A major new report revealing the economic impact of Covid-19 on the UK’s arts, culture and heritage sector has been released today.
It has revealed that the sector suffered from a 60 per cent decline in output – gross value added (GVA) – due to social distancing rules and lockdowns over the past 18 months.
The report, commissioned by researchers from Sheffield University’s Faculty of Arts and Humanities and Faculty of Social Sciences, found that Covid-19 restrictions led to 55 per cent of jobs being furloughed in the sector – the second highest sector in the UK behind the accommodation and food sector – and was well above the national average of 16 per cent.
More than 80,000 claims were made under the Self-Employment Income Support Scheme (SEISS) by people in the arts, culture and heritage sector – 68 per cent of the eligible population in the UK.
Nationally, output in the sector fell dramatically as Covid-19 hit in March 2020 with a decline of around one third from Q2 2019 to Q2 2020 in real terms. The creative, arts and entertainment sub-sector along with the libraries, archives, museums and other cultural activities sub-sector were the worst hit with declines of 63 per cent and 45 per cent respectively.
The annual data is less pronounced in terms of impact because it includes some pre-lockdown activity and varying degrees of re-opening through 2021. However, sector GVA fell by around 20 per cent (real change, constant prices), compared to around 10 per cent for the UK’s economy overall.
These dramatic falls in output mask some significant variations between sub-sectors ranging from an estimated +17 per cent to -70 per cent in nominal rather than real terms.
Activities that grew or were only subject to modest declines (+17 per cent to -five per cent range) in output included; computer games, software, educational book publishing, TV broadcasting and libraries. Activities very badly affected (-30 per cent to -70 per cent range) included; cinema, performing arts, museums and historical sites.
Professor Vanessa Toulmin, Director of City and Culture and Chair in Early Film and Popular Entertainment at the University of Sheffield, said:
“The Covid-19 pandemic has had a devastating impact on the UK’s arts, culture and heritage sector. This landmark report reveals how social distancing and lockdowns over the past 18 months have had a catastrophic effect on the finances of people who work in the sector, as well as businesses and venues. People have lost their jobs, businesses and venues have closed and this economic impact has severely affected the mental health and wellbeing of people who work in the sector across the UK. People in the sector have been losing sleep and have had much higher levels of anxiety due to how the pandemic has affected their personal finances and uncertainty about the future.”
