Future Arts Centres has published its latest Sector Insight Report, providing the most comprehensive picture yet of the UK’s arts centre sector. Drawing on financial data from 124 arts centres across three years to 2023/24, the report shows a sector that is entrepreneurial, resilient, and deeply embedded in local life – but still operating on fragile margins.

The data confirms what many already know: arts centres punch well above their weight.

In 2023/24, the sector generated £205.7m in total income from just £29.2m in public subsidy – a return of more than £6 for every £1 of public funding. These mixed-income social enterprises combine box office income with café and bar operations, venue hire, creative learning, consultancy and tenancy income, while also leveraging grants and philanthropy to create places that deliver culture, community and commerce side by side.

Despite this strong performance, the report highlights a structurally underfunded sector. Costs have risen faster than income, and while trading losses have halved to £5m, many venues remain vulnerable. Nearly one in three have less than £100k in reserves, and 10 are in deficit. Local authority funding has remained static at around £12m, masking real-terms cuts and growing pressure on councils.

The report also highlights important shifts in the composition of income across the sector. Funding from trusts and foundations – historically the largest single source of contributed income – fell sharply by 21%, reflecting tighter priorities and growing competition across the sector. This reduction mirrors a national trend, with many arts organisations reporting similar challenges in securing grant support.

In contrast, there was a noticeable uplift in individual giving and philanthropy, rising from around £6m to £10m over the past year. This encouraging growth points to new potential for arts centres to diversify their income further. Future Arts Centres is working with members to help develop their approaches in this area, supporting centres to strengthen relationships with donors and local supporters and to build sustainable giving programmes for the long term.

Alongside financial data, the report shines a light on arts centres’ social and civic impact. Case studies from across the UK show how they build skills and careers, foster belonging and wellbeing, drive inclusion and nurture artists and talent.

The case studies show how arts centres are integral to local health, education, and regeneration agendas – delivering far beyond their budgets.

Future Arts Centres Co-Directors, Gavin Barlow and Annabel Turpin, said:

“The data confirms what our members demonstrate every day. Arts centres are entrepreneurial, inclusive, and impactful – driving healthier communities and stronger local economies. With targeted investment, they could do even more.”

The Sector Insight Report 2023/24 concludes that the sector is:

· Resilient – through diverse income streams and entrepreneurial models that spread risk
· Recovering – income rising, losses narrowing, reserves strengthening
· Underfunded – static or falling public support and thin margins despite high returns on investment

With the right support, arts centres are poised to play a leading role in the UK’s social and economic renewal – delivering culture with purpose in every community.

Read the full report here.