Investing in the arts: the North East’s engine for economic growth

As the Autumn Budget approaches, there’s a growing urgency across the North East to ensure that the arts and cultural sector is not just heard, but understood for what it truly is: an economic driver, a creator of opportunity, and a lifeline for communities. Yet, too often, arts funding is treated as a luxury, an “extra” to be bolted on after more “serious” spending priorities have been met.

This mindset is holding the North East back. If we want to see sustainable, inclusive growth in our region, the arts must be funded not as an afterthought but as a fundamental part of our economic infrastructure.

Arts and culture as economic infrastructure

When people talk about economic growth, they often picture new manufacturing plants, digital innovation hubs or major infrastructure projects. But the creative industries are no less vital to this landscape, and in the North East their potential is extraordinary.

Research from University College London has found that for every £1 of public money invested in the arts, £33 is returned to the economy. Arts and culture aren’t separate from economic growth, they are woven deeply into it.

From electricians, builders and technicians employed in stage production, hospitality venues that thrive around cultural events, to museum tour guides and choreographers, the creative economy sustains a vast ecosystem of employment. Investing in arts, culture and heritage is not charity: it’s economic common sense.

Creativity as compound interest

The art and cultural sector doesn’t just generate jobs and visitor spend, they save money in the long term too. Investing in the arts is like putting money in a savings account, earning compound interest across society.

When people engage in creativity, communities become healthier and more connected. Children perform better in school when creative learning is embedded in education. Participation in art, culture and heritage can reduce loneliness, improve mental health, and increase civic pride, all of which translate to reduced spending on healthcare, welfare, and crisis intervention.

We talk a lot about “value for money” in public spending, and art, heritage and culture offer that in abundance. Too often, funding decisions are made as if creativity is a luxury item, rather than a multiplier that touches every other sector and benefits whole communities.

Culture for placemaking

In County Durham, Into the Light is putting this principle into practice. Our three-year cultural programme is designed to harness creativity as a catalyst for growth. We’re supporting more than 100 creative commissions, inspiring children and young people, and producing nationally significant performances rooted in local communities.

We’re using culture, heritage and art to invest in skills, education and innovation in County Durham. We’re strengthening the cultural workforce, widening access to creative careers, and helping communities tell their own stories through place-based research and storytelling.

For example, Horden-based theatre company Ensemble ‘84 – part of the Into the Light programme – specifically recruits local people for productions, providing them with world-class drama training and a living wage.

This is what real success looks like for the North East – sustained investment in the capacity of people and places to thrive.

The economic case for cultural investment

The North East has always been a region of makers, from miners and shipbuilders to inventors and artists. That spirit of creation is our inheritance, and it’s also our future.

Every cultural event brings with it a ripple effect: people book hotels, eat in local restaurants, visit attractions, and shop in nearby towns. Festivals, performances, and exhibitions not only entertain but also regenerate local economies.

But to sustain this, we need cross-departmental, long-term investment that recognises the arts as a pillar of economic strategy, not a discretionary add-on that only fuels stereotypes of the arts being the preserve of the wealthy.

If we want to build stronger, more resilient communities, then culture must have a seat at that table. Because culture is community: it’s how we tell our stories, define our places, and pass on a sense of belonging and purpose.

A seat at the table

As the Chancellor prepares her Autumn Budget, I hope she looks beyond the usual spreadsheets and growth forecasts and recognises that culture is not a cost, it’s an opportunity.

So, let’s give the art, culture and heritage sector its rightful place at the table. Let’s give North East talent the opportunity to shine, and our communities the tools to imagine and build their futures.

Because when we invest in creativity, we don’t just support artists, we build economies, strengthen communities, and light the way forward for us all.