Comprehensive Spending Review - At A Glance
Green renewable and technology projects survive the deepest cuts though Carbon Reduction Commitment revenues now to be kept by Treasury instead of participants but performing arts and culture are disproportionately hit
For many sectors of the economy yesterday’s CSR announcements were grim. For the arts the future looks extremely difficult, with an Arts Council cut of almost 30% - double the average 15% cut. On the other hand the ‘green’ agenda fared reasonably, with an average of 8% cuts, and maintained investment into renewable and technology projects – not as much as we would like but cause for relief in the context of this very Comprehensive Spending Review. Good news that the Feed-in-Tariff remains, the Green Investment Bank gets £1 billion, off-shore wind and the Renewable Heat Incentive are both bolstered and that science maintains its £4.6 billion budget (effectively a 10% cut over 4 years). All of this amounts to a vote of confidence in developing a low carbon economy. Of course, like everything it is highly contingent on private investment and our capacity to create growth and jobs. It remains the case that the pot has never been big enough and the emphasis on market instruments rather than domestic infrastructure is an ongoing issue of huge concern.
Not so good though for those organisations participating in the Carbon Reduction Commitment Energy Efficiency Scheme, which bigger creative companies including Live Nation, The Ambassador Theatre Group and Southbank Centre are required to comply with. CRC revenues will now be kept by the treasury instead of recycled back to the scheme participants. While this does significantly increase the incentives to reduce energy consumption it still has effectively become a form of taxation – so for all those using the energy management tool SMEasure and doing the Industry Green certification keep at it as these will help you monitor and reduce emissions, staying ahead of rising costs!
However, for subsidised performing arts the CSR was pretty draconian, with a 29.6% budget cut which translates as a real-term reduction of £100m by 2014. This is compounded by local authority cuts of 7% year on year and, as there is no statutory obligation to provide for the arts, together these cuts will have a serious impact on arts provision.
Julie’s Bicycle sits at both ends of the CSR spectrum – the best and the worst. In this incredibly tough environment it seems crass and insensitive to suggest that the answer for the arts lies in energy efficiencies and investments, but it certainly will help. JB is absolutely committed to supporting our creative industries by encouraging the switch to a low carbon, energy efficient, innovative and sustainable sector. So it’s less energy, more renewables, more innovation, maximising our capacity to benefit from the bits of the budget not deeply bruised.
Some further reading
Greenwise www.greenwisebusiness.co.uk
Edie www.edie.net
Carbon Retirement www.carbonretirement.com
Arts Professional www.artsprofessional.co.uk
