Evaluating the monetary worth of historical and cultural landmarks

Evaluating the monetary worth of historical and cultural landmarks

New Framework Quantifies Economic Value of Cultural and Heritage Institutions

A groundbreaking new framework, the Cultural and Heritage Capital Framework, has been introduced to help cultural and heritage institutions demonstrate the economic value they create for society. This structured approach enables institutions to evaluate their impacts in a manner consistent with established government guidance, specifically the HM Treasury Green Book (2020).

The framework integrates valuation of cultural, social, and heritage assets alongside traditional financial metrics, providing a comprehensive picture of an institution's contribution to societal well-being and economic development. This approach aligns with modern ecological and social capital valuation protocols, such as the Capitals Protocol, encouraging organizations to consider multiple forms of capital and their trade-offs to society and the economy.

Supported by new studies by the PEC and Nesta with Simetrica-Jacobs for Arts Council England (ACE) and Historic England (HE), as well as studies by Simetrica-Jacobs for DCMS and the British Film Institute (BFI), the framework allows policymakers to assess interventions and investment decisions within the cultural and heritage sectors using accepted forms of policy evaluation, such as Social Cost Benefit Analysis (SCBA).

The reports published today mark an important turning point in quantifying the value that cultural and heritage institutions bring to society. The research permits institutions to better demonstrate in financial terms the value they create for society using an approach consistent with the recommended best-practice methodology within government - the HM Treasury Green Book Guidance (2020).

The framework has been applied to various cultural and heritage assets, including regional galleries and theatres, museums, the British Film Institute's (BFI) Britain on Film service, and everyday heritage sites such as historic high streets, town halls, and central libraries. Users of the BFI's free 'Britain on Film' portal valued this service at over £3 a month, while people value a visit to a regional gallery at an average of over £5, and value keeping their local theatre in their city at over £13 per year.

Households on average value the historic character of their local high street at around £7.80 per year, and of their historic civic buildings between £5.73 and £7.67 per year. The research continues to explore the implications for central government decision-making when applying these values in social cost benefit analysis.

The Department for Culture, Media and Sport (DCMS) has published the Cultural and Heritage Capital Framework, which outlines DCMS' approach to the evidence base behind private and public investments in culture and heritage. This framework will be extended to other types of cultural sites later in the year, filling existing gaps in the evidence base, such as the value of visiting free museums, local historic buildings, and cultural services such as theatres and film archives.

By applying this framework, cultural and heritage institutions can justify funding, demonstrate impact, and inform policy decisions based on robust, transparent analysis techniques. This enhances the ability of cultural and heritage institutions to demonstrate their economic, social, and legacy value in alignment with public sector investment standards.

1. The Cultural and Heritage Capital Framework enables cultural and heritage institutions to analyze their economic value in a manner consistent with government guidance, such as the HM Treasury Green Book (2020).
2. This framework integrates the valuation of cultural, social, and heritage assets with traditional financial metrics, offering a comprehensive picture of an institution's contribution to societal well-being and economic development.
3. With this framework, policymakers can conduct Social Cost Benefit Analysis (SCBA) on interventions and investment decisions within the cultural and heritage sectors.
4. The new framework has been used to value various cultural and heritage assets, including regional galleries and theatres, museums, the British Film Institute's (BFI) Britain on Film service, and historic high streets.
5. Users of the BFI's free 'Britain on Film' portal value this service at over £3 a month, while people value a visit to a regional gallery at an average of over £5.
6. Households on average value the historic character of their local high street at around £7.80 per year.
7. By applying this framework, cultural and heritage institutions can justify funding, demonstrate impact, and inform policy decisions based on robust, transparent analysis techniques.
8. With the framework, institutions can better demonstrate in financial terms the value they create for society, aligning with recommended best-practice methodology within government.
9. The Department for Culture, Media and Sport (DCMS) has published the Cultural and Heritage Capital Framework, which will be extended to other types of cultural sites later in the year.
10. This framework strengthens the skills and talents of cultural and heritage institutions, allowing them to invest in their future, and contribute to personal-finance, education-and-self-development, and career-development, as well as to the broader finance and business sectors.

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