Arts sector 'facing talent drain' after 40% cut in Festivals funding
Plus: Axing of university supercomputer 'will damage city's financial sector'
Culture leaders warn of years of ‘managed decline’
Arts organisations fear an exodus of talent from the industry as a growing funding crisis starts to bite.
The Scottish Government has promised an extra £100m a year for the country’s arts sector by 2028 in order to reverse years of real-term funding cuts.
However, the city’s Festivals and arts organisations are warning the increased funding - which will be limited to an extra £25m this year - will not come fast enough to prevent widespread damage to the cultural landscape.
They are queuing up to warn the Scottish Parliament’s culture committee, which is gathering evidence on the challenges facing the industry, of job losses and talent leaving the sector as arts organisations and projects close due to a lack of secure long-term funding.
Arts organisations are also feeling the effects of less commercial support, particularly since so-called “green-washing” protests against corporate sponsors such as Baillie Gifford.
By numbers: The real value of public funding for the city’s Festivals has fallen by more than 40% in 14 years, according to umbrella organisation Festivals Edinburgh. They estimate annual support for the Festivals - including the Fringe, International, Book, Jazz, Film and Science festivals, as well as the Hogmanay and Christmas events - needs to increase by £5.5m a year to restore the shortfall. Annual funding is understood to have been frozen at around £9m a year since 2010.
More cuts: Creative Scotland, the national arts funding agency which distributes Scottish Government funding, warns it faces cutting the number of organisations and events to which it currently offers long-term support. Standstill funding in recent years has meant an annual 20 per cent in real terms for many of these groups, it adds.
Wider economic value: With culture cited by tourists as the third most important reason for visiting Scotland, the Festivals alone are estimated to generate £367 million a year for the Scottish economy, supporting the equivalent of 5,000 full-time jobs, mainly in tourism and hospitality. Festivals Edinburgh say they generate £33 in economic impact for every £1 invested from the public purse, every year.
‘Talent drain’: The Fringe Society has warned that without a faster restoration of previous funding levels: “Scotland stands to lose considerable talent and knowledge to other countries or other sectors.”
Tourist tax lift: The recent good news has been the funding lift promised by the city’s Visitor Levy. The arts, heritage and events in Edinburgh are expected to share in funds worth up to £14m a year in Edinburgh, but this is supposed to be over and above regular funding, and has been expected to fund special projects such as the restoration of the Ross Bandstand or Leith Theatre. Besides, the £14m will not kick in until 2028 either.
Solutions: The arts organisations are asking the Scottish Government to urgently embrace new ideas such as offering match funding to arts organisations to help encourage a return of corporate sponsors. They also stress the importance of receiving the promised extra funding sooner rather than later.
‘Poor relation to sports’: With Scotland reportedly preparing to host the Commonwealth Games in Glasgow again, Julia Amour, chief executive of Festivals Edinburgh, adds: “(We have) previously highlighted that the real terms (economic) impact of Edinburgh’s Festivals in 2022 was nearly 10 times stronger than the return on revenue funding for the 2014 Commonwealth Games, and a similar picture emerged when the evaluation of the UCI World Cycling Championships was published last year.”
The government says: The Scottish Government has said it will continue to provide “significant funding” to the arts despite the financial constraints it faces, adding: “This is the most challenging budget to be delivered under devolution. Scotland already faced a precarious financial situation with high inflation putting significant pressure on households, the economy and public finances."
YOUR EDINBURGH BRIEFING
BOOKED UP: Edinburgh’s book shops continue to go from strength to strength. Following the opening of the Capital’s latest store, romance fiction specialists Book Lovers Bookshop, The Edinburgh Bookshop has confirmed the opening its new, expanded premises in Bruntsfield on Friday. A crowdfunder backed by Ian Rankin and Alexander McCall Smith among others helped fund its refurbishment of a former Oddbins off-license premises.
MEL OF A GOOD CHOICE: Homeless World Cup co-founder Mel Young is following in the footsteps of JK Rowling, Sir Chris Hoy and Nicola Benedetti among others as the recipient of the prestigious Edinburgh Award. The honour is given to someone associated with the Capital who has made an outstanding contribution to city life. Recipients have their handprints cast in gold colour in Edinburgh’s own ‘walk of fame’ in the City Chambers quadrangle off the Royal Mile.
H&M JOBS FIGHT: Deputy First Minister Kate Forbes has met H&M management to discuss the redundancy threat to around 200 staff at the fashion chain’s Waverley Gate call centre in Edinburgh. She has asked them to consider all options before pressing ahead with compulsory job losses if it presses ahead with plans to close the centre at the end of November.
GO THROUGH THE CAR PARK: Visitors to the luxury W Hotel will have to be dropped off in the St James Quarter underground car park or walk after councillors rejected a plea to allow doorstep taxi and mini-bus drop-offs. They stood by a previous decision that the area should stay pedestrianised despite a threat of legal action from St James owners Nuveen.
POP ROUND THE CORNER FOR DRINKS: Register Square, the space outside the St James Quarter entrance nearest Princes Street, would be used as an outdoor events space under new plans. The city council is being asked to approve proposals for an outdoor bar and tented area.
NOT SO GRAY DAYS: City residents may be handed a ‘right to grow’ under plans to turn grey spaces across the Capital green. The plan, proposed by Lib Dem city councillor Hal Osler and being considered by the local authority, would offer automatic rights to cultivate green spaces and install planters on grey, concrete spaces.
BUS BOSS: Former Health Secretary Susan Deacon is to oversee the integration of Edinburgh’s publicly-owned bus and tram operations after being appointed chair of Lothian Buses. She has been a non-executive director of the municipal operator since 2015, and has more than 35 years leadership experience including senior roles at the University of Edinburgh, Queen Margaret University and the Scottish Police Authority. Outgoing chair Jim McFarlane continues as a non-executive director.
STRIKE-WATCH: The bin strike may be off, pending a vote by union members on the latest pay offer, but the city’s tram drivers have voted in favour of a walk-out over a lack of toilet breaks. The timing of any action is yet to be confirmed.
Off the rails: LNER train drivers have announced strike on the East Coast main line every weekend from 31 August to 10 November despite agreeing a pay deal less than 48 hours earlier. The Aslef union said the new action was due to “bullying by management and persistent breaking of agreements” by the government-owned company.
Still waiting: ScotRail drivers, who are already working to rule, might follow them. They are being balloted on strike action. The company is currently waiting on the result, much like their passengers who are enduring a substantially reduced service.
Schools next? Teachers and other school staff are next up for pay negotiations. We may have to brace for more industrial unrest.
THE BUSINESS
Supercomputer axing risks damaging financial sector in Edinburgh
One of the leaders of Edinburgh’s financial services sector – which employs more than 37,000 people in the city – says the UK Government decision to axe the £800m funding planned for an exascale supercomputer at Edinburgh University risks the Capital’s future status as a leading world financial centre.
Sandy Begbie, Chief Executive of Scottish Financial Enterprise, also hit out at Government briefing “misinformation” about the importance of the project to the wider economy in Scotland.
In a social media message, he described the decision as “deeply disappointing and represents a major blow to Edinburgh’s ambition to be a global centre of excellence in data, AI and emerging technologies.
“The £800 million investment was set to be a huge boost to Scotland’s digital capabilities, driving investment and growth in sectors like financial services, which are increasingly focused on technology.”
In the past few days, the Financial Times reported an unnamed Government source as claiming the project “made little strategic sense” and “too focused on traditional computing projects such as scientific simulations” rather than on AI. The source added that the UK Government remained committed to supercomputing, but Edinburgh’s position is not clear in any future plans.
This despite University of Edinburgh’s world-leading status in computing, AI and robotics. Mr Begbie added: “Scotland’s financial services industry has the potential to add between £4bn - £7bn to the Scottish economy over the next five years, but in order to achieve this investment in our universities and our digital capability is vital. Other major financial centres are investing in this area and this decision runs the risk of us losing ground and future investment.”
Edinburgh’s exascale supercomputer was one of a number of projects ditched by Government at the start of the month as it sought to plug a £22 billion black hole in the public purse it claims has been left by the previous Tory Government.
The University has already spent £31million in creating a new building to house an exascale computer, which would be one of only a handful in the world. There are none in Europe.
Mr Begbie said: “As Scotland’s largest sector in GVA terms, we know that many financial services organisations choose to come and base themselves in Scotland because of the world leading capability we have in computing, data and AI in our university sector. This decision was very disappointing at a time when we should be investing in key strategic assets that allow us to continue to compete globally.”
CHANGE AT BG: Baillie Gifford has announced that Tim Campbell is to succeed Andrew Telfer as one of its three managing partners. Mr Telfer will retire on 31 March 2025 after almost 33 years with the firm.
WHISKY NOW ARRIVING… Edinburgh’s Holyrood Distillery is partnering with inter-city train company Lumo to produce a co-branded a specially commissioned single malt scotch whisky, served only onboard Lumo services operating between Edinburgh, Newcastle and London King’s Cross.
FAMILY CARS: A family-owned and operated Ford dealership group based in the Lothians invested £3m in an expansion into Dundee with Dundee Ford Centre. Dalkeith Retail Centre Ltd T/A Your Ford Centre, owned and run by the Short family, will use the funding from Royal Bank of Scotland to purchase what will be Dundee’s main Ford franchise.
THAT’S ENTERTAINMENT
With the Capital awash with entertainment, we continue trying to pick out a small selection of gems you might otherwise miss. It’s not too late to catch some of our hot tips from the Fringe.
DANCE SENSATION: A witness a unique collaboration between the rising star of Australian dance, Lewis Major, and Britain’s “leading modern dance creator” Russell Maliphant. Lewis Major: Triptych is part of the extensive Festival programme at Dance Base in the Grassmarket.
GIRLS ON FILMS: Telling the story of female pop pioneers from the 1960s to the present day, Since Yesterday: the Untold Story of Scotland’s Girl Bands offers a final chance to enjoy the resurrected Edinburgh International Film Festival for 2024. Revealing, funny and enraging, you can catch the world premiere at the Cameo on Wednesday night, but only if you’ve already grabbed a precious ticket.
PICK YOUR OWN: East Lothian might be know for its berry fields, but it is not just strawberries and raspberries you can pluck for yourself. You can pick your own blooms at Fay Gourlay’s flower farm, The North Berwick Flower Co, next to Archerfield Walled Garden, near Dirleton, as well as the popular sun flowers at the Balgonie Estate, near North Berwick.
QUICK BITES
SUCCESS ON MENU: Two Edinburgh restaurants, Wedgwood the Restaurant in the Canongate and The Little Chartroom at Bonnington Road, have been shortlisted amongst the finalists for the “Best Restaurant of the Year Outside London” category of the Food and Travel Reader Awards.
NAMASTE: A new Punjabi restaurant, Singh Street, is set to occupy the former Chop House at 88 Brunsfield Place. No opening date has been announced.
HOLA: A taste of Cuba has opened in Portobello High Street. Mamacita’s is a Cuban-American sandwich shop, specialising in traditional Cuban sandwiches and burgers.