Creative Industries: Creating Jobs and Productivity Growth

Baroness Twycross Excerpts

Thursday 6th February 2025 Lords Chamber

[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.