Brexit: Creative Industries

Lord Suri Excerpts

Thursday 19th January 2017 Lords Chamber

[Lord Suri (Con)]

The noble Lord, the Liberal Democrat spokesman for the creative industries has been working hard on this issue, as has the Under-Secretary of State for Culture, Media and Sport, for which I thank them. This is an extremely important debate, because post-Brexit Britain must play to its strengths to keep the economy growing at a decent rate. The creative industries are certainly in that category—growing three times as fast as the national average and generating £10 million an hour.

On the topic of social media, I have been heartened to see that Facebook is expanding and hiring at its London headquarters, which it describes as a global hub. Also, two weeks ago, Snapchat decided to base its European headquarters here, which proves the tremendous advantage we have in this city of cutting-edge media expertise and flexible labour markets. The type of Brexit that the Prime Minister outlined on Tuesday will not sink the creative industries, but it does threaten to impair them in some ways if not managed and mitigated. One very real threat is the removal of EU funding through the MEDIA programme, which goes to studios, the Creative Europe programme, which funds theatres, and the various funds that have helped to open museums like the Imperial War Museum North.

As I have said before in this House, one of the great shames of the leave campaign was the assumption that we would have £350 million a week to spend on the NHS when so much of our contribution flows back through various avenues. The Prime Minister was clear that a hard Brexit is her aim; Ministers will have to decide where to put this cash that we would otherwise have spent on EU membership. I urge them to step up and guarantee that EU arts funding will be met in the future. The Chancellor has confirmed this until 2020, but I urge all relevant Ministers to give longer-term assurances, so that investors and firms can move forward on a stable basis and lose the fog of uncertainty that is hanging over day-to-day spending decisions.

Even if the decisions made are not what the creative industries might like to hear, there will at least be some certainty, although they should note that many production houses now view EU funding and continued access to similar public funds as part of their basic model. The sharp rise in the pound on Tuesday is clear evidence that businesses want to hear news, even if it is bad news, so they can have the stability they crave and plan for the future.

I am also concerned about immigration and free movement. The Prime Minister stated clearly in her Lancaster House speech that,

“we will get control of the number of people coming to Britain from the EU”.

That is a sensible policy given the frustration many leave voters felt about immigration, but where will it leave the creative arts? Some UK dance companies source 80% of their staff from overseas, primarily European countries. Clamping down on soft targets such as travelling performers could cut numbers but would leave us culturally and financially poorer. I urge the Government to add more creative professions to the list of shortage professions, as these are not people whom we wish to ward off. The creative arts, along with agriculture and construction, are some of the industries most dependent on foreign labour, but creative industry workers tend to be very highly skilled and productive for the real economy. Take the current boom in West End tickets for theatre, opera and ballet following the drop in the pound. If a director has to source visas for up to 50% of their production, the cost and delay involved—as well as the possibility that they may not get the visas in any case—might drive them away. Tourists who are unable to see the shows they want to see may go to Paris or Vienna instead.

This country has always welcomed people who can plug gaps and who boost, not drain, public services. Creative professionals are the archetype of that category. I do not believe that the public voted for less cultural exchange with Europe. In her speech, the Prime Minister also said:

“Britain’s history and culture is profoundly internationalist. We are a European country—and proud of our shared European heritage”.


I agree with the sentiment expressed. We should pursue an internationalist vision while maintaining our strong cultural links to Europe, or risk becoming Little Britain.

This speech may sound gloomy but there are opportunities to grasp, too. Greater cultural exchange with some nations with which we may have interacted less during our period of EU membership is a definite bonus, and a weaker pound will help promote tourism to see Britain’s cultural offerings. However, the risks are significant and the industry stands to lose heavily if the wrong kind of deal is made and subsequent attitude taken. I am confident that the Government will view these issues with the importance they deserve.