Assessing Financial Importance of Cultural and Historical Landmarks
In a groundbreaking development, a new framework has been unveiled to help cultural and heritage institutions quantify the economic value they generate for society. The Cultural and Heritage Capital Framework, published by the Department for Culture, Media and Sport (DCMS), aims to demonstrate the tangible returns on investment from cultural heritage activities.
The framework, based on research from organisations such as Arts Council England, Historic England, the British Film Institute, PEC, and Nesta with Simetrica-Jacobs, applies techniques developed in environmental and cultural research to estimate the values of activities and institutions that do not have natural monetary measures.
One of the key studies conducted as part of this research is the Arts Council England: Regional galleries and regional theatres Benefit Transfer report. This report estimates the values for regional galleries and theatres and finds that people value a visit to a regional gallery at an average of over £5, and value keeping their local theatre in their city at over £13 per year.
Another study assessed the range of values users and the general public have for the BFI's Britain on Film service and the wider Unlocking Film Heritage archive programme. Users of the BFI's free 'Britain on Film' portal valued this service at over £3 a month.
To estimate monetary values for 'everyday' heritage sites, a survey was conducted at case study sites across eight cities, including historic high streets, town halls, and central libraries. The study found that households on average value the historic character of their local high street at around £7.80 per year, and of their historic civic buildings between £5.73 and £7.67 per year.
The research also helps to fill existing gaps in the evidence base, such as the value of visiting free museums, local historic buildings, and cultural services such as theatres and film archives. It enables the benefits of culture and heritage that are not included in market prices to be captured, accounting for the values they provide for both 'users' and the public as a whole.
The new framework is particularly significant as it allows cultural and heritage institutions to better demonstrate in financial terms the value they create for society using an approach consistent with the HM Treasury Green Book Guidance (2020). This will enable these institutions to articulate how investments in culture and heritage contribute not only to social and cultural benefits but also to economic development, job creation, and community well-being.
The project outputs include a guidance note for museums on how to apply estimated values to their business cases, and interviews with representatives across the cultural sector to understand the context of valuation. Guidance is also being produced in applying these values in business cases and funding decisions, starting with museums.
The reports were published on 21st January 2021, marking a significant step forward in the recognition of culture and heritage as strategic resources for economic development and societal well-being. By framing cultural and heritage assets as forms of capital—comparable to financial or human capital—this framework legitimizes culture as a strategic resource for economic development and societal well-being, enabling better funding, policy support, and integration into broader development plans.
- The Cultural and Heritage Capital Framework, a new development, aims to quantify the economic value produced by cultural and heritage institutions.
- The framework applies research from various organizations like Arts Council England, Historic England, and the British Film Institute.
- One key study, the Arts Council England: Regional galleries and regional theatres Benefit Transfer report, values a visit to a regional gallery at over £5 and keeping a local theatre at over £13 per year.
- Another study assessed the BFI's Britain on Film service, finding that users value it at over £3 a month.
- For 'everyday' heritage sites, a survey estimated that households value the historic character of their local high street at around £7.80 per year.
- The research helps fill gaps in the evidence base, such as the value of visiting free museums and cultural services like theatres and film archives.
- The framework allows cultural and heritage institutions to demonstrate their financial contributions to society, consistent with HM Treasury Green Book Guidance (2020).
- Guidance notes for museums on applying estimated values to their business cases are included in the project outputs.
- The framework legitimizes culture as a strategic resource for economic development and societal well-being, potentially leading to better funding, policy support, and integration into broader development plans.
- Education and self-development, policy and legislation, personal finance, business, and general news are all areas that could benefit from understanding the economic value of culture and heritage.
- The new framework is expected to contribute to societal well-being and economic development by investing in culture and heritage.
