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The Royal Scottish National Orchestra (RSNO) claims it could generate nearly an extra £14 million in economic value for Scotland if its government funding were to increase by just £3m a year. An economic impact study found the RSNO's economic value to Scotland was over £17m last year. The report modelled three scenarios of additional government funding - £1.5m, £3m and £5m, as well as no uplift in funding, which it said would result in a “likely” scenario of the RSNO having to scrap its employed orchestra and rely instead on freelance musicians. The arts organisation claims each £1 the orchestra receives from the Scottish Government leverages an additional £2 in income and generates £4.10 in economic benefits - plus wellbeing benefits valued at £2.80. The report said the funding received from the Scottish Government enabled other sources of funding to be leveraged, including film TV and games income, charitable activities, investments, other grants and funding, and donations, allowing activity and impacts to occur. It said its modelling results in a middle scenario of a government grant uplift of £3m for the orchestra would translate into generating an additional £13.9m in value to the economy. This comes as The Scotsman revealed earlier this week the orchestra's latest accounts showed its surplus halved last year, despite record ticket sales, due to spiralling costs and a static Scottish Government grant. Subscribe today to the Scotsman’s Arts newsletter The first-of-its-kind report commissioned by the organisation and carried out by BiGGAR Economics examined the value of the orchestra, its educational programme and commercial activity. The research found almost 80 per cent of its supplier spend of £4.4m each year is in Scotland. It said the RSNO generated £17.2m of gross value added (GVA) for Scotland and supported 300 jobs, as well as supporting around 500 freelancers. This value arose from expenditure relating to concerts, staff wages and musicians’ recording activity for film, television, and video games. Earlier this week, RSNO chief executive Alistair Mackie said “massively” increased European touring costs as a result of Brexit red tape, combined with static income from the Scottish Government, a £120,000-a-year increase in National Insurance contributions and the loss of its £150,000 Glasgow City Council grant had left the orchestra in a worse financial position. This is despite income rocketing by almost 50 per cent to £12.9m compared to before the pandemic. The RSNO received £4.2m in grants from the Scottish Government last year - less than its annual salary costs. It warned funding has reduced over the past decade in real terms and, while the organisation has successfully diversified to build new income streams, claimed that without help it could not sustain the current level. It also modelled the impact if the orchestra moved to a freelance model and scrapped its salaried musicians, saying staff costs would reduce to around £3.4m from £5m, while freelance wages would rise to almost £1m. Scottish Opera, another national performing company, axed its salaried chorus more than 20 years ago. RSNO chair Gregor Stewart said: ‘We have always known our work helps promote Scotland’s cultural success, but this study proves the significant financial benefits to the economy of Scotland as a whole. “The RSNO is a hugely important business supporting jobs in Glasgow and all over Scotland. We have successfully increased our commercial income by, for example, building a world-class studio here, which in a hugely competitive environment attracts the makers of Hollywood blockbusters.” A Scottish Government spokesperson said: “All of the national performing companies, including the RSNO, make a significant and valued contribution to cultural life and provide a fantastic platform to showcase Scotland’s unique culture and creativity to the world. “Thanks to a £34m uplift in the Scottish culture budget, a record number of artists and organisations are now receiving regular funding.”
