The cultural sector has a vital role to play in local economies and communities but the way it is procured is holding it back.

Made up largely of SMEs and freelancers, many organisations rely on short term public commissions to survive. Yet complex procurement processes, limited capacity and a lack of shared understanding between suppliers and commissioners mean they are often locked out of opportunities or unable to fully demonstrate the value they offer.

At the same time, funding models are under pressure. With reduced public investment and heavy reliance on traditional commissioning routes, organisations are being forced to adapt. Many are starting to look beyond core arts funding, exploring work in areas such as education, health and community wellbeing. This shift creates an opportunity to rethink how procurement works and how it can better support innovation, not just in what is commissioned, but in how.

This research looks at what that change could mean in practice. Using Birmingham as a case study, it highlights the impact of funding constraint and risk aversion on both sides of the system, and why more flexible, place based approaches are needed. Culture is inherently local, shaped by identity, history and community, and procurement needs to reflect that if it is to be effective.

The report sets out why current approaches are falling short and where there is scope to do things differently. It explores how better collaboration, clearer articulation of value and more open procurement processes could unlock new opportunities for cultural organisations and the places they serve.

Key insights

The research identifies a set of systemic challenges:

• Limited capacity among SMEs to engage with complex procurement processes
• Difficulty in capturing and communicating cultural, social and economic value
• Over reliance on short term public funding and commissions
• Risk aversion across both commissioning bodies and suppliers
• Procurement frameworks that restrict innovation and flexibility

It also highlights the importance of place-based approaches, recognising that cultural value and delivery are closely linked to local context and identity.

Without change, procurement will continue to limit the sector’s resilience and growth. More flexible, innovation friendly approaches can help cultural organisations engage more effectively in commissioning, unlock new markets, and contribute to wider priorities such as health, education and community wellbeing.

This report sets out the case for change and offers practical insight into how procurement can better support innovation and place based outcomes.

Explore the full report to understand the barriers, the opportunities, and the action needed to unlock the sector’s potential.

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