Assessing the financial worth of cultural and historical landmarks

Assessing the financial worth of cultural and historical landmarks

In a groundbreaking development, a Rapid Evidence Assessment (REA) for the UK Department for Digital, Culture, Media and Sport (DCMS) has been conducted to survey valuation techniques and estimated values for a range of cultural and heritage assets. This research, which is part of the broader Cultural and Heritage Capital Framework, aims to provide a clearer understanding of the economic and social contributions of cultural and heritage activities.

The study, supported by new studies by the PEC and Nesta with Simetrica-Jacobs for Arts Council England (ACE) and Historic England (HE), and studies by Simetrica-Jacobs for DCMS and the British Film Institute (BFI), allows cultural and heritage institutions to better demonstrate in financial terms the value they create for society. This approach is consistent with the recommended best-practice methodology within government - the HM Treasury Green Book Guidance (2020).

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 reports published today mark an important turning point in quantifying the value that cultural and heritage institutions bring to society.

The research also extends to regional galleries and theatres, with surveys conducted to collect data on the valuation for both users and non-users of sites (four sites each per artform) considered to be representative of this activity in regional cities outside London. The reports help 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.

One of the key findings of the research is that the investment in maintaining local heritage sites in good condition has a positive value to society. For instance, the study evaluates Britain on Film (BoF), a service offered by the British Film Institute (BFI), using contingent valuation methods to measure the value people place on the films in BoF. Users of the BFI's free 'Britain on Film' portal valued this service at over £3 a month.

The study also tests how engagement with archive film collections is positively associated with subjective wellbeing. This research permits policymakers to assess interventions and investment decisions within the cultural and heritage sectors using accepted forms of policy evaluation such as Social Cost Benefit Analysis (SCBA). The research will be extended to other types of cultural sites later in the year, while continuing to explore the implications for central government decision-making when applying these values in social cost benefit analysis.

With large parts of the culture and heritage sectors unfortunately closed due to the effects of Covid-19, there has never been a more important time to understand the value of culture and heritage for all of us. A guidance note is being published by Arts Council England to support the sector to produce higher-quality evidence for central and local government, thus strengthening the case for funding in the cultural sector.

For those interested in knowing more about research from Simetrica-Jacobs and Nesta in the culture and heritage sector, you can contact Dr Ricky Lawton at [email protected] and John Davies at [email protected].

[1] Cultural and Heritage Capital Framework, DCMS, 2021. [2] The Role of Cultural and Creative Industries in the UK Economy, DCMS, 2018. [3] Cultural and Creative Industries for Sustainable Development, UNESCO, 2019. [4] Cultural and Creative Industries for Development: A Review of the Evidence, OECD, 2013.

1. The Rapid Evidence Assessment (REA) for the UK Department for Digital, Culture, Media and Sport (DCMS) reveals the economic and social contributions of cultural and heritage activities, providing a clearer understanding of their value.
2. The research, supported by multiple studies, enables cultural and heritage institutions to demonstrate financially the value they create for society, consistent with the HM Treasury Green Book Guidance (2020).
3. To quantify the value of cultural and heritage institutions, case studies were conducted across eight cities, including historic high streets, town halls, and central libraries.
4. The research also explores regional galleries and theatres, collecting data on users and non-users of representative sites outside London.
5. One significant finding is that investing in maintaining local heritage sites has a positive value to society, as evaluated in services like Britain on Film, which users value at over £3 a month.
6. This research allows policymakers to assess interventions and investment decisions within the cultural and heritage sectors using accepted forms of policy evaluation like Social Cost Benefit Analysis (SCBA).
7. With many parts of the culture and heritage sectors closed due to Covid-19, understanding the value they provide is more important than ever, encouraging the production of higher-quality evidence to support funding in the sector.
8. For those interested in research from Simetrica-Jacobs, Nesta, and related topics in the culture and heritage sector, contact Dr Ricky Lawton at [email protected] and John Davies at [email protected]. [1-4] represent relevant resources for further reading on the topic.

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