When the UK economy first entered a recession in mid 2008, this had a damaging impact across each of the UK regions and on all sectors of the economy. Unemployment rose, the previously buoyant property market crashed and consumer confidence reached an all time low. The impacts of the downturn are still being felt today and are forecast to continue as the Coalition Government implements curbs on public spending as part of its plan to manage one of the largest UK budget deficits in history.

Facing the most difficult fiscal environment in decades, the NI Executive has set out its proposals to reduce public expenditure. As a result the arts budget will be cut over the next four years. In addition to this, the combined effect of reduced public funding and lower levels of public confidence will most likely impact upon box office sales as consumers become more cautious in their discretionary spending habits. This is likely to further impact on the sector.

In light of these concerns, this report was prepared to help the Arts Council better understand the current and future challenges facing the arts sector in Northern Ireland as a result of the economic downturn. Undertaking a survey of our Regularly Funded Organisations has provided us with evidence of the challenges facing the sector and enabled us to propose a number of recommendations for organisations to consider over the next few years.