My Lords, I am delighted to understudy my noble friend Lord Ashton, who cannot be here. I am particularly grateful to the noble Lord, Lord Best, for initiating this debate. I have appreciated reading his Select Committee report Skills for Theatre: Developing the Pipeline of Talent and have noted in particular five areas of concern which I would like to address.
Before I go further, I should declare a conflict of interest of sorts. To misquote Noel Coward, while my daughter is not quite “on the stage, Mrs Worthington”, she does work for the business subsidiary of RADA.
I shall start with some background. As has been said, the UK is a world leader in theatre and the performing arts. It is perhaps an understatement to say that British theatre is respected across the world for its high-quality productions, and skilled professionals both on and off the stage. The noble Lord, Lord Best, expressed its standing particularly well, as did the noble Baroness, Lady Kidron, who did so very eloquently and rather emotionally.
Theatre in England remains vibrant and thriving, with outstanding examples around the country, ranging from the Crucible Theatre in Sheffield, the Chichester Festival Theatre and the Royal Court Theatre in Liverpool to Aylesbury Waterside Theatre, Milton Keynes Theatre and—I am not sure whether they have been mentioned this afternoon—some travelling theatre companies. I was privileged to attend only last night a fabulous and funny production of the “Fingask Follies”, a theatrical review. Theatres are also important to local economies, attracting tourists from around the world and providing entertainment to thousands of people. The arts and culture are a great contributor to the economy, generating £26.8 billion in 2016—those are the latest figures we have. The theatre is a vital component of this contribution.
Theatre can also have a significant impact. The Graeae Theatre Company puts deaf and disabled actors centre stage, challenging preconceptions of disability. I remind the committee that this is Mental Health Awareness Week. I took note of the remarks of my noble friend Lord Grade, who quite rightly mentioned the importance of the theatre in allowing people to express themselves. It is a factor that helps people to improve their health. Altogether, an additional £1.4 billion has been set aside to improve children’s health.
The Arts Council funds a number of organisations working within the criminal justice sector—including Clean Break, which helps to rehabilitate women who have been in prison—or through the wider criminal justice system. I believe the noble Baroness, Lady Kidron, mentioned a similar example and the Geese Theatre Company also presents interactive theatre and drama group work with justice organisations. As the noble Viscount, Lord Chandos, said, it is imperative to engage the young in theatre and the arts. He was right, and this is why we are committed to an ambitious programme of arts and cultural education programmes in our schools.
In April 2018, the right honourable Nick Gibb MP, Minister for School Standards, announced £96 million of funding to give pupils the opportunity to attend top music, dance and drama schools, taking government funding for music and arts programmes between 2016 and 2020 to almost £500 million. I will write to the noble Earl, Lord Clancarty, who raised an interesting question about audition fees. It may be that some of this money could be included, but I am not entirely sure; I would like to write to him about that.
As part of this, the Department for Education is investing in the creative industries and supporting exceptionally talented pupils to attend specialist music, dance and drama institutions. In 2018-20, the music and dance scheme will receive over £60 million; dance and drama awards will receive £27 million and cultural education programmes, including the British film academy, the National Youth Dance Company and national art and design Saturday clubs will receive over £8 million.
I will now address the five concerns raised in the report. I turn first, with some trepidation, to the subject of the EBacc. I can reassure noble Lords that I have listened to the concerns raised today; perhaps I can also reassure the noble Lord, Lord Griffiths, who wanted to be sure that I had listened.
Music, art and design, drama and dance are included in the national curriculum and are compulsory in all maintained schools from the age of five to 14, and pupils then have an entitlement to study an arts subject in key stage 4. Ensuring that children have the opportunity to study core academic subjects at GCSE—English, maths, sciences, history or geography and a language; that is, the English Baccalaureate—remains of key importance to this Government.
The Ebacc subjects are those which, at A-level, open more doors to degrees, according to the Russell group. The noble Baroness, Lady McIntosh, asked a question about the education system, saying that it focuses too much on exams; this is something about which we read quite a bit. We have reformed the curriculum to make it more rigorous and inspiring; this is the case across all curriculum subjects. For example, the curriculum ensures that pupils have opportunities to devise and script drama, as well as rehearse and respond to theatre performances. The new drama GCSE specifies that pupils have an entitlement to experience live theatre.
The EBacc is also important for social mobility. In 2017, only 25% of disadvantaged pupils entered the EBacc compared to 43% of their non-disadvantaged peers. In looking at 300 schools that had rapidly increased EBacc uptake, the Sutton Trust found that pupil premium students benefited most from the changes.
The noble Lord, Lord Best, the noble Baroness, Lady Bonham-Carter, and, indeed the noble Lord, Lord Griffiths, asked a question about pupils from poorer backgrounds being compromised by the EBacc. Again, as part of my listening, I wanted to respond to this. UCL research found that students studying an EBacc curriculum had a greater chance of progressing to all post-16 educational outcomes. However, having said this, I am aware that noble Lords, particularly during this debate, take a different view—that the EBacc may be sidelining the arts. Over many years, I have been aware of the views of the noble Earl, Lord Clancarty, and the noble Baroness, Lady Bonham-Carter, since I was first at DCMS, which goes back about six or seven years ago, I think. I know that they have not changed their views, but I can reassure noble Lords about this. Since the EBacc was announced, the proportion of pupils in state-funded schools taking at least one arts subject has remained broadly stable, and DfE research found that that was the case both for schools whose EBacc entry has seen a large increase and for other schools. The EBacc is designed to enable pupils to study other subjects in which they have an aptitude and interest, including arts and drama. The noble Earl, Lord Clancarty, spoke about teaching hours, and stated that hours for the arts are decreasing. I can tell him that the percentage of time spent by secondary school teachers teaching music, arts and drama has remained stable between 2010 and 2016—and those are the latest figures that we have available.
I turn to the important subject of apprenticeships. High-quality apprenticeships are key to growing the skills that our businesses and economy needs. The foundation of our hugely respected theatre industry is the talented individuals working on and off the stage. I am sure that noble Lords will agree with me that we must invest in nurturing this talent and give people the best start in their careers. In the 2016-17 academic year, 870 apprenticeships were started in the arts, media and publishing sector subject area, under which this industry falls. Of course, there are apprentices in other occupations working in the industry, such as digital, business administration or management. While 870 apprenticeship starts is a beginning, I would like to see that number grow—and I am sure that this Committee would like to see that too.
Employers from all sectors are coming together to design and develop new, high-quality apprenticeship standards in the occupations that they need. This will ensure that their workforce has the specific skills, knowledge and behaviours required. I am pleased that the number of theatre-related standards either approved or in development is growing. I doubt that there are any coracle-making standards, but they include assistant technical director, community arts co-ordinator, creative venue technician, props technician, and puppet making. The noble Baroness, Lady McIntosh, made an important point about the high level of specific skills that are essential to maintain the high-quality nature of our theatre—and she made some very good points on that. I would very much like to see this continue to expand, and for employers in the industry to make use of these standards to train more of their workforce. I can tell that the noble Baroness is well up to date. She was concerned in her remarks in looking ahead to the type of skills and training required for the future.
As well as reforming the quality of apprenticeships, this Government are committed to increasing their number and putting them on a financially sustainable footing. We have introduced the apprenticeship levy for large employers with a pay bill of over £3 million. For non-levied employers, which applies to many of the employers in this sector, the Government pay 90% of the cost of training and assessment. The noble Lord, Lord Best, asked about flexibility of apprenticeships for theatres, particularly as they are in effect small, niche employers, akin to SMEs. The changes that we have made to the apprenticeship system are transforming lives, we believe; we are helping employers to create high-quality apprenticeships at all levels, giving people of all ages and backgrounds the skills that they need. The quality of apprenticeships is our top priority and we must ensure that high quality is a consistent feature across all occupations. The 20% off-the-job training rule, the shift to higher quality standards with a longer average duration and the drop-off in frameworks are likely to mean that, on average, apprentices will get more training throughout their apprenticeship. We want this to be the case for the theatre industry, so we cannot compromise on those quality reforms.
The noble Lord, Lord Gilbert, asked about the apprenticeships policy in addressing the needs of SMEs and the creative industries. I assure him that we will continue to work closely with employers to help them to take advantage of the levy. The Government will invite an employer representative of the creative industries to the Apprenticeship Stakeholder Board to help to shape the future of the programme.
By 2020, we will be investing £2.5 billion in apprenticeships, double what was spent in 2010. As well as apprenticeships, we are developing our new flagship T-level programmes, which will offer another route into skilled employment for young people. There will be T-levels in a creative and design route, including a media broadcast and production pathway, which is planned to go live in 2022. My noble friend Lord Gilbert expressed some concern about apprenticeships in the sector. To give him an example, the National College for the Creative and Cultural Industries at Purfleet opened to its first students in September 2016. It is an employer-led college, providing high-level technical theatre production and live event skills. The founding employers include Live Nation, the Royal Opera House, the BBC, the National Theatre, the Royal Liverpool Philharmonic, Manchester’s Royal Exchange Theatre, White Light and the Association of British Theatre Technicians.
I know there have been concerns expressed that there remains an under-representation of BAME practitioners as performers, directors and writers. To address this, the subsidised arts sector has been making iterative improvements in these areas, but progress is not as quick as we would like. The Arts Council’s Creative Case for Diversity has been a step change in the way that we expect funded organisations to diversify and reflect the wider population. Funded organisations are expected to show that they contribute to the creative case for diversity through the work that they produce and present. The noble Baroness, Lady Quin, raised the subject of diversity in her speech and stated that further work is important. However, Arts Council England now places responsibility on all funded organisations to make their programmes reflect the community. In December 2015, the council announced new funds for diversity totalling £8.5 million. On 13 October, the council announced a further £4.6 million, which will be a considerable further help.
The Arts Council provides targeted support to increase representation, such as Change Makers, a £2.6 million fund to develop black and minority ethnic and disabled leaders through leadership training. It has also allocated just over £2 million into Sustained Theatre, a fund established to support the development of established and emerging black and minority ethnic theatre makers, and to increase the representation of black and minority ethnic theatre makers across the wider theatre sector in England.
My noble friend Lord Gilbert and the noble Baroness, Lady Quin, asked how we were encouraging greater diversity. The Culture White Paper sets out a range of commitments aimed at increasing diversity in arts participation, for example the cultural citizens programme, which I might have mentioned earlier. As part of their existing investment, the Arts Councils already support organisations aimed at reaching out to diverse audiences. I would like to assure the noble Baroness, Lady Quin, that I will pass on her remarks and others made today to the Culture Secretary to be sure that as much as can be is being done in this area.
The important subject of funding always comes up in this sort of debate. It was raised not least by the noble Baroness, Lady Kidron, the noble Viscount, Lord Chandos, and several other Peers. Noble Lords will know that a large part of funding for the arts comes from the taxpayer, whether from the Government via Arts Council England or from local authority support. My noble friend Lord Grade mentioned that such money can stretch a long way. Yes, he is right, but there never seems to be enough. That is a remark that might come from successive Governments.
Between 2010 and 2017, the Arts Council invested over £1 billion in theatre through grant in aid and lottery funding. The Government’s theatre tax relief has supported new work and touring up and down the country, and we have invested £78 million in a new theatre and arts complex in Manchester, which many noble Peers will know of, called the Factory. It will support the local creative economy, including developing the technical skills of young people in the north-west and beyond—an important area to develop. However, the Government cannot do it all, and in 2016-17 theatres in the Arts Council’s portfolio raised £51 million from philanthropic and contributed income, a point raised by the noble Viscount, Lord Chandos. That is 24% of their overall income. It is important that we continue to encourage philanthropists to see the theatre as a sector worthy of their investment.
Many local authorities have continued to invest in arts and culture and have developed new models and ways of working. Local authorities need to recognise the huge benefits that investing in arts and culture can bring. Many already do, building successful partnerships to deliver arts and culture to their communities. We believe that funding decisions should be made at a local level and that local authorities are best placed to decide how to prioritise spending. The Arts Council works with more than 250 local authorities to promote the impact that culture can have.
We are clear that the right balance of funding between London and the regions is important. Some 75% of the Arts Council’s lottery funding is spent outside London. In its current funding round, the Arts Council has increased its portfolio investment outside London by an additional 4%. It has increased the amount of funding available through its national portfolio by a further £37 million per annum.
As the noble Baroness, Lady McIntosh, mentioned, digital distribution is another way to achieve wider access. She is right. The National Theatre Live programme beams theatre performances across the country to the nation’s cinemas, as well as into schools.
Several of your Lordships and the report from the noble Lord, Lord Best, raised the importance of and need for careers guidance. Let me now touch on this. We are aware that young people need information on the range of jobs and careers, and encounters with employers for engagement and inspiration about what they can achieve. Employers and professional bodies in the theatre industry can sign up to “Inspiring the Future”, run by the Education and Employers charity. This free programme allows volunteers to visit state schools and talk to pupils about their jobs in theatre. I am delighted that UK Theatre and the Society of London Theatre are working with “Inspiring the Future” to showcase the range of careers available in theatre to young people.
I am aware that time is slightly short. I know that my noble friend Lord Gilbert mentioned the industrial strategy. I shall skip over that and attempt to answer a few questions, starting with that on lighting, raised by the noble Baroness, Lady McIntosh, and my noble friend Lord Grade, who was supposed to mention it, then did not and then did after the noble Lord, Lord Willoughby de Broke. I read about this last week in my papers and there was certainly concern about it. Perhaps I may provide some initial reassurance to say it is crucial that we protect the rich atmosphere of our theatres. That is why we are seeking to find a solution on lighting that works for everyone. I pledge to write to all noble Lords who have taken part in the debate to give further information, should I have it. It is not quite clear where we are with that, but rest assured that it is very much on the agenda.
Shedding further light, exactly.
The noble Baroness, Lady Bonham-Carter, asked about accountability measures in schools, saying that they do not cover the arts. This is not the case. The Progress 8 performance measure recognises pupils’ progress across all GCSE subjects. Progress 8 is one of the headline performance measures and reported first in the performance tables. She also asked a question about Ofsted, saying that we should include arts in a broad and balanced curriculum. We agree with Amanda Spielman and Ofsted on this. The school timetable allows time for pupils to study core academic subjects, as well as others, for those who are interested in and have an aptitude for the arts.
The noble Baroness, Lady Kidron, asked about VAT from London theatres subsidising regional theatres. That is an interesting one. As noble Lords know, tax policy is a matter for HMRC—that is the message that comes for me. However, the Government have in recent years introduced a theatres tax relief to encourage new and touring productions around the country, which has been welcomed by the theatre sector.
The noble Baroness, Lady Quin, asked about Brexit. In fact, there have been quite a few questions about Brexit. The best thing to do—this is not a cop-out—is to write to answer the questions raised by the noble Lord, Lord Griffiths, and others on Brexit matters, including Erasmus, to aim to give as many reassurances as I can.
With that, I ought to conclude by saying that I have thoroughly enjoyed this debate. The arts and theatre scene in this country is a great success and we must continue to ensure that young people, who are the theatre’s future workforce and audience, have the opportunity to experience the magic of theatre and performance and, if they wish, to have a career in the theatre themselves. I hope the Committee will agree that the education and skills measures I have set out will contribute to a broad and balanced education, empowering young people from all backgrounds to look to the future with confidence.
I thank the noble Viscount for the Statement and fully applaud this decision, which is belated in the extreme. It is clear that one of the great rationales for this privatisation is the increasing competition and the threats from technology that the Royal Mail faces. The idea that a state-owned operation of this kind cannot face those challenges in the nimble way that is required in business today seems to be unarguable and I absolutely applaud the decision. However, I have two quick questions. I am not asking the Minister to name it, but is there a price at which the Government would not sell? Secondly, are there any considerations about potential foreign takeovers in due course?
My noble friend would probably be surprised if I gave an accurate answer to the first question, so I will pass on that one. In terms of the price, as I mentioned, the prospectus will be produced at some point between now and April 2014, which is the period during which we anticipate the sale will take place. Market conditions and investor demand will also be part of that aspect.