Autumn Statement 2023

Baroness Featherstone Excerpts

Wednesday 29th November 2023 Lords Chamber

[Baroness Featherstone (LD)]

My Lords, I welcome the Minister to her place on the Treasury Bench. I will speak on the creative industries.

The big players in the film industry are breathing a sigh of relief, having seen off the threatened restrictions on tax credit relief for commercial party transactions. They also welcome the announcement of the launch of a new consultation that could see tax relief expanded to cover expenditure on visual effects. All I say on that is, “Please hurry up”. It was good to have clarified which documentaries qualify for credit; that will now be judged by the same guidance the BFI uses.

However, as BECTU made clear in its commentary on the Autumn Statement, sectors of the industry such as opera, theatres, independent film production and live events needed a lot more than a promise of further reviews. So, may I ask the Minister about the independents—the lower-budget films? Where was the offer for them? They needed a rise in tax relief to 40%.

As I hope this House knows, the creative industries are outstripping all other growth industries. I laid out the case here in November 2021 in the Liberal Democrat debate on the creative industries, asking for them to be a growth priority because at that point, the Prime Minister had left them out of his five-point plan. Then the Communications and Digital Committee, ably chaired by the noble Baroness, Lady Stowell of Beeston, made the same case in its report, At Risk: Our Creative Future. Only then did the PM finally make this one of his five priorities for growth—but that was not reflected in the Autumn Statement. So many in the industries that make up this creative powerhouse hoped and expected more, and deserved so much more.

Tax reliefs are a proven road to putting a rocket under an industry’s capability to attract investment to this country and to boost exports. So, where were tax reliefs for the fashion industry; for publishing, where tax relief would incentivise UK production of published works; for live events, where the UK would increase its share of the market and grow skilled jobs throughout the UK; and for music production, where tax relief would incentivise the creation of new music and attract inward investment? Clarity on theatre tax relief is welcome, but why was it not made indefinite? There was also no word about museums and galleries tax relief being made permanent.

Moving from tax relief to national insurance, the Writers’ Guild acknowledges that its self-employed members will benefit from getting rid of class 2 national insurance, and from the reduction by 1% of class 4. There is a “thank you” for the changes on that, but not a big “thank you”, as it called the measures

“small crumbs of comfort when taken against the bigger picture”.

Equity’s general secretary, Paul Fleming, said:

“The Chancellor is taking the same approach to the performing arts and entertainment that has seen billions in public funding for the arts cut … The self-employed are being shortchanged by a headline-grabbing tax cut. Our self-employed members want investment to fix the holes in the social security system and public services”.


I was a designer and illustrator long ago and far away in another life, and late payment can force you out of business. When you are already living hand to mouth, even 30 days is a long time to wait for payment, let alone the liberties that big companies in particular take, with frequent waits of 90 days or more. Promising 30 days in the coming years is a promise of virtually nothing. The music industry was pretty unimpressed. Its whacking £5.8 billion contribution to the UK economy before Covid was phenomenal, but the repercussions of the lack of forethought by this Government during the Brexit process were a double whammy. The Association of Independent Festivals was disappointed that the reduction to 5% VAT on ticket sales, which the live sector desperately needs as a way to revive its post-Covid fortunes, did not materialise. As for the manifesto promise of an art premium, I must have blinked: I missed it.

We needed an Autumn Statement that respects, capitalises on and believes in the creative sector, that supports and encourages our broadcast companies, recognising their irreplaceable value as the second-largest exporter of television programmes and formats in the world. We needed a Statement that understands the BBC and supports it, rather than undermining it and continually diminishing its budget and status. I found it shocking to read that “Newsnight” is to be diminished, because trust in our democracy is already diminishing at a terrifying rate.

We needed a Statement that recognises that tax reliefs support and encourage an ecosystem that supports new and emerging talent as well as the big financial successes, and that supports freelancers, sole traders, part-timers and those with a portfolio of roles. Those are the roles that people the creative industries, and the NI changes simply do not go anywhere to support that industry. We needed an Autumn Statement that ensured that the tax and welfare system supported those freelancers to survive, thrive and earn well; that promoted the value of live events and music, small and public venues, regional theatres, local halls and festivals across the country; that addressed the real challenges that orchestras and touring are having, and gave the assurance that the 50% tax relief will remain beyond 2025.

The Publishers Association was disappointed that the Government missed the chance to axe VAT on reading and publishing once and for all by zero-rating audiobooks and article processing charges for open-access publishing. I declare an interest in ALCS, in that I get about £20 a year from it. If my book had sold more, maybe I would do better. If noble Lords are interested, it is called Equal Ever After and is about how I did same-sex marriage. I know David Cameron says it was him, but it was me who started it. ALCS had hoped and needed an increase in the public lending rights that provide such vital income for authors, ensuring that financial support reaches beyond just the bestsellers. While we welcome the extension of the 75% business rate discount for all music spaces, I probe the Minister further to clarify whether this extension applies to music studios, which are having a particularly bad time. We needed commitments to research and development and to an additional capital budget for historic buildings affected by that crumbly concrete, RAAC.

I am indebted to Creative UK, whose briefing I have used extensively this evening. The Autumn Statement I have described is the sort of Autumn Statement that our creative industries deserve.

Queen’s Speech

Baroness Featherstone Excerpts

Wednesday 25th May 2016 Lords Chamber

[Baroness Featherstone (LD)]

My Lords, first, I pay tribute to the right reverend Prelate the Bishop of Newcastle for her maiden speech. What a pleasure to be in this Chamber to listen to her. I could not agree more that when all else fails you in life, it is education that can transform your life chances.

Right now, countries are meeting in Bonn for two weeks of talks aimed at turning the historic Paris pact into a fully functioning reality. The recent Paris agreement set an ambitious new global target of limiting temperature rise to 1.5 degrees Celsius, and the United Kingdom must play our part in making that commitment a reality. That means strengthening our law by setting a new legally binding target to bring net carbon emissions to zero by 2050—a 100% reduction, rather than the current 80% reduction in net greenhouse gas emissions.

We need the Government to take this really seriously and to maintain the momentum towards a low-carbon, green economy that protects our environment and creates jobs at the same time. We also need the Government to ensure our energy security. Yet on both these counts, the Government are found wanting. The complete absence of even a mention in the gracious Speech of measures to tackle climate change speaks volumes. There is no recognition of the seriousness of the threat from climate change or the level of change that Britain must undertake for the Paris agreement to become a reality. If we are serious, Britain needs to be net zero carbon by 2050 without fail—not the 80% target agreed prior to the Paris agreement, which was more ambitious than many could ever have imagined. Quite frankly, 80% is no longer enough, given our ability to reduce emission levels compared to other countries.

Liberal Democrats would have put a zero-carbon Britain Bill into the gracious Speech to set a new legally binding target to bring net greenhouse gas emissions to zero by 2050, but from this Government there was not a word. Despite lip service about wanting to be the “greenest Government ever”, and Amber Rudd wanting to unleash a “solar revolution” and claiming glory for the Paris agreement, the reality has been a litany of anti-green actions: ending support for onshore wind power; sharply reducing support for other renewable technologies, including solar PV and anaerobic digestion; ending renewable energy’s exemption from the climate change levy; reducing the incentives to purchase low-emission cars; privatising the Green Investment Bank; scrapping the Green Deal with no replacement; weakening the zero-carbon homes standard; adding community energy to the list of sectors excluded from receiving tax relief; ditching the £1 billion budget for pioneering carbon capture and storage; ending the renewables obligation early—and on and on, most recently doing without a climate change envoy. That is not the sort of list you would expect from a Government genuinely committed to tackling climate change.

A key driver of tackling climate change must be the development of the renewable sector, not just for environmental benefits but for energy security, particularly in the light of the doubts about Hinkley, as well as jobs and economic prosperity. Yet instead of realising the business potential of renewables and becoming a world leader, the Government slashed subsidies at a stroke and undermined investor confidence, confidence that is crucial to our financial future. That will put progress back decades. They failed to commit to the Swansea Bay tidal lagoon, which is a crucial pilot for a new technology that could have a significant impact on our future energy needs. We need a Liberal vision for the future that puts sustainability at the very heart of every area of government policy: zero-carbon homes, which the Government failed to accept in the recent Housing and Planning Bill; electric cars, buses and trains; and the encouragement of industry to reduce its carbon footprint by rewarding innovation.

My last point, which is crucial to tackling climate change, concerns Britain remaining in the European Union. This has been given little attention. There is no mention whatever of climate change in the booklet that was sent by the Government to all members of the public, yet the EU is the one part of the world that is actively trying to address this threat. The UK has been a leader in this effort, encouraging other countries to go further in their actions than they otherwise would have done. At least, that is what happened under the previous Secretary of State, Ed Davey. It will not be possible to fulfil our international commitments, ensure energy security, boost our economy and create jobs unless and until this Government remember their commitment to future generations and start delivering on their promises.

Finance (No. 2) Bill

Baroness Featherstone Excerpts

Wednesday 17th April 2013 Commons Chamber

[Fiona O'Donnell]

Exactly. We have passed on the torch of 0.7% and I pay credit to the Government. It must be a lot harder for them to take that direction of travel than it was for us, because our Back Benchers were supportive of it. It is not enough, however, for Lib Dems to be warmly supportive of the Government and hope that they will not be disappointed. They have to start voting for what they believe in, what they put in their manifesto and what their conference told them it wants them to do. That is why I intervened earlier on the right hon. Gentleman on the subject of the CFC and its effect. I hope that the Minister will say that he is listening not only to the Opposition but to the Select Committee and its report. The Committee has asked for an impact assessment, and we need to be clear about that. Much as I often disagree with coalition Members, I cannot believe that they intended the CFC to have that effect. An impact assessment would show whether it will damage developing countries.

The right hon. Gentleman also spoke about the IF campaign. It is clear that an essential part of tackling poverty and hunger is having a fair and transparent tax system. It is not surprising that people in this democracy should be outraged by large corporations not paying their fair dues, but we sometimes seem to think that it is all right for developing countries. Do they have to expect their natural resources to be plundered?

[The Parliamentary Under-Secretary of State for International Development (Lynne Featherstone)]

indicated dissent.

[Fiona O’Donnell]

I am glad that the Minister shakes her head and I give her credit for much of the good work that she has done in office. However, it is time for action. I repeatedly asked the Secretary of State, when she appeared before the Select Committee, whether she would act and whether she was pressing the Treasury for more transparency. She said that it really was not a matter for her; it was a matter for the Treasury—but it absolutely is for the Department for International Development and for the Secretary of State and her Ministers to address this issue. The people in those developing countries have as much right as people in this country to be outraged, but unless they have access to the information about whether tax has been paid, they will not be able to feel that sense of outrage. I hope that we will see some movement on that issue.

If we are ever to see a situation in which aid does not have to be stuck at 0.7%, as I am sure developing countries and many of us want, it will be by ensuring that tax is paid. We have had estimates from the OECD, as my hon. Friend the Member for Newcastle upon Tyne North said in her opening remarks, that developing countries lose three times as much money as they receive in aid. We have a chance now to do something not just for developing countries, but for our own country, by easing that burden.

I give credit to the right hon. Member for Gordon (Sir Malcolm Bruce), the Chair of the International Development Committee for the work he has done and I thank recently joined members of the Committee for their support. The Chairman does not put his party or the coalition first: he genuinely works in the interests of developing countries and the UK in ensuring that tax is spent well. I just wish that we could see Committees in the Scottish Parliament following that good example.

I believe that I may have the honour of serving on the Bill Committee, and I hope that we will not have the same experience as I have had all too often in Committee, with the Government continually refusing to accept amendments, followed by a climbdown. The amendments make genuinely helpful suggestions without asking the Government to alter direction. They would strengthen the measures on which we agree about the direction of travel to ensure that we carefully assess the impact of the policies and that they achieve what we want them to achieve. People have marched in support of the Robin Hood tax and want to see a fairer, more progressive form of capitalism in this country, so the Minister needs to step up to the mark—as well as to the Dispatch Box—and accept the amendments.