After a decade of austerity, councils need a new way to fund culture

The Millennium Centre for the performing arts, Cardiff. Image: Getty.

The Labour leader of Cardiff council explains why he helped launch the Cultural Cities Enquiry.

Within living memory, the landscapes of Britain’s core cities have been transformed. Once smog-filled bastions of heavy industry, they have faced down the spectre of managed decline, and emerged as vibrant hubs, dominated by the knowledge economy and services. While each city responded differently to the challenges of deindustrialisation, the role of culture in regeneration has been a consistent theme.

Glasgow’s European City of Culture programme in 1990 was a turning point for that city, as it was for Liverpool in 2008. In Cardiff, sports and culture were brilliantly and inventively used to transform the city – culminating in our hosting of the UEFA Champions League Final and being named the UK’s first Music City. Across our cities, a buzzing cultural scene has become a major part of what makes our cities such great places to live, particularly for the young, creative people who are so vital in the 21st century economy.

As a result of this transformation, modern Britain is a global creative powerhouse. Go to any country in the world and you will meet people who listen to music, play video games, read books, watch films and plays created in our cities. The creative economy is one of our most important export industries, accounting for almost 10 per cent of the UK’s GVA and around 2.5m jobs.

Building creativity into our education system, as we are doing in Cardiff, creates children who are able to think differently to adapt and to invent, who will be able to respond best to challenges like automation that are already disrupting the jobs market. 

But the benefits of culture are not restricted to the balance sheet. Culture is about people and the places they live. It brings us together. It creates shared experiences and strengthens bonds between people and communities, so important when there are some – a tiny, tiny minority – who are trying to do the opposite, by creating division and spreading hate. 


Culture and the arts can make a massive positive difference across all aspects of city-life, culture – but this is now under threat. A decade of austerity has left the financial model which underpins culture in British cities creaking at the seams.

It will soon be in crisis. New solutions and radical changes are needed, recognising the simple truth that the traditional approach to funding and supporting culture in the Core Cities is broken.  

Organisations like the one I lead are contending with spiraling demand and shrinking resources. Public sector investment has long been the backbone of UK cultural provision, but after a decade of austerity we cannot fund it the way we used to.

The challenge is compounded as technology changes the way culture is consumed, and the persistent blight of inequality leaves a significant proportion of our most disadvantaged communities with limited access to the arts.

That is why the time is right for the Cultural Cities Enquiry. The enquiry will bring together cities, UK arts councils, and leaders from a range of sectors to consider how we can ensure our cities remain world-leaders for culture and creativity. 

Our aim is to create a set of practical recommendations that will enable city leaders and cultural institutions to make the best use of available resources and set up new channels of investment.

Successive governments haven’t yet provided the tools to realise the economic potential of cities and they haven’t fully unlocked their cultural potential either.

Given the right policy levers, cities can add to the UK’s formidable reputation as a creative powerhouse. We know that greater local flexibilities are key to success – yet UK cities currently control only 5-7 per cent of their tax base. This is five times less than the OECD average and ten times less than US cities.

The Basque city of Bilbao, for example, secured the Guggenheim Museum because its city government had freedoms on local spending and tax retention that UK cities can only dream of.

In New York the development of leading cultural institutions – Including the Museum of Modern Art and the Metropolitan Museum – were carried out through a local trust. This allowed for culture bonds, triple tax-exempt debt and borrowing to fund growth.

Our cities are already experimenting with new approaches. Newcastle recently helped Live Theatre build a new headquarters by offering a loan at preferential rates; Bristol struck a new deal with funding agencies; while Nottingham and Sheffield both invested in creative industries quarters, stimulating the local economy. But, given the scale of the funding challenge, we are a long way from where we need to be.   

This enquiry, that will report its findings this autumn, is the vital first step on a journey towards a new and sustainable way of funding culture in our major cities – where creativity can flourish, and where the transforming power of the arts can be enjoyed by all our citizens.

Cllr Huw Thomas is leader of Cardiff council. To find out more about and submit evidence to the Cultural Cities Enquiry, click here.

 
 
 
 

A new wave of remote workers could bring lasting change to pricey rental markets

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus. (Valery Hache/AFP via Getty Images)

When the coronavirus spread around the world this spring, government-issued stay-at-home orders essentially forced a global social experiment on remote work.

Perhaps not surprisingly, people who are able to work from home generally like doing so. A recent survey from iOmetrics and Global Workplace Analytics on the work-from-home experience found that 68% of the 2,865 responses said they were “very successful working from home”, 76% want to continue working from home at least one day a week, and 16% don’t want to return to the office at all.

It’s not just employees who’ve gained this appreciation for remote work – several companies are acknowledging benefits from it as well. On 11 June, the workplace chat company Slack joined the growing number of companies that will allow employees to work from home even after the pandemic. “Most employees will have the option to work remotely on a permanent basis if they choose,” Slack said in a public statement, “and we will begin to increasingly hire employees who are permanently remote.”

This type of declaration has been echoing through workspaces since Twitter made its announcement on 12 May, particularly in the tech sector. Since then, companies including Coinbase, Square, Shopify, and Upwork have taken the same steps.


Remote work is much more accessible to white and higher-wage workers in tech, finance, and business services sectors, according to the Economic Policy Institute, and the concentration of these jobs in some major cities has contributed to ballooning housing costs in those markets. Much of the workforce that can work remotely is also more able to afford moving than those on lower incomes working in the hospitality or retail sectors. If they choose not to report back to HQ in San Francisco or New York City, for example, that could potentially have an effect on the white-hot rental and real estate markets in those and other cities.

Data from Zumper, an online apartment rental platform, suggests that some of the priciest rental markets in the US have already started to soften. In June, rent prices for San Francisco’s one- and two-bedroom apartments dropped more than 9% compared to one year before, according to the company’s monthly rent report. The figures were similar in nearby Silicon Valley hotspots of San Jose, Mountain View, Palo Alto.

Six of the 10 highest-rent cities in the US posted year-over-year declines, including New York City, Los Angeles, and Seattle. At the same time, rents increased in some cheaper cities that aren’t far from expensive ones: “In our top markets, while Boston and San Francisco rents were on the decline, Providence and Sacramento prices were both up around 5% last month,” Zumper reports.

In San Francisco, some property owners have begun offering a month or more of free rent to attract new tenants, KQED reports, and an April survey from the San Francisco Apartment Association showed 16% of rental housing providers had residents break a lease or unexpectedly give a 30-day notice to vacate.

It’s still too early to say how much of this movement can be attributed to remote work, layoffs or pay cuts, but some who see this time as an opportunity to move are taking it.

Jay Streets, who owns a two-unit house in San Francisco, says he recently had tenants give notice and move to Kentucky this spring.

“He worked for Google, she worked for another tech company,” Streets says. “When Covid happened, they were on vacation in Palm Springs and they didn’t come back.”

The couple kept the lease on their $4,500 two-bedroom apartment until Google announced its employees would be working from home for the rest of the year, at which point they officially moved out. “They couldn’t justify paying rent on an apartment they didn’t need,” Streets says.

When he re-listed the apartment in May for the same price, the requests poured in. “Overwhelmingly, everyone that came to look at it were all in the situation where they were now working from home,” he says. “They were all in one-bedrooms and they all wanted an extra bedroom because they were all working from home.”

In early June, Yessika Patapoff and her husband moved from San Francisco’s Lower Haight neighbourhood to Tiburon, a charming town north of the city. Patapoff is an attorney who’s been unemployed since before Covid-19 hit, and her husband is working from home. She says her husband’s employer has been flexible about working from home, but it is not currently a permanent situation. While they’re paying a similar price for housing, they now have more space, and no plans to move back.

“My husband and I were already growing tired of the city before Covid,” Patapoff says.

Similar stories emerged in the UK, where real estate markets almost completely stopped for 50 days during lockdown, causing a rush of demand when it reopened. “Enquiry activity has been extraordinary,” Damian Gray, head of Knight Frank’s Oxford office told World Property Journal. “I've never been contacted by so many people that want to live outside London."

Several estate agencies in London have reported a rush for properties since the market opened back up, particularly for more spacious properties with outdoor space. However, Mansion Global noted this is likely due to pent up demand from 50 days of almost complete real estate shutdown, so it’s hard to tell whether that trend will continue.

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus, but many industry experts say there will indeed be change.

In May, The New York Times reported that three of New York City’s largest commercial tenants — Barclays, JP Morgan Chase and Morgan Stanley — have hinted that many of their employees likely won’t be returning to the office at the level they were pre-Covid.

Until workers are able to safely return to offices, it’s impossible to tell exactly how much office space will stay vacant post-pandemic. On one hand, businesses could require more space to account for physical distancing; on the other hand, they could embrace remote working permanently, or find some middle ground that brings fewer people into the office on a daily basis.

“It’s tough to say anything to the office market because most people are not back working in their office yet,” says Robert Knakal, chairman of JLL Capital Markets. “There will be changes in the office market and there will likely be changes in the residential market as well in terms of how buildings are maintained, constructed, [and] designed.”

Those who do return to the office may find a reversal of recent design trends that favoured open, airy layouts with desks clustered tightly together. “The space per employee likely to go up would counterbalance the folks who are no longer coming into the office,” Knakal says.

There has been some discussion of using newly vacant office space for residential needs, and while that’s appealing to housing advocates in cities that sorely need more housing, Bill Rudin, CEO of Rudin Management Company, recently told Spectrum News that the conversion process may be too difficult to be practical.

"I don’t know the amount of buildings out there that could be adapted," he said. "It’s very complicated and expensive.

While there’s been tumult in San Francisco’s rental scene, housing developers appear to still be moving forward with their plans, says Dan Sider, director of executive programs at the SF Planning Department.

“Despite the doom and gloom that we all read about daily, our office continues to see interest from the development community – particularly larger, more established developers – in both moving ahead with existing applications and in submitting new applications for large projects,” he says.

How demand for those projects might change and what it might do to improve affordable housing is still unknown, though “demand will recover,” Sider predicts.

Johanna Flashman is a freelance writer based in Oakland, California.