Brexit: Creative Industries

Baroness Benjamin Excerpts

Thursday 19th January 2017 Lords Chamber

[Baroness Benjamin (LD)]

My Lords I too congratulate my noble friend on securing this timely debate. I declare an interest as per the register.

I want to concentrate on the potential impact of Brexit on our talented children’s and animation production sector, and why this sector should be at the heart of the Government’s negotiations and post-Brexit planning. As we have heard, the creative industries overall are responsible for 8% of total UK gross value. The children’s production sector has played its part in this major contribution, selling the UK brand with global successes such as “Peppa Pig”, “Art Attack”, “Horrible Histories” and many, many more.

Children’s content production can be digital, interactive and delivered in some of the most creative and original styles imaginable, responding to the way children consume content in today’s world. This has been made possible because children’s content and animation producers have long been used to working both in Europe with European partners and beyond Europe. Both are also important export markets for the UK. Therefore, a fundamentally important issue that needs to be considered is freedom of movement. This is vital for the sector in the long term, as it allows short-term opportunities for creators to work on productions around Europe. Around 6% of jobs in the creative industries are filled by European migrants, many in the animation sector, where skills gaps are often identified and filled with European workers. Any additional burdens could harm the sector and content for the consumer, and increase costs for businesses.

The production sector in the UK has developed into a world-class sector precisely because it has been open to talent from both Europe and around the world. Importantly, this allows UK staff to learn and develop their skills with the best of global talent. There is also a case to be made for the importance of the children’s production sector for training and diversity. Countless times we see young talent, on and off screen, developing their skills and forging their careers from a positive start in children’s production.

All this is why the creative industries are calling for the Government to continue investment in the Creative Europe funding scheme. In its first two years, Creative Europe has provided some £40 million in grants, supporting some 230 different UK cultural and creative organisations. This funding is invaluable, particularly to children’s and animation producers, who work to tight budgets, and for whom completing the funding jigsaw is always a challenge, as broadcasters hardly ever fully fund productions.

No UK PSB provides 100% funding for animation; dramas do not always receive 100% funding, relying on co-production. Usually, only specialist UK-produced programmes are fully funded. That is why there is strong agreement throughout the creative industries that the Government should continue to pay into the Creative Europe scheme, as other non-EU countries do, given the clear benefits to the sector. The sector truly welcomes the Government’s recent commitment to honour funding for projects that have already been given the go-ahead. However, the production sector calls for equivalent levels of funding to support production and creative clusters around the UK if we do not continue our commitment to Creative Europe. Can the Minister say whether the Government will commit to this?

Children’s and animation producers are well placed to contribute to growth in exports by building on existing relationships, especially with co-productions within Europe and beyond. However, in recent years, government export support has been inconsistent and has sometimes been removed at short notice for some countries, particularly emerging markets. Will the Minister therefore give an assurance that the Government will work more closely with independent producers and the creative industries to ensure they get the sustainable support they require to secure the best business deals?

The children’s production sector is already under immense pressure, overall spend on children’s programming has declined by almost half since 2002, and spending by commercial public service broadcasters has fallen by 93%. This is all cause for concern because the cultural and development value of content for children and young people is crucial for their development. It is vital that they see themselves and their lives reflected on screen and in society. Our children’s production sector tries to do just that despite all the challenges it faces. But how much more it can endure, only time will tell.

The market for producing children’s programming is shrinking rapidly, while the demand for quality children’s programmes remains vigorous. Therefore, the loss of the Creative Europe fund would be yet another blow and would represent a significant commercial loss to the UK, as well as being incredibly detrimental to our country’s soft power. The government tax breaks given to the children’s programming production sector were most welcome, but ultimately, without the market demand, they do not make the pot bigger or ensure that investment levels are sustainable. Loss of Creative Europe funding would compound the sector’s struggles.

Our children did not have a vote in the referendum, nor did they have a voice in any of the Brexit negotiations. But creative content that is likely to be produced for them, to influence their imagination and thinking, their emotional, mental and inspirational well-being, is at stake here. This is why we must not let them down when we decide on plans for their future viewing, as we move forward. Remember: childhood lasts a lifetime, and children deserve high-quality content that will stay with them for ever.