And breathe. Those of us engaged in creative economy policy activism have held our collective breath recently. The Scottish Government’s draft budget for 2025–26 brings long-awaited good news for Scotland’s cultural sector. So we can now breath a little easier. (If you haven’t already, please read my articles on the cultural funding situation in Sceptical.Scot to get context and perspective on the issue.)
After years of advocacy, including the recent #InvestInCulture campaign, the Finance Secretary’s announcement of a £34M uplift in culture funding is a significant step in the right direction. With a further £20M increase proposed for 2026–27, there is a renewed sense of possibility. This funding gives Scotland’s creative organisations much-needed stability through multi-year funding, new opportunities for growth and recognition of culture as a vital part of our nation’s future.
But let’s not get carried away. While this funding provides some relief, it does not resolve the structural challenges the cultural sector faces. Fraser of Allander Institute has pointed out that the proposed rates relief for hospitality is limited compared to the equivalent scheme in England. Similarly, the Scottish Fiscal Commission (SFC) has highlighted how ongoing fiscal pressures constrain day-to-day spending. These realities mean that while this uplift is welcome, the sector must use these resources strategically to maximise their impact.
This moment represents progress, but it’s also a call to action. Now, more than ever, cultural organisations need to think ambitiously and embrace innovation. As I’ve argued in my recent articles and throughout my work on creative economy policy, investing in culture is not just about survival, it’s about driving economic, social and environmental growth.
Strategic Opportunities for Scottish Cultural Organisations
The additional funding announced in this budget creates a platform for organisations to think beyond the immediate challenges and invest in their future. Here are some key opportunities:
- Digital Transformation
Hybrid and digital-first programming models are no longer optional — they’re essential. This funding provides a chance for cultural organisations to enhance their digital infrastructure, expand their global reach and engage new audiences. To put it bluntly, do this or die. Take advantage of the opportunity for embracing live streaming, interactive storytelling, VR, AR and AI now, or become irrelevant. - Digital Storytelling
Scotland’s cultural organisations are rich in stories waiting to be told. Whether it’s the history behind grassroots music venues, theatres, museums and galleries or the innovation happening in our creative hubs, there is enormous potential to use immersive, interactive content to communicate value, build audiences, earn revenue and attract investment. - AI for Productivity and Innovation
AI isn’t about replacing creativity; it’s about enhancing it. By combining automation with intelligent decision-making, organisations can streamline processes, increase efficiency and focus more on creative output that generates value. AI tools can also help accelerate strategic business development, giving cultural organisations a competitive edge in a fast-changing world. - Strategic Business Development
With stable funding, cultural organisations have the opportunity to think strategically. Developing long-term plans, exploring new revenue models and building resilience should be at the heart of this new chapter for Scotland’s cultural sector.
Inner Ear’s Role
At Inner Ear, we’ve always worked at the intersection of creativity, technology, and strategy. From live streaming, podcast production and interactive storytelling to creative strategy, training and consultancy, we help cultural organisations unlock their potential and engage audiences in meaningful ways. As part of our consultancy, we’re exploring how AI and automation can enhance productivity, efficiency and innovation for the cultural sector. These tools aren’t just enablers — they’re accelerators, helping creative organisations achieve more with their resources.
This budget announcement presents a real opportunity to set a new trajectory for Scotland’s cultural sector. We need ambition, entrepreneurialism and drive. If you’re a cultural organisation looking to navigate this new landscape, enhance your digital capabilities or explore the possibilities of AI, we’d love to talk.
Having caught our breath, it’s time to move forward with determination. This funding is a foundation, not a finish line. It’s a chance to demonstrate how culture can be a transformative force in Scotland’s economy, society and environment. If we embrace innovation, invest wisely and think ambitiously, we can turn this promise into tangible, lasting impact.