The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)
My Lords, with the leave of the House, I shall now repeat a Statement made in another place by my right honourable friend the Secretary of State for Culture, Media and Sport. The Statement is as follows:
“Film is one of the great British success stories of the last 30 years. Ever since Gordon Brown created the film tax credit back in 2007, this amazing industry has created jobs and growth across the UK and flown the flag for British creativity across the world. Our Government have huge ambition for the film sector, and today we are introducing secondary legislation that will put rocket boosters under this growing industry and unlock the potential of our incredible independent film sector.
The UK has some special advantages that give us a natural competitive edge. Thanks to the creativity and imagination of our authors, playwrights and publishers, we have some of the best stories to tell and take to the screen, helped by some of the best storytellers in the world—the directors, scriptwriters and cinemato-graphers—and against some of the most incredible backdrops, from the Welsh valleys to the north-east coastline, as well as acting talent that is second to none and that breathes life into those stories. Our film industry is one of our great economic and cultural success stories. It is worth £1.36 billion and employs more than 195,000 people, and it has created true icons such as James Bond, Harry Potter and my personal favourite, Paddington Bear.
Our Government have three aims for our film industry. First, we want to attract the investment for UK film makers to make the best films in the world. Secondly, we want UK audiences to see films that reflect their lives and their communities. That means telling a wide diversity of British stories that draw on the rich cultural inheritance in every region and nation. Thirdly, we want the UK to be the best place in the world to make films, because we have the right ingredients: the investment, the talent, the technical skills, the sound stages, the creative imagination and the right fiscal and regulatory environment. That is why this Government will do everything in our power to ensure that the fiscal and regulatory environment matches the ambition of film makers and studios around the world. We want them to invest in great British film making.
However, the key to maintaining that advantage is an internationally competitive tax regime, and I think that is beyond party politics. As Members will know, tax incentives for film were first introduced by the last Labour Government in 2007, and the previous Conservative Government followed suit with the announcement of a planned UK independent film tax credit in the last spring Budget. We have heard loud and clear the industry’s concerns that any further delays to introducing this secondary legislation, even to the end of the month, may mean that investments in UK independent films are lost. So I am glad to announce that we have today laid the necessary statutory instrument, under the negative process, for the independent film tax credit to take effect. It means that eligible films with a budget of up to £23.5 million can claim enhanced audiovisual expenditure credit at a rate of 53% on their qualifying expenditure up to £15 million. That is higher than the standard 34% rate for other films. The regulations set out the eligibility criteria for film production companies, which can apply from 30 October.
This Government do not underestimate how important this tax credit is. Big blockbuster movies are an important part of the mix, but independent films are every bit as important, both for the British talent they allow to shine and for the untold stories that they bring into the spotlight. Too often, people do not see themselves and their community reflected in the stories we tell ourselves about ourselves as a nation, and this Government are determined that will change.
Later today, the 68th London Film Festival will open with the world premiere of “Blitz”, written, directed and produced by one of our most successful British directors, Steve McQueen. Set in England during World War II, it is an example of exactly what film can do. It brings together top talent on screen and off, and it showcases the nation’s history through storytelling and highlights on screen our beautiful country, from London’s East End to Hull’s old town. Our independent sector has produced films such as “Pride”, “The King’s Speech” and “Bend It Like Beckham”, which show our heritage, our communities and our culture to the world and act as a springboard from the grass roots for world-class UK talent on screen and behind the scenes.
While major film production has flourished, smaller-budget independent films have not received sufficient support over the past decade. They face multiple challenges, including rising production costs, crew shortages and declining revenues, which have hampered the growth of this vital sector. While too much of our creative industries has traditionally been concentrated in just one part of our country, independent film thrives everywhere, given the chance. This uplift will not only boost creativity but create jobs, growth and investment in every nation and region. Through that, we will help the independent film sector to reach its full potential.
While the uplift has been designed to support and target British independent film makers, I am glad to say that it is also open to qualifying official co-productions, because film and television co-production is a key way in which the UK increases its cultural ties and collaboration with Europe and the rest of the world.
This Government will go further still to support this critical industry. The skills shortage that has been ignored for too long acts as a brake on the ambitions of this incredible sector. That is why this Government launched Skills England to bring about the skills we need for a decade of national renewal of our communities, business and country. We will focus apprenticeships once more on young people to set them up to succeed and to help fill the 25,000 vacancies in the creative sector. The Secretary of State for Education is overhauling the apprenticeship levy to provide better career opportunities for young people, building on the success of existing high-quality apprenticeships in the creative industries, and we are working closely with Skills England to ensure that the new flexibilities announced by the Prime Minister last month offer shorter apprenticeships and an improved offer for a creative skills pathway for young people embarking on careers in this sector. Every child should have the chance to live a richer, larger life and to consider a career in the arts.
In addition, the Ministry of Housing, Communities and Local Government is keeping the Government’s mission to deliver economic growth at front of mind when making decisions about planning applications. I am pleased to announce to the House that yesterday MHCLG recovered an application for planning permission for Marlow Film Studios in Buckinghamshire. The merits of that application will now be reviewed by its Ministers in detail before they reach a decision.
Finally, next week the Government will host the international investment summit, where industry leaders, investors and businesses from across the world will come together to put the UK back at the global table and to kick-start a decade of economic renewal. As a critical part of that, our creative industries will be at the summit’s heart. This Government are committed to ensuring that the UK is a first-choice destination for film production. We are backing up those words with actions today. Britain is open for business, and creativity is back at its heart. I commend this Statement to the House”.
Lord Parkinson of Whitley Bay (Con)
My Lords, this is my first chance—with a bit more time on the clock than we have at Questions, and certainly than we had for our heavily subscribed Question for Short Debate on libraries—properly to welcome the noble Baroness, Lady Twycross, to her place. I know that she has a busy time, speaking both for DCMS and for the Cabinet Office, but she has an excellent team around her, and I look forward to our exchanges on what I am sure she will agree is the far more interesting half of that deal, representing sectors that are a fast-growing part of the economy and enrich our lives in so many ways.
It is in that spirit that I welcome the Statement she has just repeated, but your Lordships might well expect me to, because it is simply confirming a policy that the Conservative Government announced in March. The statutory instrument that the Secretary of State trumpeted yesterday puts into effect the extra support for the independent film sector that my right honourable friend Jeremy Hunt brought in at the Budget this spring. I looked at the press release put out by the Minister’s department but, curiously, I could find no mention of that. Will she start by acknowledging the important role played by Jeremy Hunt, and, indeed, by Lucy Frazer, the former Secretary of State, in winning the argument at His Majesty’s Treasury for this dynamic tax stimulus?
The announcement that we made in March followed months of careful work with brilliant organisations from across the sector, such as Pact and the British Film Institute, and was welcomed by industry titans such as Sir Christopher Nolan, Barbara Broccoli, Sir Steve McQueen and that great Geordie, Sir Ridley Scott. At the time, the BFI described it as
“a game changer for UK filmmakers”
and British storytelling, and
“the most significant policy intervention since the 1990s”.
So the Government’s Statement this week is not so much an original production as a remake of a previous hit. If it were a film, my right honourable friends would surely appear in the credits, at least. Will the Minister give them the acknowledgement that they deserve when she stands up again?
Perhaps she can also tell us a little more about the timing of this Statement. I am very glad that the Government are supporting the London Film Festival; it is an incredible showcase for the brilliant film-making talent that we see on display right across the United Kingdom. That is why the last Conservative Government provided £1.7 million of support for this year’s festival through our creative industries sector vision, announced back in June 2023.
However, if the Secretary of State is going to be governing by gimmick and announcing fiscal policies based on the red-carpet events that she is invited to, would she also recognise that this week marks the start of Frieze London, one of the world’s most influential art fairs? The art world is waiting to see whether the Government will continue the museums and galleries exhibition tax relief at the extended rate and scrapping the sunset clause, as we committed to in the Budget in March? If the Government are recycling good news for the film sector, can the Minister put the art world out of its misery by confirming that today, too?
Every single evening, across the country, people are benefiting from brilliant new productions supported by the theatre tax relief, and astounding concerts supported by the orchestra tax relief. In the Budget in March, we announced that we would keep those at the extended rate permanently. Is the Minister able to give those vital sectors the certainty that they need to be able to continue programming excellent new plays and concerts? If not, why has her department chosen to give just one part of the creative industries special treatment ahead of October’s fiscal event?
But even the film sector is waiting for answers from our new Government in other areas. In another place yesterday, Dame Caroline Dinenage, the chair of the Select Committee, asked when the Government expect to confirm the introduction of the visual effects tax credits. These were also announced in the Budget in March and have been consulted on, and they are desperately needed and urgent. The Secretary of State was unable to give a clear answer in another place yesterday—perhaps the Minister can give your Lordships more information today.
My right honourable friend Sir John Whittingdale highlighted another area where clarity is needed from the noble Baroness’s department. He pointed out that investment in the film industry—and, indeed, across our creative industries—depends on confidence and certainty, not least in the copyright protection regime. He asked the Secretary of State to make it clear that the Government do not intend to extend copyright exceptions to text and data mining, which would damage both the creative and publishing industries massively. The Secretary of State was not able to give him a clear answer yesterday; perhaps the Minister can fill in the gaps today.
Sadly, this is becoming a bit of a picture from our new Government: failing to come up with answers to the big questions that they have had 14 years to think about, and failing to come forward with any new ideas of their own. We have not yet had 100 days of this Government, which is strange because, with all their miserable announcements, their descent into sleaze and the sacking of the Prime Minister’s chief of staff to try to signal a reset in Downing Street, it certainly feels like longer. But all they seem to be able to do is recycle Conservative policies. I welcome this Statement and I look forward to the introduction of the football governance Bill, which is another goal that we kindly set up for them. But I have to ask: when do they plan to start governing on their own?
Lord Clement-Jones (LD)
My Lords, I hope to strike a rather more positive note. I thank the Minister for repeating the Statement. On these Benches, as we did in the Commons, we welcome all the elements of the Statement; it is a really excellent way of marking the London Film Festival.
The confirmation of the IFTC is very welcome. On these Benches we are huge champions of the creative industries and we absolutely share the ambitions for the sector that the Minister has set out. Our film industry, particularly the independent sector—I pay tribute to PACT and the indefatigable CEO, John McVay— is dealing with a wide range of disruptive changes, from recovery from the pandemic to the rise of streaming platforms and AI.
The confirmation of the IFTC is a welcome first step, but we must also consider international competition. We have seen in the last week that the Irish Government have announced their own boosted tax incentive of 40% for films budgeted under €20 million. In that light, does the Minister consider that this level of tax relief goes far enough? As the Minister will have found, while giving support on these Benches, we always want even more ambition from the Government.
Another key issue that the industry is dealing with is that of a scarcity of skills. Inward investment in the film industry is very welcome, but the boom has also caused skills gaps and shortages for independent films, as the highly paid jobs in large productions are more attractive. This has created a destabilising and precarious production landscape in which smaller productions are struggling to hire the necessary talent to make a successful production. So will the Government address the skills deficit in the creative industries, including replacing the apprenticeship levy with a more flexible training and skills levy to suit the needs of the creative industries and increase take-up? Can the Minister confirm that we will soon see a full reform of the apprenticeship levy, and that she is confident that the reform will suit the needs of the creative industries?
In the context of skills, I welcome the plans put forward for the Marlow film studio site and the Government’s announcement in that respect. This grey-belt site is exactly the kind of location where we should be focusing growth and development. As a party, we support the proposal nationally and locally; the training and skills elements contained in the proposal are particularly welcome.
According to Creative UK, over 70% of creative businesses report not having enough finance. Today’s announcement will be helpful news for the film industry, but what steps are the Government taking to ensure that our creative industries more broadly can access the finance that they need to flourish? What steps, for instance, will the Government take to protect our independent television production companies, many of which are facing similar issues from the rise of streamers to competition from elsewhere in Europe? We need to establish creative enterprise zones beyond London to grow and regenerate the cultural output of areas across the UK. What are the Government’s plans for these?
Finally, Feryal Clark, the new Minister for AI and Digital Government, recently announced that she expects to resolve copyright disputes between British AI companies and the creative industries
“by the end of the year”,
saying that she wants to
“bring clarity to both the AI sector and also to creative industries”.
Does this mean that the Government plan to bring back a new text and data mining exception of the kind that was backed by the Pro-innovation Regulation of Technologies Review: Digital Technologies, from the noble Lord, Lord Vallance, or will they affirm, as they should, the rights of copyright holders such as film makers, faced with the ingestion of their material, or the performing rights of actors, artists and other creatives, and the need for licences to be taken by large language models? What consultations are the Government engaging in in this rather narrow timescale?
Baroness Twycross (Lab)
My Lords, as I hope your Lordships have understood from the Secretary of State’s Statement—I think there is consensus across the House— our film industry really is one of the UK’s true economic powerhouses. We are genuinely one of the best places in the world to make films, with our incredible talent and world-class studios and locations.
When I was repeating the Statement, I noted that “Paddington” got quite significant coverage in the debate yesterday, so before I answer the points raised by noble Lords, I just wanted to mention that my own personal favourites are “Suffragette” and “Brassed Off”. These and many other films are not only compelling entertainment but depict important cultural and social moments in our nation’s history. This Government want to make sure that our film sector goes from strength to strength and that we can attract more investment and make more exciting, diverse and original films than ever before.
We cannot be complacent, however, and we recognise the challenges facing the sector. That is why we laid the regulations yesterday, which will provide much-needed support to our independent film sector, providing an uplift to our existing audiovisual expenditure credit specifically targeted to support the growth and success of low-budget films.
Films can be a fantastic driver of regional growth, helping to spread opportunity across the country, but we know that access to and participation in this sector has in some ways become the preserve of the privileged few and we want to change that. We are committed to working with regional partners to create more growth, boost opportunities for all and support people to fulfil their creative potential.
Labour introduced the first film tax credit back in 2007. Since then, our industry has gone from strength to strength. I do not think we should make this a political knockabout around who supports the film industry more. The noble Lord, Lord Parkinson, asked for an acknowledgement that this was a policy of the previous Government and I refer him back to the Secretary of State’s Statement, which makes it clear that this is a continuation of that policy. It was a shame that he resorted to political jibes, when this should be something around which we have political consensus. Although the measure announced yesterday was announced by the previous Administration, it is this Government who have designed and laid the necessary regulations to ensure that companies, many of which are eagerly anticipating its introduction and welcomed it yesterday, are able to apply for independent film tax credit from the end of the month. This is the first DCMS SI of this Government and, as such, I believe it shows the priority that we on these Benches place on supporting the industry.
British indie films such as “Pride”, “Billy Elliot” and “Trainspotting” tell award-winning stories about our country, celebrating parts of our culture that often get less exposure. This relief will allow more stories like these to be told, enabling more people to see their lives and experiences reflected on the screen. Yesterday, the film sector reacted incredibly positively to this announcement, and we have already seen Pinewood, in response, announcing a new indie production hub. This relief is open to co-productions, which means it will also boost UK-international collaboration on film. The DCMS-funded UK Global Screen Fund helps British filmmakers co-produce films with international partners and distribute their films globally.
The noble Lord, Lord Clement-Jones, highlighted the issue of skills. The announcement yesterday is just the start of how this Government will be supporting our world-leading creative industries. We are reviewing the school curriculum, to put creative education back at its heart, which will boost the talent pipeline for our fantastic film sector, as well as looking at the apprenticeship levy he referred to. On his other points about support for television, we recognise that the last 18 months have been quite difficult for the TV production sector and we are committed to supporting it. The Government maintain a range of interventions to support independent TV production companies, including a system of quotas and the terms of trade regime. We are taking steps, through the Media Act, to retain, and as appropriate modernise, these to ensure that they remain fit for purpose. It is also worth noting that there are several existing tax reliefs that independent TV production companies can benefit from, covering animation, children’s TV and high-end TV.
In relation to specific measures and tax credits to support creative industries, I am afraid that I am not going to be able to give definitive answers today. As noble Lords will be aware, the Budget and the spending review are coming later this month: watch this space.
Briefly, the Government believe in human-centred creativity and the potential of AI to open up creative frontiers. Some 35.2% of creative industry businesses are currently using AI technology. We recognise its significance, but are committed to finding the right balance between fostering innovation and ensuring protection for creators. That requires thoughtful engagement with the creative industries and companies driving AI development.
Noble Lords will be aware that this Government have already launched Skills England to bring the skills we need for a decade of national renewal for our communities, businesses and country. Next week, the Government will host the International Investment Summit; we have big ambitions to ensure that the UK is back at the global table. Our creative industries, which reflect the best of this country, will be so important to that.
Lord Swire (Con)
I thank the Minister for repeating the Statement. There is much in it that I welcome. The film industry needs fiscal certainty—one thing it did not have when I was shadowing the department in 2005, when Gordon Brown thought there were some tax holes and immediately changed the fiscal environment for film. That had the net result of driving “Casino Royale”, then the latest Bond film, across to Prague from Pinewood. I am nervous when the Minister talks about the sorts of films the Government would like to see made—I hope they are not going to interfere in that respect too much. The Minister also alluded to what this can do for the regions, the built environment and the rural environment. What discussions will she have about doing more with English Heritage, Historic Houses, the National Trust and our regional tourist boards to pump-prime regional film production and bring some of our undoubted assets to a wider international audience?
Baroness Twycross (Lab)
I am not going to respond to the suggestion that my favourite films indicate that we are going to be picking and choosing. The Secretary of State’s Statement made it clear that “The Kings Speech” was also an independent film. There is a balance, as there should be, and a range of voices should be heard. This is the first step in ensuring that we support the film industry, specifically the independent film industry. A particular focus was provided so that this could go ahead of the Budget, for production purposes and so that people did not lose potential funding. The Government are committed to ensuring that, across the piece, we have a creative sector and industry that reflects the country and is supported across the country. At the heart of this will be the skills agenda and ensuring that every child has the opportunity to acquire the skills required.
Baroness McIntosh of Hudnall (Lab)
My Lords, of course the Statement that my noble friend has just repeated is very welcome. Although it builds on the work of the previous Government, much in it is to be commended. I hope we will build on it further. However, I take her back to some of the points raised by the noble Lord, Lord Parkinson. Does she accept that, in this country, unlike in many other countries, the various elements of the creative industries are closely connected, and many people work across theatre, television and film in a way that they do not so much, for example, in America? Therefore, it is very important to maintain support, of which tax credits are an important element, across all aspects of the cultural industries. I understand that she cannot say what might be in the Budget, but will she please stress to her colleagues in the Treasury how important it is to maintain the tax credits that are available currently in theatre and for orchestras in order not to have, by withdrawing them, a bad impact on other elements of the industry?
Baroness Twycross (Lab)
My noble friend is right. To give her some reassurance, I think the Treasury and DCMS are entirely clear on the contribution made by all creative industries to this country’s economy. I remind noble Lords that the creative industries are worth £125 billion in economic value to the UK and employed 2.4 million people in 2022. This is the first step in the Government’s plans for and support for creative industries, but I cannot pre-empt decisions made by the Treasury. As I mentioned earlier, the Budget will be held later this month.
The Lord Bishop of St Albans
My Lords, this is surely to be welcomed, and I think we are all delighted to hear these announcements, building on what has been said before. However, there is a deep concern in many parts of the country. In Hertfordshire, where I live, we have Elstree, Leavesden, the OMA V and the new studios being built in Broxbourne, and I have been privileged to visit some of those. Not only do we have the challenge of skills shortages for the film industry but we have a massive shortage already with the announcement on building extra houses. Can the Minister assure us that we are getting an integrated strategy, looking across the whole range of needs for skills, so that we can really get ahead of this game? Without that, we will have the facilities but simply not the people available to make the films.
Baroness Twycross (Lab)
The right reverend Prelate correctly identifies that, across the piece, we have a skills shortage in this country. If we are talking about legacies from previous Governments, this is one that I would not expect noble Lords opposite to be shouting about quite as much as they have in other points they have made. I stress the commitment to skills generally, through creating Skills England, and the intention to transform the apprenticeship levy into a new growth and skills levy. Both measures should create opportunities and give employers greater flexibility to train and upskill their workforce. We are very clear that this country will not succeed in the growth that we need to recover as a country without improving basic skills across the piece.
Lord Cashman (Non-Afl)
My Lords, I refer to my entry in the register of interests as a rights holder, performer, writer and author. I welcome this Statement, obviously, but I want to concentrate on the Government wanting the country to be
“the best place in the world to make films”,
et cetera. In that regard, Brexit has not helped. Will they therefore fast-track visas for those in the creative sectors to work in the United Kingdom? Secondly, as my noble friend Lady McIntosh outlined, no artist works in one silo in this country; we work across a landscape of different parts of the industry. I therefore encourage a holistic approach, which means greater investment in arts and education, particularly in state schools.
Baroness Twycross (Lab)
The noble Lord is right that this is a real focus. As he will be aware, the Labour manifesto committed to reset the UK’s relationship with the EU and improve UK-EU trade and investment. I cannot provide a specific response on his point about visas, but I will write with further details.
Baroness Fraser of Craigmaddie (Con)
My Lords, I welcome the Government’s support for the UK film industry and am glad to hear the Minister confirm her support for stories from the nations and regions across the UK. I declare an interest as a board member of Creative Scotland. One of the ways to do this is to support small and medium-sized production companies outside London. We also need to support the development of skills so that people can have a career in the industry outside London and across the nations and regions in which they live—and so that they perhaps do not all have to move into the diocese of the right reverend Prelate the Bishop of St Albans, who is worried about housing. They certainly should not have to move to London to pursue a career in film. Underpinning commissions for these small and medium-sized production companies are commissions from our public service broadcasters. Does the Minister agree that we should aim for population-based production quotas for each UK nation so that we can deliver permanent and sustainable bases in key production centres across the regions and nations of the UK?
Baroness Twycross (Lab)
I thank the noble Baroness for her proposal. I will take it back to the Minister of State in the Department for Culture, Media and Sport. I have not discussed this with him previously, but this Government are absolutely committed to all creative industries being represented across the nations and regions as a vital part of our growth and cultural richness. Every child and young person in every part of the country should have the opportunity to learn those skills. While, as a Londoner, I might be biased about the merits of living in London, we are clear that this includes people not automatically having to move to the capital.
Lord Davies of Brixton (Lab)
My Lords, I thank my noble friend for repeating the Statement and for the support announced for the film industry. I am sure she will be aware that this industry depends crucially on freelancers, but there are real concerns about the financial and mental health of many freelance workers. A recent survey by the Film and TV Charity found that only 12% of freelancers believed that working in the industry was good for their mental health. What steps will the Government take to enhance working conditions for the freelancers who are so crucial to this industry?
Baroness Twycross (Lab)
I will take back my noble friend’s points about mental health and the role of freelancers and speak to my noble friend Lady Merron and the Minister of State about these significant issues.
Lord Purvis of Tweed (LD)
My Lords, I think the whole House will agree with the Minister that film production is a real driver for regional growth, including in Scotland, where I live, like the noble Baroness, Lady Fraser. However, about 45 minutes ago, the noble Baroness, Lady Anderson, answered a Question on the pausing of the Northern Ireland city deals. The Belfast city deal includes investment for Studio Ulster. The Government are to be commended for promoting investment in film production, but they are simultaneously pausing it. Why?
Baroness Twycross (Lab)
I understand that there is no pause to the funding for the Belfast deal.
Baroness Penn (Con)
My Lords, recognising the constraints ahead of the Budget and the contribution of our creative industries to growth in this country, could the Minister address the enterprise investment scheme for film and high-end TV? Do DCMS and His Majesty’s Treasury have any plans to look at this? If not, will she encourage them to do so?
Baroness Twycross (Lab)
I regret that I will have to be slightly repetitive in giving assurances of this Government’s commitment to the creative industries. Some of these issues are decisions for the Treasury, but both DCMS and the Treasury understand how important various measures and reliefs are to the industry. An update will be provided as soon as possible and, as noble Lords are aware, the Budget will be held later this month.
Lord Stevenson of Balmacara (Lab)
My Lords, I declare an interest as a former director of the British Film Institute. I was a guest of the BFI at the opening of the London Film Festival last night for the showing of the film “Blitz”, which was extraordinary. I recommend it to noble Lords on all sides. It tells us a lot about Britain as it was, in the way that cinema can do, and it is worth all the money given by its supporters—and there are a lot of them. The opening speech at the London Film Festival yesterday made reference to the Statement made in the other House earlier that day. The very warm reception given by the huge audience to that announcement was striking. We should recognise that the industry is very supportive of what the Government are doing. It was also supportive of the previous Government’s work, so I want to correct something my noble friend said: the very first film tax credit followed the Downing Street seminar in 1990 with Mrs Thatcher, when she was Prime Minister, and was introduced by the noble Lord, Lord Lamont, who is sadly not in his place to receive the credit for making that first step. It was then built on by the great work—I am surprised to hear myself saying it—of George Osborne, who not only provided extra support but extended it, as we have heard, to many other art forms, which are very grateful to the last Government for the work they did. We should recognise that and build on it.
The points I wanted to make have largely been made by others, but one that has not really been answered, which is crucial to the future development of the film industry, is the question of the apprenticeship levy, raised by the noble Lord, Lord Clement-Jones. Will the Minister be a bit clearer about how wide a view the Government will take on this? The industry is in a terrible mess; without the support of the young coming into it, it will not survive.
Baroness Twycross (Lab)
I thank my noble friend for his question. I repeat that at the moment we have a skills shortage and significant vacancies—a vacancy margin of about 25,000. We know that our success is down to our skilled and innovative workforce. As a number of noble Lords have highlighted, this goes way beyond people working in a silo. There is something about creativity and working across different parts of the sector that probably benefits that.
We will get more details on the transformation of the apprenticeship levy into the new growth and skills levy in due course. It will create opportunities and give employers greater flexibility to train and upskill their workforce. Through working with Skills England, it will also allow the Government to identify what skills gaps there are, so that we make sure that every single sector, including the creative industries, has the skills it needs for the growth this country requires.
Lord Bellingham (Con)
My Lords, the Minister mentioned the forthcoming economic growth summit, which I applaud the Government for putting in place. She will be aware that many young growth companies in the creative industries sector currently enjoy IHT relief, particularly those on the AIM market. Can she confirm that she is supportive of this relief, and will she make representations to the Chancellor on this point?
Baroness Twycross (Lab)
Both I and the Government are clear that the use of tax relief to support creative industries is a really important way in which we increase and support the success of an already successful sector. Any specifics around future relief are obviously a decision for the Treasury, although I repeat what I have said previously—and apologise for repeating it—that DCMS and HMT both understand how important these reliefs are to the industry. As I have previously mentioned, the Budget will be held later this month.
Baroness Thornton (Lab)
My Lords, when we were in opposition, I visited the National Theatre to be shown around. I was struck by the fact that it was working very hard to get children and young people to come into the theatre, because it recognised the need to have children from a wide spread of different backgrounds in the theatre, ready to take up jobs and apprenticeships. I would be really grateful if my noble friend could talk about the skills agenda and how we are going to link up policy on incentivising filmmaking and the skills required to make sure that children from all backgrounds have the opportunity to be involved in this industry.
Baroness Twycross (Lab)
My noble friend will be aware of the passion that both the Secretary of State for the Department for Culture, Media and Sport and the Secretary of State for Education have for giving opportunities to children from all backgrounds. We all probably remember our first visit to the theatre. For far too many children, this is not something that happens through their family. We need to make sure, as the National Theatre does, that children get the opportunity to experience theatre directly.
The work through Skills England, and particularly the curriculum review—Secretary of State Bridget Phillipson has spoken so passionately about creative skills and the passion they can bring to children—is going to be central to how we view the curriculum going forward.