Loss of Aberdeen Arts Centre could cost city more than culture

With a week to go until the initial deadline for the ‘Save Aberdeen Arts Centre’s fundraising drive, it is not long until the planned Aberdeen City Council debate on the morning of July 2, where venue bosses hope that elected officials will choose to reinstate funding.

There has been a strength of public feeling and many impassioned pleas from those in the creative arts to support the historic venue, and recent weeks have also seen the launch of a suite of corporate sponsorship packages, and plans for a variety of fundraising events such as this Sunday’s sell-out Quiz Night, and a 24 Hour Musical in July with all proceeds going to the campaign.

Aberdeen Arts Centre is the only grassroots community theatre in the city, uniquely equipped to host large, inclusive casts and offer affordable space for community groups.

The venue encompasses a 350-seater auditorium; café bar; flexible spaces for performances, events, exhibitions and meetings; and the Children’s Theatre, the first of its kind to open in the UK.

Closure would leave a void for hundreds who rely on the venue for creative expression, life skills, and social support. The loss would be far-reaching not only for local community groups. With 35,000 annual visitors and 35 community groups using the venue, the Arts Centre’s shutdown would strip the city centre of a major cultural hub, directly impacting surrounding businesses.

Local restaurants, bars, shops, and hotels in the vicinity of the King Street venue all rely to some extent on event-driven footfall. Hospitality and retail sectors, already struggling in the face of a cost of living crisis, reduced footfall and ever-rising energy bills, would face a further significant loss.

Some local businesses in the vicinity of the venue have spoken about its importance. Tom Simmons, of nearby restaurant Gio’s by La Lombarda, commented:

“La Lombarda has always benefited from the patrons brought into the area by the Arts Centre’s diverse portfolio of community performances and exhibitions. Were the Arts Centre to close down, it would be a huge loss to the local community and business owners in the area.”

Yvette Harrison, Manager of Mackie’s 19.2 in Marischal Square, said:

“Aberdeen Arts Centre is a vital community asset, offering a diverse programme that attracts people of all ages and significantly increases footfall in the city centre during its events. We often see families and children enjoying an ice cream before a dance show or performance, which is testament to the centre’s positive ripple effect. Its closure would be detrimental to the vibrancy of the city centre and to local businesses like ours.”

Initial Fundraising phase still to be reached

The Arts Centre’s initial fundraising target of £180,00 is still to be reached, with the JustGiving campaign currently standing at just over £43,200 – an impressive figure but so far only a quarter of the hoped-for total.

The ultimate aim is to raise £660,000 over the next three years, with the six-figure total covering core running costs as Aberdeen Arts Centre implements a new strategy to remain open for future generations.

Council’s position?

Union Media contacted Aberdeen City Council to offer them the chance to give some clarification on their reasons for withholding funding from the Arts Centre.

David Ewen, Communications and Marketing Manager for ACC, responded with their latest position:

“The Castlegate Arts application to the Council’s Culture Investment Programme, considered as part of the Budget on 5 March, did not meet the requirements of the national ‘Following the Public Pound’ guidance for grant funding, due to the organisation’s inability to demonstrate medium-term financial viability.”

“It is a statutory requirement to adhere to the Convention of Scottish Local Authorities (COSLA) ‘Code of Guidance on Funding External Public Bodies and Following the Public Pound’ when dealing with external organisations which receive grants from public funds.”

“As such, we are unable to provide financial assistance to organisations that do not meet these national legislation requirements.”

A national problem

The situation in Aberdeen is sadly not unique, with rising operational costs and shrinking grants pushing many Scottish arts venues into unsustainable deficits which then find themselves ineligible for funding requirements.

Dundee Contemporary Arts reported a £381,225 loss in 2023/24, with staff costs soaring to £1.7m despite reducing headcount.

The Centre for Contemporary Arts (CCA) in Glasgow, a vital multi-arts hub, had to temporarily shut its doors for 3 months earlier this year in order to “recover financially”.

Aberdeen Performing Arts – the North-east’s largest creative employer – is similarly not immune, having recently recorded a £365,000 deficit, citing “mounting challenges” from utility hikes and staffing expenses.

Operating costs across the sector have surged by up to 41% since 2019, while corporate sponsorships and public funding decline.

This uncertainty stifles long-term business strategies, deters investment, and exacerbates staff turnover. As APA Finance Director Matt Godfrey notes, inflationary pressures and utility spikes make sustainability “the same challenge every charitable organisation” faces.

Alternative support?

Union Media asked Aberdeen City Council what their position was regarding continued or alternative support for Aberdeen Arts Centre, in the event of the venue’s fundraising target not being fully met, and if there was any potential for phased or conditional funding, partnership facilitation, or other forms of cooperation that could help protect jobs and sustain the Centre’s positive economic impact.

David Ewen responded:

“The Council remains in dialogue with Castlegate Arts, providing other forms of support, including signposting to alternative income generation opportunities, partnership facilitation and practical guidance on improving financial sustainability.”

“We fully recognise and value the important role the Aberdeen Arts Centre building plays in supporting the local community and the positive impact it has on those who use it. While we are not in a position to offer direct financial support to Castlegate Arts Ltd at this time, we remain committed to exploring alternative ways to support the community and to continuing dialogue around future opportunities.”

With the 2nd July meeting only days away, it remains to be seen precisely what form these ‘alternative ways to support the community’ will take.

With the venue’s fate hinging on emergency fundraising, local businesses await a decision that could reshape Aberdeen’s economic and cultural landscape.

Individuals and potential corporate sponsors can find out more and donate  via https://www.aberdeenartscentre.com/save-aberdeen-arts-centre.