When Arts Funding Dries Up, What’s Your Next Move?

A recent study from Campaign for the Arts lays bare a hard truth: the UK ranks among the lowest spenders on culture in Europe. Local government spending on cultural and heritage services has plummeted, all whilst inflation and running costs continue to squeeze the purse strings.

“Between 2009-10 and 2022-23, in real terms, local authorities’ revenue spending per person on culture and related services decreased by 29% in Scotland, 40% in Wales and 48% in England” – The State of the Arts’, Campaign for the Arts.

This isn’t just a budget line. It’s a threat to opportunity, access, and community enrichment. And it’s not a new story.

At TRG Arts, we’ve seen time and again that sustainable cultural organizations don’t wait for funding tides to turn sustainable cultural organizations don’t wait for funding tides to turn. They act. The question isn’t whether action is needed, but where to start.

How will your organization respond when funding disappears or continues to decline? Here’s some critical questions to ask of your own organisation:

Which audience segments will help close your revenue gap?

Precision matters. Are you targeting the right audience groups—first timers, lapsed attendees, high-value patrons, returning buyers—with tailored strategies to grow revenue? A blanket approach won’t close the gap; a focused, data-driven strategy will.

Consider this:

• Can you identify key patron segments in your database?
• How are you re-engaging lapsed audiences to bring them back?
• Are you prioritizing the segments most likely to grow your revenue?

Watch Back: The Rhythm of Repeat Attendance: Strategies to Combat Churn

Do you have a plan to move first-time attendees toward loyalty?

First-time ticket buyers are abundant, yet most never return. Industry-wide, 66% of ticket buyers are first-timers, yet only 25% return. The first visit is only the beginning—are you making the most of this critical “golden window” to nurture their next step? Personalised follow-ups, thoughtful invitations, and simple recognition can make all the difference.

Opportunities to Explore:

• Are you tracking and segmenting first-time buyers effectively?
• How personalized is your follow-up to encourage a second visit?
• What strategies could you implement to bring them back sooner?

Watch Back: Second Date Strategies: Engaging First-Time Ticket Buyers

Are you balancing short-term wins with long-term growth?

Repeat buyers and members/subscribers provide stability, while lapsed audiences and new attendees hold opportunities for growth. Are your campaigns encouraging the habits that matter—like multi-buys, early bookings, and loyalty programme participation?

Consider this:

• How are you encouraging repeat attendance in your programming, and your messaging?
• What role do subscriptions, memberships, or flexible offers play in your strategy?

Read more: 5 Customer Habits You Actually Want—and How to Build Them

How can you strengthen relationships to tackle financial pressures?

When resources are strained, every interaction must count. Your strongest relationships—advocates, donors, and repeat patrons—are your greatest asset for tackling financial challenges.

Consider this:

• Are you deepening relationships with patrons through meaningful engagement?
• How can personalized outreach ensure patrons feel connected to your mission?

Read more: 10 Things Your Patrons Need on Their Journey to Becoming Donors

It’s Time to Act

This decline in government funding isn’t just one problem—it amplifies others: stagnating revenue, audience churn, and under-leveraged audience relationships. Tackling these challenges requires precision, focus, and bold action.

Where will you start?

Read in full The State of the Arts report here