www.parliament.uk/commons-library | intranet.parliament.uk/commons-library | papers@parliament.uk | @commonslibrary

DEBATE PACK

Number CDP 2016/0136, 6 July 2016

Support for the UK's creative industries and their contribution to the economy

By Daniel Harari, Matthew Ward

Summary This pack has been prepared ahead of the Backbench Business debate on Support for the UK’s creative industries and their contribution to the economy to take place in the Commons Chamber on Thursday 7 July 2016.

Contents 1. Creative industries:

statistics on contribution to economy 2

1.1 Economic output (Gross value added) 2

1.2 Jobs 2 1.3 Exports 3

2. Press Articles 4

3. Press Releases 7

4. Parliamentary Material 13

4.1 Oral Questions 13 4.2 Written Questions 18

5. Useful links and further reading 20

The House of Commons Library prepares a briefing in hard copy and/or online for most non-legislative debates in the Chamber and Westminster Hall other than half-hour debates. Debate Packs are produced quickly after the announcement of parliamentary business. They are intended to provide a summary or overview of the issue being debated and identify relevant briefings and useful documents, including press and parliamentary material. More detailed briefing can be prepared for Members on request to the Library.

2 Number CDP 2016/0136, 1 July 2016

1. Creative industries: statistics on contribution to economy

Creative industries as defined by the Department for Culture, Media and Sport’s annual statistical publication of these sectors includes advertising, architecture, design, media, IT and computer services, music and publishing.

1.1 Economic output (Gross value added)1 Economic output in the creative industries was £84.1 billion in 2014.

Growth in the creative industries has been faster than the overall economy in recent years. Between 2009 and 2014 economic output (in cash terms) of the creative industries increased by 45.9% in total compared with 20.0% for the economy as a whole.

As a result, creative industries’ share of the UK economy has risen from 4.3% in 2009 to 5.2% in 2014.

1.2 Jobs2 There were 1.9 million jobs in the creative industries in 2015. This is an increase of 3.2% compared with 2014 and up by 19.5% since 2011.

An estimated 640,000 of these jobs are in ‘IT, software and computer services’, with a further 286,000 in ‘music, performing and visual arts’ and 231,000 in ‘film, TV, video, radio and photography’.

Creative industries accounted for 5.8% of all jobs in the UK in 2015.

60% of jobs in the creative industries were filled by people who have at least a degree-level qualification compared to 33% for all jobs in the UK.

1 Data from DCMS, "Creative industries: Economic Estimates", January 2016 2 Data from DCMS, "Creative industries: Focus on Employment", June 2016

-8

-4

0

4

8

12

2009 2010 2011 2012 2013 2014

Creative industries Total UK economy

Annual GVA growth in creative industries and UK economy, 2009-14 %, nominal terms (not adjusted for inflation)

Source: DCMS, "Creative industries: Economic Estimates", January 2016

Support for the UK's creative industries and their contribution to the economy 3

Region and country breakdowns Nearly one third of creative industry jobs were in London (31%), with a further 16% in the South East. In terms of absolute numbers, London has 575,000 jobs in the creative industries in 2015, with the South East next highest at 297,000.

As a proportion of all jobs in each region/country of the UK, London also has the highest share of jobs in the creative industries at 11.5% in 2015, much higher than other regions and countries. The North East has the lowest share at 3.2%. The UK average is 5.8%.

1.3 Exports3 The value of UK services exports from the creative industries was £19.8 billion in 2014, an increase of 10.9% from 2013. Of the total, 45% came from IT, software and computer services. Creative industries services exports accounted for 9.0% of total UK services exports in 2014.

57% of all creative industries services exports went to Europe (all of Europe not just the EU), with 25% going to the US and 10% to Asia.

3 Data from DCMS, "Creative industries: Focus on Exports of Services ", June 2016

0

100

200

300

400

500

600

Lon SE SW East NW Scot W.Mid York E.Mid Wal NE N.Ire

Jobs in creative industries by region/country, 2015Thousands

Source: DCMS, "Creative industries: Focus on Employment", June 2016

0

2

4

6

8

10

12

Lon SE SW East E.Mid Scot W.Mid NW York Wal N.Ire NE

Jobs in creative industries as % of all jobs by region/country, 2015%

Source: DCMS, "Creative industries: Focus on Employment", June 2016

4 Number CDP 2016/0136, 1 July 2016

2. Press Articles Media groups brace for further revenue falls after Brexit vote Financial Times, 26 June 2016 http://www.ft.com/cms/s/0/cbfd9952-3aaf-11e6-8716-a4a71e8140b0.html#axzz4DRwc1AYV EU referendum result "devastating" for UK film and TV Screen Daily, 24 June 2016 http://www.screendaily.com/territories/uk-ireland/eu-referendum-result-devastating-for-uk-film-and-tv/5106192.article What has the EU ever done for my ... TV viewing? Shows including Jamaica Inn and Shaun the Sheep were partly funded by the European Union - just one reason why the television industry opposes Brexit Guardian, 1 June 2016 https://www.theguardian.com/media/2016/jun/01/what-has-the-eu-ever-done-for-my-tv-viewing 'We must do all we can to value and protect our creative output'; We creatives have embraced the themes of the new economy - empowerment, freedom and sharing - but have not addressed the challenges these bring us Guardian, 18 April 2016 https://www.theguardian.com/media-network/2016/apr/18/value-protect-creative-industry-globalisation Creative industries contributed £84bn to UK economy in 2014 Guardian, 26 January 2016 https://www.theguardian.com/media/2016/jan/26/creative-industries-84bn-uk-economy-film-television-radio

The Ministry of Fun has serious challenges ahead: According to Government research, one in 12 UK jobs are in the creative sector, the fastest-growing part of the economy

Independent, 18 January 2016

Support for the UK's creative industries and their contribution to the economy 5

http://www.independent.co.uk/voices/the-ministry-of-fun-has-serious-challenges-ahead-a6818071.html

Why UK risks losing out in the global 'arts race.' From pop music to TV, Britain's cultural standing is in jeopardy as rivals get creative, report warns

Observer, 9 January 2016

https://www.theguardian.com/culture/2016/jan/09/uk-global-arts-race-music-tv

Osborne Shows an Artistic Side

Financial Times, 26 November 2015

http://www.ft.com/cms/s/0/49e36586-9457-11e5-bd82-c1fb87bef7af.html#axzz4DRwc1AYV

It's time investors got behind our world-beating creative industries

City AM, 19 November 2015

http://www.cityam.com/229092/it-s-time-investors-got-behind-our-world-beating-creative-industries

GDP figures confirm boom in UK film and music industries; Sector outpaces wider economy in third quarter, up 5.9% on previous three months

Guardian, 28 October 2015

https://www.theguardian.com/business/2015/oct/27/gdp-figures-uk-film-music-industries-third-quarter-star-wars

‘New work’ smaller businesses drive economic success in cities

Financial Times, 19 October 2015

http://www.ft.com/cms/s/0/d0ea3da6-736f-11e5-a129-3fcc4f641d98.html#axzz4DRwc1AYV

Head of Creative Industries Federation fears ‘dangerous’ cost of austerity

Guardian, 1 January 2015

https://www.theguardian.com/culture/2015/jan/01/john-kampfner-creative-industries-federation-austerity-fears-arts

6 Number CDP 2016/0136, 1 July 2016

Creative industries see boom in jobs

Financial Times, 15 January 2014

http://www.ft.com/cms/s/0/15506b3e-7d07-11e3-a579-00144feabdc0.html

Support for the UK's creative industries and their contribution to the economy 7

3. Press Releases Department for Culture, Media and Sport

Stellar employment boom continues for the UK’s Creative Industries

4 July 2016

The UK’s Creative Industries are continuing to outstrip other employment sectors in the UK, new Government figures reveal

• Jobs in the Creative Industries have increased three times faster than the UK average

• Diversity in the Creative Industries workplace up by almost 45 per cent - more than double that of wider jobs market

• Creative Industries now generating almost £10m an hour for the UK economy

Since 2011, the number of jobs in the Creative Industries has risen by nearly 20 per cent and now account for 1.9 million jobs - nearly triple the rate of the UK economy as a whole.

Within the Creative Industries, occupations which have particularly flourished include dancers and choreographers (up by 41 per cent), artists (up by 21 per cent), and programmers and software developers (up by 30 per cent).

These latest figures come on the back of government statistics, published earlier this year, revealed that the UK’s Creative Industries now contribute a staggering £84 billion a year - almost £10m an hour - to our economy, cementing the sector as a force to be reckoned with.

Secretary of State for Culture, Media and Sport John Whittingdale said:

The Creative Industries are one of the UK’s greatest success stories.

That success is built upon the extraordinary talent which exists in this country, an amazing cultural heritage, the English language and a tax system designed to support and encourage growth in the creative sector.

None of this is changed by the UK’s decision to leave the EU and I am confident that our creative industries will continue to thrive and take advantage of the new opportunities which are opening up to do business across the world.

The number of BAME workers in the Creative Industries has also rocketed by almost 44 per cent since 2011, with the sector actively embracing a more diverse workforce. That’s more than double the rate of the rest of the UK employment sector, which has risen by around 18 per cent. Sectors reporting the most dramatic increases in BAME representation include advertising and marketing (up by 61.3 per cent), music and the performing and visual arts (up by 59.4 per cent) and museums, galleries and libraries (up by 22.2 per cent).

Culture Minister Ed Vaizey said:

We made it clear to the sector that more needed to be done to improve diversity and I’m pleased that these figures show progress with the

8 Number CDP 2016/0136, 1 July 2016

Creative Industries taking notice and working hard to address this issue. But we want to see further progress in this sector.

The BBC, ITV, Channel 4, Sky and BFI have all introduced new strategies to increase diversity both on and off screen and in senior positions. Organisations such as The Arts Council have pledged to boost diversity within the arts through new multi-million pound funding schemes. In addition, Project Diamond is due to be launched later this year, which will provide diversity data both on and off screen.

The latest statistics also reveal that our services are highly sought after overseas, with exports of services from the UK’s Creative Industries increasing more than four times the rate of the UK total - contributing almost £20bn to the UK economy.

This news comes as the industry members of the Creative Industries Council (CIC) publishes Create Together, their latest strategy for the sector. The strategy, only the second if its kind for the Creative Industries, sets out the achievements of the industry since publication of Create UK in 2014 and a range of guiding principles, aims, strategic goals and success measures for the future.

Creative Industries Federation

Federation: EU Referendum Response

June 2016

The Creative Industries Federation today pledges to play a positive role in safeguarding the future of the UK’s arts, creative industries and cultural education and their significant contribution to the economy in light of the decision to leave the European Union.

John Kampfner, chief executive, said: “As the UK creates a new identity and a new position on the world stage, our arts and creative industries - the fastest growing sector in the economy - will play an important role.

“It will be vital for all sides to work together to ensure that the interests of our sector on issues including access to funding and talent are safeguarded as the UK forges its new relationship with Europe. The importance of British culture in representing our country to the world will be greater than ever.”

After a campaign that highlighted deep social, geographic and economic divisions, the role the arts can play will be significant. “Within the UK, we will play our part in helping to bridge divides within and between the nations and regions of the country.”

The Federation, which held a high-profile debate on the EU in April, and whose members' poll showed an overwhelming vote in favour of remaining, plans to hold a series of events to engage the creative community on charting a way ahead. Details will be released shortly.

The Federation’s members' survey showed more than 96% support for Remain, with 4% in favour of Leave*. (A number of Federation members were by statute unable to participate in the poll. These

Support for the UK's creative industries and their contribution to the economy 9

included members in receipt of government funding, those that are arms-length governmental bodies, such as Arts Council England or Creative Scotland, or have public service broadcasting obligations.)

For more details of members' reasons for wanting to stay and the launch of the findings with Prime Minister David Cameron click here.

The Federation has played a prominent role in major issues affecting the UK’s cultural sector since its launch 18 months ago.

Last autumn, in conjunction with partners, we secured a better-than-expected funding settlement for the publicly-supported arts and in the past few months we have worked to ensure the continued strength of the BBC and particularly its role within the creative industries ahead of the publication of the Government’s White Paper. We will continue to represent the interests of members across national, devolved and local government and beyond on ongoing issues including creative education and access to finance.

The creative industries were worth £84.1bn to the economy in 2013-2014 and grew by 8.9 per cent - almost double the rate of the economy as a whole. Europe is currently the largest export market for the creative industries, taking 57% of all overseas trade.

CBI

Creative Industries and the EU

7 April 2016

The UK creative industries are a fast growing industry. In 2013, the sector grew by 4%, with a 33.7% rise in music streaming sales and a 40.2% rise in digital video sales. The publishing industry is also growing – having grown 4% in 2012. The UK is a European leader, with the largest broadcasting hub, online advertising market and e-commerce industry in Europe. It is the second-largest exporter of television in the world, and has the second-largest design sector on the plant.

This growth and prominence is supported by the UK’s EU membership. Many international media companies now use the UK as their European hub, including Disney, Discovery, Sony and National Geographic. The UK’s language and culture is an important part of this investment, but so too is the UK’s EU single market access. 72% of investors cite it as important to the UK’s attractiveness.

The EU is Britain’s second largest export market for music, and this is supported by the European Union. The Creative Europe funding programme, and its predecessor the EU Media programme, are important sources of funding for the UK creative industry. Slumdog Millionaire received €1.3million from this fund, the King’s Speech received €1million and the Iron Lady €1.5million. Between 2007 and 2013, British films benefited from €100million in total from European funding.

10 Number CDP 2016/0136, 1 July 2016

Outside of the European Union, the UK government could potentially replace this funding but the disruption in organising replacement schemes could cause significant problems for the creative industries sector.

The European Union’s digital single market programme could provide further opportunities for the UK’s creative industry if it’s implemented in the right way.

Quick Stats

• 1.6million people are employed in the creative sector in the UK

• The UK accounts for 21% of creative industry jobs in the European Union and is growing faster than anywhere else

• 41.7% of marketing professionals don’t think exiting the EU would be good for their company. 31.3% think it would.

• The Creative Europe programme has boosted exports by spending £39m on promoting British films to the rest of Europe.

Department for Culture, Media and Sport

Creative industries worth almost £10 million an hour to economy

26 January 2016

New figures published today reveal that the UK’s Creative Industries are now worth £84.1 billion per year to the UK economy.

• UK’s Creative Industries grew by 8.9 per cent in 2014 - almost double UK economy as a whole.

• 2016 set to be another blockbuster year for UK’s music, film, video games, TV and publishing sectors

• UK’s Creative Industries generate nearly £9.6million per hour.

The UK’s creative industries are now worth a record £84.1 billion to the UK economy, figures published today reveal.

British films, music, video games, crafts and publishing are taking a lead role in driving the UK’s economic recovery, according to the latest Government statistics.

The figures show the sector growing at almost twice the rate of the wider UK economy - generating £9.6million per hour.

And this success is set to last, with a strong line-up of British talent and creativity in 2016 promising yet another blockbuster year ahead.

Minister for Culture Ed Vaizey said:

“The creative industries are one of the UK’s greatest success stories, with British musicians, artists, fashion brands and films immediately recognisable in nations across the globe. Growing at almost twice the rate of the wider economy and worth a staggering £84 billion a year, our Creative Industries are well and truly thriving and we are determined to ensure its continued growth and success.”

Support for the UK's creative industries and their contribution to the economy 11

Government continues to create the right environment for creative industries to thrive, through tax reliefs, inward investment, and safeguarding music and cultural education programmes.

2016 is shaping up to be another great year right across the UK’s most dynamic sector; whether it be the next instalment of Poldark; the new album from Radiohead; the film adaptation of Roald Dahl’s The BFG; or the release of Lego Marvel’s Avengers.

Department for Culture, Media and Sport

Boom in employment and exports for the UK’s creative industries

30 June 2015

Latest figures published today reveal employment within the UK’s creative industries is increasing at more than twice the rate of the wider UK economy. Exports from the sector are also up as the creative industries once again demonstrate what a powerful driver of growth they are for the UK economy.

The statistics released by the Department for Culture Media and Sport (DCMS) analyse the number of jobs in the creative industries by geographical region, level of qualification, gender, and ethnicity.

The figures also reveal a modest but important increase in the number of people identifying as Black, Asian and Minority Ethnic (BAME) employed within the sector. More than one in 10 (11 per cent) of all jobs within the sector are now filled by someone from a BAME background – the same level as across all UK industries.

Culture Secretary John Whittingdale said:

“These latest figures demonstrate how the UK’s creative industries continue to be one of our great success stories. It’s a fantastic sector which now accounts for more than 1.8 million jobs in the UK, and employment in this area is increasing at twice the rate of the wider economy. Our films, music and other artists are celebrated around the world and this Government is determined to ensure our creative industries continue to grow.”

Key findings include:

• Jobs within the creative industries increased by 5.5 per cent compared to the national 2.1 per cent rise in employment between 2013 and 2014.

• Number of jobs in the sector is now 1.8 million. This represents an increase of 15.8 per cent (247,000 jobs) since 2011.

• Value of services exported by the UK’s creative industries in 2013 is £17.9bn, a rise of 3.5 per cent (£598 million) on the previous year.

• Exports from the creative industries have increased by 34.2 per cent (around £4.5 billion) - between 2009 and 2013, outperforming the rest of the UK economy by almost 15 per cent.

12 Number CDP 2016/0136, 1 July 2016

Although women working in the museums and galleries, publishing, and performing and visual arts fields outnumber their male colleagues, there is still a concerning under-representation of women in other sectors, most notably in the area of IT, software and computer services. Government is committed to making sure that the next generation of talent is being taught, trained and nurtured and welcomes initiatives like TechFuture Girls and Hiive that are encouraging young women to consider a career in these fields.

Support for the UK's creative industries and their contribution to the economy 13

4. Parliamentary Material

4.1 Oral Questions EU Digital Single Market

The Minister for Culture and the Digital Economy (Mr Edward Vaizey): As I was saying, we have a great broadband Britain in a great European Union. Britain sits at the centre of the digital single market, which, if it is implemented, will increase GDP for Europe by 3%, or some £300 billion.

Stephen Timms: This time, I think the Minister is on to something. The UK is Europe’s leading digital economy, and we have the most to gain from the digital single market. That is why 70% of techUK members and 96% of the members of the Creative Industries Federation want us to remain in the European Union. Will the Minister have a go at persuading his right hon. Friend the Secretary of State how damaging it would be for digital jobs in the UK if we left the EU?

Mr Vaizey: My right hon. Friend the Secretary of State has a mind of his own, and he quite rightly often takes the view that it is not worth listening to me, which is probably why he is such a successful Secretary of State. I do wish he would listen to me on this issue, however, because tech and digital companies do benefit from our membership of the European Union and they will continue to thrive if we stay in the EU.

Mr David Nuttall (Bury North) (Con): Does the Minister agree that the internet has been a huge source of economic growth in this country and that the last thing it needs is to be stifled by the Brussels bureaucrats, which is exactly what will happen under the proposals in the EU’s single digital market strategy?

Mr Vaizey: That intervention reminds me that this is the 41st anniversary of the first radio transmission from the House of Commons, and quality interventions such as that keep the British public listening to and watching our proceedings. However, I do not think that the Brussels bureaucracy is stifling. In fact, 500 broadcast companies are based in Britain precisely because of European regulations.

HC Deb 9 June 2016, c 1324

Creative Industries

Baroness Afshar: To ask Her Majesty’s Government what steps they are taking to nurture and support the creative industries to ensure their continuing success.

The Earl of Courtown (Con): My Lords, the latest statistics, released in January, show the creative industries going from strength to strength, with growth of almost 9% in 2014, nearly double that for the UK economy as a whole. The core sector was worth more than £84 billion in 2014—just over 5% of the UK economy. The Government support the UK creative industries in a number of ways, through direct and

14 Number CDP 2016/0136, 1 July 2016

indirect funding, infrastructure provision, facilitation, advocacy and the production of statistics.

Baroness Afshar (CB): I am grateful to the Minister for that Answer and for the information about how active the industry is and how it is one of the best industries in the country. I declare an interest: my daughter is a music teacher. However, given the role that the industry plays, there is a fear that if music—which is one of the bases of the creative industry—and art are not part of the compulsory bacc, many schools would choose not to teach them and, therefore, the industry would not be able to continue to play the part it has played in the economy. Would the Government consider including both music and creative art in the EBacc?

The Earl of Courtown: My Lords, the noble Baroness draws attention to music in education, in particular in the EBacc. Young people should have the opportunity to study art subjects alongside the strong academic core curriculum, including the EBacc. Music is a compulsory subject within the national curriculum for five to 14 year-olds. All pupils in maintained schools will therefore study music for a minimum of nine years.

Lord Clement-Jones (LD): My Lords, I share the concerns of the noble Baroness, Lady Afshar, about EBacc. However, turning to another aspect of the creative industries, does the Minister agree that Channel 4 and BBC Worldwide make a major contribution to the creative industries, both here and abroad? Will he commit the Government to supporting and protecting Channel 4 and BBC Worldwide, subject to their current arrangements, so that they can continue to deliver those benefits?

The Earl of Courtown: My Lords, as ever, the noble Lord makes an important point relating to overseas, the BBC and Channel 4. I know he is aware that the charter review is in progress at the moment and many representations have been made. I also know that there was a Question last week on Channel 4, which was answered by my noble friend.

Baroness McIntosh of Hudnall (Lab): My Lords, on the Answer given by the noble Earl to the noble Baroness, Lady Afshar, it is true that the creative industries are doing very well just now. However, she made a serious point about whether they will do so in the future. Does he agree that the problem about them not being included in the EBacc is that there is a systematic erosion of their status in education and that, over time, the implication grows that they are not important and will not lead to good jobs? This is fundamentally untrue and unhelpful. Will he talk to his colleagues in the Department for Education to see whether that can be changed?

The Earl of Courtown: My Lords, the DCMS and the Department for Education liaise on all these matters, particularly in relation to music. I should add that, between 2012 and 2016, the Department for Education invested £246 million in a network of music education hubs. These hubs have a number of roles, including ensuring that all children have the opportunity to learn to play a musical instrument.

Support for the UK's creative industries and their contribution to the economy 15

Lord Grade of Yarmouth (Con): Does the Minister agree that there cannot be much wrong with the creative industries in the United Kingdom if they can produce anything that will be missed as much as “War and Peace” on the BBC over the past few weeks? I am mourning it already—I do not know what I am going to do with Sunday nights. The growth of the creative industries in this country through the recession and so on is a testimony to successive Governments’ policies in respect of the creative industries. Does the Minister agree that the best thing the Government can do is to leave well alone?

The Earl of Courtown: I hope my noble friend finds something to do on Sunday afternoons. Apart from that, I agree with him entirely.

Lord Wigley (PC): My Lords, does the noble Earl accept that the creative industries make a massive economic contribution to these islands? The cuts that may be affecting them may emanate from local government, but the benefit of the economic input does not come to local government. Can central government find some way of ensuring that we do not lose out on the creative arts and the economic benefit that they bring to these islands?

The Earl of Courtown: My Lords, I do not agree with the noble Lord that we are losing out on creative arts, but I can tell him about examples of our funding, such as creative content tax relief. The noble Lord is no doubt aware of that. BIS, DCMS and UKTI offer access to finance, skills and export funding programmes. Then there is funding via arm’s-length bodies and other organisations, such as the British Film Institute, Arts Council England and Innovate UK.

Lord Stevenson of Balmacara (Lab): My Lords, the Enterprise Bill introduces an apprenticeship levy and the Government have said that they recognise the need to discuss with the creative industries how to increase their apprenticeship levels without destroying the four voluntary levies currently run very successfully by Creative Skillset. What progress is being made on these discussions? Will the Minister reassure the industry that it is the Government’s intention to ensure that the apprenticeship levy is aligned with the current voluntary levies so as to protect the skills investment fund?

The Earl of Courtown: My Lords, the noble Lord, Lord Stevenson, asked about the apprenticeship levy in relation to this department. The levy will put apprenticeship funding in the hands of employers, encouraging them to invest in their apprentices and take on more. It will be collected by HMRC at a rate of 0.5% of an employer’s pay bill via monthly pay. In addition, the noble Lord mentioned the SIF, which is another way in which we have been developing training throughout the United Kingdom.

HL Deb 8 Feb 2016, c 1981-84

16 Number CDP 2016/0136, 1 July 2016

Creative Industries

Alex Chalk: What recent estimate he has made of the contribution of the creative industries to the economy.

The Minister for Culture and the Digital Economy (Mr Edward Vaizey): I am delighted to tell the House that our most recent estimate of the value of the creative industries has put it at about £76 billion, and they have grown three times faster than the economy as a whole.

Alex Chalk: Through its famous annual festivals in literature, food, science, performing arts, jazz and poetry, Cheltenham is a cultural powerhouse, but what are the Government doing to support cultural hubs such as Cheltenham’s Everyman and Playhouse theatres, which are so important for the town’s cultural offer and its economy during the rest of the year?

Mr Vaizey: The Everyman is an outstanding theatre, which is why it is part of the national portfolio and receives a grant from the Arts Council—indeed, it has recently undergone a significant refurbishment and benefited from money from the Heritage Lottery Fund. The Playhouse, as an amphitheatre, no doubt would still potentially have access to capital grants or programme grants. Of course, we have recently introduced a theatre tax credit, which will help them all.

Mr Barry Sheerman: May I associate myself with the tribute to Michael Meacher, with whom I worked for many years? He gave his life to public and political service, and was respected in all parts of the House.

Is the Minister aware that the UK is a world hub for creativity and the creative industries, but that certain lynchpins, such as the BBC and the Design Council, are at the heart of the creative sector. Please, do not sacrifice either of those. There are dark forces, such as certain media barons, who would like to see the BBC diminished.

Mr Vaizey: I agree with the last Labour Secretary of State, who said that we should not make the BBC a political football. The Government are asking perfectly legitimate questions about the BBC, but I note the hon. Gentleman’s comments about the UK being a creative hub. I was concerned about his comments on the Bond movie on Twitter this morning. He attacked the Bond franchise, which employs thousands of people in this country and whose producers make such a fantastic contribution to our cultural life. I hope he will stand up for James Bond.

Ben Howlett: It is a little-known fact that Bristol and Bath have the second largest number of tech and creative industries anywhere outside Hoxton. What more work is the Minister doing with the Department for Business, Innovation and Skills to grow this sector even further?

Mr Vaizey: We continue to support tech hubs all across the country. I was particularly pleased to recognise Bath Hacked in a speech on smarter cities yesterday. Bath is leading the way in smart city technology and the internet of things; it is so high tech that it would be the perfect place to set the next Bond movie when it is made in the UK.

Support for the UK's creative industries and their contribution to the economy 17

Ms Tasmina Ahmed-Sheikh: The Minister will know that Scottish companies are leading the world in the design and export of video games. Does he agree with Chris van der Kuyl, the chairman of Dundee video games company 4J Studios, who told the Scottish Affairs Committee this week that UK immigration policy could prevent companies such as his from recruiting the very best of talent from overseas? Why is this Government’s regressive immigration policy harming world-class Scottish businesses?

Mr Vaizey: We support the video games industry, not least with the £4 million prototype fund, which we recently launched with Abertay University, based in Dundee. I was delighted when Tech North announced last week our new visa policy to allowed highly skilled people into the country to support the highly successful Scottish and indeed UK games industry.

John Nicolson: The Secretary of State will recall that when he came before the Select Committee on Culture, Media and Sport on 9 September, he said:

“At the moment, there are no plans to sell Channel 4”.

Shortly afterwards, on 24 September, one of his officials was photographed marching into Downing Street clutching a memo that said:

“work should proceed to examine the options for extracting greater public value from the Channel 4 Corporation…focusing on privatisation”.

That is devastating news for the creative industries and current affairs. I have a simple question: when did his officials break the news to him that they were working on privatisation proposals for Channel 4 behind his back?

Mr Vaizey: May I say what a joy it was to see the hon. Gentleman at the PinkNews awards last night at the Foreign Office where I was privileged to present the public sector equality award to the Ministry of Defence? I wish to put on record my congratulations to the Ministry—[Interruption.] I am pleased to hear the hon. Gentleman say from a sedentary position that it was a mutual pleasure. I can also say with pleasure that of course he would expect us to look at every option when it comes to considering the future of Channel 4.

HC Deb 22 Oct 2015 c 1106-8

18 Number CDP 2016/0136, 1 July 2016

4.2 Written Questions

Arts: Tax Allowances: Written question - 23413

Asked by Julian Knight

Asked on: 20 January 2016

To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the effect of the Government's tax reliefs on (a) the film and (b) other creative industries.

Answered by: Mr David Gauke

Answered on: 28 January 2016

Creative sector tax reliefs play an important role in stimulating investment in an industry that employs 1.8 million people and provides world-class cultural experiences to many more.

HM Revenue and Customs published official statistics in December 2015 showing that a record 220 films claimed the film tax credit in 2014-15, with the relief supporting over £1bn worth of UK expenditure in the sector.

Since the reliefs came into force in 2013-14, the high-end TV tax relief has supported almost £600m of expenditure in the industry and the animation tax relief has supported £68 million. Official statistics for the creative sector tax reliefs can be found here: https://www.gov.uk/government/statistics/creative-industries-statistics-december-2015

Arts: Government Assistance: Written question

Asked by Mr Iain Wright

Asked on 27 January 2015

To ask the Secretary of State for Business, Innovation and Skills, what estimate he has made of the amount of Government support received by the creative industries through fiscal relief on investment and grant programmes; and what proportion such support is of the support given to other sectors included in his Department's industrial strategy.

Answered by Mr Edward Vaizey

Answered on 04 February 2015

The Government have an excellent record of supporting UK creative industries, for example through fiscal relief, spending and programmes for the arts and culture, education and skills, digital and communications infrastructure, research and innovation, access to finance and international trade and investment.

Following the success of UK film tax credits, which have generated billions in investment since 2010, we have introduced new corporation tax reliefs for high-end TV production, video games, animation and

Support for the UK's creative industries and their contribution to the economy 19

theatre. These targeted incentives are in addition to schemes such as the Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) and Voluntary Capital Trusts (VCTs).

Information on support for UK creative industries through specific reliefs and programmes is available from the responsible departments and public bodies.

Through industrial strategy, the whole of Government is working in partnership with industry in a range of sectors to set the long-term direction needed to give businesses the confidence to invest.

Arts: Written question

Asked by Ms Harriet Harman

Asked on 11 February 2015

To ask the Secretary of State for Culture, Media and Sport, what steps he is taking to promote UK creative industries in Europe.

Answered by Mr Edward Vaizey

Answered on 23 February 2015

The UK creative industries are a global success story, and the Government is working hard to ensure their continuing success at home, within Europe, and across the world. The introduction of new creative sector tax reliefs has provided a massive boost to the sector, and the promotion of UK service exports to Europe and other territories was worth £17.2bn in 2012, an 11.2% increase on the previous year.

Over the next year, Government will provide support to UK creative companies to promote and showcase their products and services at 21 exhibitions and events across Europe, including the UK programme at Milan Expo and GREAT campaign activity in France. In addition, creative businesses received over E200m of funding through the European Commission's Media and Culture Programmes, and will also benefit from the new Creative Europe Programme launched last year.

20 Number CDP 2016/0136, 1 July 2016

5. Useful links and further reading

Department for Culture, Media and Sport:

Digital Economy Bill Overview, July 2016

Department for Culture, Media and Sport:

Creative Industries: Economic Estimates, January 2016

Department for Culture, Media and Sport:

Creative Industries, Focus on Employment, June 2016

Department for Culture, Media and Sport:

Creative Industries, Focus on Exports of Services, June 2016

UK Trade and Investment

UK Creative Industries – International Strategy Driving global growth for the UK creative industries, June 2014

Arts Council England:

The Value of Arts and Culture to People and Society: An Evidence Review, March 2014

Arts Council England and the National Museum Directors’ Council:

The contribution of the arts and culture to the national economy: An analysis of the macroeconomic contribution of the arts and culture and of some of their indirect contributions through spillover effects felt in the wider economy, May 2013

DEBATE PACK CDP 2016/0136 1 July 2016

About the Library The House of Commons Library research service provides MPs and their staff with the impartial briefing and evidence base they need to do their work in scrutinising Government, proposing legislation, and supporting constituents.

As well as providing MPs with a confidential service we publish open briefing papers, which are available on the Parliament website.

Every effort is made to ensure that the information contained in these publically available research briefings is correct at the time of publication. Readers should be aware however that briefings are not necessarily updated or otherwise amended to reflect subsequent changes.

If you have any comments on our briefings please email papers@parliament.uk. Authors are available to discuss the content of this briefing only with Members and their staff.

If you have any general questions about the work of the House of Commons you can email hcinfo@parliament.uk.

Disclaimer This information is provided to Members of Parliament in support of their parliamentary duties. It is a general briefing only and should not be relied on as a substitute for specific advice. The House of Commons or the author(s) shall not be liable for any errors or omissions, or for any loss or damage of any kind arising from its use, and may remove, vary or amend any information at any time without prior notice.

The House of Commons accepts no responsibility for any references or links to, or the content of, information maintained by third parties. This information is provided subject to the conditions of the Open Parliament Licence.