Creative Industries: Creating Jobs and Productivity Growth
Baroness Thornton
To move that this House takes note of the contribution of the creative industries to the Government’s growth mission and to creating jobs and productivity growth.
Baroness Thornton (Lab)
My Lords, it is a great privilege to open this debate. I very much look forward to the three maiden speeches by my noble friends Lady Griffin, Lord Lemos and Lord Brennan, and, of course, to the speech of my noble friend Lady Twycross. I thank the Library and the many organisations that have sent briefings to us all—many briefings, because, of course, the creative industries cover such a huge area of our national life and our economy.
Some of us will probably recall a teacher or a person who first opened our eyes to the pleasure of music, art, design, or some form of creative endeavour. In my case this was Miss Bickerstaff, who was the music teacher at Frizinghall Middle School in Bradford, which I attended between the ages of 11 and 13. She took us to St George’s Hall in Bradford to hear the Hallé orchestra. Before we went, she played some of the music to us and explained what we were about to hear. I still need only to hear the opening chords of “Night on the Bare Mountain” or “Fingal’s Cave” and I know exactly what it is I am listening to, for which I am very grateful.
Thankfully, the English teachers at the comprehensive I went on to attend bothered to take us to the local theatres. I admire teachers so much, because we must have been such an unruly bunch. We went to see not only the Shakespeare we were studying but, being Bradford, plays such as JB Priestley’s “An Inspector Calls”—I have to say, it took years for me to work out exactly what was going on in that.
While I am recalling my home city, I must, of course, rejoice that Bradford’s year as City of Culture is taking place now. The Bradford district was selected by the Government in May 2022. Bradford 2025 is taking place throughout the Bradford district, which covers 141 square miles across West Yorkshire, including Haworth, Ilkley and Saltaire, as well as Bradford itself. Bradford was also the first UNESCO City of Film, and the filming location for “Peaky Blinders”, “Happy Valley” and “The Crown”. We are one of the UK’s youngest cities; a quarter of our population is under 20 years old. Bradford 2025 is created for, with, and by the people of Bradford, and it has young people at its heart. Not surprisingly, the programme reflects youth, from education, skills and training projects to new artistic commissions centred on the lives, concerns and ambitions of young people today.
This year will see Bradford’s dynamic contemporary arts and culture, from dance and theatre to film, music and even food, because, of course, it is the curry capital of Britain. New cultural investment will have an impact long after the end of 2025. We have already seen significant investment in the region, and Bradford 2025 is set to serve as a catalyst for development, regeneration and change.
I encourage noble Lords to go to the Bradford 2025 website and to take part in some of the great activities on offer. For instance, each month a different artist will invite us to create a drawing inspired by a particular theme. I am afraid noble Lords have missed David Hockney inviting people to paint something beautiful and send it to him, but I am sure noble Lords’ artistic work would be much appreciated.
In many ways, Bradford is ahead of the curve in bringing to reality the contribution that our creative industries can bring to our localities and regions, to economic revival and to job creation. We are part of the recently announced funding for six mayoral strategic authorities—of which one is, of course, the mayoralty of our own mayor, Tracy Brabin, who has led trade delegations and cultural collaborations all over the world and is, of course, key to the success of Bradford 2025—which bodes very well for our region.
It was a pleasure, having been in the DCMS team twice in opposition—from 2013 to 2015, and most recently with the team led by the soon to be ennobled Thangam Debbonaire as shadow Secretary of State—to be a small part of Labour policy on the creative arts, and to witness the speeches and commitment of Thangam and the now Prime Minister, my right honourable friend Sir Keir Starmer MP, to the creative community at a wonderful event at the fantastic Guildhall School of Music and Drama last year. I regard this debate, partly, as looking to see what has happened in the last year and in the very early days of our Labour Government. I learned something new about our Prime Minister at that event. He spoke with passion about how coming to the Guildhall on a Saturday morning to learn to play the flute was an important awakening for him of the importance of music and of making music accessible to all children, even one like him. He caught the train into London on his own for lessons that his parents would have found difficult to afford. So, among his many talents as our Prime Minister, he is also a flautist.
So how could the creative industries not be integral to my Labour Government’s plan for economic growth? They bring £124 billion to our economy annually. We can see those commitments taking shape, even though we inherited a chaotic economy, and that the country needs to invest in the British success story that is the creative industries. We all know that there are very real challenges. Indeed, the industry has not held back in telling us the challenges it faces in the many briefings we have been sent, but many also acknowledge what a good start we have made.
We should start by treasuring the institutions and bodies this country has created over many decades, and in some cases hundreds of years, that are the envy of the world and provide a foundation on which to build and invest. The BBC contributed almost £5 billion to the UK economy last year, supporting over 50,000 jobs. It is the largest single investor in UK-made programming, and 50% of the BBC’s economic output is outside London. The National Trust is a great British success story, caring for almost a quarter of a million hectares of land, 780 miles of coastline, and more than 300 historic houses, gardens and archaeological landscapes. It has almost 5.5 million members, and, of course, the best scones you might wish for—although I am not sure the dining room here would agree with me about that.
The Arts Council invests money from the Government and the National Lottery to support creativity and culture. However, since 2017, arts funding from national bodies has been cut by 16% in real terms, so I very much welcome the review established by my right honourable friend Lisa Nandy MP, the Secretary of State, to be led by my noble friend Lady Hodge, a former Culture Minister, to explore how to improve access to the arts and culture in all areas of the country, to drive access to opportunity.
The Edinburgh Festival in Scotland is known all over the world, is innovative, brings forth amusement, and is a huge asset to the UK, and one we need to treasure. I will also mention the University of the Arts London’s College of Fashion, which is based in east London; the National Theatre and many of our leading theatres, drama schools and performing arts venues, from the Picturedrome in Holmfirth—I declare an interest because it is run by my brother-in-law—to the Salisbury Playhouse, the Exeter Northcott Theatre, the “end of the pier” in Cromer, of which I am very fond, the Royal Hall, Harrogate, the Playhouse Whitley Bay, and my local Hampstead Theatre; the Baltic; the Glasshouse; the British Museum; the Science Museum Group and its partner museums in Bradford, Manchester, York, Shildon and Wiltshire, which have over 5 million visitors a year between them; the Tate galleries in Liverpool and St Ives, Tate Modern, Tate Britain and Tate Digital; the National Gallery; and the hundreds of small galleries, such as Cartwright Hall in Bradford, which all enrich our communities everywhere.
I need to mention Manchester, because it is already recognised as one of Europe’s largest creative digital technology clusters and, of course, has Salford. It is home to a fast-growing £5 billion digital ecosystem, and the ENO is moving to Manchester, so it is heading towards being an international powerhouse for the arts.
Wales Arts International is the international agency of the Arts Council in Wales and is a gateway between the arts of Wales and the world.
The video games industry is the fastest-growing sector in the nation’s creative industries. It is driven by creativity and innovation and generates £6 billion in gross value added. I hope my noble friend has noted the smart report from UKIE—UK Interactive Entertainment—about the upskilling and qualifications we need to create digital technologies by combining STEAM disciplines—science, technology, engineering, arts, and maths—to provide the skill set critical for a 21st century economy.
I have to end my by-no-means-exhaustive list by mentioning dance, opera, ballet and music. The Royal Opera House—under one of our Members, the noble Lord, Lord Hall—took opera and ballet out of its wonderful building in Covent Garden and broadcast it on screens all over the country and is now partnering with 150 organisations and reaching thousands of schools through teacher training. We are blessed with the Royal Ballet, Birmingham Royal Ballet, Northern Ballet, English National Ballet, Ballet Rambert and, announced most recently, Sadler’s Wells East—many ballet and dance schools.
I know I will be in trouble for not mentioning something or other or a genre, but I think we can say with confidence that we are blessed. Our creative industries are integral to our regeneration, and the Government recognise this and have picked up the commitments made and are running with them. As Lisa Nandy said in her groundbreaking speech at the Creative Industries Growth Summit on 17 January at the Baltic and the Glasshouse:
“Arts and culture must be for everyone, everywhere. No matter your background or the place you live, we should all be able to experience the joys that dance, theatre, music, museums, even borrowing a book from a library brings”.
From film to fashion to music and advertising, our creative industries are truly world-class and play a critical role in helping us deliver on this Government’s mission to drive economic growth in all parts of the UK, but they face challenges and that is why we need a 10-year plan.
The first challenge is skills and education, which was mentioned in almost every brief we received about this issue. From digital games to the people in the BPI music industry, via the heritage industry and our need for specialist building skills to retrofit our special buildings for our net-zero future, there is a huge challenge, which I know that my noble friend will acknowledge—and her department is of course working very closely with the Department for Education.
Secondly, there is the huge issue of intellectual property and our music industry and the importance of the gold standard IP rights framework which is enshrined in UK law. We must maintain, protect and champion this, and I hope my noble friend can confirm this is a priority.
Thirdly, there is AI. I will quote our Secretary of State:
“we hear creators’ concerns and we recognise the worry that AI is an existential threat to livelihoods. There is no value without content. I want to assure you in the clearest possible terms: creatives are at the core of our AI strategy”.
We have to remove barriers to innovation and creativity. This is a pledge we have heard from across government, and I know my noble friend the Minister will be able to put some flesh on the bones of this pledge today. It must tackle things such as space to rehearse, funding to match needs, the time it takes to create and how the apprenticeship scheme fits in with the investment that is needed to make a business thrive and work in its early years.
I am delighted that my noble friend Lady Vadera has agreed to lead us through this new chapter as the next chair of our revamped Creative Industries Council. She and the titan that is Sir Peter Bazalgette have wasted no time in setting to work on the sector plan, which is our dedicated plan in the industrial strategy that will guide us forwards.
I look forward to having this debate again in a year or so’s time when we can see what our first steps have led to and how we are taking this drive for the creative industries forward. I beg to move.
Baroness Penn (Con)
My Lords, I join the noble Baroness, Lady Thornton, in looking forward to the trio of maiden speeches we have coming up in this debate. As recognised by the last Government and by this one, our creative industries are an absolute economic powerhouse, and I am sure we will hear many facts and figures and personal stories in this debate to pay tribute to that. The noble Baroness, Lady Thornton, managed to namecheck so many of the great institutions that we have in our creative industries that I shall try not to repeat that in the four minutes I have. Instead, I want to focus my remarks on the support the Government provide to the creative industries and how we can learn from the success of one aspect of that support.
In the UK, we benefit from a mixed model of funding for our arts sector: we have some state subsidy, particularly to ensure that everyone gets access across the country; we have tax reliefs, which stimulate new activity; and we have private philanthropy, which rewards and supports excellence and is something that could be extended with the right incentives in place. But, in the time available, I am going to focus on the second in that list—the success of the tax reliefs and credits that we have put in place to support growth in our creative industries.
By their very nature, our creative industries are innovative and inventive sectors and so respond well to tax reliefs which stimulate new creative work. This was recognised by the previous Government, which extended and built on the existing film tax credits to a wide range of sectors, including high-end TV, children’s TV, video games, theatrical productions, orchestral productions and exhibitions in museums and galleries. I am glad that this Government have committed to retaining them.
Each of those has a cost to the Exchequer in terms of forgone revenue—£12.5 billion cumulatively, which is not to be sniffed at. But research from industry and HMRC itself has shown that they have been successful at attracting investment to the UK that would have otherwise gone elsewhere. Crucially, the reliefs are globally competitive not just because of their headline rate but because of their perceived simplicity, consistency and speed of payment.
I think that point cannot be emphasised enough. Industry and government get the greatest benefit out of such schemes when they are simple and predictable. Too many forms of government support, whether it is through tax reliefs or credits or grant funding, are subject to too many different rules, criteria, application processes and timescales. We have endless—many of them put in place by the previous Government—pots and funds attempting to support sectors where we see high potential for growth, not just in the creative industries but beyond. Through a perfectly sensible desire to ensure value for money, we sometimes end up failing to see the wood for the trees and make it too difficult to access the support.
In the context of a difficult spending review coming up, I make a plea to the Department for Culture, Media and Sport to make the case to the Treasury and learn the lessons of what can be and has been effective in these sectors. I am not arguing for new tax reliefs for every different sector that is as effective at lobbying as the creative industries—which the volume of emails in my inbox, as mentioned by the noble Baroness, Lady Thornton, can attest to. But to those who either tend to see public subsidy to the arts as a nice to have rather than making good economic sense or who see tax cuts for business as revenue forgone that could have been spent on public services, I say that smart, well-designed, internationally competitive tax reliefs can make an important difference to industries for the UK that create a wider ecosystem of talent and growth.
I hope that the enthusiastic support we might hear for some of these measures in this debate today can be a lesson for the Government to take away and think of in the future.
Baroness Benjamin (LD)
My Lords, I declare an interest as per the register. I thank the noble Baroness for her excellent opening speech and for securing this debate, as it gives me the opportunity to draw attention to the children’s creative industry.
First, I congratulate “Horrible Histories”, which recently received a BAFTA special award for being one of the most successful children’s programmes, influencing millions of children over the years to love and to study history.
This debate also gives me the opportunity to recognise the contribution to growth made by children’s content creators in the UK over the decades. Many are attending the world children’s market Kidscreen in San Diego this month. More than 50 UK companies will be under the banner of UK@Kidscreen, organised by the Children’s Media Conference, which helps the children’s creative industries to survive and thrive.
However, we should not be fooled by this good news, because the survival of quality children’s content is not assured. The children’s creative industry is in turmoil. Writers, musicians, actors and technical staff are not working. All our past well-loved children’s content sectors are struggling; very few have commissions and the majority of the industry is on its knees. This is because children have migrated in huge numbers to platforms such as YouTube, Instagram and TikTok. Also, advertising revenue has fallen on the public service broadcasting channels and is being diverted to YouTube, which does not share the advertising revenue in the same way that the conventional broadcast system used to. This means that producers struggle to generate funding for projects that previously would have been supported by the PSBs.
YouTube does offer revenue, but it is nothing like the upfront guarantees of the old broadcasting system, so the children’s industry is in a race to the bottom. Low-cost content providers, who soon no doubt will be using AI to generate their content, now dominate on YouTube. Children are watching a mishmash of content built on influencers, cheap animation and, at its worst, deeply inappropriate and harmful material that affects their mental health and well-being. The Children’s Commissioner for England’s report on the recent riots revealed that violent, harmful messages, conveyed by some of the most popular social media channels, influenced the children’s behaviour.
Something needs to be done to bring us back to a situation in which our brilliant children’s creative industry can be financed to make great content. New relationships need to be built with the video-sharing platforms, encouraging them to acknowledge that they have a place in society and must make more prominent quality content that is positive, culturally relevant, age-appropriate for young people, impartial and fair. New platforms are the chief influencers of our children and they need to take responsibility for that.
The Government also have a crucial role to play before it is too late, so I ask the Minister: what consideration has been given to enhancing the children’s television tax relief from 24% to at least 34%? This would help attract investment in children’s production, particularly in the case of international platforms which no longer provide children’s content. What consideration have the Government given to encouraging platforms such as Netflix and Disney+ to donate part of their 30% European quota to children’s content—say, 10% of relevant UK content? Is this something that Ofcom could look into?
This is unlikely to solve the crisis on its own. If a level playing field for British media output is desired, some form of government intervention which goes beyond the existing PSB landscape is needed to bring into scope the platforms which children have migrated to. As I keep saying, childhood lasts a lifetime, so let us not ignore the alarm bells and the warnings, for the sake of our children’s future. I look forward to the Minister’s response and to all the maiden speeches today.
Lord in Waiting/Government Whip (Lord Cryer)
My Lords, I apologise for interrupting but, because there has been some ambiguity about the speaking order today and a few changes made to it, I want to make it clear, so there is no doubt, that the speaking limit for Back-Bench speeches is now five minutes.
Lord Berkeley of Knighton (CB)
My Lords, I thank the noble Lord; what welcome news we have just heard. We have already heard three extremely potent speeches and I agree with everything that has been said. I thank the noble Baroness, Lady Thornton, for this debate. I shall be picking up on David Hockney, and emphasise, without going into it any further, the importance of copyright and AI. To creative people such as me—I declare an interest as a composer—that is fundamental to carrying on our existence.
Like other speakers today, I want to celebrate what is good and wonderful in the UK. In so doing, I hope to emphasise what needs protecting and supporting. On which subject, I look forward to all the maiden speeches but particularly that of the noble Lord, Lord Brennan, who has done such fantastic work in the other place on behalf of music. I really look forward to hearing his maiden speech and working with him in future.
As I just said, we have in the UK an abundance of creative talent but it needs nurturing, especially at the grass-roots level. That is why I ask the Minister to look carefully at the plight of small venues up and down the country, where emerging talent can be fostered. Let us go to the other extreme: in a few days’ time at the Royal Opera House, we will hear a new opera, “Festen” by Mark-Anthony Turnage, one of our most acclaimed composers. It is this wonderful mix of the grass-roots level and the Royal Opera House, or no matter where it is, that we should celebrate and preserve.
In terms of preserving, the closure of university arts departments is a terrible worry. Most recently, it was the music department at Cardiff University. It followed in the wake of other universities, such as the University of East Anglia, which has such a splendid record in literature, with Ian McEwan, Angela Carter and Kazuo Ishiguro—a Nobel laureate, no less. He has now been joined by Abdulrazak Gurnah, a Tanzanian-British citizen.
Our dramatists and actors are second to none. I went to the Hampstead Theatre the other night to see Tom Stoppard’s “The Invention of Love”. Simon Russell Beale was magnificent as the ageing AE Housman. How lucky we are. In April, David Hockney, was has already been spoken about, will have the largest retrospective exhibition ever in Paris—some 400 pictures curated by Norman Rosenthal. So, there is much to celebrate but also, I fear, much to preserve. It is essential for artists to know the rules before they break them. This is something that Hockney always maintained: —that you need to be able to draw before you can paint. Funnily enough, His Majesty the King also believes very passionately in tradition and building on the lessons of the past. Whether you are an avant-garde artist or not, knowing those basics is essential.
That brings me on to why arts and music in schools are so crucial. This is the future generation who we hope will be able—once Brexit is amended—to tour Europe, who will be writing operas for the Royal Opera House, and who will have their music on the South Bank, but that is going to happen only if we put music back centre-stage in schools, hopefully on the curriculum but, if not, let us get peripatetic teachers to teach instruments. There are precious few instruments and even fewer teachers in state schools. I believe that music and the arts must not be the preserve of the rich. They must be open to everyone. That creates a more cohesive society. In my maiden speech 10 years or so ago, I mentioned a person in Wormwood Scrubs who was part of the Koestler Trust. I had managed to get a guitar to him, and he replied to me, “Thank you so much for this gift. If I had received this when I was 17 years old, I do not think I would be sitting here in Wormwood Scrubs serving a life sentence for murder”.
Baroness McIntosh of Hudnall (Lab)
I thank my noble friend Lady Thornton for introducing this important debate and, like everyone else, I look forward to the maiden speeches that are yet to come. I remind the House of my former interest, having had most of my professional career in the arts sector, and I should declare an interest that my daughter runs a company funded by the Arts Council. My noble friend Lady Thornton gave us many reasons to be cheerful. I was delighted to hear them, and I am glad to endorse them. We are rightly proud of what our creative industries have achieved. We have been blessed—a word she used several times—for many years, and still are, by the brilliance and originality of our people, the individual performers, writers, designers, producers, technicians, musicians and many others who have changed the face of the industries they work in.
This did not happen by accident. Most of them were nurtured, initially in school and subsequently through live arts organisations, large and small, sustained nowadays by armies of freelancers who make up the rich cultural ecosystem which this country has developed over decades and which, I am sorry to say, is now significantly depleted. We should not take our brilliance in the creative industries for granted. Others are already just as good or catching up fast, and we cannot rely on our historic success to keep us competitive. I ask noble Lords to notice the variety of Oscar nominations this year, just as one example, but let us also be delighted by the continuing brilliance of Aardman Animations. Who does not love Wallace and Gromit?
We are in the middle, as others have said, of the most significant technological revolution of our time: artificial intelligence. Maybe one day it will replace human creativity entirely, as we are now being warned it might. Meanwhile, the Government define creative industries as those,
“which have their origin in individual”—
I emphasise “individual”—
“creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property”.
That is a very significant element in this debate, as we have already discovered and will continue to discover. I am not going to mention the Data Access Bill, but I am just saying.
We are talking about people and what they create, which is why I want to talk a bit about education, as the noble Lord, Lord Berkeley, has done already. To grow innovators in all disciplines we need an education system that actively encourages curiosity, challenge and, above all, imagination. We know that over recent years focus on the EBacc has resulted in a serious decline in arts subjects in maintained schools. I say in maintained schools because that is not the case in independent schools, and that creates its own inequalities as we go forward. I refer the Minister to the most recent figures from the Sutton Trust. I very much hope that the upcoming curriculum review will start to put that right. I mean absolutely no disrespect to teachers and school leavers when I say that our education system has been too focused on knowledge rather than on inquiry. Teachers too often feel constrained to teach to the test, and we observe too much anxiety in young people about getting things right rather than thinking independently.
Do innovation and creativity not rely substantially on brave and unexpected imaginative leaps? Arts subjects, properly taught, demand intellectual discipline and critical skill, as others have already said, but they start and end with imagination. If we are to preserve the primacy of human thought and creative originality over artificial alternatives, we must first understand, value and support them from cradle to grave and do all we can to protect the livelihoods of our creators within a thriving cultural economy fed by a healthy, diverse pipeline of new talent. If we do not, we risk losing that pre-eminence which we are so keen to celebrate today.
Lord Harlech (Con)
My Lords, it is a pleasure to follow the noble Baroness, Lady McIntosh of Hudnall, and her very good speech. I declare an interest as an alumnus of Central Saint Martins, and my mother has worked in the fashion industry for over 30 years.
I will speak today on the invaluable contribution of the UK’s creative industries, specifically the fashion sector, to the Government’s growth mission, the creation of good jobs and productivity growth. Fashion is more than an art form; it is a powerful economic engine, an incubator of global talent, and a force for innovation and sustainability if done in the right way. It is an industry that deserves the full backing of government policy to realise its vast potential.
The United Kingdom is renowned for its dynamic and avant-garde fashion scene. For decades, our designers, from Vivienne Westwood to Alexander McQueen, have challenged conventions, set global trends and positioned Britain as a beacon of creativity. Our Northamptonshire shoemakers are the envy of the world. The ability of this sector to continually reinvent itself through a fusion of traditional craftsmanship and cutting-edge innovation—for example, the Manchester-based Private White V.C. and Hiut Denim in Wales—underscores its importance in the broader creative economy.
Beyond its cultural significance, the economic impact of UK fashion is formidable. The sector directly contributes £28.9 billion in GVA and employs more than 800,000 people. When considering its broader economic impact, it supports over 1.4 million jobs and £67.5 billion in GVA. Remarkably, fashion’s direct contribution surpasses that of the aerospace, defence and space industries combined. If we are serious about growth and job creation, this is an industry that cannot be overlooked.
However, to maintain and expand this success, targeted government intervention is essential. I urge the Government to consider the following measures. First, we must reinstate the trade show access programme and enhance embassy support for UK fashion companies abroad. Past programmes have demonstrated the significant returns on investment such initiatives can bring. Trade shows and sectoral missions empower businesses—particularly SMEs—to access international markets, driving growth and strengthening our global competitiveness.
Sustainability must be at the heart of our strategy. A textile-specific extended producer responsibility scheme would generate an estimated £150 million annually to fund circular business models, rewarding durability and penalising unsustainable practices, sometimes known as fast fashion. This is a vital step towards the Government’s aim of achieving net zero and aligns with our broader environmental commitments.
We need to increase funding for R&D, particularly through Innovate UK, with an emphasis on direct business benefits rather than solely academic research. Full funding for SMEs participating in innovation projects would democratise access to technological advancements and drive productivity across the sector.
Post-Brexit procurement rules should be reformed to prioritise UK manufacturers, particularly in the technical textile industry. This will strengthen our advanced manufacturing capabilities and bolster industries beyond fashion, such as healthcare and defence.
Vocational education must be placed on an equal footing with academic routes. A model akin to Switzerland’s system would ensure that the skills and growth levy effectively supports apprenticeships and training, addressing industry skill gaps and equipping our workforce for the future.
Reintroducing VAT-free shopping would provide an immediate boost to the UK’s fashion and textile industries. This policy would enhance tourism-related spending, benefiting both luxury brands and local manufacturers supplying these businesses.
Capital expenditure funding, as I said, should be directed towards expanding technical textiles and advanced manufacturing. Building on the success of the regional growth fund, such investment would reinforce the UK’s position as a leader in high-value manufacturing.
To conclude, our creative industries—and fashion in particular—are key drivers of economic growth, job creation and global influence. With strategic government support, the UK fashion sector can flourish, ensuring that our reputation as a powerhouse of creativity, innovation and sustainability endures for generations to come. I look forward to the Minister’s response, and to the three maiden speeches.
Lord Brennan of Canton (Lab) (Maiden Speech)
My Lords, five minutes is two minutes more than you need for a song to make you laugh or cry, make you fall in love or change your life for ever, so it must be plenty of time for a maiden speech. I thank Black Rod and everyone who works in this House, including my noble colleagues from across the House, for their extraordinary kindness to me over the past 48 hours, since I was introduced to this place.
I come from an immensely privileged background. Both my parents left school at 14 but, in our working-class household, education was everything, love was everywhere and music was the soul of our family. It still is, as my wife, Amy, and daughter, Siobhan, will attest. I mentioned the staff of this House earlier. I want to single out the cleaners, who too often are taken for granted. My late mother, Beryl Evans, was a miner’s daughter who worked as a cleaner. When I was first elected to Cardiff City Council in 1991, I took her to the mayor-making ceremony in the splendid surroundings of Cardiff City Hall. Overly proud of my achievement, I showed her around the grand marble building and asked her what she thought. She looked all around the cavernous halls and said, “Imagine having to clean this”. It is a lesson I have never forgotten.
My late father, Michael Brennan, was taken from his classroom in west Cork at the age of 14 by his father to work on the family farm, to the dismay of his teachers. But he could quote Shakespeare, and imbued in me and my three siblings—Colleen, Nuala and Patrick—a philosophy greater than any I learned from books or university when he recited his own mantra:
“Help the weak against the strong,
love the old when you’re young,
own a fault when you’re wrong,
when you’re angry hold your tongue,
stand your round and give a song,
and don’t forget where you come from.”
That is why I say I come from a privileged background, albeit more shovelry than chivalry. Part of that background as a young man was encountering my two now-ennobled comrades who introduced me as supporters in this House: my noble friends Lord Kinnock and Lord Murphy of Torfaen—two extraordinary people I am honoured to call my friends.
I am immensely proud to enter this House as a Labour Peer under a Labour Government, and I am proud to support that Labour Government. I am proud that my Government have put the creative industries at the heart of their economic strategy; recognising that, as well as being essential for our human souls, creativity and the arts are key components of economic growth and of what makes this country great. For too long, that essential insight has been undervalued in our national discourse. But in praising my colleagues in government, including the Prime Minister, who has spoken passionately about how music changed his life, I want to gently nudge my colleagues on the mechanism that underpins the economic success of our creative industries, namely the law of copyright in the age of artificial intelligence.
I want to make a plea for human intelligence and EI—emotional intelligence—over AI, artificial intelligence. AI is a great servant, including to the creative industries, but it would be a terrible master if we allowed it to become that. In a previous incarnation, I introduced a Private Member’s Bill in the other place, the Copyright (Rights and Remuneration of Musicians, Etc.) Bill, to update the law of copyright to ensure that musicians, songwriters and composers receive their proper share of the vast sums of money collected because of their creative genius. I declare an interest as a proud member of the Musicians’ Union and the Ivors Academy of songwriters and composers, who has received small, occasional royalties for my songwriting for the legendary parliamentary rock band, MP4.
Incidentally, I have been encouraged—not that I need any encouragement—to form a new band in this place, and various names have been suggested. The best so far is an echo of my political hero, Aneurin Bevan. The suggestion for the Lords rock band name is “Lower than Ermine”, which I thought was rather good, but I am open to further suggestions, as well as in search of a noble drummer.
Returning to the theme of the debate, I note that this House recently considered AI and the creative industries, and I simply add this: artificial intelligence creates nothing—it simply generates probabilities. There is no soul in the machine. To return to Nye Bevan once more, AI is a desiccated calculating machine. It is an exciting technology that will save lives in the field of health, but we should never allow those who profit from it to steal from the furnace of human creativity by scraping content to produce a facsimile of human creativity without reward for the artists we cherish. Rather than undermining our creators, let us consider how to enhance their value and remuneration.
In recent years, there has been a vinyl revival in the music industry. Instead of allowing tech companies to perform the equivalent of transferring a farmer’s land to an oil company for drilling without permission or compensation, let us instead introduce new VINL—voice, image, name and likeness—rights for our creators, whether national treasures such as Paul McCartney or Elton John, or new artists such as Imogen and the Knife or Welsh Music Prize-winning Lemfreck.
The creative industries are the fastest-growing part of our economy. The cake has been growing in size; let us not give it away to those who seek to steal it, and let us ensure that those who create the recipe and bake the cake get more than mere crumbs from the table.
Baroness Nye (Lab)
My Lords, I warmly congratulate my noble friend on a powerful and very moving maiden speech. He will bring a wealth of experience to this House. My noble friend Lord Kinnock, one of his supporters, described him as being equally at home in the senior common room of an Oxbridge college as the saloon bar of a Welsh working men’s club. It was no surprise that his speech was about music: he is renowned as an expert on folk music, a musician extraordinaire and, possibly more importantly, the king of karaoke. We will also need to check our phones after this debate, as he became the first MP to win the social media MP of the year award, beating Nick Clegg and Jeremy Corbyn.
As he said, he is also a member of MP4, but he was possibly too modest to mention that it has raised over £1 million for charity. He is probably the only member of your Lordships’ House who has had a single that reached number two, sadly just missing that Christmas number one slot. The cover version of “You Can’t Always Get What You Want” was recorded under the banner of Friends of Jo Cox, who, as noble Lords know, was so tragically murdered. As my noble friend said, they are currently looking for a drummer and, if anybody from the House would like to apply, I am sure he would be grateful. They do not have to be fluent in Welsh; he has that covered.
Turning to the debate, I thank my noble friend Lady Thornton for securing it. There are many illustrations of how the creative industries have benefited local communities around the country, as my noble friend Lady Thornton so eloquently described in the case of Bradford 2025. Last week in Hull, people were still talking about the impact that the City of Culture status had on the city, as it had in Glasgow and Liverpool previously. In fact, it was so successful that the Hull City fans took to chanting to away teams, “You’re only here for the culture”—not something you hear often on the terraces. Events such as these, as well as the landmark example of the move by the BBC to Salford—the largest relocation of any public organisation this century—have had an enormous impact on employment and business growth in the area, as well as, in the case of the BBC, the multiplier effect across Greater Manchester and the north-west.
The new Labour Government have recognised the transformative power of the creative sector in driving economic growth, and they have rightly designated it one of the vital eight growth-driving industries at the heart of their industrial strategy. The upcoming creative industry sector plan, led by my noble friend Lady Vadera and Sir Peter Bazalgette, will be of huge importance. Their proposals for tackling the skills gap will be crucial in ensuring the continued success and competitiveness of the UK’s creative industries.
The ecosystem of creative industries, however, works only if the pipeline of talent is strong, and our role as a global leader in the future depends on a sustained supply of national talent. We need to identify, nurture and develop this talent from an early age, which means that every single child in whatever school in Britain should have access to a proper creative education. I make no apology for repeating points so eloquently made by my friend Lady McIntosh. That is why the review of the curriculum announced by the Education Secretary is so vital.
The current EBacc is “regressive”, “severely limits learning”, ignores the skills needed for today’s workforce and fails poorer children. Those are not my words but those of the architect of the national curriculum, the noble Lord, Lord Baker of Dorking. A broader curriculum, giving children and young people access to music, arts and drama, will reap enormous benefits, from improved language development to confidence building. The Chancellor’s announcement in the Budget about expanding the creative careers programme, providing 11 to 18 year-olds with the opportunity to learn more about the full range of jobs in the creative sector and directly engage with the workplace, is also necessary to broaden opportunity for all. As has been said, talent is everywhere but opportunity is not.
Over the past 14 years, there has been a serious decline in students taking arts-related GCSEs and A-levels; universities are cutting creative courses or merging departments; and, according to the Sutton Trust, a higher proportion of students in private schools than in state schools are taking creative subjects at university. With fewer students in state schools taking creative arts subjects, the number of specialist teachers has also declined. Specialist art teachers in primary schools are now a rarity and very little professional development is happening. I welcome the Government’s pledge to recruit 6,500 more teachers, but what steps are the Government taking to address the recruitment, retention and professional development of music, drama, art and design teachers, as recommended by the National Society for Education in Art and Design?
Sixty years ago this month, the very first Arts Minister, Jennie Lee, presented Parliament with the first policy for arts, entitled First Steps. It therefore seems fitting that now is the time for this Labour Government to enthusiastically take the next steps.
Lord Londesborough (CB)
My Lords, I too thank the noble Baroness, Lady Thornton, for securing this timely and topical debate. Productivity has become an obsession of mine ever since I became an accidental entrepreneur in the creative industries more than 30 years ago. I will say more on that in a moment, but first I welcome on board no fewer than three new Members of this House. I salute the noble Lord, Lord Brennan of Canton, for his excellent and thoughtful maiden speech; I much look forward to his creation of a new rock band in this place.
We have already heard how crucial our creative sector is to our economy in terms of GDP, jobs, growth and exports. That said, there are three areas of policy tension that I should like to highlight. First, I declare my interests as set out in the register, including chairing, advising and investing in a number of start-ups in the creative sector—I have the scars to prove it. These ventures range from film and theatre to online intelligence and a dog-lovers’ match-making platform. That is creativity for you.
I will start with government policy. It is positive that the creative industries are—quite rightly—one of the Government’s eight priority sectors, as is the announcement of £60 million of funding at the recent creative industries growth summit. But that pales considerably when set against the £2.8 billion increase in employers’ national insurance contributions that will hit this sector on 5 April—in two months’ time. It is especially painful for our creative SMEs, which will shoulder the heaviest increases because this tax on jobs now kicks in at £5,000 rather than £9,000 of each employee’s salary.
I have tabled amendments in Grand Committee for exemptions to this national insurance increase for all small businesses employing between 10 and 50 staff, which is the fastest-growing subsector of our creative industries. Given how competitive this sector already is, these measures will do serious damage, particularly to lower-paid jobs and part-time roles.
The second area of tension I should like to highlight is the need to protect IP and copyright in the face of AI and Web 3.0, yet at the same time embrace the opportunities, particularly to boost productivity, that these technology tools offer. For content generators, AI looks set to be a game-changer. I am already seeing its impact among the small, agile players, not just big tech. I encourage the Government to take a measured approach to strike that very difficult balance between protection, regulation, and growth.
The third and final area of tension relates to the original title of this debate, “Creating good jobs in every part of the country”. It is a noble ideal, but fair geographic spread of creative jobs across the UK is very difficult to achieve. Official data shows us that London and the south-east alone account for almost 70% of this sector’s GVA and more than 60% of creative jobs. Capitals and major cities tend to take the lion’s share in all countries, not just the UK. There is a natural clustering process in the arts and creative world that is often at odds with regional policies of levelling up. I simply advise the Government to be realistic in this regard, especially if productive, sustainable economic growth is their number one mission.
Baroness Griffin of Princethorpe (Lab) (Maiden Speech)
My Lords, it is an honour to make my first contribution in today’s debate and I look forward to visiting Bradford, a city I love, with my fellow co-operator, the noble Baroness, Lady Thornton.
I led on the copyright legislation in the European Parliament, and Kevin and I worked together. With everything ranged against us—big money—we won that legislation. It was precisely about the proper remuneration of creatives and artists. This is not part of my speech, but I am thrilled that in this debate we are talking about the fact that we cannot maximise the economic contribution of the creative industries unless we nurture education, children, the arts and artists. I had the privilege of writing the creative industry strategy for the north-west of England, so I am passionate about the creative industries, but it needs to be about all of this.
I am sitting down due to my chronic arthritis, so noble Lords may have to catch me when I fall—and I am certain that they will.
First, I thank noble Lords from all sides of the House for their generosity. I also thank the clerks, doorkeepers, police and staff of the House, without whom I could not have found my way to any debate. I was trained as a young councillor in my 20s in Liverpool by a marvellous woman called Margaret Simey. She said to me, “Theresa, remember that the two most important people in any public building are the cleaner and the caretaker and you’ll never go wrong”. I am so grateful to my noble friends Lord Kennedy of Southwark—I am not a Londoner; I hope I said that right—and Lady Smith of Basildon for their wisdom and kindness.
The first economic impact study of the arts was commissioned in Merseyside in 1988 by the sadly late visionary Peter Booth. This led to evidence to place the cultural industries as a major driver for growth in the Objective 1 European funding programme for Merseyside in the 1990s, a first in Europe. It was European investment that transformed Liverpool when others disgracefully said that that wonderful city could go into managed decline. It culminated in Liverpool being European Capital of Culture in 2008, and I had the privilege of chairing economic and European affairs for Liverpool as a city councillor at that time.
As my colleagues, friends and noble Lords have said, to maximise the creative industries in the Government’s growth agenda—and I know our Ministers will take this—we need to invest in art and artists, designers, regional and youth theatre, writers and the commissioning of new work and cultural programmes in our schools that exclude nobody. It is the creators and the creatives who will drive the content of those industries in the future. We have to invest in people. I am delighted to see the noble Lady, Baroness Benjamin, here today. Her cultural, fun and creative approach to education so inspired me.
In the mass car factory closures of the 1970s, my father was made redundant. There was no plan, no just transition—literally thousands of people unemployed in an instant; they, their families and local communities facing destitution. My dad left school in Donegal at 14, as there were no more schools. A very bright, compassionate man, driven by work to support his family—unemployed. In my young teens, I remember him walking through industrial estate after industrial estate, looking for work.
I am passionate about the right to decent employment, the creative and green agendas, workers’ rights, gender, disability and cultural equality. As an MEP, we commissioned research which proved the link between cases of childhood asthma and the burning of dirty fossil fuels. I had the privilege of chairing and being the president of the European Forum for Renewable Energy Sources. I became Energy MEP of the Year in 2017 for our work in fighting energy poverty. No one should be disconnected through the inability to pay. No one should have to choose between eating, heating or cooling their home. I also had the privilege of moving the resolution to declare a climate emergency across the EU, supported by 28 member states and all EU political parties, apart from the far right. Hearing “27 member states”, not 28, still makes me cry.
In AI, we need ethical and social frameworks. In creating jobs and productivity growth, and in the creative and green sectors we need a just transition, working with our trade unions in advance to train and upskill existing workers and to equip our existing and future workers and our children to access the high-GDP, clean jobs of the future and to drive economic growth and social cohesion—a just transition that leaves no worker, family or community behind. I look forward to working with you all in the future.
Lord Stevenson of Balmacara (Lab)
My Lords, it is a privilege to be in a debate that has three maiden speeches. We have already had two brilliant ones, and I am sure the third will be the same. Both the earlier speakers have managed to do something which is quite hard to do in your Lordships’ House: to open up their background and explain their motivations and thinking, and to rely on their experience to show how fit they are to join us. I was very impressed by the speech we have just heard and the previous one from the noble Lord, Lord Brennan. I hope that we will have many more and that the noble Baroness, Lady Griffin, will share with us the experiences that she has had, which are obviously very relevant and appropriate for us in this House. I look forward to it.
I declare my interest as a former director of the British Film Institute and I also want to join others in thanking my noble friend for securing this debate. The noble Baroness, Lady Thornton—who we will have to call “Baroness Bradford” in future—has certainly set a very high standard for what we are talking about. I want to follow her in a lot of what she said, but I will focus particularly on issues that have arisen because of work I have been doing recently.
I have spent nearly seven years in this Parliament helping the last Government get the Online Safety Bill through and making sure that the CMA had the appropriate complementary powers through the Digital Markets, Competition and Consumers Act. Unfortunately, I take the view that we now need to do a lot more.
The market power of monopoly and oligopoly new tech platforms, combined with a change in their approach from being passive mechanisms for promoting the better circulation of ideas and knowledge to becoming active political players, as seems to be happening in America, means that we have to think again. I argue today that, over the last 14 years, our cultural policies have lacked purpose and have been intellectually moribund. We urgently need them to be rethought if we are to see off the threats we see today from the tech giants, aided by GAI, and those who champion them, as they are clearly acting against our best interests, both individually and as a country.
They call themselves “the disruptors”. To defeat this new threat, we need to lead with an aggressive plan to grow and modernise our cultural industries. This means that the Government need to set out clear cultural objectives and invest in them, not just when there is a market failure but for an explicit, additional purpose: standing firm and signalling their support for British values. The following are just three initial suggestions, which I hope the Government will take on and develop.
Our broadcasting system is the envy of the world. Let us use it to promote and celebrate British values. Why not invest heavily in the BBC and public service broadcasting more generally? The forthcoming BBC charter review and licence settlement should wholeheartedly get behind the talent, skill and expertise of the BBC, which informs, educates and entertains us, to ensure that, at least in Britain, there is a system that provides truth, quality and reliable information about the world in which we live.
The BBC World Service already does a brilliant job flying the flag for truth and democracy. The recent cuts and changes of funding sources have affected that. We should reinvest in this precious resource and help it transition to the new technologies.
Our cultural institutions already mentioned—our archives, libraries, museums and galleries, both national and local—are storehouses of what human endeavour can achieve. Our copyright laws and respect for the rule of law are crucial to keeping us on the right path. We must preserve and enhance them, so that all the evidence of what we had and the risks we face if we turn our backs on it is there to see and study.
I have used the term “British values”, and I know it is highly contested. But these disruptors seek to undermine the things that we all hold dear: a democratic polity, respect for the rule of law, freedom of speech, human rights, kindness, positive intergroup relations, community life and universal education. So much that we hold dear is at stake.
The new technologies have improved many aspects of our lives in many ways, but there is a downside. We will need to work very hard to ensure that the controls now being exercised by a few individuals in charge of these new tech giants are not left unchallenged. We already have the tools to do it; we now need to recognise the role our cultural organisations could play and support them.
Lord Lemos (Lab) (Maiden Speech)
My Lords, I am privileged to be making my maiden speech today. It is only a few days since my introduction, but I could not resist the opportunity of this debate. I refer to my entry on the register of interests.
First, I thank the staff and officers of the House for their warm welcome, especially the doorkeepers—and particularly the doorkeeper who kindly turned down my collar. Kindness and courtesy are hallmarks of your Lordships’ House and I promise to uphold those traditions.
My father brought the family from India to south London in 1963. This was a year subsequently made famous by Philip Larkin, but I was only five years old in 1963. My father was an Anglophile and a great admirer of British democracy. He soon became a lifelong supporter of the Conservative Party. My mother, on the other hand, supported Labour, but always accepted a lift to the polling station on election day from the local Conservatives—her small but important contribution to the ongoing class war. Both my parents would be surprised and proud to see me here today—perhaps even astonished—but not as delighted and proud as I am.
Like my noble friend Lady Andrews, who kindly supported my introduction, I worked with Lord Young of Dartington at the Institute for Community Studies in Bethnal Green. Michael Young’s view was that everyone, most especially himself, had to think about, to write about and to do lots of things, all at the same time. I acquired the habit of professional multitasking from Michael.
My main professional vocation has been researching and writing about public policy. For many years, I also worked in financial services, where I first met my noble friend Lord Stevenson of Balmacara. He also supported me at my introduction. I am now proud to be chair of National Savings & Investments as well as of English Heritage. I will shortly stand down as lead non-executive director of His Majesty’s Prison and Probation Service. Noble Lords do not need me to remind them that prisons and probation face intractable and enduring challenges. The arrival of my noble friend Lord Timpson as Minister has given us all great hope.
I have also been deputy chair of the British Council, supporting my noble friends Lady Kennedy of The Shaws and Lord Kinnock, before taking over briefly myself. The British Council is, of course, the principal agency for promoting our creative industries internationally. I am the unremunerated chair of the Hofesh Shechter Company which undertakes more international touring than any other UK-based contemporary dance company. In 2025, 200,000 people will watch our dancers all over the world, including a full house at the Old Vic tonight.
International touring is increasingly difficult for theatre, music and dance. Tax and visa regulations have become immeasurably more complicated, extremely time-consuming and expensive. Everyone in the performing arts hopes that improving relations with the European Union will greatly simplify and speed up these arrangements. My noble friend Lady Hodge is reviewing Arts Council England. I hope she recommends that it publishes a strategy not just to remove these obstacles to international touring but, more importantly, to fulfil the potential of the performing arts as cultural exports of British creative excellence. Britain’s international reputation will be greatly enhanced, as well as our soft power on which we so rely. As other noble Lords have mentioned, creativity is the wellspring of many of the UK’s best prospects for economic growth. I hope the Minister will agree that when it comes to celebrating British creative excellence internationally, all the world’s a stage.
Baroness Prashar (CB)
My Lords, it is a pleasure to follow the noble Lord, Lord Lemos. I warmly congratulate him on his magnificent maiden speech. It was characteristically crisp, succinct and to the point. As is evident from his speech, the noble Lord is indeed multifaceted and a multitasker, though with a very sharp intellect. I describe him as a Renaissance man with panache. He has devoted his career to public and social policy and to the creative arts with great distinction. The noble Lord is also an author. He has written some very good books with some creative thinking about prisons. I recommend them to your Lordships. Some 30-plus years ago, he worked with me at the Arts Council and the Civil Service Commission, and we have been friends ever since, so noble Lords can imagine that I am delighted that he is now in your Lordships’ House where he will make a magnificent contribution. We will all benefit from his enormous experience, expertise, good judgment and, of course, his sense of fun. I welcome him.
I thank the noble Baroness, Lady Thornton, for introducing this debate. As we have heard, the creative industries generate jobs, innovation and growth, bring in inward investment, enhance our international standing and are a vehicle for our soft power. The strength of the creative sector is also felt regionally and locally, promoting opportunities for well-being, inclusion and the enjoyment of individuals and communities.
The Government have rightly identified the creative industries as one of the eight growth-driving sectors. Their positive announcements are very encouraging. However, as we have heard, regional disparities remain, and inequalities persist. We have heard about class inequalities. As we have also heard, the potential for growth is huge. To unleash this potential, we have to ensure imaginative, joined-up and focused action. The devil, as ever, is in the detail and in the execution of policies.
It is important not to lose focus on some of the smaller subsectors. As Creative UK and the Crafts Council have pointed out, certain subsectors, such as traditional arts and heritage sectors, may find it a challenge to demonstrate immediate, high, short-term growth but have long-term potential as incubators for the cultural and creative industries and as important enablers of growth. Equally important are initiatives to address skills shortages and access flexible finance. What is needed are flexible apprenticeships, vocational education, better funded creative arts education in schools and a more tailored approach to stimulate different subsectors ranging from music and theatre to games and the interactive entertainment industry. Equally important are digital education, humanities and research and development in universities because we must look after humanities in our universities.
This is a moment of huge opportunity to reimagine growth financing and find imaginative solutions to tackle regional disparities, particularly against the background of greater devolution. As has been suggested by the RSA and others, this requires joining up local clusters into creative corridors to enable collaboration and the transference and cross-pollination of ideas and skills. In other words, it is about creating an ecosystem for mutual benefit and systemic change. The Government’s announcements are right, but can the Minister say whether the issues that I have mentioned are high on the agenda? How are they being implemented? Are they ensuring that different policies do not cut across each other?
My final point is about something that others have alluded to: our gold-standard IP rights framework, which is the bedrock for creators and must be protected. While creative industries have embraced AI, generative AI, which uses models to create new content, is where issues are being experienced in relation to IP. Material is being used without permission or payment, which is plain wrong and unlawful and devalues human creativity. Arguments about this issue were forcefully advanced last week by the noble Baroness, Lady Kidron, and the noble Lord, Lord Foster, so I will not rehearse them. I know that the Government have launched a consultation, but strong concerns remain. It would therefore be helpful to get an assurance that the Government will not make any changes that jeopardise the creative sector and put undue burdens on creators. As everyone has said, the creative industries are extremely important for individuals. As the saying goes: if you have two pennies, use one to feed yourself and the other to feed your soul.
The Earl of Clancarty (CB)
My Lords, I thank the noble Baroness, Lady Thornton, for this debate and congratulate all three maiden speakers. I declare an interest as a visual artist, but I am afraid that I have no drumming skills.
Any money put into the arts is to be welcomed, and individual arts projects, such as the centre for new writing in Newcastle, doubly so. However, £60 million in Treasury terms is not a great deal of money. The Government will not like me for saying this—or perhaps they will, I do not know—but at present they are largely doing the same thing as the previous Government by putting some money into the already commercialised creative industries, while the arts—in the shape of, for example, our theatres and civic museums, which were mentioned by the noble Lord, Lord Stevenson—lie under the threat of closure and urgently require funding.
SOLT and UK Theatre say that the addition of five council-owned venues to the Theatres at Risk Register 2025 was “sadly unsurprising”. They have urged the Government to commit £300 million over 10 years to addressing this one specific concern, which is five times the amount of money recently announced. Yet the amount of money needed to put all this right and to fund new projects would still be a drop in the ocean in terms of Treasury funding. As ACE studies show, every pound put into the arts generates £5 of tax revenue, while every job created in the sector creates another 1.65 jobs. There is the evidence that the arts, as well as the more commercialised industries, generate growth.
Of course, this Government should not need to be told that to stint on public investment in this sector is a false economy. I hope the Government are just making a start, but they could, and should, do an awful lot more, and more quickly, particularly where we are in danger of losing the infrastructure entirely. This includes the artists and so many others employed in the creative industries as freelancers, many of whom have seen a downturn in their income in recent years. Will the Government consider the appointment of a freelance commissioner for the creative industries to look at their concerns?
What plans do the Government have to engage with parliamentarians over the concerns of the Welsh National Opera, which urgently needs more funding? For ailing grass-roots music venues, I have three requests for the Government: first, if the voluntary levy on arenas does not work, it should be made mandatory; secondly, they should restore the 75% business rate; and, thirdly, they should put the agent of change principle on a statutory footing. Will the Government do these things?
Will the concern for the arts around Brexit be raised in the 19 May UK-EU summit, if not before? The Minister will know by now about the concerns of the creative industries in relation to AI. In terms of digital, I also draw the Minister’s attention to the debate on the smart fund, led by the noble Lord, Lord Bassam, in the Data (Use and Access) Bill. The smart fund is a levy put on digital devices to compensate artists for copying their work, which would be a very useful additional fund. I would add to that debate that alignment with similar schemes in Europe could usefully be seen as a significant contribution by DCMS to a reset with the EU.
As was pointed out at the recent Carry on Touring event in the Lords, there has been a drop of 74% in artists touring the EU. At the very least, we need a visa-waiver agreement with the EU and the cabotage arrangements radically reformed. But, to be blunt, those who talk against free movement are, however unwittingly, talking against the creative industries, because this is not just about temporary mobility, itself beset with red tape, costs and delay; it is about those important long-term positions in Europe for artists, including classical musicians, which are so much a necessary part of their career structure, now offered only to those with EEA passports. Until we rejoin the single market, our British artists in every medium will always be at a significant disadvantage compared with their European counterparts.
An important part of the arts infrastructure abroad is the British Council—mentioned by the noble Lord, Lord Lemos—the future of which is threatened. Will the Government ensure that assets will not be sold off, including buildings and its important collection of contemporary artworks, the loss of which would be tragic both for our culture and for soft power? The Government currently put far less money into the British Council than, for example, Germany does the Goethe-Institut. Will they review that? Will they cancel the £200 million still owed on the Covid loan? Not to do so would be yet another false economy.
Viscount Colville of Culross (CB)
My Lords, I declare an interest as a freelance television producer. I too add my thanks to the noble Baroness, Lady Thornton, for securing this debate. I also add my words of praise to the noble Lords who have made their maiden speeches today. They were tremendous, and I look forward very much to working with them all again.
I want to dedicate my speech to the television and film industry, which has been for so long a major spur to growth in the creative industries. In this country, we have some of the most skilled and creative production workforces in world, yet despite these great achievements, the sector is in crisis. Nobody even knows how many people work in it; there are thought to be at least 73,000 creatives and technicians, more than half of whom are freelance. However, a survey of its members by the union BECTU last year revealed that 68% were not working at that time. The situation was worse for the diverse workforce. The great cry last year, as the industry faced a huge commissioning downturn, especially in middle-budget programming, was “Survive ‘til ‘25”.
It is now ‘25 and the outlook for hundreds of smaller production companies and thousands of TV creatives grows even worse. A new survey by CREATe, at the University of Glasgow, reveals that directors are, on average, working for just half the year, down by six weeks from the previous year. Directors UK, which commissioned the report, says that 30% are doing unpaid development and script work just to get considered for a new contract. I have personal knowledge of talented and experienced colleagues working as delivery drivers and tutors to make ends meet between contracts. Another report shows that 64% are looking to leave due to worries about their mental health. Across the country, especially in the nations and regions, where so much of the middle-budget commissioning used to be placed, production companies have no commissions and are closing down.
Of course, lack of finance is at the root of this problem. Noble Lords know of the downturn in advertising in the commercial television sector and the reduction by a third of the BBC’s funding under the last Government. It is the responsibility of this Government to ensure that the sector is financially sound. I was very pleased to hear support for the BBC voiced by the noble Lord, Lord Stevenson of Balmacara. The BBC is the creative engine of the industry. I wonder about the present Government’s attitude towards it, having been so positive in opposition. I was astonished to hear the Secretary of State propose losing the BBC’s editorial independence with the taxpayer-funded model, only to retract the suggestion a week later. The Government are now consulting on funding options in the run-up to charter renewal. There have already been many reports and consultations on this issue; it should not take too long to come to some sort of conclusion. My preferred option is a household levy.
However, it is the structure of the industry that is causing so many other problems. Freelancing in TV is not like in any other industries: the variety and nature of contracts need special understanding. The terror of being labelled an unemployable troublemaker lurks in the back of every freelancer’s mind as they fail to report not being paid on time or being bullied at work. Although ScreenSkills does some valuable work, there is little training and no structured career development for most freelancers. If this valuable sector is to survive, I, like my noble friend Lord Clancarty, call on the Minister to think hard about setting up a freelance commissioner to fight the creatives’ corner. The good work done by the Small Business Commissioner shows what can be done for small companies, but she cannot fight on behalf of individuals.
Finally, I add my voice to many others in demanding that the Government safeguard the revenues of our creatives by ensuring that tech companies are made to adhere to our world-class copyright regime. The Government’s opt-out proposal will lead to the death of our second most successful industry, and I hope that the Minister will understand and support the widespread concern that there is about this. As we speak, creatives are being driven out of the television industry by lack of work and lack of prospects. I ask the Minister not to delay on implementing my suggestions before we see the destruction of one of the important parts of our creative industry.
Baroness Donaghy (Lab)
My Lords, I thank my noble friend Lady Thornton for this debate, and it is great to see her on top form. My inspiration has always been the theatre. To be taken as a schoolchild to Stratford by our English teacher to see, for example, Paul Scofield’s “King Lear” or Vanessa Redgrave and Peter O’Toole in “The Taming of the Shrew”, established a lifetime interest. It was positively thrilling to listen to the three wonderful maiden speeches, from the noble Lord, Lord Brennan, the noble Baroness, Lady Griffin, and the noble Lord, Lord Lemos—it is a privilege to have been here today for that.
I also congratulate the Government on recognising in their industrial strategy that the creative industries are one of the eight growth-driving sectors. We are world-leading in so many subsectors of the creative industries, but not really thanks to any government support up to now, and I echo the words of the noble Earl, Lord Clancarty, about supporting freelancers. I welcome the establishment of the Creative Industries Taskforce, and it will focus on areas such as crowding in investment, access to opportunity, people and skills, and supporting innovation. As a member of the Royal Shakespeare Company, I am aware of the great impact on the RSC of the noble Baroness, Lady Vadera, as its chair.
I will concentrate on our heritage sector, on higher education funding and on barriers to talent such as poor employment conditions.
We neglect our heritage sector at our peril. Creative UK has pointed out that our heritage sector may find it a challenge to immediately demonstrate high short-term growth, but it has long-term potential. It is right when it states that the heritage sector is
“an incubator for the cultural and creative industries”.
We are debating here in a historic Chamber of a historic building that, as politicians, we cannot even agree to leave to preserve our precious heritage and to ensure restoration and renewal is carried out in the most cost-effective way. It is a history of lack of political will and shameful neglect. Will the Minister accept that our national heritage is an important part of any strategy in our creative sector?
The cost of funding higher education courses supporting the creative sector is often comparatively high, with state-of-the-art studios and facilities, highly skilled technicians and specialist equipment, materials and space, yet they are not recognised as strategically important by the Office for Students. Its measure of quality also disadvantages creative subjects, with its narrow focus on the job that graduates are working in just 15 months after finishing their studies. While outcomes are important, this fails to recognise the unique make-up of the creative sector, which has a high proportion of start-ups and micro-businesses, and where graduates frequently see non-linear career progression, often working freelance or on short-term projects. Will discussions take place with the Office for Students about this prioritisation?
The British Academy and the University of the Arts London—it is good to see the noble Lord, Lord Bichard, in his place, because of his background in those colleges—have mentioned the importance of research and development. Despite the economic value of the creative industries, we undervalue and undercount them in terms of research and development. It is harder to capture and less well supported by policy levers such as tax credits. Will there be a shift in this prejudice?
Although most jobs in this sector are insecure and short-term, the industry need not be identified with a low-paid, precarious existence. Unpaid internships and working for exposure are prevalent. Those from lower socioeconomic backgrounds or the disabled should not be locked out of a creative career. Will there be discussions with the trade unions in the sector to improve conditions?
Finally, I find it is an absolute privilege to take part in this debate this afternoon, and it is wonderful to know the richness of experience and commitment that we have in our House.
Lord Davies of Brixton (Lab)
My Lords, this has been an inspiring debate, and we are all lucky to participate. I must, of course, pay tribute to our three excellent maiden speakers today: my noble friends Lord Brennan of Canton, Lady Griffin of Princethorpe and Lord Lemos. We must also thank my noble friend Lady Thornton for securing us this debate. As she explained, the Government have made it clear that the creative industries are a cornerstone of their mission to create jobs and boost productivity.
Our film and TV sector is not just a source of entertainment but a powerhouse of economic and cultural significance, yet it is important that we do not take it for granted. Its continued success requires our urgent attention. I draw the House’s attention to the remarks of my noble friend Lady Donaghy and the noble Viscount, Lord Colville of Culross, who emphasised the importance of the workforce and our need to support it in achieving its success.
I must therefore ask my noble friend the Minister to read a recent survey conducted by the organisation the Film and TV Charity entitled the Looking Glass Report 2024. I hope that she will commit to study the report and take action on the picture it reveals. It is an authoritative assessment of the mental health of behind-the-scenes workers in the industry, who provide the foundation of much of our creative industries’ success. Unfortunately, the survey paints a deeply concerning picture. The mental health of those working in our screen industries—television and film—is in crisis. The figures are stark: 64% of professionals have considered leaving the industry due to poor mental health, and an alarming 32% have already begun taking steps to exit the industry. Those are not just statistics; they sound a wake-up call that we must not ignore.
But amid these challenges there are signs of hope. Over the past five years, targeted interventions have started to shift working practices and culture in the right direction. Organisations such as the Film and TV Charity are leading the way, striving to create a healthier and more sustainable industry. Its work is invaluable, but it cannot be its fight alone. We must ask ourselves what more can be done. The Government have a responsibility to ensure that those who fuel one of our most vital sectors—as has been made so clear in this debate—are supported, protected and valued. This is not just about fairness or moral duty; it is about safeguarding the future of our creative industries. A thriving creative sector is built on the well-being of its people. If we fail them, we risk losing not just individuals but the very heart of our film and television industry. It is time for real meaningful action.
Baroness Goudie (Lab)
My Lords, I congratulate the three new Members of the House of Lords on their maiden speeches, which were exciting and interesting. I thank my noble friend Lady Thornton for securing the debate today and to see that she is so well, having been quite ill. It was quite worrying for all of us and it is a pleasure that she is back here today.
I will concentrate on the funding, growth, jobs and productivity that the creative industries bring to the country. The Government must continue to invest even more in the creative industries, including in education at the very beginning of schooling, from play schools right through, as that is where children learn to become interested and to use the skills they have inherited. I was lucky as a child to be brought up in a house that was full of music and Irish culture. My father also enjoyed taking us to the films he thought were educational. So I, like many people, was very lucky.
On the economic contribution, in 2023 the creative industries contributed £124 billion in gross value added to the UK economy, accounting for 5.2% of the total GVA. The largest subsector was IT, software and computer services, contributing £49.1 billion, or 2.07% of the total GVA. Other significant subsectors included advertising and marketing, and film, TV, radio and photography, which brought in £21.2 billion. These figures are large, I am sorry, but they are important to know, and to have in Hansard, for the Government to understand why they must continue to contribute and give support to these industries, so that we do not lose them. Between 2010 and 2023, the creative industries grew by 35%, adjusted for inflation, outpacing the overall UK economy’s growth of 22% during the same period.
On employment and earnings, we have heard from other noble Lords how important employment is and how worrying it is that people in certain industries are not being supported and that there is not funding for this. We must support and encourage the BBC and others to create and commission new works, besides the ones we continually see every week that are repeated round and round. We must have some new work produced, contracts let and so on. Also, these programmes are sold abroad, which brings a big income for the UK. I agree with my noble friend about people having to take other jobs when they are not being contracts to write.
The creative industries are predominantly composed of small and medium-sized enterprises, which are the backbone of the UK’s economy. In 2023, 95% of businesses in the sector had fewer than 10 employees. Despite their size, these businesses have made substantial contributions to the economy.
Productivity in the creative industries, measured at GVA per hour worked, was £46 in 2023, higher than the UK average of £40. This indicates that the sector is more productive than the economy as a whole. What this industry brings to the country has to be noted, because many people laugh and think it is somewhere over there; it is key to what this country has to do. We have to look again at the whole question of VAT and visas; that is for another debate, but it is important.
The UK exported £46 billion-worth of services from the creative industries in 2023, accounting for 12% of total service exports. The largest export markets were the USA and the EU. Foreign direct investment in the creative industries was £5.9 billion in 2023, representing 10% of the total investment to the UK. I got these figures from the Library or the Economist, if anybody wants to check them out.
Although London remains a central hub, other regions have seen significant growth in the creative industries. For instance, the north-west and the West Midlands experienced notable increases in both employment and contributions from the sector between 2010 and 2023.
There has also been high tourism to Scotland, as one of our colleagues mentioned, and to Northern Ireland, which is becoming quite a place for theatre and music. It is important that we make sure we give subsidies to there.
Lord Freyberg (CB)
My Lords, I too thank the noble Baroness, Lady Thornton, for initiating this timely debate. I congratulate the noble Lords, Lord Brennan and Lord Lemos, and the noble Baroness, Lady Griffin, on their inspiring speeches. I declare my interest as an artist member of DACS, the Design and Artists Copyright Society; here I echo the noble Lord, Lord Berkeley, and others on copyright and how we should protect our creatives.
I will focus on the impact of cross-border trade and regulation on our creative industries. Our creative sector is a pillar of economic growth and cultural influence, yet increasing trade barriers and excessive regulation are eroding our competitive edge. The UK art market exemplifies these challenges. London has been a leading hub for art transactions, supporting over 45,000 jobs directly and nearly 38,000 through ancillary services such as logistics, conservation and marketing. However, our market share has declined from 34% in 2008 to just 17% today, while art imports have plummeted from 24% to just 7% in the past decade.
While large institutions struggle, small craft businesses and independent artisans are particularly vulnerable. These enterprises, from ceramicists to jewellers, form the backbone of our local creative economies. A local potter shipping to European galleries now faces paperwork costs exceeding £100 per shipment, which is prohibitive for items selling for just a few hundred pounds.
The post-Brexit trading environment has significant obstacles. The combination of import VAT and customs checks has turned what was once a smooth process into a bureaucratic nightmare. Compared with major art markets such as New York and Hong Kong, our import procedures are more expensive and administratively cumbersome. This creates a significant disadvantage in attracting international business and investment.
A severe lack of specialist customs infrastructure for inspecting artworks and collecting import VAT has created significant barriers to art movement between the UK and the EU. Although comprehensive data is limited, the evidence from dealers, auction house and shipping companies reveals widespread disruption. Art handlers report major delays at inspection points that are ill-equipped for handling sensitive artworks, while the complex VAT system of collections has created costly administrative burdens for galleries and dealers.
A telling example is the relocation of a major art shipper from Wiltshire to Brussels, due to unsustainable delays at Dover and Folkestone. Where previously multiple weekly shipments entered UK warehouses for international distribution, they are now consolidated into a single weekly UK delivery from Brussels. These barriers have contributed to the closure of London art fairs, such as Masterpiece and London Art Week, and significantly impacted the ability of auction houses to source works of art for UK sales, with major houses such as Sotheby’s and Christie’s reporting substantial difficulties in importing art for London auctions. The ripple effect extends beyond the art auction houses; it impacts restorers, transporters, framers and other related businesses. The very ecosystem that sustains our creative industries is under threat.
Adding to this burden is overregulation. Although anti-money laundering laws serve an important purpose, they disproportionately impact smaller businesses. Many independent craftspeople now find themselves drowning in compliance paperwork. A small ceramics studio must complete the same complex documentation as a major gallery shipping million-pound artworks. Courier companies compound these challenges by adding their own layers of bureaucracy: charging additional handling fees, requiring duplicate paperwork and often holding shipments in customs clearance for longer than is necessary.
If we are serious about maintaining our status as a global cultural hub, we must act decisively. First, we must simplify import procedures. The reintroduction of zero rating for art imports would bring the UK in line with New York and Hong Kong. If this is not possible, extending temporary admission arrangements would significantly reduce burdens. Secondly, we must ensure proportionate regulations. Raising the AML compliance threshold from £10,000 to £30,000 would provide much-needed relief. Thirdly, we must create a simplified trade framework for small-scale creative businesses. A streamlined craft export scheme for shipments of under £5,000 would help thousands of independent artisans to maintain vital international connections. I hope that the Minister will look favourably on these things.
Viscount Chandos (Lab)
My Lords, we are all grateful to my noble friend Lady Thornton for securing this debate and for her powerful introduction to it. I also congratulate my three noble friends who have held their premieres today so impressively—not so much a maiden over as a hat-trick, to mix my sectoral analogies. I draw the House’s attention to my interests in the register, specifically in this context as vice-chair of LAMDA, a director of RSMB, chair of the Theseus Agency and an adviser to WFO Services. One of my sons is also a screenwriter.
Speaking near the end of this stimulating debate, I am reminded how strongly the desire to support and grow the creative industries is shared on all sides of the House. I welcome, for instance, the continuity embraced by the new Labour Government in areas such as independent film tax credit, as well as the decision not to reduce tax relief for museums, galleries and orchestras that the previous Government had envisaged. The deep talent pool in the UK is the key factor in attracting investment and production, but stability of the fiscal rules, as the noble Baroness, Lady Penn, said, is also vital and those should be at internationally competitive levels.
That talent pool is founded on the outstanding education and training provided in the UK, whether through conservatoires or apprenticeships, and I welcome the initiative of my right honourable friend the DCMS Secretary of State to change apprenticeship rules to more easily relate to the timescale of individual film or television productions.
I will use the remainder of my time to talk about the vital importance of the development of film and television studios, particularly outside London and the south-east. The boom in the past 15 years in high-end television drama resulting from the growth of global streaming services, alongside the continuing high levels of feature film production, exposed a shortage of capacity in studios. Even if there has been some additional capacity built and some moderation in levels of production recently, the long-term requirement for quality studio space and related services is likely to remain high.
I therefore welcome the decision of my right honourable friend the Deputy Prime Minister to call in the Marlow Film Studios project, turned down by Buckinghamshire Council. I am also watching with interest the progress of the planning application for the Camden Film Quarter—200 yards from my flat in Kentish Town. The concentration of film and television jobs in London and the south-east referred to by the noble Lord, Lord Londesborough, should drive us, however strong the effect of cluster theory may be, to do everything possible to create vibrant and viable clusters throughout the whole of the UK.
One such opportunity is the Digbeth Loc. Studios project in Birmingham, driven relentlessly over many years by Steve Knight, the creator and writer of “Peaky Blinders” and most recently of “Maria”, whose deeply touching portrayal of Maria Callas is a vivid demonstration of the interconnection between different art forms—highly recommended even for those who are not opera lovers. “MasterChef” has already built its new home on the Digbeth site, and the “Peaky Blinders” feature film was shot there, using the great Victorian warehouses. The BBC is moving its Midlands headquarters to an adjoining site, the Tea Factory, and the HS2 terminal in Curzon Street is a few minutes’ walk away. Not only would the full development of Digbeth Loc. provide significant employment in the creative industries in a region in which such jobs are disproportionately scarce, but it could be a critical factor in the broader redevelopment of the area, creating quality housing and other commercial space—a vivid illustration in a microcosm of the impact that the creative industries can have on wider aspects of our society and economy.
The Government have provided £25 million of funding to the North East Combined Authority to support the Crown Works studios project in Sunderland, which I applaud, and have indicated that in the current spending review the West Midlands will receive priority funding in relation to the creative industries. Will my noble friend the Minister ensure that support for the Digbeth Loc. Studios is central to determining the funding made available to the West Midlands Combined Authority?
Baroness Warwick of Undercliffe (Lab)
I thank my noble friend Lady Thornton for her comprehensive introduction to this timely debate and I echo her paean of praise for her native city of Bradford and its programme as City of Culture. I too claim Bradford as my native city and I return as regularly as I can for a pilgrimage to Saltaire to its wonderful Hockney gallery there. With everyone else, I congratulate my three noble friends on their wonderful maiden speeches and look forward enormously to hearing more from them.
As others have mentioned, the creative industries contribute £124 billion to the UK economy and account for 2.4 million jobs across the UK. The statistics speak for themselves. Our creative industries are vital to our future prosperity and the Government’s growth mission. We are absolutely right to prioritise these industries in our industrial plan.
The Creative Industries Growth Summit last month set out £60 million of funding for projects and programmes across the UK, and that is a great start. To take just one example, the proposed new glassworks in Sunderland will create one of the few places in the UK with the specialist facilities for artists to create and produce glass. It will link Sunderland’s long glass-making heritage with its creative future, breathing new life into the city, and it has been widely welcomed by creative businesses in the area.
It is most certainly a step in the right direction, but we have a long walk ahead. Glass-making may seem rather niche in the grand scheme of things but, as we have heard, the creative industries in the UK cover a wide range, from the biggest in terms of GVA—IT, software and computer services—to the smallest subsector, which has the rather cosy-sounding title of crafts. This is a sector I am particularly interested in. It has some distinctive characteristics relevant to the wider picture. I hope the Minister will heed the concerns expressed so cogently by the noble Lord, Lord Freyberg. I declare that I am pleased to be a member of the APPG for Craft.
Crafts are a small subsector of our creative industries. They account for just 10,000 jobs in the UK and £0.4 billion in GVA. However, craft skills and businesses both service and power many other creative industries. Craft skills and services are applied in fields ranging from engineering, architecture and medicine to fashion and design. They may include textiles, furniture-making, metalworking and fabrication, ceramics, and printmaking to—as we have heard—support film, television, theatre and gaming, as well as delivering small-batch manufacturing.
Most craft businesses are micro-businesses with fewer than 10 employees. Many are sole traders or freelancers. They often operate in clusters that have grown out of traditional and heritage industries that are very localised. This is good for stimulating growth outside London, but their size also presents challenges for growth, not least in accessing training and skills development.
I raise the point about training because I know the Government are aware of a potential skills shortage within the creative economy. A report last year from Creative PEC—the Creative Industries Policy and Evidence Centre—highlighted the decline in student numbers in creative further education right across the UK. It also showed low take-up of creative industries apprenticeships. Those aligned to the creative industries accounted for just 8.7% of apprenticeships in England, with the vast majority of these being in information and communications technology, leaving those in subjects such as creative arts and design very low indeed. This is alarming. Apprenticeships are vital to ensure the future of our creative industries. Yet the inflexible apprenticeship levy and its assumption that all businesses need a steady pipeline of 12-month apprenticeships does not serve the small businesses within the creative industries.
The Government’s intention to bring in shorter apprenticeships and to reform the apprenticeship levy into a growth and skills levy is therefore really good news. The reformed levy should enable micro-businesses to offer more work-based learning for vocational and apprenticeship courses. More flexibility in the use of the levy will help creative employers identify where else the apprenticeship system can help them get the skills they need.
However, does this go far enough? What else can we do? Can the Minister tell us more about how Skills England will work with all those involved to keep in mind the distinctive nature of micro-businesses and help ensure a pipeline of skills in the creative industries?
Baroness Bennett of Manor Castle (GP)
My Lords, I thank the Whips for their flexibility that has allowed me to participate in this debate without having to sprint between the Moses Room and your Lordships’ Chamber. I declare my interest an as author. I am not sure whether trade non-fiction counts as creative sector, but it is certainly somewhere in the vicinity. My second book is on the way.
Like everyone, I thank the noble Baroness, Lady Thornton, for securing what has been a very rich debate and for her enthusiastic and optimistic introduction. Like her and a number of other noble Lords, I look forward to Bradford’s year in the spotlight.
The noble Baroness’s question has a fairly narrow focus, on the importance of the creative industries to jobs and growth. I shall leave the debate about a post-growth age for another day, but I will take a moment to stress the importance of the creative sector and of the opportunity for every human being to exercise their creative impulse beyond the economy. This is crucial to human well-being and flourishing—to human life.
Let us think about walking past a cheerful mural painted by a local artist working with local schoolchildren; we need much more public art in our country to enrich our society. Let us think about people visiting a town centre in order to see a temporary installation made out of waste plastic, of which there is far too much; that makes a political point, but it also builds a community. Let us think about people simply being able to express their anger and frustration at the state of the world and the challenges they face in a creative form, which can be absolutely vital for people’s mental health.
Something perhaps slightly less obvious to many people is that, while the Government are very focused on progressing science, the creative sector and the scientific sector are intimately interlinked. It is in the creative sphere that many ideas and developments of scientific thought happen. If noble Lords are looking for an example of this, I have to mention a great book I was reading recently: Children of Time by Adrian Tchaikovsky. It takes the scientific understanding of the intelligence of octopuses and starts to imagine, in ways a scientist never could, what that might actually mean. It is absolutely fascinating.
I will make three brief points in the time available. In particular, I want to pick up on a briefing from the BPI on an issue I have raised in other contexts: artificial intelligence, and the way in which so-called generative AI has, without apparent legal standing or justification, been taking the work of many creative individuals and using it for someone else’s purposes. Generative AI is plagiarism, and we need to see much more action in that space from the Government.
I also want to focus briefly—here I am drawing on a briefing from the Music Venues Alliance—on the collapse of the provision of small-scale venues outside London, and even within London. This particularly applies to music venues, but also to theatres. In another life, I was a reviewer of fringe theatre in London, and some of those venues are no longer functional. I wonder how many of the young actors I saw in those events are still able to be in the creative sector, and how many have been forced out.
That brings me to my final point, and it is one of the reasons why I particularly wanted to take part in this debate. The noble Baroness, Lady Donaghy, spoke about how many people, particularly those from disadvantaged communities, are locked out of a career in the creative sector. The noble Viscount, Lord Colville, spoke about how many people are being forced into ill-health by the pressure and the uncertainty. Britain is not world-leading in trialling alternative approaches. The Irish Government are offering 2,000 artists a basic income of €325 a week over three years. The city of San Francisco is experimenting with a basic income scheme for 130 artists for 18 months, and in the Netherlands a music industry organisation is conducting a smaller scale trial. If we are going to have a functioning, healthy creative sector with a wide range of people involved, I put to the Minister and the Government that, surely, they could at least look at trialling a basic income as a way of allowing the creative sector to begin to flourish again.
Baroness Wheatcroft (CB)
My Lords, what an uplifting debate this is. We all agree on the importance of the creative industries, and we have heard some wonderful personal experiences. It is a pleasure to follow the noble Baroness, Lady Bennett of Manor Castle, and her emphasis on the mental well-being that the creative industries give us. Certainly, on Sunday afternoon, I felt a lot better after a visit to the Festival Hall and a Beethoven concerto.
I thank the noble Baroness, Lady Thornton, for securing this debate and introducing it so effectively. I add my voice to the praises already heaped on those three wonderful maiden speeches. It is fitting that we should be having this discussion today, since tomorrow is the 80th anniversary of the first royal charter to be given to the Arts Council. The driving force behind the creation of that body was not just a champion of the arts but a hard-headed economist: John Maynard Keynes. Keynes recognised, as many speakers today have done, that a thriving arts scene is not an indulgence but an imperative for a thriving economy.
The arts and our creative industries are inextricably linked. One might go so far as to argue that, increasingly, every industry must be creative to flourish. It takes creative thought as well as science to produce new products, and it certainly takes creative thought to market the results. There may not be a huge amount of innovation in a breakfast cereal that consists of 95% wheat, but when the country is told that not eating enough of it is responsible for Britain’s decline, it is a creative triumph. BBH, the agency responsible for that wonderful Weetabix ad, is actually British, but it is owned entirely by a French business now. That, of course, is one of the problems for our creative industry as well as for so many other sectors: in the end, they do not belong to this country.
We all agree that the creative industries will help to reverse the decline that we have seen in the UK—if cereal alone cannot do it, of course—so I will restrict my remarks to two specific areas. The first is the wonderful attractions this country has, which do so much to draw international visitors, and their money, to the UK. I declare an interest as a past chairman of the Association of Leading Visitor Attractions. Our museums, galleries, castles and historic houses are as much a part of the creative industries as the film production companies that use them as locations. They are creative industries as well—they are hugely creative in the exhibitions and the special events they stage—but, as the noble Baroness, Lady Donaghy, pointed out, many of them are finding life tough. They are struggling with deficits accumulated during the pandemic, and local authorities cannot afford to fund them.
The chief executive of the Arts Council, Darren Henley, points out that it is a mistake to refer to such funding as subsidy; it is investment. But, even as investment in the community and the country, it is increasingly hard to find. So institutions need to be even more creative in finding means to survive and thrive. That may mean more sharing of their assets or more lending of objects, and it must mean more help from philanthropists. So will the Government look at doing more to encourage those who have a great deal of money—some of it quite recently acquired—to put more of it into these institutions? This sort of philanthropy is still not the badge of honour in the UK that it is in the US.
My second point relates to the need to grow creative businesses. Like so many other sectors, they stick at one stage and then get sold out or just stay at the same level. We need to get better at scaling up. We have talked about it for a very long time in the UK, and now we need to do it. One means of doing it—like others, I ask the Minister to take a bigger look at this—is improving the R&D structure for the creative industries. It needs to be much more imaginative, and there is certainly scope; the Royal Society has done some work on that that might help her.
Viscount Stansgate (Lab)
My Lords, I am grateful for the opportunity to make a short contribution in the gap. I congratulate my noble friend Lady Thornton, whose impressive and comprehensive maiden speech I had the pleasure of listening to from the vantage point of the Woolsack. I wish to say to today’s three maiden speakers how excellent they all were; they will all feel a lot better for having done it. Their speeches were all made remarkably soon after their introductions, and the House will be richer for their contributions in future.
Before Christmas, we had a debate with the same title as today’s, with the slight difference that in place of the words “creative industries” were the words “science and technology”. I therefore rise to make just one point: creativity and the industries to which it gives rise can be found everywhere—in maths as well as music. Incidentally, I cannot resist endorsing everything that was said about trying to improve the ability of our musicians, youth orchestras and so on to tour in Europe. Creativity is just as great in both, so I hope the House will not artificially think there is a separation between the debate we are having today on the creative industries and the one we had before Christmas on science and technology. As I say, the creativity is one and the same.
Mention has been made of artificial intelligence. AI is the product of human creativity, so it is all the more important that we do not let AI exploit human creativity. I hope that, when people think about the effect of the creative industries on the economy of the country, they will also see that the arts and sciences are two sides of the same coin. We must do everything we possibly can to support both.
Baroness Bonham-Carter of Yarnbury (LD)
My Lords, I join in thanking the noble Baroness, Lady Thornton, for initiating this debate. She and I have served on committees together, and I know and appreciate her genuine support for culture and creativity. I congratulate and welcome the three maiden speakers, who are champions of the creative industries, which is such a great bonus for the rest of us who support them.
This is the first debate in this House on this incredibly important sector since the general election. We on these Benches welcome the new Government’s emphasis on the creative industries, as laid out in the industrial strategy Green Paper and by the Secretary of State, Lisa Nandy, who said in her speech at the creative industries growth summit that the intention is
“to unleash the power of our creative industries”.
We welcome the continuation of the previous Government’s tax reliefs and their extension to indie films and VFX, as well as the setting up of the Creative Industries Taskforce, mentioned by the noble Viscount, Lord Chandos, and the Soft Power Council—including the mission to harness UK expertise from the creative industries and drive the UK’s soft-power strategy. Essential to this is ensuring proper support for the British Council and the BBC World Service, both of which are facing serious challenges and are in need of sustained and secure investment, as mentioned by the noble Lords, Lord Stevenson and Lord Lemos, and the noble Earl, Lord Clancarty. Will the Minister reassure the House of the Government’s absolute commitment to them?
The previous Government set up the CIC, which is important because it includes creative industry leaders, and is co-chaired by two of them along with the Secretary of State for Culture and the Secretary of State for Business and Trade. However, the Department for Education has never been part of the mix—something that we on these Benches have consistently asked for and we ask for again. A thriving creative sector that will foster growth begins at school with our young people—including the very young, as my noble friend Lady Benjamin consistently tells us—and continues throughout their education.
Thankfully, the Secretary of State for Education understands the importance of returning arts and culture to the centre of the curriculum:
“There is a real issue around creativity in our state schools and the lack of access that state school pupils have to music, sport, art and drama. … I want to make that a really important part of the curriculum in the future”.
The noble Lord, Lord Berkeley, and the noble Baronesses, Lady McIntosh, Lady Nye and Lady Griffin, will be pleased to hear that, because it appears that the STEAM/STEM argument has finally been won. Please let that be the case.
We on these Benches believe that Ofsted inspections should reflect this and give top ratings only to schools that can demonstrate excellence in creative teaching, as well as other subjects. Does the Minister agree? Of course, the problem with the skills pipeline continues post-education, so we welcome the Skills England Bill and reform of the apprenticeship levy—something mentioned by the noble Baroness, Lady Warwick—but this must work for the creative industries. Does the Minister agree that, in order to avoid the mistakes of the past, the creative industries must be involved in the design of the new skills levy?
Something not mentioned so far is that there is a problem with the lack of diversity within the creative workforce. Changes to the apprenticeship levy and the education system will hopefully address this, but more needs to be done. Another part of this problem is that the world of the creative industries is one of freelancers, as mentioned so forcefully by the noble Viscount, Lord Colville, and the noble Earl, Lord Clancarty. The UK’s tax and social security framework is not set up to support freelancers effectively. Can the Minister agree with me, the noble Earl, Lord Clancarty, and the noble Viscount, Lord Colville, that what is needed is a freelance commissioner to champion their rights?
Another impediment to the creative and cultural sector’s contribution to growth is lack of funding, particularly at local level. Due to the necessary prioritisation of statutory responsibilities, cuts have fallen disproportionately on arts organisations. I am a trustee of the Lowry in Salford, a prime example of the importance of local culture and the contribution it can make to a community. Not so long ago, Salford Quays was a place of derelict, disused docks. Now, as mentioned by the noble Baroness, Lady Nye, it is a thriving, creative hub and a creator of wealth, Media City—growth exemplified. The Lowry is more than a building, more than theatres and more than a gallery; it is a catalyst for transformation, not just physically, but in helping and inspiring young people into the creative industries through learning and engagement work. It generates growth in every sense. What has been central to that regeneration is a city council that had the foresight, the commitment and, crucially, the ability to back it. Will the Minister please take note of the excellent LGA report, Cornerstones of Culture, which recommends a return to local decision-making when shaping cultural provision?
We on these Benches believe wholeheartedly in devolution, but there is a risk in the implementation of the Government’s plans that local cultural organisations could be forced further to the fringes of public spending. How can the Government ensure that this will not be the case?
It is no surprise here that I am going to mention Europe, the calamitous consequence of Brexit, as mentioned by the noble Lords, Lord Freyberg and Lord Berkeley, the noble Earl, Lord Clancarty, and so many others, and the knock-on effect on the Government’s growth mission. The ability to access the continent through complicated paperwork, carnets, cabotages and visas is inflicting punishing costs and red tape and inhibiting the ability of creatives from across the sector to flourish. I echo what has been said here: I hope that change is coming. I am not going to mention the European youth mobility scheme, but noble Lords should please look at that again.
Like so many noble Lords, I cannot contribute to this debate without mentioning the existential threat to the creative world that is AI. As my honourable friend, Max Wilkinson, put it when he spoke in another place,
“the Government must not put at risk the value of human creativity”.—[Official Report, Commons, 27/1/25; col. 60.]
My honourable friend conducted an experiment. He asked an expert what would happen if creators lost their intellectual property rights to AI. The expert told him that there was a risk of a loss of income and motivation, a devaluation of creative work, ethical concerns, legal uncertainty and domination by AI operators. The expert my honourable friend consulted was none other than Google Gemini. Does the Minister agree, as asked by so many people in this debate, that we should empower our creative industries to make their own choices about AI usage? They should be an opt-in, rather than opt-out, something, by the way, that my honourable friend Max Wilkinson’s expert, Google Gemini, supports. For human creators, an opt-in model generally offers stronger protection.
All nine sectors that the DCMS designates as our creative industries need to be celebrated and nurtured, but I will end with a special mention for TV. British talent in this area is admired across the world, and central to this are our PSBs. The origin of the word “broadcast” is “to sow seed widely”, and that is what they have done. They have brought the streamers to this country—growth. As the noble Baroness, Lady Thornton, mentioned at the beginning, the BBC single-handedly brings incredible economic benefits. Will the Minister listen to the words of her colleague, the noble Lord, Lord Stevenson, in supporting the future of the BBC and assure the House of her Government’s unequivocal support for a universally available BBC?
Lord Parkinson of Whitley Bay (Con)
My Lords, this has indeed been an uplifting and enjoyable debate. We are all very grateful to the noble Baroness, Lady Thornton, for bringing it before us, not least for the opportunity to hear three such excellent maiden speeches from our new colleagues. I had the pleasure of getting to know the noble Lord, Lord Brennan of Canton, when he was in another place and sat on the DCMS Select Committee there. In fact, I appeared in front of him and his colleagues when I was a minister. He asked me then about the Salisbury–Addison convention, if I remember, which I am sure will serve him well now he sees it from the other House of Parliament. As we heard, he is also one-quarter of the parliamentary band MP4. Another of his colleagues, my colleague Sir Greg Knight, stood down at the last election, so I was pleased to hear that he is already thinking about a lordly equivalent. I hope that he finds a drummer, but even if he does not, he will have heard plenty of people who are keen to bang the drum for the creative industries in our debate today.
Lord Parkinson of Whitley Bay (Con)
There is more coming, I am afraid.
I was also glad to hear from the noble Baroness, Lady Griffin of Princethorpe, who spoke powerfully about her experience in the European Parliament, which she will bring to scrutinising legislation here in your Lordships’ House, not least on the important issue of remuneration for artists and copyright. I understand that, because of a medical appointment, she is unable to be here to receive the praise that she deserves for her excellent maiden speech. She may have had to make it from a sedentary position, but it is very clear that she has already found her feet in your Lordships’ House, and we look forward to hearing more from her.
Lord Parkinson of Whitley Bay (Con)
Quite. I had the pleasure of knowing the noble Lord, Lord Lemos, when I was at DCMS through his work as chairman of English Heritage, which is a brilliant custodian of so much of our inheritance in this country and our scheduled monuments. One of my happiest memories as Minister was attending what was billed, rightly, as not just the restoration but the reawakening of Belsay Hall in Northumberland and celebrating the work that he and his colleagues had overseen there. It is a pleasure to have him here among us in your Lordships’ House. As his speech showed, he is a man of many interests and many areas of expertise. I particularly look forward to his ongoing contributions on heritage and the arts. I am glad that he will be able to keep a particularly close eye on the 14th-century Jewel Tower, part of the Palace of Westminster that survived the fire of 1834 and is now in the care of English Heritage, just across the road from Peers Entrance.
The noble Baroness, Lady Thornton, was a passionate champion for all these sectors in her roles in the Opposition in the previous Parliament. We heard that again today in her powerful and eloquent opening speech. I think it was the noble Lord, Lord Londesborough, who mentioned that the original, longer form of the title pointed rightly to the opportunity for growth in every part of the country. The noble Baroness spoke powerfully for God’s own country of Yorkshire, but I was pleased to hear her mention Whitley Bay.
Indeed, there were a few mentions of the north-east of England, which hosted the growth summit at which the Secretary of State spoke last month, at the Glasshouse International Centre for Music, which celebrates its 20th birthday this year. I was pleased that at that summit the Secretary of State announced the recipients of the fourth round of funding from the cultural development fund, which was something that began in the previous Parliament. I was delighted to see that the centre for writing in Newcastle will be one of the recipients, building on the proud literary heritage of my native city.
The noble Baroness, Lady Thornton, and others spoke about the importance of the City of Culture programme and the wonderful opportunity that Bradford has this year to showcase its arts, heritage and all the new things that one of the country’s youngest cities is doing. I agree with her that all should visit and enjoy what it has in store.
When I saw the Motion, I worried that the creative industries are often narrowly defined. Even within DCMS, there is sometimes a gulf between the creative industries and the arts. It was wonderful to hear not just the noble Baroness but others talking about the performing arts, libraries, our heritage and so much more. As the noble Baroness, Lady McIntosh, is always reminding us, they are so intimately interconnected that we need them all. That point came through from so many noble Lords’ speeches.
I was pleased, too, to hear my noble friend Lord Harlech speaking up for the fashion industry and the noble Baroness, Lady Wheatcroft, talking about advertising. They are areas that often do not get quite as much attention. From architecture to publishing to computer games, there are so many areas in these isles that we should be proud of and seek to champion.
There were many areas of agreement. The creative industries were one of five priority areas for the Chancellor in the previous Government and they are one of the priority areas for our new Chancellor. We had a creative industry sector vision, and there is now a creative industry sector plan. Where we see things in that with which we agree, we will support them wholeheartedly. Like the noble Viscount, Lord Chandos, I was delighted that the Government have recommitted themselves to the tax credits. As the noble Lord, Lord Stevenson, has reminded us before, we owe much to not just Gordon Brown but Margaret Thatcher and previous Governments. It is wonderful to see them being extended, and my noble friend Lady Penn talked powerfully about the impact that they can have. We look forward to working with the Government and scrutinising their work on helping artists on touring and on broadening the curriculum and helping young people of all backgrounds to take up the life-changing opportunities of the arts.
I was pleased to see the noble Baroness, Lady Vadera, take up a role with the Creative Industries Council and the noble Baroness, Lady Hodge, reviewing Arts Council England. I look forward to welcoming Thangam Debbonaire when she is introduced as a noble Baroness. It is wonderful that we have so many rich voices, including the three we have heard today, adding to our debates in your Lordships’ House.
I was pleased about the establishment of the Soft Power Council but, like the noble Earl, Lord Clancarty, I am worried about the reports that I have seen about the British Council and its finances. He asked some very good questions there. I wonder, if it is indeed thinking of selling off some of the artworks in its collection, whether one option might be to look at the acceptance in lieu scheme so that they could be donated to the state in lieu of tax but not lost from the public collection? I wonder whether the noble Baroness will take that idea back to the department to discuss it with her colleagues and those at the Foreign Office.
Where there are things with which we disagree, as the Opposition, we will point them out. I must pick up points that the noble Lord, Lord Londesborough, and others raised about decisions that were taken in the Budget, not least on national insurance contributions. They are making the lives of creative organisations and small businesses, which often operate on very small margins, all the harder. I hope that the Government will look at the impact that their decisions are having on these businesses, which are struggling and which do so much good work looking after things on our behalf.
Earlier this week, my colleagues in the shadow team and I had a meeting with the Historic Houses association. These are small businesses, often families, which run houses for the enjoyment of everybody, supporting some 32,000 jobs and 330 apprenticeships and generating more than £1.3 billion for the UK economy. They are often the biggest employers in their rural areas, and decisions that make employment more expensive have a knock-on effect not just on their business but on the opportunities of young people in these often isolated areas.
I will pick up on the comments that other noble Lords have made about the implications of the Budget for grass-roots music venues, which are so important to the pipeline of talent that we enjoy. Last year, grass-roots music venues staged some 162,000 live events. We want to see many more in more parts of the country.
I began this week at Tate Britain, with the art funder Nesta, at an event called Mini Wonders about early years intervention and the role that museums and galleries can play. As noble Lords have discussed, skills start right at the beginning.
The noble Lord, Lord Berkeley, mentioned the closure of university arts departments. I was pleased to see that Glassworks: Sunderland has been awarded some money from the cultural development fund. There is a national glass centre there already, which has been working with the University of Sunderland. The Education Secretary sits for a constituency in that city. I know that the vice-chancellor of the university has been advising the Government. There is a building there and a facility which was built only 25 years ago with public investment. This is a lesson to us about investment and the pressing capital needs of our cultural estate. We must make sure that we are investing in what we already have, as well as stimulating new activity.
On technology and AI, the noble Baroness, Lady McIntosh, was right to highlight the importance of human endeavour. The noble Baroness, Lady Benjamin, spoke of the threat to quality programming, especially for children. The noble Lord, Lord Stevenson, pointed to some of the many downsides. I know he will remain vigilant.
I wonder whether the Minister has had discussions with her colleagues at the Foreign Office about funding to the World Service, to make sure that its trusted and impartial voices can continue to be heard at the time when they are needed.
Noble Lords raised many important points, particularly in relation to freelancers and the workforce, about making sure that the arts are an attractive and viable career for people of all backgrounds. They listed a number of areas where small changes could make a big difference. The noble Lord, Lord Freyberg, gave a number of examples relating to craftspeople. I have previously raised small changes, such as designating St Pancras as a CITES port, which would help. I wonder whether the Minister has seen the Scene Change report by the National Theatre, which sets out innovative ideas on exploring business model innovations in the arts.
It is clear from all the contributions, including those from our three new colleagues, that your Lordships’ House is brimming with ideas to help us continue to support these vital and thriving sectors of our economy. I am very grateful to noble Lords for their contributions.
The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)
My Lords, I thank my noble friend Lady Thornton for securing this excellent debate. I agree with many noble Lords, including the noble Baroness, Lady Bakewell, who expressed it very well: it has been a truly inspiring debate. I thank all noble Lords for their valuable and varied contributions.
It has been a particular pleasure to hear the maiden speeches of my noble friends Lord Lemos, Lord Brennan of Canton and Lady Griffin of Princethorpe. It is clear that they will make a hugely valuable contribution to your Lordships’ House, not least with their experience and expertise in the creative industries.
I was sorry that the noble Lord, Lord Parkinson, was not named to fill the drummer vacancy. However, like him, I was pleased that my noble friend Lady Thornton mentioned Bradford being the City of Culture. This was echoed by my noble friend Lady Warwick of Undercliffe. I have no doubt that many noble Lords will enjoy this year’s events, which will enable Bradford to tell the world its story and show off its local heritage. It may leave a long legacy, as my noble friend Lady Nye highlighted has been the case with Hull, and my noble friend Lady Griffin of Princethorpe raised in relation to Liverpool. My noble friend Lady Nye and the noble Baroness, Lady Bonham-Carter, also raised the example of Salford. These cities and the way culture and the creative industries have contributed to regeneration and pride in place are the answer to the point raised by the noble Lord, Lord Londesborough, about why we should continue to push for regional growth in the creative arts. My noble friend Lady Goudie also mentioned regional growth, as did my noble friend Lord Chandos, who noted that the power of redevelopment can have much wider economic benefits for cities that benefit from the creative industries.
This was an incredibly positive debate, and I am delighted that we have had the opportunity to debate the creative industries. As the noble Baroness, Lady Bonham-Carter, noted, this is the first debate on this topic that we have had since the election. I hope that we do not have to wait quite so long for the next one.
Our creative industries are powered by absolutely extraordinary people, from artists and technicians to games developers and production accountants. This Government recognise the huge economic potential of these industries, which support more than 2.4 million jobs and represent over 5% of the UK’s total gross value added. From advertising to glassmaking, it is clear that noble Lords are champions of the full range of creative industries. Our creative industries shape UK soft power—a point made by the noble Lord, Lord Harlech, not least in relation to fashion, which he highlighted. The BBC reaches 450 million people a week, our museums are some of the most visited in the world, and the UK is the number one global exporter of books and the second-biggest music exporter after the United States. I join my noble friend Lady McIntosh of Hudnall, and surely all noble Lords, in loving one of our exports: Wallace and Gromit.
The creative industries are already growing at a faster rate than the rest of our economy. As the Secretary of State said at the recent creative industry summit in Gateshead, if one thing underpins everything we want to achieve in government, it is growth. Our plan for change will kick-start growth through our industrial strategy. As noble Lords have noted, the Government have identified the creative industries as one of the eight priority growth-driving sectors.
As my noble friend Lady Thornton highlighted in her speech, the Secretary of State announced a new task force, co-chaired by Sir Peter Bazalgette and the noble Baroness, Lady Vadera, to develop a creative industry sector plan. As a first step, we have announced a £40 million investment across start-up video game studios, British music and film exports, and creative businesses outside of London, as well as over £16 million for the cultural development fund, supporting transformative projects in Newcastle, Sheffield, Somerset and Sunderland. We are working closely with six priority mayoral strategic areas, which will receive additional funding to support the creative industries.
My noble friend Lord Chandos asked about film studios. I agree with him on the importance of developing studio infrastructure across the UK. We welcome the development of emerging hubs, including Digbeth Loc in the West Midlands. Today, BFI statistics revealed a £5.6 billion spend on film and high-end TV in 2024, with “Back to Black” leading the UK independent film charts.
The noble Baroness, Lady Penn, and my noble friend Lord Chandos referenced tax credits. The noble Baroness recognised the importance of the right mix of support through public funding and competitive tax reliefs. This Government have enhanced tax reliefs for independent film and visual effects. The Treasury continues to keep tax policy under review.
The noble Baroness, Lady Prashar, discussed smaller subsectors, and I agree wholeheartedly that we must find the right mix of interventions that recognise the overall creative ecosystem and the specifics of subsectors. That is what we are doing as we develop our sector plans, so I hope I have given her some reassurance on that point.
On wider access to finance, the creative industries are a UK strength but they face barriers to unlocking growth. Too many creative businesses that want to scale up are unable to access the finance they need. This must change. To address that, we have announced that the British Business Bank will increase its support for the creative industries by investing in and supporting high-growth creative businesses, backing venture capital fund managers and supporting lenders.
The noble Baroness, Lady Bakewell, and the noble Lord, Lord Harlech, mentioned R&D. Our creative industries drive innovation, research and development, yet the overall share of UKRI funding for the creative industries does not correspond to the value they bring to the economy. To address this, the Government will strengthen investment in R&D for the creative industries.
Many noble Lords raised the importance of education, including the noble Lord, Lord Parkinson. As the noble Baroness, Lady Bonham-Carter, said, creativity involves children and young people. My noble friend Lady Thornton quoted the Secretary of State where she said that arts and culture must be for everyone everywhere. Too many young people currently do not have access to opportunities, and these are opportunities that I had and valued as a child, and I continue to value them as an adult. Children and young people from less affluent backgrounds struggle to get ahead.
We need the pipeline of talent highlighted by my noble friend Lady Nye. In many ways, this debate could also have been focused on the Government’s opportunity mission. The noble Lord, Lord Berkeley, highlighted how access to arts should not just be for the rich. It cannot be right that young people are currently denied opportunities because they do not have the economic means. The Government are determined to break down barriers and ensure that every child has the opportunities they deserve to achieve their potential.
We recognise that pathways into creative careers can start in school, which is why we have provided £3 million of new funding for the creative careers programme. In July, as referenced by a number of noble Lords, the Government launched an expert-led, independent curriculum and assessment review. It will seek a broader curriculum so that children and young people do not miss out on subjects such as music, arts and drama.
My noble friend Lady Nye asked about teacher shortages and the decline in specialist teachers. High-quality teaching is the biggest in-school factor that makes a difference to a child’s education in creative subjects. The Government are offering a teacher-training incentives package for the 2025-26 recruitment cycle, including a £10,000 tax-free bursary for arts, design and music.
As my noble friend Lady Thornton and others made clear, skills are a priority. Creative education underpins the development of a highly skilled workforce, for which the UK’s creative industries are internationally renowned. As the noble Baroness, Lady Prashar, said, we need to be flexible in order to support creative industries, including the smaller subjects. We recognise that some skills programmes, such as the current apprenticeship system, do not always work for the creative sector. A 12-month apprenticeship is no good at all for employers who need skills for commissions that are shorter than this—a point made eloquently by a number of noble Lords, including my noble friends Lord Chandos and Lady Warwick. As my noble friend Lady Warwick highlighted, the Government will transform the apprenticeships levy into a new growth and skills levy and will bring forward changes so that shorter apprenticeships are available from August 2025, recognising the particular needs of the creative industries.
Skills gaps and shortages are a major constraint on innovation and growth. In response to my noble friend Lady Warwick’s question, Skills England will form a national picture of where skills gaps exist and how they can be addressed.
In relation to the points on freelancers made by the noble Earl, Lord Clancarty, the noble Viscount, Lord Colville, the noble Baroness, Lady Bonham-Carter, and my noble friend Lady Donaghy, we recognise the contribution of creative freelancers and the challenges in the TV sector in particular. Our plan to make work pay will strengthen rights and protections to help freelancers, including the right to a written contract and action to tackle late payment.
Viscount Colville of Culross (CB)
Is the Minister prepared to support the concept of a commissioner for freelancers, as was suggested by my noble friend Lord Clancarty and myself?
Baroness Twycross (Lab)
I will feed that back to the department; I cannot commit to it here and now, but I did hear and note that point. I will feed in points made during the debate to relevant Ministers and teams in the department but I cannot commit to that on the hoof in this debate, as I am sure the noble Viscount understands. I am liable to run short of time so, at this point, I will commit to writing to noble Lords with responses to the many questions asked and the really interesting points made throughout this debate.
Moving on to the question from my noble friend Lord Stevenson, the forthcoming BBB charter review will shape the BBC’s crucial role in the creative economy. This includes skills development, investment in the nations and regions, and continuing the BBC’s vital role as an anchor institution around a creative companies cluster.
The noble Lord, Lord Berkeley, and my noble friend Lady Donaghy raised points about higher education and universities. It is important to understand the role of further and higher education in driving innovation in the creative industries, and we will being forward a comprehensive strategy for post-16 education to help us do this.
The noble Baroness, Lady Benjamin, raised the importance of issues facing children’s TV. The Government recognise the importance of UK-made, high-quality content for children. That is why we are moving ahead with the implementation of the Media Act, which enshrines educational content in the new public service remit. As she noted, consumption is moving to platforms such as YouTube, where content can be more variable. We are discussing with these platforms what may be possible to promote high-quality programmes.
A number of noble Lords, including the noble Lord, Lord Berkeley of Knighton, my noble friends Lady McIntosh and Lord Brennan, the noble Lord, Lord Londesborough, my noble friends Lady Griffin and Lord Stevenson of Balmacara, the noble Baronesses, Lady Prashar and Lady Bonham-Carter, and others almost without exception mentioned issues around AI and IP protection. We hear creatives’ concerns over the impact of AI, in particular the use of copyrighted works in AI training. As my noble friend Lady Thornton said, the Secretary of State has been clear that creatives are the core of our AI strategy. In December, therefore, we published a 10-week consultation to engage AI and creative industry stakeholders on the impact of AI on the copyright regime to clarify the copyright framework for AI: ensuring creators have control over their work, transparency from AI developers and the ability to license their content and be paid for it.
The noble Baroness, Lady Bennett of Manor Castle asked for action, and I sense the urgency that noble Lords feel on this point. We are absolutely clear, however, that we will not make any decisions to proceed without confidence that an approach is workable and effective for rights holders. I look forward to updating noble Lords in due course on these issues.
Turning to the Arts Council England review, raised by my noble friends Lady Thornton and Lord Lemos, the review of my noble friend Lady Hodge will be supported by an advisory panel of great minds from across the sector and beyond, who will bring a mix of establishment and fresh voices to help in this work. The review will ensure that everyone can access and enjoy the arts, no matter who they are or where they live. It will also make sure the Arts Council is working effectively with local communities and supporting creativity at all levels.
In response to the request from my noble friend Lord Lemos, the full terms of reference for the review will be published in due course. This will set out the scope for the review, which will report to the Government in the autumn of 2025, and we expect to publish the conclusions of the review along with the Government’s response in early 2026. I will, however, feed my noble friend’s view in.
The noble Earl, Lord Clancarty, raised the Welsh National Opera. We are pleased to see that it has received £750,000 from the Arts Council of Wales’s jobs protection and resilience fund. Minister Bryant has held a series of productive meetings with the Welsh Government, Arts Council England and the Welsh National Opera to understand how, within the parameters of the arm’s-length principles, we can best ensure a strong and secure future for the Welsh National Opera.
The noble Baroness, Lady Bennett, mentioned the grassroots music sector and, like noble Lords, clearly including my noble friend Lord Brennan, I really love live music. It brings a huge amount of joy to my life, and my summer is structured around concerts and gigs of all sizes. Some of the most iconic things about Britain internationally relate to our brilliant musicians, composers and songwriters past and present, but music must be part of our national cultural future, too. Britain’s best-selling artists start their careers in our grassroots venues. Ed Sheeran played at over 360 grassroots venues before reaching arenas; 150 of them have now closed. This is why the Government are urging the live music industry to introduce a voluntary levy on tickets for stadium shows to support a sustainable grassroots music sector. We welcome the progress made by industry in establishing the LIVE Trust to manage funds for the voluntary levy.
A number of noble Lords, including my noble friend Lord Lemos, the noble Earl, Lord Clancarty, and the noble Baroness, Lady Bonham-Carter, raised issues relating to our EU exit, and in particular to EU touring. The Government are working to improve the UK’s trade and investment relationship with the EU and to tackle unnecessary barriers to trade without seeing a return to freedom of movement. Improving arrangements for creative professionals, including musicians and crew, is a priority for this Government, on which we will continue to work closely with the creative sector.
The Earl of Clancarty (CB)
I asked the Minister when discussions will be held with the European Commission on this. Does she have any detail about when that might happen?
Baroness Twycross (Lab)
May I write to the noble Earl on that point? I have reams of paper here, which I am not likely to get through in my limited time, but I will endeavour to write.
The noble Lord, Lord Londesborough, raised the point about philanthropy. I feel really strongly about this, and we are committed to supporting philanthropic growth across the country. The Secretary of State has publicly committed to a place-based strategy to create an environment that will encourage and support local communities and ensure that philanthropy reaches the areas that need it most.
The noble Lord, Lord Freyberg, raised issues around the art market, not least in the context of us leaving the EU, and import and export issues. We recognise the challenges faced by the art market and the importance of maintaining the UK’s status as a major international hub. The Government have conducted a review of the temporary admission procedure, engaging extensively with the arts sector, and HMT is undertaking a review of money laundering regulations with impacted industries.
The noble Lord, Lord Parkinson, and the noble Earl, Lord Clancarty, asked about the British Council. The Government highly value the British Council as a UK soft power asset and are committed to working with it to ensure its financial sustainability. The FCDO is exploring all options with the British Council and HMT to ensure this, and I will feed in suggestions made during this part of the debate.
We have heard today what is needed to build thriving creative industries. As part of our plan for change in the industrial strategy, we are developing a creative industries sector plan to drive growth across the country. Culture and creative industries are a key part of the UK economy, not just nice things to have for personal engagement, although it is clear from the passion and enthusiasm across your Lordships’ House that creative industries add richness and enjoyment to our lives. We are clear that the foundation for the future success of the creative industries starts by breaking down barriers to opportunity, and we are ready to enact meaningful change.
Baroness Thornton (Lab)
My Lords, I thank all noble Lords for their contributions today. I also thank the three stars who made their maiden speeches. We had emotional intelligence and the promise of a new band, huge experience in public services—and yes, I assure my noble friend that we will catch her if we need to—and multitasking. I think my noble friend Lord Lemos needs to know that, in this House, multitasking means that you are expected to be active on at least three Bills at once.
I anticipated that we would have a wide-ranging and erudite debate today, given the enthusiasm for and breadth of experience in the creative industries in your Lordships’ House. My noble friend the Minister had her work cut out—that was a gallop. Those of us who have been there before know that those 20 minutes seem a long time but actually, given that there were something like 25 speakers all asking questions, getting through most of them is a huge job. However, we need to remember that, at the end of the day, we are talking about something really joyful, positive and worthwhile. My noble friend illustrated in her response, for which I thank her, that the Government are mindful of the need to support the creative industries in a whole range of ways, some of which will require legislation, rules to be changed or some activity to just make things happen.
I put in to have this as a Labour debate in the summer, but other debates took place instead. The decision was taken not to have it then, but I am glad it happened now, because at least we have had some progress and announcements and we know where the pinch points are that we need to focus on in the next year or so. The challenge is making real the promises and ambition of the Government, and making them real everywhere. We are all ambitious here and the Government have to focus and take action.
I will finish by saying that some of our institutions are hugely innovative. I have, in the past, spoken about the National Theatre as an example of a national institution that runs apprenticeships for electricians, carpenters and all the people you need to make a large theatre and institution work. That is to its credit and is the kind of thing we want to see happening more often.
Camden, where I live, runs a music trust whose aim is that every child leaves primary school, as my granddaughter has just done, playing an instrument and reading music—and it succeeds. An investment was made years ago to set up the Camden Music Trust, and those are the initiatives we need to capture at local level, where we know that the decisions taken by local councillors will have a huge impact on those children.
There is a lot to do, but I think we have made a good start and I thank all noble Lords who have participated.