Private sector investment for culture has fallen 7 per cent in 2008/09, according to Arts & Business, which predicts that the worst is yet to come.

The total of £654.9m received last year amounted to an average of 15 per cent of the industry's total income, according to a survey carried out by the organisation. Public sector funding came to 53 per cent, and the remainder came from ticket sales and trading.

With £449.6m, London was predictably the largest recipient of private investment, accounting for 69 per cent of the total amount of investment received by the cultural sector throughout the UK in 08/09. However, this is a drop of 8 per cent from the previous year.

Scotland received £37.9m of private investment, a drop of 6 per cent. Wales received £20.1m - a 2 per cent increase from the year before - and Northern Ireland received £6.6m of private investment, a decrease of 24 per cent.

Colin Tweedy, chief executive of Arts & Business, said: "“As we anticipated, these latest figures show a reduction, though not a disastrous one. We would like to be optimistic, but predict the worst is yet to come, with 2010/11 being the low-point.

"For arts and culture to continue to flourish, Arts & Business is calling for three policy initiatives to stimulate private sector funds.  Firstly new far-reaching incentive schemes to encourage businesses. Secondly, the training and knowledge to deepen a pro-enterprise and innovation culture throughout the arts. Thirdly, we propose new challenge funds to grow and inspire cultural philanthropy, which has huge potential for growth."

Arts & Business’ latest market trend report (Autumn 2009) indicated that confidence levels for private sector investment in the arts will begin to pick up by 2013.