I’ve been forwarded the following which has been written by Anita Bhalla, chair of mac’s board of trustees. As it’s an open letter I figure there’s no problem with me reproducing it in full. Excuse me for dispensing with the usual blockquote rigmarole.
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Dear Friends, Colleagues and Supporters,
As you may be aware, Birmingham City Council has recently launched a public consultation process on its budget plans from April 2012 onwards, and we thought it would be of interest to you as a customer and supporter of mac birmingham to hear how the city’s plans are affecting our work.
mac reopened in May 2010 after a £15.2m redevelopment and refurbishment. Birmingham City Council played a major role in the development providing £6.7m of investment and delivering the project under their Partnering Framework with Thomas Vale Construction, one of the region’s award winning construction companies. The rest of the funding came from Arts Council England (£6.2m) and from a highly successful fund-raising appeal with donations from companies, individuals and grant-making trusts (£2.3m). Over 850,000 visits were made to “new” mac in its first year after reopening.
mac’s finances are finely balanced in a mixed economy; in our second year since reopening 26% of our turnover is investment from the City Council. Since our much lauded reopening year our business confidence is established and a growing percentage of our income is earned from box-office, sponsorship and other commercial activities.
As part of its response to the government’s public spending cuts, the City Council has already substantially reduced the amount of funding it gives to all the arts organisations in the city and in April this year mac birmingham’s grant was cut by 14%, a cash reduction of £107,000 per annum.
To cope with this significant reduction in income we have driven further the plans which were developed prior to reopening, maximising efficiency, amending our programming plans and increasing our efforts to maximise all other income streams. Throughout the planning and delivery of the mac/sampad Building Project we sought to maximise future efficiency through, for example, creating a flexible staffing structure, delivering a cost-efficient building with an effective building management system, reducing our carbon footprint and our running costs, increasing recycling, using digital technology to manage our building and our communications. Our shared office space has also allowed us provide improved facilities for our partners sampad and for other artists, arts companies and community agencies who share the mac creative hub.
Whilst we fully recognise that we cannot be exempt from the public spending cuts being imposed at the moment, there are few options available for further reducing costs without severely damaging our services. Whilst we continue to look for greater efficiencies and sharing of services we do fear that any further cuts in BCC funding will lead to a serious “downward spiral” in which the inevitable reductions in artistic activity will lead to lower earned income and funding. Further investment secured from additional sources may well then be withdrawn due to our diminished capacity to deliver our agreed programme.
How you can help
Birmingham’s arts infrastructure and activities have, for so long, been a vital tool in the city’s aim to improve the quality of life for its citizens, its inward investment performance and its status as a true global city. Evidence of the hugely beneficial impact of the creative industries can be found at www.birminghamartspartnership.co.uk
City based cultural organisations contribute £271m to the region’s economy per year. This is generated from almost 2 million attendances, with arts attenders generating £40m in Additional Visitor Spend (AVS). This represents a return on investment of £29 for every £1 that Birmingham City Council spends on funding the arts.
All of the city’s arts organisations believe that we are now at the tipping point where incremental reductions in costs are no longer achievable.
If you share our concerns and would not want to see the City Council reduce its funding to the independent arts organisations any further, I would urge you to make your views known to the City Council before the end of November.
You may have received a similar plea from other arts organisations and we would urge you to respond to any one of us. Representation needs to be made before the end of November in order to be effective.
Thank you for taking the time to read this and for your continuing support of mac birmingham.
Anita Bhalla
Chair of mac Board of Trustees
