An Arts & Business report into arts philanthropy has found that only 12% went to the English regions in 2008-09.

However, overall individual donations to the regions rose from £39m in 2007-08 to £42m. London, the Midlands and the north-east suffered falls, as did the three devolved nations.

The report noted: “Though the levels of philanthropy for smaller and/or regional organisations are indisputably modest, they are increasing, even in light of the recession, which suggests that there is more potential for growth.”

A spokesman for the Department for Culture, Media and Sport said: “There is a huge discrepancy [in philanthropic giving] between London and the regions, but there are a lot of major institutions in London.

“The challenge for the government and the sector is to build giving in the regions without damaging giving in London.”