Press Release

Resolving the West End theatre investment drama
24-1-2008   051

A range of innovative measures could secure at least some of the funding many of London’s West End Theatres need to restore them to their former glory, a London Assembly report has found.

An investigation1, led by Bob Blackman AM on behalf of the Assembly’s Economic Development, Culture, Sport and Tourism Committee concludes that there is no single solution to tackling long-term under-investment that has left many theatres in London’s West End in desperate need of refurbishment. 

Securing the estimated £250million2 of investment required for improvement works to theatres in the West End - which contribute around £1.5billion3 to London’s economy every year – has been the subject of debate for years. 

The report 'Restoration Drama - Investment in West End theatre buildings4' attempts to move matters forward and identifies a range of ways to secure funding for refurbishments that could work in combination or tailored to meet the needs of individual theatres.  Potential solutions theatres owners could explore range from the introduction of a ticket levy, to corporate sponsorship, fundraising campaigns and debentures. 

To have a shot at successfully applying for public money, the theatres would need to meet specific criteria and demonstrate public accountability.  One way of doing this identified in the report is the establishment of a charitable trust to receive and distribute any funding secured.  The report also notes that securing public money may now be complicated by the pressures many of the potential funding bodies, including the Arts Council and the Heritage Lottery Fund, are facing due to millions of pounds being diverted to the 2012 Olympics.

The investigation looked at all 40 commercial theatres in the West End – all of which were built before 1937 and most of which are ageing fast.  While some, like The Gielgud5, have benefited from private investment, others, especially playhouses such as The Garrick6, are in dire need of refurbishment to improve the lack of toilet facilities, bad seating and poor sightlines, as well as structural and aesthetic works.

Bob Blackman AM, who led the investigation on behalf of the Assembly’s Economic Development, Culture, Sport and Tourism Committee said:

“This investigation has shown that, in effect, the issue of securing funding for improvements to West End Theatres has reached an impasse and for most theatre owners the last five years of debate have thrown up no answers.  This report offers a range of viable options.
 
“But there does need to be a willingness among theatre owners to take a more creative approach and look at options – or a combination of options – that they may not previously have considered.

“Theatres are not just commercial enterprises but also vital parts of London’s economy, culture and heritage, which makes it undeniable that public bodies have some role to play in securing their future.  It would be a tragedy to see these iconic buildings slip further into disrepair, especially with theatre audience numbers now at record levels.” 

Summary of recommendations
· The West End theatre owners should demonstrate how they would fulfil criteria for any public funding in the theatre buildings.  This should be done by: 
i) developing an individual business plan for raising investment in each theatre building;
ii) prioritising the order of the theatre buildings which need improvement; and
iii) setting up the charity through which any public funding could be received and distributed.
· Subject to their funding criteria being fulfilled, the LDA, Arts Council England and Heritage Lottery Fund, should give full and proper consideration to any funding applications put forward for individual theatre buildings.
· The theatre owners should explore all possible solutions to securing investment to identify the most practicable options for each theatre building.  These could include: a restoration levy on tickets; planning obligations; producer investment; corporate sponsorship; ‘naming seats’ and debenture; public fundraising appeals; obtaining exemption from VAT on the cost of building improvements; extending Westminster City Council’s theatreland strategy and extending the Mayor’s theatre sector climate change action plan. The most practicable options for each building should then be included in its specific business plan for raising investment.
· The Department of Culture, Media & Sport should re-establish its working group set up to secure investment in the theatre buildings.  This should:
i) involve representatives of all relevant bodies including the Mayor’s office, the LDA, Arts Council England, the Heritage Lottery Fund, Westminster City Council and English Heritage;
ii) have clear terms of reference that include exploring all possible solutions to raising investment; and
iii) have a clear timed work programme to ensure progress is made.

Notes to Editors

1. The investigation concentrated on what has happened in the five years since the Theatres Trust published its Act Now! Report in 2003, and included meetings with theatre owners, stakeholders and representatives of the Mayor’s office.
2. ‘Act Now! Modernising London’s West End Theatres’, a report by The Theatres Trust, 2003, page 13
3. Economic Impact Study of UK Theatre, Arts Council England, 2004, page 4. 
4. 'Restoration Drama - Investment in West End theatre buildings’ is available at  http://www.london.gov.uk/assembly/reports/cst.jsp.  The draft report will be considered for formal agreement by the Economic Development, Culture, Sport and Tourism Committee on 6 February 2008. 
5. The Gielgud theatre – see case study, p6 of the report.
6. The Garrick – see case study, p5 of the report
7. As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
For more details please contact Dana Gavin in the Assembly Media Office on 020 7983 5769/4603.  For out of hours media enquiries please call 0207 983 4000 and ask for the Assembly duty press officer.  Non-media enquiries should be directed to the Public Liaison Unit, Greater London Authority, on 020 7983 4100.

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