The Southbank Centre, Britain’s largest arts and cultural organisation, has stated that if it
does not receive more government support, it will have to stay closed until Spring 2021.
It warned they would use up their capital reserves by September.
Southbank Centre revealed that at the end of this financial year a grim best-case scenario will be a £ 5 m loss.
That would be despite using all reserves as well as £ 4million from the furlough scheme, and Arts Council England’s annual £19.2 million grant. They said these costs “effectively mothball the buildings”.
The centre, which organises about 3,500 events per year, said: “During 2020/21, there would be hardly any artistic activity, as holding something like a usual range of events would have seen the losses increase to around £ 11 million.”
Even if events were allowed, because of the restrictive measures in place, finances would still be taking a huge hit. The Southbank Center obtains 37 per cent of its revenue from funding schemes. The remaining earnings represent ticket sales, bar, cafe and restaurant profits, and money from events such as conferences and graduations.
It comes amid a general panic over future in the arts industry.
A group headed by philanthropist Neil Mendoza was unveiled last week that would advise on how the sector can set out onto the path to recovery.