Cultural Attractions: Contribution to Local Economy

Charles Walker Excerpts

Tuesday 6th October 2020 Westminster Hall

[Nickie Aiken (Cities of London and Westminster) (Con)]

I beg to move,

That this House has considered the contribution of theatres, live music venues and other cultural attractions to the local economy.

It is a pleasure to speak under your chairmanship, Sir Charles, and I am delighted to have been able to secure this, my first lead Westminster Hall debate, on such an important topic. As the covid pandemic continues to threaten people’s health and livelihoods, hon. Members across the House have rightly been highlighting sectors of the economy that remain at particular risk. I applied for this debate to highlight one such sector—arts and culture. In March, theatres closed their doors. Gig venues and clubs across the country turned off their sound systems, and museums and galleries turned off the lights. Some have reopened, with social distancing measures and other restrictions in place. Many in my own constituency, including the commercial theatres, remain unable to reopen because of the simple fact that it is not financially viable to operate within current restrictions. I hope that over the course of the debate, other hon. Members and I will be able to convince the Government and the public of the reasons why those businesses are vital to our communities and worthy of ongoing support.

I am keen for other hon. Members to play their part in the debate, as I am acutely aware that when I speak on these issues, representing the Cities of London and Westminster, I am often—and easily—accused of being London-centric. I hope, however, that through our contributions we will be able to show that the arts and cultural sector contributes massively to local economies up and down the country. I am incredibly proud of the vibrant arts and culture offer in my constituency, from theatreland to iconic live music venues such as Ronnie Scott’s, the 100 Club and Heaven, as well as the Barbican centre, the Royal Albert Hall, the Royal Opera House and the Coliseum.

I hope that hon. Members will forgive me if I reel off some statistics to support the argument that arts and culture are vital to the economy. In 2019, 18,000 performances across west end theatres attracted more than 15 million audience members, providing a gross revenue of £800 million. In 2018, the gross value added of arts, museums and galleries in the west end alone was more than £1 billion. It is estimated that across London there are 97,000 jobs in music, performance and visual arts, and more than 17,000 in museums, galleries and libraries. VisitBritain research suggests that a quarter of tourists who come to London come specifically for its cultural offer. Those statistics show, I hope, the direct impact of the arts and culture in supporting the wider local economy. Modelling shows that for every £1 spent in theatres, for example, £5 is spent in the wider local economy—in bars, restaurants and shops.

Theatres, live music and cultural venues play a vital role in the ecosystem of the west end, and it is the same across the UK. Figures provided by UK Music suggest that every £10 spent on a ticket for a live music venue is worth £17 to the local economy. One Ed Sheeran gig in Ipswich last year brought in £58 for every £1 spent by the council to put on the concert. The net value to the local economy was more than £9 million.

What impact has covid-19 had, and what impact will it continue to have? The Heart of London Business Alliance, a business improvement district in my constituency, is about to publish a report on the economic benefits of the west end and the heart of London arts and cultural sector for the wider economy, and the case for covid-19 support. It has been kind enough to provide me with an advance copy. The report models four scenarios and the predicted impact for the economic output of arts and culture in the west end. Scenario one is repeated lockdowns, scenario two is strict rules and social distancing in place, scenario three is seasonal covid with occasional softer social distancing remaining, and finally, scenario four, which is a return to normality—something I think we all wish for. For the arts and culture sector, scenarios one and two are modelled to have very similar outcomes. Employment in the sector in the west end would fall by 95% by 2024. Even in the best circumstances of a return to normality, the arts and culture sector is projected to produce 10% less in 2024 than in 2019. Those models make for challenging reading and I strongly encourage the Minister and her officials to read the report in detail.

Venues in my constituency have worked incredibly hard to find solutions to open under current social distancing measures. The Barbican centre in the City of London has been trialling a new approach to concerts with the Live from the Barbican series, involving 300 socially- distanced audience members in the hall alongside a pay-per-view live stream that enables audiences to watch from wherever they want. I am delighted to report that those concerts have sold out, with encouraging interest and early sales for live streaming.

In the west end, Andrew Lloyd Webber has undertaken heroic action to introduce measures to prove that theatres can be socially distancing-friendly at a capacity that works for safety and for his theatres’ commercial viability. What can we do in this place and what can the Government do to support the sector in the return to normality scenario?

I pledge huge gratitude to the Culture Secretary and his team at the Department for Digital, Culture, Media and Sport, including my hon. Friend the Minister for Digital and Culture, who is responding to this debate. I know they have worked tirelessly since lockdown to support the arts and culture sector. I recognise their huge achievement in securing £1.5 billion in support for the arts. However, there is more to be done if we are to secure our arts and culture sector once we have beaten this dreadful virus.

I encourage the Government to continue funding jobs in sectors that remain unable to recover because of restrictions that are in place. As those businesses remain closed through no fault of their own, they will likely lose all access to current support measures when the furlough scheme ends. The sector has been hugely grateful for the support so far, but that support needs to continue. I ask the Minister to persuade the Treasury once again to reassess the support it offers the self-employed, as many in the sector are freelance and work in a mixture of self-employed and employed roles, depending on their contract and the employer. Too many have gone without any support at all. Current Government support has been more focused on salaried staff, and there is a worry that freelancers will drop out of their profession, leading to a shortage of expertise when we are back up and running.

I think all of us in this hall accept that theatres, live music and cultural venues need clear signposting as to when they will be able to open. Theatre productions, for example, have lead times often in excess of six months before opening, so require as much notice as possible. I urge the Government to extend the 5% VAT reduction for at least three years, in line with recommendations from the Select Committee on Digital, Culture, Media and Sport. Finally, and perhaps most importantly, I support the introduction of a Government-backed insurance scheme for live music, theatre and performance to allow venues, producers and creators to proceed with developing projects in confidence that, should they not be able to do so, the Government will support them. We have launched a similar and very successful scheme for the film industry and, knowing how much it costs to put on a commercial theatre production, such an insurance scheme would prove beneficial for the whole industry. With that, I thank hon. Members for joining me to take part in the debate and I look forward to hearing their contributions and the Minister’s reply.

[Sir Charles Walker (in the Chair)]

Order. There will be a time limit of three minutes.

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[Alison Thewliss (Glasgow Central) (SNP)]

It is great to see you in the Chair, Sir Charles. I am going to speak up for Glasgow Central and our renowned cultural offer. We are also a UNESCO city of music. I want to talk about the many people that work in the communicative sectors, both in the limelight and behind the scenes. The band Ash tweeted earlier:

“Not just musicians though is it? It’s our technicians, our engineers, our management, our agent, our promoter. It’s the venues, their staff, the production companies, transport, storage. It’s roughly one million people you’re throwing on the job market”,

by not supporting the industry further. I would add to that the restaurants, bars and hotels and all of the people that work in them. An entire local ecosystem is at risk without further support in a sector that is worth £111 billion to the UK economy.

Some of the comments from the Chancellor and the Treasury have been quite hurtful to many people in terms of their role within the sectors. I will read a comment from one of my constituents, Jazz Hutsby. He writes,

“My partner and I are freelancers within Live Events and The Arts. To call this a career would not describe what our jobs mean to us. We have dedicated our lives to our practice, we trained specifically for this role. We are specialists in our field, make no doubt that we do not need to “get better jobs”, or to “upskill”. What we need is effective support. The rhetoric from Westminster over the last week has been, quite frankly, disgusting. Our vocation, our lives, have been deemed unviable. This was, as I’m sure you are aware, quite literally what the Chancellor suggested.”

I can tell the Minister that that was written before the comments on ITV earlier today. There is so much more that Jazz points out that needs to be done to support the sector by all Governments and by local government, and I will seek to pursue those issues with whoever can help.

I want to talk about the events and conferences sector because the Scottish Events Campus in my constituency of Glasgow Central employs more than 200 people, with additional people that come in for events. Exhibitions are worth more than £11 billion to the UK economy, but they and their suppliers have little or no support, and the ending of furlough could mean unemployment for around 114,000 people in the exhibitions sector, which is completely avoidable if the Government choose to support the sector. It is and will be viable. It just needs bridging to get to that point. Further job losses have been announced in Cineworld, and potentially the Odeon, which will affect my constituency.

Lastly, I want to talk about the museums sector. Museums Galleries Scotland has pointed out that as of last week only 160 of Scotland’s 423 museums and galleries are open. That is 38%. That might be a high point for the year as we go into winter and some have to close down for that. Some museums cannot open because they do not have the capacity to do so safely, social distancing makes their business model unviable, and their staff have been redeployed, or their volunteers are too vulnerable to come back in. The Association of Scottish Visitor Attractions found that only 28% of attractions that have reopened are opening at an economically sustainable level.

We need such sectors. We need them to survive for all our health and wellbeing, and for the cultural joy that we draw from these things. The Government need to get their finger out to provide the extra support to see them through the winter.

[Sir Charles Walker (in the Chair)]

There has been great self-discipline from Back-Bench colleagues and we have had two no-shows, so the Front-Bench speakers each have at most 11 minutes, which leaves the mover of our debate two minutes at the end. I call Gavin Newlands.

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[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

It is a real pleasure to serve under your chairmanship, Sir Charles. I thank the hon. Member for Cities of London and Westminster (Nickie Aiken) for securing this important debate. No one is a more passionate advocate for the west end than the hon. Lady.

Is it not delightful to be back in Westminster Hall, having proper debates? I cannot say how grateful I am to everyone who spoke in this debate. We have seen, across all parties, how everyone in the debate really cares about the cultural sector and the cultural industry. That includes people who worked in the industry, such as the hon. Member for Clacton (Giles Watling), or as I did for three decades as a freelance actor and writer; musicians such as my hon. Friend the Member for Cardiff West (Kevin Brennan), who is a fantastic musician, and I urge everyone to buy his album; or people whose children are interested in the arts. We all know, too, the impact that the arts have on our own communities, for wellbeing, tourism and so on.

Obviously, we are in a difficult time. I will go through some areas on which great points have been made. On the events sector, the hon. Member for Wimbledon (Stephen Hammond) talked about tests being done—can we see those tests being rolled out to open the sector up? The events sector feels absolutely abandoned and left to one side.

On community and how mental health is supported by work done in communities, my hon. Friends the Members for Luton South (Rachel Hopkins) and for Hammersmith (Andy Slaughter) talked about the work in their constituencies. In Hammersmith, I know that work is being done on equality, inclusion and diversity. My concern is that, as we get our sector back on its feet, such work will be the low-hanging fruit that we will lose across the piece—that work with communities and schools, and on bringing on new writers from diverse communities. It is vital for such work not to be cut as we try to survive.

Pantomime is the first chance that most young working-class kids have to go to a theatre. The concern for pantomime was mentioned by the hon. Members for Waveney (Peter Aldous) and for Warrington South (Andy Carter). Last week, in a great demonstration, in the panto parade we saw a lot of the freelancers in their pantomime dame costumes. The dedication they give to their sector is really a joy to behold.

In Vauxhall, we have the Young Vic. I am so excited about the work being done there, and about its anniversary. On our museum sector, as my hon. Friend the Member for Liverpool, Riverside (Kim Johnson) said, when we go to Liverpool we all know about the vibrancy and energy we get just from being on the streets, because the music-based passion for culture is at every corner.

Concerns were expressed about the involvement of councils and how we should support them. Theatres and music venues are civic centres. The hon. Member for Northampton South (Andrew Lewer) said that the council is one of the biggest investors, and that is absolutely true.

With tourism, we cannot get away from this—in the majority of our communities, tourism is held up by our cultural offer. My friend from the all-party parliamentary group for theatre, the hon. Member for Clacton, talked about his constituency and about the voucher suggestion—the seat out to help out. Any support for our regional theatres to open would be welcome.

Let us not forget the issue of freelancers. My hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) knows this perhaps more than others, because the BBC is in his constituency, but the BBC is held up by limited companies, freelancers, PAYE freelancers and creative freelancers, who come in and out for shows. They really need our support. The hon. Member for Glasgow Central (Alison Thewliss) has done so much to raising the issue of the excluded and freelancers.

The Minister has shown great dedication in this area. While the Chancellor clarified his statements to ITV by saying that they were not specifically about musicians, there is a sense that the creative industries feel misunderstood, as we heard this afternoon. They will be the last to come back and the least supported. There is a sense that they are not viable or that the people in them could retrain. As we know, musicians spend all their lives, day in day out, learning their musical instruments. To be told to become a care worker instead will only lead to poor mental health and depression because they are not doing the thing they have trained for. The Minister is assiduous and I am sure she will take that point back to the Chancellor. What was said on ITV has impacted us all and deeply upset the industry, which does not feel that the Government understand its value.

We all want to see our venues get back to normality. We have heard today about their financial impact. We have also heard about the cultural hub of a community in terms of visitors, support for local restaurants, taxi firms, employment and our local economies more widely. During the summer months when restrictions were easing, we had a sense of positivity and excitement, but with local restrictions it is unfortunately unlikely that those activities will flourish.

The Government’s furlough scheme and self-employed income support scheme are very welcome. I am very grateful and I know other hon. Members are also grateful that that has been extended. However, it has been extended in a way that makes it impossible to use. How does a venue that cannot open contribute to a workforce’s salary? Sadly, we heard today about the RSC potentially laying off hundreds of its staff, which will be devasting for them and their communities. We have also heard from the sector that delays in the cultural recovery fund have brought great anxiety.

I thank the Minister for her letter, which I received today, regarding my concern around the “crown jewels”. In my mind, the crown jewels are our community offer as well as the west end—the ecosystem of regional and community theatres that the west end needs. We are all intertwined—push over one domino and the rest of the dominoes will fall. It is really important that the money does not only go to the crown jewels.

When I put a call-out on social media for freelancers to tell me their experiences of what is happening—perhaps slightly foolishly—my inbox exploded and I received over 4,000 responses from people I know and care about. Couples have lost a year’s work and still have childcare costs and a mortgage, and they are leaving the sector. We have heard from the Musicians Union that one third of musicians are thinking of leaving the sector. The support for freelancers could not be more needed. Cineworld’s 5,500 workforce is a tsunami of job losses. The training is not there for people who want to retrain. We have to put support in as fast as possible.

In the time I have left, I have a number of questions for the Minister that I hope she will address in her response. I work with a culture committee of people in the sector and we had a meeting this morning. My understanding is that there is still no news of who has the money. Will the Minister explain the delay? On what date will the successful organisations receive their funding? A number of organisations did not apply for funding, because of the restrictions. For example, to show that they have tried everything to stay afloat, they have fired all their staff, or they were unable to show that they could spend all the money from the Government by 31 March. With stage 5 now kicked further into the year, have those criteria changed? Does that mean that those organisations that originally did not apply because they did not fit the criteria will now have an opportunity to apply? Clarity on that would be extremely helpful. What was the total number of organisations that applied and what was the total amount of funding applied for?

For concerts and theatre to return with confidence, we really need an answer about insurance. I asked the Minister a question about insurance in DCMS questions, but she was unable to give me an answer. I am sure that there are lots of conversations going on with the Treasury. We have insurance for film and TV, and that is why they are back up and running. What does she know about the negotiations that are happening around insurance? Can she at least give us a chink of hope around that issue?

Have the applications for loan supports been greater than expected? If so, will the cost of additional loans be taken from other funding pots? Would the Minister explain the 10 pm curfew that applies to music venues but not to theatres? What evidence can she share with us that the 10 pm curfew will save lives? In order for venues to reopen, they have to spend money on covid safety costs. Will they get that money back, even if they do not get money from the ACE funding? Is there a contingency fund in place to help venues that reopen but have to close again? What framework is in place to support local authorities and metropolitan Mayors to work together to support those who need support? Finally, I was surprised to learn that the cultural taskforce has been wound up for now. Can she elaborate as to why that is? Is there a feeling that its job is now done? I look forward to hearing from the Minister.

[Sir Charles Walker (in the Chair)]

The Minister has a lot to get through. Will she leave two minutes at the end for the Member who proposed the debate?