Nottingham near-bankruptcy to hit cultural sector

Within its public consultation to reduce spending, Nottingham City Council wants to "cease contributions to the cultural sector".

On November 29 2023, Nottingham City Council issued a 'Section 114(3)' report which means that it is unable to deliver a balanced budget as required in the Local Government Finance Act 1988.

This is as close to bankruptcy as councils can get - because they are backed by the government meaning the traditional 'bankruptcy' does not occur, and all pre-approved payments will continue.

However, for Nottingham it means new expenditure must stop.

There were two reports delivered the the council in a meeting on December 19 2023 regarding budgeting strategy - proposals which were for public consultation, and proposals which were not.

"It's a savage blow"

Within the proposals for public consultation was "cease contributions to the cultural sector" (reference: DP(E)-2429) which intends to save £198,000 per year out of the projected shortfall of reaching tens of millions.

Some of the organisations which will be impact include: Nottingham Contemporary; City Arts; New Art Exchange; Playhouse Theatre; and the City of Literature project.

Speaking to the Nottingham Post, Helen Kennedy, a Professor of Creative and Cultural Industries at the University of Nottingham stated: "It’s a savage blow to the cultural life of the city. Arts are a driver of economic prosperity to the city."

The latest data from the Higher Education Statistics Agency show that there was 189,890 students in degrees related to creative or performing arts. This is not to mention countless graduates from other areas who go on to work in cultural fields.

Nottingham City Council's cancellation of funding to the cultural sector will likely lead to a reduction in available jobs and opportunities for recent graduates - in an industry already battered after COVID-19.

Nationwide, just over 1.5 million people are employed in the cultural sector, and Nottingham has a rich place within it.

The cuts by the council put at risk the thriving cultural scene in the city.

Ben Mellor