Brexit: Creative Industries

Lord Macdonald of Tradeston Excerpts

Thursday 19th January 2017 Lords Chamber

[Lord Macdonald of Tradeston (Lab)]

My Lords, I too thank the noble Lord, Lord Clement-Jones, for this timely opportunity to discuss the impact of Brexit on the creative industries.

As might be anticipated in sectors such as film and television, both of which are active in production and distribution internationally, the reaction to the EU referendum result was largely negative. A poll of PACT members showed that 85% were opposed to Brexit, and 59% of the members of the Independent Film & Television Alliance said that it would be “bad for business”. Its chairman said that the impact of Brexit was likely to be “devastating for us”.

Among the professional concerns of media executives were loss of membership of the European Commission’s framework programme for support for the culture and audio-visual industries, Creative Europe, as we have heard; exclusion from EU quotas; work permit and visa problems for cast and crews; and the loss of a seat at the table where EU members decide digital single market strategies. There are many more such concerns, as we have heard in this excellent debate.

Among the immediate impacts of the Brexit vote were falls in the share prices of media companies such as ITV and the trending downwards of television advertising revenues. However, the chief executive of ITV, Adam Crozier, identified the crucial factor in these falls as the uncertainty surrounding our exit from the European Union. This week, the Prime Minister dispelled some uncertainty but, sadly, not that for the creative industries.

However, as the months have passed, more emphasis is now being given to exploring how to make the most of Brexit, as we have heard today. Our creative industries must lobby hard to maintain or even expand our pan-European links, and my remarks relate mainly to film and television. As noble Lords have said, the Creative Europe programme is open to non-member states, ranging at present from Iceland and Norway in the north to Albania and Montenegro in the south as full members. The key point is that the programme is open to non-EU members, provided that they “pay additional appropriations”.

Over its first two years, financial support for creative projects in the UK totalled €40 million. The Creative Europe Desk UK says that UK participation can continue beyond Brexit. Given that background, it should not be too hard to negotiate arrangements that keep the UK in Creative Europe but, as the noble Lord, Lord Blencathra, said, vital though it is to many worthwhile cultural activities, in the great scheme of things the EU money involved does not add up to much in the context of rapid growth across the full range of British creative industries. Therefore, the UK Government could easily afford to fund a replacement programme if necessary.

It has been previously stated but is worth repeating that, measured by their gross value added, the creative industries account for £84 billion, or 5.2% of the UK economy. As has been argued, that should give the creative sector a potentially powerful role in shaping post-Brexit arrangements as a matter of some urgency. For instance, our creative and financial relationships with the United States go back to the beginning of film, then of television, and of course, later, to popular music, and these relationships may be stronger now than ever before. If President Trump wants an early trade deal with the UK, the creative industries should pull together their proposals and get working in collaboration with the Government, if they put their promises into practice. The DCMS Minister of State, Matt Hancock, has said that the creative industries,

“will be absolutely central to our post-Brexit future”,

and that Britain was at its best when,

“progressive and positively engaged in the world”,

adding:

“The creative industries are critical to securing that status”.


Those are encouraging words but the arguments of the noble Lord, Lord Clement-Jones, my noble friend Lord Puttnam and others demand a more detailed response very soon—perhaps this afternoon from the Minister.

We can also anticipate more detail on Brexit impacts and our options from the conclusions of the current inquiry of the Commons DCMS Committee, some of which may be positive, but at present it is not a long list. A fall in the value of the pound long term could boost the attraction of the UK as a production base. The increased cost of buying in non-British productions through the fall in the pound might even give us a marginal boost through their replacement in the schedules by domestic programming. Matt Hancock has also stated that leaving the EU would not affect existing creative sector tax reliefs. Let us hope that these can be maintained, and perhaps incentives even enhanced, after the lifting of EU restrictions on state-aid rules.

I trust that the Government will do the obvious when it comes to prioritising their sectoral strategy and see that, in giving strong support to the creative industries, they will be backing a winner.