Written evidence submitted by the Campaign
to Protect Rural England (CPRE) (arts 14)
INTRODUCTION
1. The Campaign to Protect Rural England
(CPRE) welcomes the opportunity to submit evidence to the Culture,
Media and Sport Committee on the funding of the arts and heritage.
CPRE wants a beautiful, tranquil and diverse countryside that
everyone can value and enjoy. We believe that the safeguarding
of our rural historic environment is an essential part of achieving
our aims as it ensures we maintain the character and uniqueness
of our countryside. Sufficient funding needs to be available for
ensuring this.
2. CPRE has a long history of working to
support the historic environment through the planning system.
We are the nation's single largest participant in the planning
system, where we have a key role as a proponent of third party
rights and the wider public interest. Our network of county branches,
regional and district groups, and CPRE volunteers have extensive
experience of heritage protection and play an active role in local
heritage protection issues, particularly those relating to rural
communities and historic landscapes. A number of our branches
have also been involved in heritage restoration schemes.
SUMMARY OF
COMMENTS
3. Given the areas of work covered by CPRE,
this response focuses solely on funding relating to heritage.
As such, CPRE believes that:
— Heritage, particularly in rural settings,
is an important aspect of England's appeal to tourists, and to
remain so, requires proper funding for maintenance and conservation.
Cuts of rurally focused Government departments, such as the Department
for Environment Food and Rural Affairs, could impact on this.
— The increase in Heritage Lottery Fund
(HLF) money for heritage causes to 20% is very positive, but we
are concerned that this increase may be largely used up by increased
bid costs from Places of Worship if their VAT exemption is not
renewed.
— That philanthropic giving already contributes
substantially to heritage, through the maintenance of many of
our heritage assets in private ownership and this contribution
should not be underestimated.
RESPONSE TO
INQUIRY QUESTIONS
What impact will recent, and future, spending
cuts from central and local Government have on the arts and heritage
at a national and local level?
4. CPRE believes that our rural heritage
(for example historic landscapes and views, field patterns, hedgerows,
village settings and settlement patterns, and traditions such
as dry stone walling and so on) is an often overlooked aspect
of our heritage, yet it is fundamental to retaining the diverse
and distinctive character of the English countryside. Data from
Visit Britain, published in 2009, also shows that it is a huge
tourism draw, with nearly 25% of foreign tourists visiting the
countryside for a walk and more that half visiting castles, churches,
monuments and historic houses, many of which are rurally located
and are enhanced by the quality of surrounding, often historic,
landscapes.
5. We are concerned that the cuts in public
expenditure in sectors covering National Parks, nature conservation
and the countryside (notably budget reductions at the Department
for Environment, Food and Rural Affairs and the abolition of Regional
Development Agencies) will severely affect the attractive farmed
landscapes that contribute so distinctively to our rural heritage.
We also feel that these cuts may put increased pressure on heritage
funding bodies, through an increase of bids for projects which
would previously have been covered by mainstream Government funding.
What level of public subsidy for the arts and
heritage is necessary and sustainable
What impact recent changes to the distribution
of National Lottery funds will have on arts and heritage organisations
6. CPRE is delighted with the return to
20% of the heritage fund for the HLF. We are concerned however
that the benefits this will bring to heritage funding may be severely
affected by the increase of VAT, also to 20%, which will have
big implications for the cost of maintenance and repairs to heritage
assets. In particular, we are concerned that the Government has
not yet committed to renewing the VAT exemption scheme (Listed
Places of Worship Grants Scheme) when the current scheme expires
in 2011, especially given that places of worship receive substantial
amounts of HLF heritage grants. In response to a petition calling
for a renewal of this scheme, the Government stated that:
"under new proposals by the Government,
the share of Lottery money going to each of the arts, heritage
and sport good causes will increase to 20%. The Heritage Lottery
Fund is looking at how it will distribute the additional money
it expects to receive as a result of the change in Lottery shares.
It has said it will take account of the needs of places of worship
in England, along with needs in other heritage sectors."
7. With VAT increasing to 20%, the 20% increase
in money to the HLF for heritage causes may be largely used up
in covering the increased costs of bids, due to the lack of VAT
exemptions, of projects associated with places of worship. If
this is the case, the increase of HLF money dedicated to heritage
would not deliver aid to an increased number of heritage projects
as effectively as envisaged.
8. Given this, CPRE would like to see the
VAT Exemption Scheme (Listed Places of Worship Grants Scheme)
renewed following its expiry in March 2011. We also feel that
repairs and maintenance for listed buildings, if not all buildings,
should be exempt from VAT to bring conservation works in line
with the costs on new builds, which are VAT exempt. The current
system acts as a disincentive to maintain heritage assets as the
costs, once VAT is added, are high. This also puts increased strain
on heritage funding bodies, as conservation and repair funding
has to include the costs of VAT.
Whether businesses and philanthropists can play
a long term role in funding arts at a national and local level
9. CPRE recognises that businesses and philanthropists
do, and should continue to, play an important role in funding
heritage at a national and local level. Corporate and public giving
should not, however, come to be relied on as economic downturns
can severely affect levels of giving. For example, research by
The Social Investment Consultancy in 2009, suggested that during
the recent economic downturn, 60% of business leaders expected
to reduce both charitable giving and the number of causes supported.
10. While levels of philanthropic giving
in recessions appears not to be so severely affected, many giving
for social reasons rather than personal financial reasons, the
true impact is not likely to be fully appreciated until after
the current recession.[2]
While recognising the role that private giving can play in supporting
heritage funding, it is important, therefore, that the Government
does not come to rely on this income stream as future economic
stability cannot be guaranteed. Heritage, once lost, cannot be
replaced so it is essential that secure Government funding is
in place to ensure its conservation and continuity.
11. In considering philanthropic giving,
CPRE feels it is also important that the Government recognises
that many heritage assets, listed buildings in particular, are
in private hands and maintained by these owners. This private
ownership and maintenance already constitutes a very important
aspect of philanthropy in the heritage sector. While we recognise
that large scale philanthropy (for example corporate sponsorship)
could contribute to aspects of heritage funding, we ask that the
Government consider the type of heritage that can benefit from
such giving, given that small, privately owned heritage assets
are unlikely to receive funding from this quarter. It is important
therefore to ensure that there is alternative funding available,
or in the very least VAT exemptions on maintenance costs, in place
to aid the maintenance of privately held heritage assets.
August 2010
2 Breeze, B and G G Morgan. 2009. Philanthropy in
a Recession: An analysis of UK media representations and implications
for charitable giving Paper presented at NCVO/VSSN Researching
the Voluntary Sector conference. Back
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