
is so vital to the audience's ability to attend.
4. FUNDING
4.1 Subsidy
4.1.1 The arts are value for money. This
is undoubtedly true. The City of Birmingham Symphony Orchestra
has calculated that it returns 85% of its subsidy to Government
through taxes, raising the rest of the money needed to run from
other sources. Many of the subsidised theatres in England run
with similar efficiency and effectiveness. This efficiency with
public money should be rewarded with significant consistency in
the funding they do receive. Arts organisations are developing
innovative ways to find funds to ensure they can continue to support
their essential reason for existence—the art itself.
4.1.2 The public subsidy invested in theatres
by the Government plays an essential role in the UK theatre sector.
The opportunity that it gives theatre organisations and companies
to take risks and innovate without the immediate pressures of
the profit imperative lead to exciting new writing and encourages
new writers.
4.1.3 This is true also of more unconventional
theatre, or foreign plays and infrequently shown classics. The
commercial sector is bound by the need to make a profit and, to
an extent, depends on tried and tested formulas that are widely
popular. The subsidised organisations are in a stronger position
to stage plays that have less popular appeal or that explore and
experiment. While not always profitable financially, such investment
is essential to the long term health of the art form, and contributes
to the success of British theatre both at home and internationally.
4.1.4 The subsidy also allows organisations
to take risks on where and how their performances are staged,
such that theatre can be taken to small communities, for example,
which will again not necessarily be financially profitable. Theatre
such as this is good for the health of the nation and offers individuals
opportunities that they might otherwise never have had. It provides
challenges and asks questions, helping to enrich the lives of
all those involved. Funding these programmes demonstrates Government
commitment to regeneration and equality of opportunity in rural
and inner city communities.
4.1.5 A number of theatres have looked for
innovative new ways to use their expertise in order to increase
their income. See appendix A.
4.2 Business
4.2.1 Increasingly, subsidised organisations
are developing relationships with business. The much publicised
Travelex £10 ticket season at the National Theatre is a clear
example of an innovative way to attract new audiences in association
with a business sponsor[15].
The subsidy was used to underwrite the risk, making the deal viable
both for the sponsor and the National. Two thirds of the tickets
for certain plays being performed in the Olivier Theatre were
offered at £10 in the hope of attracting a younger audience
and interest from those with a lower income. Around a third of
the people who came to see Henry V as a result of the offer
had never been to the National Theatre before.
4.2.2 The use of the subsidy in this way
indicates that one of the most significant changes that needs
to be made to secure the future of theatre, and indeed allow it
to develop, is the establishment of consistency of funding. Both
the production of theatre itself and other areas of work, such
as education and audience development, are seriously limited by
an inability to plan because the financial future is not secure.
This can only be fully addressed once government has established
clear thinking about where theatre, and the arts more broadly,
fit into its priorities.
4.3 National Lottery
4.3.1 Another pressing issue that needs
to be addressed is that of the role of National Lottery money
in funding the arts. The signs are worrying, not least the fact
that in reference to the recent Spending Review, Tessa Jowell
suggested that the settlement, "sits alongside expected income
to the Heritage Lottery Fund". This is not an issue specific
to theatre, however, the role of the principle of additionality
in practice urgently needs investigating. The decline in Lottery
funds due to decreasing numbers of players means that deviating
from the principle could soon have dire consequences for the arts
if the Government is using Lottery money to fund things it should
be funding itself.
4.4 Local authorities
4.4.1 Central to the thriving theatre sector
in the UK, particularly regional theatres, are local authorities.
They are the country's second largest funders of the arts after
the Arts Council. This support is often essential to the survival
of local and regional theatres. However, support for the arts
by local authorities is not an official requirement, rather it
is often discretionary leaving arts money extremely vulnerable
when belts are tightened. Moreover, financial support for the
arts, as it is often not a requirement, rarely has money set aside
for it, instead funding is found from elsewhere, often the leisure
or tourism budgets. In this situation, the arts, theatres included,
are often compromised by the other demands being made on the money.
A lead needs to be given by Government on the importance of the
arts, such that local authorities are forced to re-evaluate their
own priorities and are less ready to make cuts to the arts.
4.5 Individuals
4.5.1 One of the keys to the changing face
of arts funding in Britain is the level of private investment
by individuals. While there have long been wealthy individuals
prepared to donate large amounts of money, there is an increasing
appreciation of the potential for smaller scale investments. An
example of this is Stage One—the new face of the Theatre
Investment Fund, which allows private individuals to invest a
small amount of money, for example £300, in a commercial
production. The not-for-profit company deals with the negotiations
on the investors' behalf, and by combining smaller investments,
avoids the usually prohibitive costs. Ideally this will encourage
more British people to invest in the arts, commitment that is
currently lacking compared with the large numbers of foreigners
prepared to invest in British arts.
4.5.2 The fact that creative ways to encourage
private investment despite the current arrangements can be found
does not mean that more fundamental changes are not needed. The
current process of tax relief for those donating money to the
arts is too complicated. Models exist elsewhere, for example the
US, which simplify the rules, and which would consequently encourage
donations.
4.5.3 There are some problems in Britain
that relate to issues that are more broad than the simplicity
of the tax situation. Public attitudes to the arts, and to donating
to or investing in the arts, present barriers for many theatres.
To overcome this there needs to be a shift in public attitude
towards donating money to the arts. The Government could lead
this by rewarding those who donate, or by offering match funding
for some high profile donations as well as by simplifying the
process.
5. NEW AUDIENCES
AND EDUCATION
5.1 Essential to the health and growth of
the theatre in the UK is the audience. Many theatres have invested
a great deal in developing their audiences, appealing to a wider
spectrum of people in terms of age, cultural background and experience
of the theatre. There is also firm recognition of the importance
of introducing positive experiences of the theatre to children
from a very young age. A wide range of methods have been developed
to achieve this, some more successful than others.
5.2 Producing less conventional and more
risky performances can attract new audiences. Two thirds of the
audience at Jerry Springer: The Opera, for example, were
younger than 35 years of age, and 43% had never been to the National
Theatre before. It is important to maintain some form of honest
evaluation of what works and what does not in order that improvements
and changes can be made and training undertaken. This must be
balanced, however, with allowing theatres and theatre companies
enough space to experiment and to take risks—to pursue ideas
without first having to conform to an evaluation form or get lost
in bureaucracy.
5.3 The vast majority of subsidised theatres,
and a number of commercial ones, run highly effective education
departments. In the financial year 2002-03, for example, the Royal
Shakespeare Company (RSC) involved 45,290 children in its education
programme. The arts world recognises the importance of education,
and most importantly, of educating young people in order that
they develop a long-term relationship with the theatre. It is
essential that the Government works across its departments, most
importantly the Department for Culture, Media and Sport (DCMS)
and the Department for Education and Skills (DfES) in order to
ensure that the wealth of arts education knowledge and opportunities
available are supportive of each other, and are deployed in co-ordination
with the education sector. The Creative Partnerships initiative
has gone some way to exploring possible ways to achieve this.
These need now to be examined, developed and established throughout
the country. It is essential also that provision for the development
of such relationships begins with training of both education and
arts professionals to encourage the skills necessary to work in
each others' sectors.
6. NEW BUILDINGS
6.1 While recent National Lottery investment
has led to the development and refurbishment of some venues in
the UK, there are many still in urgent need of attention. A number
of venues, such as Hoxton Hall, the Jermyn Street Theatre and
the Old Vic are in need of money for renovation that they have
been unable to secure. This poses a serious threat to their survival.
Investment now will save money in the long run—as buildings
become older, they require more and more investment to be maintained.
The only alternative is to knock them down, a solution that is
highly undesirable.
6.2 The passing of the final part of the
Disability Discrimination Act puts pressure on many theatres to
make changes—an opportunity that might be used to improve
other aspects of a number of venues across the country—both
in the regions and the cities. The interdependent relationship
of the various arms of the theatre sector necessitates urgent
action in relation to this issue. Some Government investment in
commercial theatre is likely to serve to secure Government's own
investments in the subsidised theatre, and indeed further afield,
for example in tourism particularly in the capital.
6.3 The problems of regional theatre have
yet to be fully resolved. While extra money has been invested
following the Boyden report[16],
it is essential that this investment is built upon in the coming
years to ensure the future flourishing of regional theatre.
7. NEW WRITING
7.1 The encouragement of new writing is
absolutely essential to the health of British theatre. While there
are some schemes designed to provide opportunities for new writers,
there are still not enough. Mentoring can be an extremely useful
tool to help potential playwrights grow their skills. However,
part of the problem is the availability of funds to put on new
plays. The paucity of funds for productions with large casts,
for example, has led to a flourishing of very small scale plays.
These are often not suitable to transfer to larger venues.
7.2 There is also the barrier of the relatively
small number of theatres willing to stage the work of new writers
because they cannot afford the risks involved. Initiatives sponsoring
a new playwright's first performance might help to rectify this,
as might theatre mentoring or residency schemes.
8. A SUSTAINABLE
CAREER
8.1 Essential to the development of theatre
in England is a comprehensive, coherent structure of career development
and training. While currently there are a range of training options
available, there is little consistency, and no structure through
which a person can progress.
8.2 At the same time attention needs to
be paid to those just entering the theatre. There needs to be
more career advice for young people about the wide range of jobs
available in theatre. It would also be potentially useful to develop
more formal schemes of apprenticeship and training for those who
are interested in pursuing a career in the theatre.
9. CONCLUSION
9.1 The future for theatre could be healthy,
although currently this would be largely through the efforts of
the theatres themselves to be creative in their management, as
well as in their artistic endeavours. Policy and Government initiatives
need to be up to speed with what is happening on the ground and
able to respond to the changing demands of Britain's world leading
theatre sector and the audience it entertains. There is much,
in terms of policy and funding, that needs to be considered carefully
in order to get the most from investments already made, and to
ensure that the sector can continue to grow.
APPENDIX A
A number of theatres have looked for innovative
new ways to use their expertise in order to increase their income
— An Enterprise Investment Scheme company
called "National Angels" has been established to produce/co-produce
National Theatre-West End transfers. The company returns 50% of
investors' profits to the National. National Angels has been involved
in the West End transfers of Jumpers and Democracy
to date.
— Similarly, Cardiff Theatrical Services
(CTS) is the scenery construction arm and a wholly-owned subsidiary
of Welsh National Opera (WNO). CTS produces scenery for all WNO
productions but also offers a one-stop scenic service to other
arts companies in Britain and abroad. All profits from CTS are
gift-aided back to WNO at the end of each financial year.
18 January 2005
12 The Wyndham Report, 1998 by Tony Travers , London
School of Economics, with data compiled by MORI. Back
13
ibid. Back
14
Economic Impact Study of UK Theatre, 2004 by Dominic Shellard,
University of Sheffield. Back
15
Lloyd Dorfman, Chairman and CEO of Travelex, commenting on the
National Theatre website about the sponsorship deal said, "Travelex
is a world-leading financial services business with a strong track
record of innovation, flexibility and accessibility. The National
Theatre has a world-class reputation and, we believe, reflects
these very same values. This is the first arts sponsorship of
its kind and we are proud to be part of this innovative programme
under the National's new leadership. The Travelex £10 Season
will make world-class theatre more affordable and accessible to
a wider audience than ever before." Back
16
Roles and Functions of the English Regional Theatres, 2000 by
Peter Boyden Associates.
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