What Does Devolution Mean for Arts Fundraising?

Devolution is a word we will all be familiar with by now. Over the course of the last decade, we have seen the election of the first metro mayors in 2015 and a slew of white papers and government acts on the subject.

And now we have the latest instalment. Published in December 2024, the white paper Power and Partnership: Foundations for Growth sets the scene for devolution plans over the coming years.

But what does this mean for the arts? In this article we will look at the devolution headlines, what they mean for local government funding, and what opportunities and challenges this could bring for arts charities.

What is in the paper?

At the heart of this latest paper is the establishment of a three-tier devolution framework – an effort to lay for the foundations for more efficient and streamlined devolved government in years to come. This three-tier system consists of:

Strategic Authorities: As the LGA outlines, this tier includes the existing Greater London Authority, combined authorities, and combined county authorities. They have control over areas such as transport, skill development, housing, health and economic renewal.
Unitary Authorities: These authorities will merge existing county and district council into a single unitary authority. Each will serve populations of at least 500,000, centralising local service delivery into one body.
Local Councils: This tier includes parish and town councils and concentrates on community-level issues like maintaining public spaces and ensuring that local voices are heard.

“Our goal is simple. Universal coverage in England of Strategic Authorities – which should be a number of councils working together, covering areas that people recognise and work in.”

Angela Rayner MP

The development of strategic authorities is a key announcement in the white paper. These areas will be given new powers under the framework, including greater say over how they spend their money.

Current combined authorities (like Greater Manchester and the West Midlands) and combined county authorities will remain unchanged and will soon be joined by Greater Lincolnshire, Hull and East Yorkshire, Devon and Torbay, and Lancashire. This list will be added to in May 2026, as the following areas join: Cumbria, Cheshire and Warrington, Norfolk and Suffolk, Greater Essex, Sussex and Brighton, and Hampshire and Solent.

What do strategic authorities mean for funding?

This will depend on where you are based in England. Some areas won’t feel the impact of the three tier system for another couple of years, whilst others, namely the West Midlands and Greater Manchester, received the first integrated settlements in April 2024.

It is these integrated settlements that are the key to understanding the potential ramifications for the arts.

In short, the funding is a single pot which the authority will decide how it spends. It can be spent on areas such as housing, skills, employment support, transport and regeneration, and the hope is that this will make it easier for money to move across policy areas, giving strategic authorities more freedom and power.

At present, integrated settlements are only available to well-established strategic authorities but, over time, it is expected all will eventually gain these powers.

What does this mean for the arts?

We anticipate that a key impact of the new three-tier structure and roll out of integrated settlements will be the continuation of fierce competition for local government funding.

Whilst integrated settlements will give strategic authorities more power over how they spend their money, they will not necessarily have more money to spend. Due to the single-pot nature of the funding, integrated settlements will also mean that arts organisations will be directly competing with other sectors like transport, housing and social care.

Admittedly, this is nothing new for the arts. The 18% real terms decrease in government funding for local authorities over the last decade has led to a 42% cut in local authority spending, seeing funding become increasingly sparce. However, the new model is a sign that this competition will continue over the short-term and the arts will need to be compelling in making the case for support.

How to stand out

With high competition for local government funding set to continue, what can arts organisations do to stand out?

Fostering collaboration

With less funding available and the risk of increased competition from outside arts and culture, collaboration will be key to success.

Whether with other arts organisations or across sectors, collaboration can reduce competition and increase impact by bringing organisations and resources together. Funders are already looking to see collaborative applications and we anticipate that collaboration will be become more important in securing local government funding as well. Take a look at our recent deep dive on all things collaboration here for more advice.

Demonstrating economic growth

Without ring-fenced funding for the arts, applications will be more attractive if they can show contributions to regional and local priorities.

The white paper recognises that “culture, heritage, sport, and tourism are vital anchors in regional economies and among the fastest growing industries with huge potential to drive local economic growth and create opportunities for people in every part of the UK”.

A key part of funding applications will be reminding local authorities of this fact.

Fortunately, there is a wealth of evidence to support this point. From propping up the visitor economy in Basingstoke, to the 400% return on public investment delivered by British concert halls, arts and culture can confidently make the case that it is a central pillar of economic growth.

Indeed, as this 2023 McKinsey report shows, the Gross Added Value (GVA) of the arts is similar to that of the food and beverage services sector and 50% bigger than the GVA of the telecommunications industry, a fact Liverpool’s Accommodation Business Improvement District recognises in its proposed tourism levy.

Showing the contribution the arts can and does make to the local economy will be a powerful tool.

Considering skills, education and young people

The arts is so much more than a series of attractions which bring in tourists and income, it is a vital contributor to skills development and employment opportunities.

Under the new strategic authority system, upskilling and employment support will fall under the integrated settlements, and the white paper notes the role the creative industries can play in addressing these areas. Supporting and empowering people in the local community and fostering local growth will be key areas that arts organisations can contribute to.

Whether it be outreach programmes with local schools, training or work placements for creatives, arts organisations often give back to the community in a myriad of ways. Aligning this to local government plans will provide a compelling case for support.

Enhancing community engagement

When speaking about Arts for Everyone, Culture Secretary Lisa Nandy said “part of how we discover [a] new national story is by breathing fresh life into local heritage and reviving culture in places where it is disappearing”.

Developing thriving local communities where individuals are engaged, ambitious and involved, is an ever-present mission for local governments. As recognised by the Culture Secretary, arts and culture are uniquely placed to support this mission – creating spaces where people can connect, share stories, and develop new skills. By celebrating local identity and providing platforms for diverse voices, organisations can also foster feelings of pride and belonging.

This unique strength cannot be overstated and should be celebrated alongside direct contributions to local priorities.

Whilst we may lack clarity of the priorities of these strategic authorities, the arts is uniquely placed to lead change. Fundraising that taps into these priorities and positions art as essential to society will never be more important.