Credit crunch scares off Festival sponsors

11:41am Tuesday 26th February 2008

The gloomy economic forecast is threatening to cast a shadow over the glitz and glamour of this year's Brighton Festival.

Organisers have admitted they are behind budget, blaming the credit crunch and the fluctuating housing market for scaring off some sponsors.

Although there is no suggestion the funding gap will cause major problems, it means the festival team must work harder than ever to secure funding.

This year's festival runs from May 3 to 25 and features more than 200 performances, including plays, concerts and debates.

It will boost the city's economy by about £20 million.

Lynne Richards, head of sponsorship and development for the festival, said: "We need to raise £750,000 by the end of August and we have about £660,000 at the moment."

Funding for the Brighton Festival comes from sponsors, trusts, foundations, friends groups and high-level donors.

Ms Richards said: "Normally, we'd need to get all the sponsorship before the end of January.

"That was already a tight period to raise a lot of money and this year it has been compromised by what has been in the news.

"With all the talk about falling house prices and the credit crunch, we found people were getting a bit nervous, especially businesses in the financial sector.

"We are down about 12 per cent on what we raised this time last year."

Despite some setbacks, all the festival's major partners, such as Southern and EDF Energy, are back on board.

A number of new sponsors have also come forward.

Ms Richards added: "Smaller companies, like Food For Friends and Leaders letting agency, are contributing.

"We were hoping these companies would get involved for a while now so it's great they have finally agreed.

"Quite often with small firms the owner's are literally putting their hands in their own pockets."

Ms Richards saved special praise for Southern.

The train company is offering discounted tickets and a special late-night fast service to Victoria station.

It is hoped the measure will encourage people from the capital to visit during the festival.

Ms Richards said: "Southern is not only helping with cash but strategically as well.

"The train service is significant because at the moment 60 per cent of our audience is from Brighton and Hove.

"We need to encourage more people to travel from surrounding areas."

The special service will arrive at Victoria station in time for people to meet their Tube connections.

Many people have argued the service should be available all year round.

But a spokesman for Southern said: "The demand is artificially high and it is unlikely we would continue the service for the rest of the year.

"There may also be issues over track.

"If we want to make it a regular service, we would have to discuss this with Network Rail.

"But it is something we may look into after the festival."

Ms Richards is determined not to allow the funding gap to stop her enjoying the festival.

She said: "We will probably hit our target but I always like to be cautious until I know we have the money."

Anyone wishing to get involved in sponsorship should call Ms Richards on 01273 260809.

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