The Creative Industries Federation, the membership body that represents, champions and supports the UK’s creative sector, is today sending an open letter to government, calling for urgent grant support for creative businesses and charities who ‘fall between the gaps’.
They state that, although the business support measures announced by the government are welcome, early evidence suggests that these will not reach a large proportion of creative businesses and charities, many of whom have lost 100% of their income due to the fallout from Covid-19.
Data, released today, from a Creative Industries Federation survey of almost 2,000 creative businesses and individuals shows that:
42% of creative organisations estimate that their income has decreased by 100% since the outbreak
63% of creative organisations predict a decrease in annual turnover of more than 50% by the end of 2020
1 in 7 creative organisations believe they can last less than 4 weeks on existing reserves
45% of creative organisations do not understand the Coronavirus Business Interruption Loan Scheme (CBILS)
The letter states:
“Despite welcome changes to the Coronavirus Business Interruption Loan Scheme (CBILS), we know from our previous experience with the Enterprise Finance Guarantee – on which CBILS is based – that many creative businesses will still struggle to access these loans, and for those who do, this finance will come too late. Many charities are also still not eligible because their trading income falls beneath the 50% threshold… Grant support is needed now.”
Caroline Norbury MBE, CEO of the Creative Industries Federation, said:
“The crux of it is that creative businesses need money now, and they can’t wait another month. Through no fault of their own, many creative industries businesses are on the brink of collapse – with all the economic knock-on effects and hardship that entails. And more will follow. Government must act rapidly to get grants to where they are needed most.
The creative industries are one of the UK’s biggest success stories – previously growing at five times the rate of the wider economy. The creative sector will be critical to driving the UK’s economic recovery – and transforming lives for the better in every community – as we re-build. It is essential to ensure that the UK doesn’t become a cultural wasteland post Covid-19.”