Baroness Wheatcroft
Main Page: Baroness Wheatcroft (Crossbench - Life peer)Economy: Creative Industries
Baroness Wheatcroft Excerpts
Baroness Wheatcroft
That this House take note of the contribution of the creative industries to the United Kingdom economy.
Baroness Wheatcroft (Con)
My Lords, it gives me genuine pleasure to introduce this debate on the economic importance of the creative industries. It should not be so much a debate as a celebration, because our creative industries are thriving. The latest government figures show that the creative industries together were worth almost £77 billion to the economy in 2013, and they have grown considerably since then. They are on a roll: they have been growing at three times the rate of the UK economy as a whole for several years. They are creating jobs at a remarkable pace. Between 1997 and 2013, job creation in the sector grew by 3.9% a year; the economy as a whole managed just 0.6%—much better than many countries, but the creative industries show just what can be done. There are now 1.71 million people employed in the creative industries.
But statistics tell only part of the story. We all know that the creative industries do not generate just money and employment; they bring joy and enlightenment—they improve life for everyone. At the Globe Theatre, Shakespeare has been brought to life for children who never thought they could enjoy it. Some of our modern novelists are opening doors to the imagination for people who never thought beyond the reality that for them was really quite mundane. Harry Potter turned a generation of youngsters into readers when their parents had almost given up hope.
Whether it be music or film, theatre or museums, art or books, the UK is delivering quality, variety and innovation. On Wednesday evening America’s First Lady, Michelle Obama, dropped in to see the Victoria and Albert’s magnificent exhibition—ground-breaking in its use of technology and imagery—of Alexander McQueen, under the title “Savage Beauty”. If she had had a little longer to spare, there are many other things that she could have taken in. I particularly would have liked her to take a look at what the British Museum has on now, as I am deputy chairman there. She could have seen a fantastic exhibition of Greek sculpture, “Defining beauty”, and indeed it is beautiful.
There are so many other cultural delights to savour in this country, and there is no doubt that our arts and culture bring visitors to the UK in droves. Tourism is now the UK’s fifth-largest industry. I am glad to say that in this year’s election campaign, unlike the previous one, every one of the main parties had tourism in its manifesto, a recognition of how important it is. Our arts, our culture and our heritage strongly influence the decision of people to visit the UK. According to the Association of Leading Visitor Attractions—I declare an interest, as a director of the association—the number of visits to the country’s top museums, parks and heritage sites rose by a remarkable 6.5% last year. Most of those visits are from people who are going to bring more money into the economy and go away happy rather than feeling robbed—and you cannot say that for every industry.
Our creative talents are flourishing in every sector. Our theatres and orchestras attract culture-hungry visitors to the UK and, of course, are significant earners overseas. We are currently very successfully exporting Her Majesty the Queen, in the shape of Helen Mirren and “The Audience”, which is playing to an ecstatic audience on Broadway. We are excelling in a way that other countries envy. I was delighted to learn, courtesy of the Arts Council, that its money is being spent in part on the Hip Hop Foundation, without whose benefit we would not now be enjoying what Rizzle Kicks brings to the audience. We have talent on a grand scale. I am still bemused why “Britain’s Got Talent” has to resort to giving the first prize to a dog that cannot even do its own stunts—we have people who can do their own stunts.
In the creative industries, this House boasts representatives of virtually every aspect of the sector, from composing to broadcasting to writing and film producing, and I am much looking forward to hearing from so many experts here today. Only this week, I was able to shake hands with Lionel Richie in the Peers’ Dining Room. Sadly, he was eating rather than doing the cabaret, but it was good to see him here. This House welcomes talent from the creative industries.
Government has played a part in fostering the creative industries, of course. In times of austerity—and we have certainly been living through them—there are inevitably going to be cuts. Budgets have to be rationed, but the investment in the creative industries has continued to be something that the Government have taken very seriously. Particularly noticeable are the tax reliefs for the film industry, introduced in 1997 by a Conservative Government and built on by successive Administrations. I cannot deny that another very creative industry has grown up around those tax reliefs, but let us not get involved in that niggle, as steps are being taken to deal with that. Let us concentrate on how successful the actual tax reliefs have been.
In 2008, the total spend on making feature films in the UK was £723.1 million, and by last year that figure had more than doubled. Inward investment into the industry has trebled over the same period, to reach more than £1.2 billion by last year. This is money that could easily have gone elsewhere, for there are other countries just as keen as we are to bring the film industry and big blockbuster movies into their economies. That is why the tax reliefs make a difference, and why they are staying. For every pound that the Treasury puts into the film industry, it is getting £12 back. That does not sound like a bad deal to me.
And the film industry is making winning products that we all enjoy. The Oscars are flowing in our direction, the film industry is a success and, of course, it nurtures so many skills and businesses around it. It needs wig-makers and set builders, for instance, as well as make-up artists, sound engineers and catering—and I now know that that means hot food available at any time, or it gets dangerous. Pinewood, where my noble friend Lord Grade is chairman—although, sadly, he could not be with us today—runs apprenticeship schemes, as do other film-makers, and has links into many local schools, explaining to the children the career possibilities that the industry has to offer. Those highly effective tax reliefs are being extended into high-end television programmes, animation programmes and video games, which will all flourish with the new regime. The UK has proven expertise in these sectors and is a major exporter. In highly competitive markets, it makes sense for the Government to bolster the chances of success.
The nurturing of these industries is crucial, and not just because of their own earning capacity. Let us not overlook the pleasure that they generate, although I gather that your Lordships’ House comes under some threat in the new James Bond movie. The skills that these industries nurture are important too, because they feed into other industries. The design and engineering skills that are crucial to the creative industries now feed into every sort of manufacturing, from fast-moving consumer goods to cars and heavy engineering. Successful marketing, an industry in which the UK has long excelled, needs the slickest design and the best video production techniques. Design is what gives mundane products the edge and opens up international markets to them.
The London Olympics provided a fantastic demonstration not just of our sporting prowess but of our ability to put on a show. Here I raise an issue which continues to concern me about some of the smaller companies involved in the 2012 extravaganza. I have mentioned it in this House before, because it smacks of unnecessary bullying by the big commercial operators and hurts the smaller firms. Having been involved in the 2012 Olympics is a fantastic calling card for a small company. It should enable them to win new contracts, particularly if they are interested in working on the next Olympics. But the fierce rules of the International Olympic Committee, drawn up to protect the major sponsors, still prevent many of those small companies from boasting of their achievements. I know that the Government have looked at this before, but I do urge them to look again and see whether there is no room for manoeuvre here. Of course, I would draw no parallels with FIFA, but it looks to me as if the smaller companies need a degree of protection rather than allowing the big companies to trample over them.
One thing that would make a huge difference to the economy in this country is improving productivity by finding a way in which to lift those small companies up more quickly into becoming bigger companies. “Scaling up” was the phrase used at a conference that I attended this week, run by the Enterprise Research Centre. It made much of the fact that, in the US in particular, they are far more effective at scaling up their businesses than we are. There are lessons to be learnt by listening to companies that want to grow about what is holding them back. It is not access to finance or red tape and regulation—with the exception of planning, of course, but that is a problem still for so many businesses. My noble friend Lord Grade is eloquent on the issue of the nearly 10 years that it took to get permission for Pinewood to extend its development. So much was put in jeopardy over that 10-year period. In the end, Pinewood got the sensible solution—it was allowed to go ahead, but after 10 years of agony.
What would really help those small companies, many of them in the creative industries, to benefit in negotiating new markets? They want help in finding their way into export markets. PLASA, the trade association which represents companies in the entertainment and technology field—I should say that it stands for Professional Lighting and Sound Association, in case, like me, noble Lords are a bit of a nerd when it comes to acronyms—finds that its members have difficulty in negotiating the numerous government schemes around to help companies. I know that the Government are moving to simplify the system, and BIS is at work, but anything that could be done to make it easier for smaller companies to access the help that already exists would be important. One thing would be to get them on more trade missions, as creative companies do not dominate them at the moment, and they would really be useful contributors. That would help—and it would help, too, if we could persuade our bigger companies to nurture and mentor the smaller companies. It happens a bit in manufacturing, where Unilever is doing it; there is no reason why it should not happen in the creative industries more than it does.
The creative industries are so diverse and so exciting that I could far outlast my allotted time in talking about them. I am conscious that there are many aspects of the creative world that I have not touched on, but I shall rely on others to do justice to our brilliant creators of books, music and television. If the creative industries are to continue to flourish, it is important that our schools nurture the creative urge in children from the earliest age but do not stop when they leave primary school. We all have the ability to be creative in one way or another, and it would be to the country’s benefit if that ability were fostered. In today’s digital world, people need to have mastered the basics of education, but if we are to continue to build a world-beating creative sector and industry generally, we need people who can think creatively. Where would Apple be without the benefits of a talented British designer? An appreciation of arts and culture fosters the creative instinct. Let us ensure that our children are given the chance to enjoy the rich variety of delight that the creative arts have to offer.
Baroness Wheatcroft
My Lords, I thank my noble friend the Minister for his response, which was detailed and positive. I also thank all noble Lords who have taken part in the debate this afternoon. It has been upbeat, with fascinating speeches from all sides of the House, and it has demonstrated that it is wrong to think that you have to be Labour to be a luvvie. It has been a positive debate. I had hoped for a celebration and it has very much been a celebration, with a few qualms as well. I thank noble Lords again and I beg to move.