Private sector companies funding of the arts in the UK is now worth £600m a year.

According to a survey by Arts & Business, the total amount of private support for the arts in 2006 grew by 11 per cent to £599.45m on the year before – the highest level ever.

Investment from individuals was up 10.8 per cent to £298m, the corporate sector up 10.1 per cent to £172m and Trusts and Foundations up 11.4 per cent to £129m.

Colin Tweedy, chief executive of Arts & Business, said: "Private investment is now growing faster than public income. This is good news at a difficult time for some in the arts.

“These record figures are recognition of the work of countless individuals and companies whose energy and imagination have connected the UK's cultural and commercial worlds and made our cultural life genuinely the envy of the world. “

Margaret Hodge, minister for culture, said the figures demonstrated the generosity of individuals and companies in the UK.

"These are fantastic figures,” she said. “Our continued standing as a world leader is thanks to the support of private individuals, businesses, trusts and foundations which, together with continuing public funds, give strength and depth to the cultural sector.

However, despite the positive figures Colin Tweedy said the record figures could be affected by economic uncertainties in the future.

"The marketplace is buoyant, but there are clouds on the horizon. If there is financial turbulence ahead, the arts could be the first expenditure businesses looks to cut.

“We need to make sure that in a downturn companies do not reduce their spending on the arts. We must keep spelling out the returns companies make on their investments: be they improved business performance or transformations of public opinion.

The Arts & Business report draws on data from over 4,676 arts organisations.