Independent Film Tax Credit
Chris Bryant Excerpts(1 month, 2 weeks ago)
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The Minister for Creative Industries, Arts and Tourism (Chris Bryant)
Today the Government have laid regulations to bring in the independent film tax credit (IFTC). This will provide an uplift to our existing audiovisual expenditure credit (AVEC) specifically targeted to support the growth and success of low-budget British films. These regulations set out the eligibility criteria for film production companies, which will be able to apply for an eligibility certificate from the British Film Institute from 30 October this year. Companies will be able to apply to His Majesty’s Revenue and Customs to claim the IFTC from 1 April 2025.
These regulations create the mechanism for low-budget film productions and international film co-productions to apply for tax relief in the form of an enhanced AVEC. This targeted uplift will be at a higher rate of 53% compared to the normal rate of 34% for other films.
The regulations include a budget condition to ensure that this tax relief specifically targets independent productions with a budget of up to £15 million.
To avoid productions with budgets slightly over £15 million receiving a much lower amount of relief, films with core budgets of up to £23.5 million are eligible. The IFTC has a cap of £6.36 million on the total cash credit receivable, which is based on qualifying core expenditure (i.e. “core budget”) of £15 million. This creates a taper in the proportionate value of the credit for films with core budgets above £15 million.
The enhanced AVEC rate will be available for £15 million of a production’s budget. There is also a “modified creative connection” condition which means that the film must have a director or scriptwriter who is a British citizen or ordinarily resident in the UK, or be an official UK co-production. Finally the regulations also detail the particulars and evidence that applicants will need to provide in order to access this enhanced relief.
The regulations have been laid alongside appointed day regulations which mean that from 30 October 2024, eligible companies will be able to apply for certification for this enhanced uplift. Film production companies can claim this enhanced relief in relation to films whose principal photography began on or after 1 April 2024. HMRC will begin accepting applications on 1 April 2025.
Both the Corporation Tax (Certification as Low-Budget Film) Regulations 2024 https://www.legislation.gov.uk/uksi/2024/1009/pdfs/uksi_20241009_en.pdf and the Finance (No. 2) Act 2024 (Applications for Certification as Low-Budget Film: Appointed Day) Regulations 2024 https://www.legislation.gov.uk/uksi/2024/1010/pdfs/uksi_20241010_en.pdf have been published on legislation.gov.uk.
[HCWS115]
Creative Industries: Stoke-on-Trent
Chris Bryant Excerpts(1 month, 2 weeks ago)
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The Minister for Creative Industries, Arts and Tourism (Chris Bryant)
It is a particular joy to see you in the Chair, Dame Caroline, as with one of your many other hats on you have a passionate interest in the creative industries. It is great to have you here.
I will start by commending my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) on being elected again, which is a great delight—this is a slightly different debate from the one we might have had if it had been led by his predecessor. It is good to see him return to the House. He says he hopes that I enjoyed his tour; the danger is that I enjoyed the tour so much that I might not need to make the actual tour.
I will answer the specific questions first and then make some other comments. First, on whether I will visit, I am very happy to; it is just a question of when we can make that work. I am in two Departments, so it would be good if we could try to combine some of the work on tech with some of the work on creative industries, which would follow on from what the council has done locally. I think of tech as a creative industry, but the council has led the way in trying to combine the two.
Secondly, on whether we will look at creating a creative cluster, my hon. Friend makes a very good case. We are looking at what we need to do about creative clusters in the next round of announcements next year, so he has made a good bid and my officials are listening very attentively.
Adam Jogee
Just very briefly. It is important to reiterate my hon. Friend’s point that there is a groundswell of support in north Staffordshire for such a cluster, so I urge the Minister to take not just his word for it, but mine. The Minister talked about combination. I hope that his visit will be combined with a visit to Stoke-on-Trent Central and indeed Newcastle-under-Lyme.
Chris Bryant
Well, I am also the Minister for tourism, so I feel as if I will be going on a tourism visit. We will see what works as the best kind of visit. I am always a little worried about trying to do too many things in one visit and then nobody gets a proper insight into anything, but we will certainly look at that. My hon. Friend the Member for Stoke-on-Trent Central makes a good point about creative clusters. It is a key way of developing a real levelling-up strategy.
My hon. Friend’s third question was whether the creative industries will be a key part of an industrial strategy. The Government are working on this at pace, and I can assure him that we are making a strong case for the creative industries being an absolutely essential part of that strategy. I do not think Britain can have a successful future economically speaking—let alone sociologically, and in many other ways—unless that is the case, so I can assure him that it will be.
My hon. Friend asked a fourth question—I am answering all these questions directly; it won’t catch on—about whether we would have conversations with the Department for Education on the curriculum. I will not bother reading out what has been written for me—the answer is yes. We are already having those conversations. We have seen a shocking decline—in the region of 40% to 50%—in the number of students studying music, drama and art over the past 14 years, and we want to reverse that. It is not going to happen overnight, but we have to put all these subjects right back at the heart of the curriculum. That is an essential part of what we have to do.
Gareth Snell
I thank the Minister for responding directly to my points—I do not think that ever happened during the entire time I was last in Parliament, so the novelty is not lost on me. On the curriculum, can the Minister ensure that when that conversation happens, there is emphasis on the communities that should have access to that? I know the Minister will do that, but I want it on the record. While having art on the curriculum works fine, often, in working-class communities like mine, it is not seen as being for those people or for those communities. I know the Minister is a great advocate for communities like those we represent. Can he ensure that the DFE understands that it is no good just having art on the curriculum, and that it has to be actively encouraged in communities that ordinarily would not take it up?
Chris Bryant
My hon. Friend makes a very good point. It will be a complete failure for this country if the only place a student can study an art A-level is at Eton, because it has a good art teacher and art classroom and all the rest of it, or if the only place a student can throw a pot in a school is in a very middle-class area with lots of middle-class parents. I know this from my own experience: in the Rhondda and Ogmore, a vital part of what we do well for the nation is producing people who have excelled in the creative industries, but those people have often had to do so despite not having those opportunities locally. Artists such as Ernest Zobole and Charles Burton were involved in teaching locally, which is important to ensure there is a pipeline for young people who are thinking about art, drama and so on.
I would also argue, incidentally, that a creative education is a force multiplier for all other aspects of education. What is it that many employers want? They want somebody who will be able to confidently answer the phone. That self-confidence is as likely to come from having done a drama course and learned how to speak publicly, to project and use the voice and to be part of a team, or from having sung in a choir or played in an orchestra, as it is from being really good at maths. That is the kind of attitude that we need to adopt.
I do not want to stray too far into the subject areas of the Department for Education, but it is worth pointing out that what is in the national curriculum needs to be advanced in every school, not just some schools. The structure of education in England is obviously different from that in Wales, but I am conscious that we need to take these issues forward.
The main point of this debate, of course, is that the creative industries are an enormous part of our cultural and economic future. They represent £125 billion of value to the UK. My hon. Friend referred to video games, which are a fast-growing sector. Last week, I visited Ubisoft in Newcastle, which represents significant investment; large numbers of people will be working there. Exactly the same is true in Stoke. The video games industry is worth something like £7 billion in the UK now, which I confidently expect to grow in the years ahead—not least because it builds on things that we have been exceptionally good at in the UK, such as producing books, telling stories, creating characters and music and technological development. I played “Assassin’s Creed” last year, very briefly; I was not very good. However, what was fascinating was that its development used archaeologists and historians to make sure that everything that people see on the screen is perfect. That is a whole nexus of creativity that we want to develop.
Growth in this sector over the last 14 years has been higher than in the rest of the economy and we know that it will continue to be higher in the future, as long as we make the right investments and the right decisions. The creative industries sector is a large employer in the UK, employing some 2 million people.
There is nobody here from the previous Government to defend themselves, but I felt that over the last few years that the creative industries sector was denigrated a bit, as if going into the creative industries was not a proper job; ballerinas were told to retrain and things like that. That is not our attitude. We believe that the creative industries are an absolutely essential part of our future economic growth.
My hon. Friend made the point about levelling up, in a sense, although he did not use the term—maybe we need to ditch it. Nevertheless, it is an important point that there are 55 creative industries clusters and 700 micro- clusters around the UK, and this is an opportunity to ensure that that happens everywhere, because talent is everywhere but opportunity is not. That is what we really need to change and that is what our strategy will be devoted to. It is not a “nice to have”; it is absolutely essential to our economic future.
My hon. Friend referred to Stoke as the crucible of creativity, which I think is a reference to the burning of the pottery at the start of the process, although I now have the title of Arthur Miller’s play going through my head; that play slightly ruined my school days. However, he made a very important point about the World Crafts Council granting world craft city status to Stoke. When Clarice Cliff died in 1972 lots of people probably thought that she would be forgotten, but she has now been brought back, not least because of things such as “Antiques Roadshow”. Again, this is a cycle of creativity, whereby different creative industries feed off and enhance one another.
My hon. Friend also referred to video games; I think that it is Junction 15 Productions that won the Emmy for its work on the Beijing Olympics. He is quite right—the industry is worth £7 billion. As I saw in Leamington Spa, it is essential that there is close working with the local university, to ensure that there are people coming through. The course at the University of Staffordshire is world-renowned. That is a really important part of ensuring that people are coming through into the industry, because it has vacancies; in particular, it has vacancies five and 10 years in. That is an important part of the work that we need to do.
I commend the city on developing a cultural strategy for 2022-28. It has been a cross-party process; the strategy was originally introduced by Conservatives and was carried forward by Labour. I wish that every single local authority in the land—as well as the Mayors, many of whom are advancing such plans—had a similar kind of strategy, because in the end all of this has to be delivered at local level, and it is creating that ferment of excitement that enables these things to happen. I commend Stoke for that. As I said earlier, the combination of culture and tech is important; for example, making sure that there is full fibre roll-out across the whole of the city is an important part of making many modern creative industries flourish.
There was a reference to the New Vic Theatre in Newcastle-Under-Lyme. I note that Angela Carter’s “The Company of Wolves” is on at the moment and I also note that the Christmas show is “The Three Musketeers”. Indeed, the publicity for “The Three Musketeers” might be referring to my hon. Friend when it says:
“A spirited country boy arrives in the big city with big dreams”.
There we are; I think that is him to a tee.
I will just make some final points. First, as I have said, creative education is absolutely essential for what we want to achieve, and we also want to reform the apprenticeship levy so that it works much better for creative industries, and so that there is portability and flexibility. Thus far, the levy has not really worked in that regard, but we are working on it.
Secondly, I have an ambition that there should be no impediment for somebody from a working-class, ordinary background from whatever community in the UK, to consider going into the creative industries as a career. All too often, the creative industries have almost become a kind of hereditary industry, because someone can only afford to start in them by taking an unpaid post for a year or two, which is paid for by the bank of mum and dad, or if someone has a parent or another family member who has worked in that creative industry. We need to change that situation completely, so that the full talent of the whole of the UK is embraced.
Finally, we need to ensure that the product of the creative industries is accessible to all, which is about people being able to go to the theatre, going to live art events, see art in their streets and having architecture in their city that is beautiful, and which lifts and inspires. That is the ambition that we have as a Government, and Stoke is beautifully exemplifying it in its crucible.
Question put and agreed to.
Edinburgh Festivals: Cultural and Economic Contribution
Chris Bryant Excerpts(1 month, 2 weeks ago)
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Max Wilkinson (Cheltenham) (LD)
It is a pleasure, Mr Efford, to serve under your chairmanship and I congratulate the hon. Member for Edinburgh East and Musselburgh (Chris Murray) on securing this important debate.
We have heard many inspiring stories today about Edinburgh. I regret that my most recent cultural experience in Edinburgh was bellowing out Proclaimers songs in Fingers piano bar at my stag party. That was a great day out, but it does not match up to some of the other stories that we have heard—
The Minister for Creative Industries, Arts and Tourism (Chris Bryant)
It does not sound like it would. [Laughter.]
Max Wilkinson
It was a lovely evening out as well, Minister.
Our challenge is that we must build a creative environment that showcases the best of British talent—bringing together British culture and creativity, and showcasing it for the world—and that we use that to foster a thriving and informed democracy. The impact of cultural festivals in achieving those aims is substantial.
In the case of the Edinburgh festival, we have already heard that it benefits Edinburgh itself by more than £400 million; the wider impacts on the rest of Scotland and the UK are much, much bigger. The festival opens the door to tourism for the rest of our nation, which is a really important aspect that we must not miss out when speaking about cultural events.
That is why it is very worrying to hear the concerns of festival organisers, which have been highlighted in recent news coverage. Regardless of funding pressures, it is our opinion that it is extremely important that the Scottish Government do what they can to meet their past funding pledges. For appropriate balance, I will add that such responsibility extends to other public funders of cultural activities across the rest of the UK, whether those are devolved nations or local government.
Festivals, such as the festivals in Edinburgh that we are debating today or the Cheltenham festivals in my own constituency, play a key role in our cultural life. It is vital that they receive the support necessary to continue to flourish. This week, my constituency is celebrating the 75th anniversary of the Cheltenham Literature Festival, which continues to flourish. However, despite large ticket sales, reductions in funding and in-kind support mean that the organisers of the Cheltenham Literature Festival have had to make some really tough choices in the past few years. Nevertheless, they still engage youngsters in reading to the tune of around 23,000 children every year. Of course, reading for pleasure is one of the single biggest indicators of a child’s future success.
At the launch event for the Cheltenham Literature Festival last Friday evening, supporters—including me—were reminded that the UK spends just 0.46% of its GDP on culture; that is based on the latest figures, which are from 2022. According to the University of Warwick’s “The State of the Arts” report, the UK is not alone in Europe in cutting its cultural budgets in recent years, but that does not make it right and we remain towards the bottom of the European league table, lagging behind our neighbours. If we are to remain a cultural superpower, that situation needs to be addressed.
Cultural funding extends to local festivals, theatres, cinemas, museums, art galleries, music and dance venues, libraries and public spaces. These are all vital to communities the length and breadth of our country. They are spaces devoted to creative endeavour. They not only fuel local economies; they also stimulate community participation across a whole range of creative activities.
In addition, we must not ignore the positive impact of the cultural sector on another great challenge facing our nation: deteriorating mental health. As we seek to reduce pressure on the NHS, we should look to the arts and culture as part of the non-medical therapy available. While few in the Chamber would dispute the difficult economic inheritance of this Government, we cannot look past the positive economic and social impact of investment in culture. It generates incomes and helps communities to thrive in non-monetary measures, too, as the hon. Member for Strangford (Jim Shannon) pointed out.
What can we do to help our cultural sector boost the economy and increase happiness and wellbeing? Central Government can make a difference in many ways, although at heart it often comes down to money. However, Westminster and devolved Governments can make other important contributions. The promise made by the new Government for the restoration of multi-year funding settlements for local government will provide an important route to that. The hon. Member for Mid Derbyshire (Jonathan Davies) mentioned creative subjects, and we agree on that.
Planning reform offers another opportunity. Engaging the cultural sector in that will be important. We can beef up powers for local areas to protect cherished cultural venues. The cultural sector, too, would benefit from the abolition of business rates and the introduction of a commercial landowner levy.
A more sensitive subject is freedom of expression in the cultural sector. We all need to remember that sometimes we will see and hear things that we do not agree with. If art is not there to stimulate debate, it is nothing.
Finally, Chair—
Dr Luke Evans (Hinckley and Bosworth) (Con)
It is a pleasure to serve under your stewardship, Mr Efford. I hope you do not mind that I have taken off my collar to allow a bit of movement. If my head starts to wobble, please do intervene. Congratulations to the hon. Member for Edinburgh East and Musselburgh (Chris Murray) on securing this debate. It is fantastic to have a discussion on this. Looking through Hansard, I note there has not been a debate on this topic since 1992. He brings a wealth of knowledge and passion that clearly came through, as it did in speeches by a variety of MPs whom I do not have time to thank. That was our own MP fringe event happening right here.
I admit I have never been to the fringe festival, although strangely I, too, have been to a stag do in Edinburgh. I always like to look what the best joke was each year. This year’s was from Mark Simmons:
“I was going to sail around the globe in the world’s smallest ship but I bottled it.”
I first saw him on TikTok, which shows the power of how these artists can spread. Have I stolen the Minister’s line?
Dr Evans
I was also interested to hear that another major Scottish city—Glasgow—has been successful in getting the Commonwealth games. I believe the hon. Member for Edinburgh East and Musselburgh moved to Edinburgh from his home town of Glasgow. It is great to see that success in both those cities is supporting the UK as a cultural destination. I wish the city of Edinburgh well as it prepares for its international storytelling festival, with Hogmanay on the horizon.
The previous Government provided significant support to the sector, including the then Chancellor’s spring Budget, in which he announced £8.6 million of support to festivals, to help boost Scotland’s status as a destination for creative industries, as we have heard. I also understand that the Edinburgh and South East Scotland city regional deal, agreed under the previous Government, is giving the city the chance to unlock opportunities for economic and cultural growth.
The hon. Member for Edinburgh East and Musselburgh is well aware of the successes of the festivals. I thought I would add a couple more bits of data: more than 2.6 million tickets issued, more than 3,746 shows registered, and more than 60 different countries represented on stage. That shows the appeal, not only locally but internationally. As my hon. Friend the Member for Gosport (Dame Caroline Dinenage) said, the R&D incubator for the creative industries is something we must cherish.
I noted that the Edinburgh fringe app was downloaded 124,000 times, which shows that a traditional festival can move with the times, and work with others to be creative and engage more people. The extent of the data on the impact of this year’s festival has not been fully quantified or produced yet. In 2022, the Edinburgh fringe festival was on a par with the FIFA World cup. In 2022, BOP Consulting was commissioned by the Edinburgh festival to undertake an economic impact of the previous 11 Edinburgh festivals. The festival in 2022 generated an economic impact of £407 million—a significant increase from £280 million in 2015—not to mention the 7,000 direct jobs and 8,500 jobs across Scotland.
As the hon. Member for Edinburgh East and Musselburgh said in his maiden speech just a couple of months ago,
“culture, hospitality and tourism form the economic backbone of my constituency, not least in August, when it plays host to the Edinburgh international festival and fringe.” —[Official Report, 25 July 2024; Vol. 752, c. 883.]
With that, and turning to the Minister, I am interested in understanding whether he believes the visitor levy being proposed in Scotland will benefit the Edinburgh festivals. Will it benefit the city of Edinburgh and Scottish tourism as a whole? I understand that Edinburgh City Council, as well as Glasgow and Aberdeen, are looking at using the legislation. Does the Minister feel that Scotland has got this right and is he considering that across his Department in Westminster?
The Minister has a jam-packed portfolio, and I would hate tourism and the creative industries to become a fringe, as they are too valuable for that. Will he ensure that the creative industry budget is maintained in the upcoming Budget? Has he spoken directly to the Chancellor about tourism and creative industries? What assurances has he received that the creative industries will be protected, with tax reliefs maintained?
That being said, we are all here to celebrate a fantastic event. I again put on record my thanks to the hon. Member for Edinburgh East and Musselburgh for bringing this forward, from 1992 all the way to 2024.
The Minister for Creative Industries, Arts and Tourism (Chris Bryant)
It is a pleasure to serve under your chairmanship, Mr Efford. I should point hon. Members to the Register of Members’ Financial Interests, because I was paid by the Edinburgh book festival a year ago. I note that nobody else has had that to point out.
I will start by paying tribute, as many others have, to Shona McCarthy. She has done a phenomenal job over nine years. She has taken the festival through some of its most difficult moments, and it is striking that 2.6 million people bought tickets this year, which is the fourth highest number in its 77 years. That is absolutely brilliant, and we wish her well.
The Minister—I am sorry, I meant the shadow Minister. We keep on doing this because we are not used to it. I do not think the shadow Minister said that the joke he told was by Mark Simmons—he should attribute jokes. Simmons also had the no. 5 joke, which was:
“I love the Olympics. My friend and I invented a new type of relay baton: well, he came up with the idea, I ran with it.”
[Laughter.] Yes, it was terrible, wasn’t it?
I pay tribute to my hon. Friend the Member for Edinburgh East and Musselburgh (Chris Murray). It is great to have a lot of new friends, especially from Scotland, and we are delighted to see Edinburgh so well represented. I will try an innovative thing, which is to answer the questions that have been asked as much as I can.
My hon. Friend asked about multi-annual financial planning. In so far as we possibly can, we want to be able to give economic stability to arts organisations, just as we do to local authorities in many other parts of the economy. That is one of the things we are driving towards in the spending review. However, I am afraid I must point him to the fact that there will be a Budget at the end of the month, and I can hear my right hon. Friend the Chancellor in the back of my ear already saying, “That’s far enough, Bryant!”
My hon. Friend the Member for Edinburgh East and Musselburgh asked about cross-UK engagement. I want to make this absolutely clear: I do not want to engage in any kind of cultural battles with Scotland, Northern Ireland or Wales. We should be seeing this as a joint venture. The creative industries are a part of what defines this nation across the world, and we will only do well if we work together to achieve the best outcomes for performers, people who might become performers and the industry as a whole.
My hon. Friend makes a good point about visas. I will take that away and think about how we could work most creatively with the Home Office to make sure we get this right. It is not just about people coming into the UK; I also argue that it is about UK acts being able to tour in Europe. I was absolutely delighted earlier this year to go and see Depeche Mode in Cologne. I have never seen Germans so excited; they just can’t get enough. [Laughter.] Thank you.
My hon. Friend made an important point about crisis support. I am worried about the situation that arose, in particular, for the book festival and Baillie Gifford. He makes a fair point about whether that is the right way to go about making important points about climate change. One of the things we need to do as a Department is look at the whole package of the whole funding of all the arts and creative industries, which used to come from five or six different segments, including local government, which was prominent in that when we were in power before 2010. Most of that funding has completely gone, and philanthropy is struggling outside London and the south-east. We need to look at this in the round.
It is great to see the Chair of the Culture, Media and Sport Committee, the hon. Member for Gosport (Dame Caroline Dinenage), in her place, as she always is—she was in your place earlier for a previous debate, Mr Efford. She makes very good points about short lets. The legislation already in place for England and Wales, for which we are now considering how we will implement and take forward secondary legislation, would not apply in Scotland. However, we want to learn some of the lessons of what has happened in Scotland so that we can apply sensible legislation in England and Wales. I thought her point about co-operation was very well made—my hon. Friend the Member for Edinburgh East and Musselburgh made that point as well. It is not just about us: there is a Government in Scotland, and it is also about local government across the whole of the UK. In England, I would argue that it is also about regional mayors, who play a very important part in the creative industries.
My hon. Friend the Member for Edinburgh South West (Dr Arthur) referred to quieter parts of the year. It is a very well-made point. I would also argue that there is an issue about quieter parts of the country. It is all very well getting all the tourists to come to London, Oxford, Cambridge, Stratford, Bath and Edinburgh, but if they do not also go to other places—Stirling, I know, has a very fine castle, because I danced the Highland fling in it when I was 12, I think. Making sure that the benefits accrue to the whole of Scotland and to the wider economy is a really important part of what we need in our tourism strategy.
My hon. Friend the Member for Edinburgh South West also made a good point about a tourism career. That is something we need to take far more seriously as a country. Why is it that somebody who works in a bar in Paris, or in a restaurant in France, Spain, or wherever, thinks that is a career for life, whereas we think it is somehow a demeaning job, which it is not? We need to completely transform that if we are to transform our tourism opportunities so that we get more than 32 million people coming to the UK.
The omnipresent hon. Member for Strangford (Jim Shannon) made important points about Northern Ireland performers—some of the best comedians we have known over the years—coming to Edinburgh and getting an opportunity, and about other festivals. Trying to get the economic possibility for festivals to flourish goes back to the point I was trying to make about the whole package of finances available.
My hon. Friend the Member for Mid Derbyshire (Jonathan Davies)—a former music teacher, no less— made very good points about other festivals. I am not sure about the Gilbert and Sullivan festival—I am worried now that I might get into trouble. I just remember that line from “Trial by Jury”: “She might very well pass for 42, in the dark, with the light behind her”—
Chris Bryant
There we are—I have been corrected. The most important point my hon. Friend made was about creative education. We need to make sure that every single child in this country gets a proper creative education. It is a force multiplier for other forms of education and means that children will prosper better in the work market. We are determined to transform that.
My hon. Friend—sorry, the hon. Member—for Edinburgh West (Christine Jardine)—she is a friend as well; she is a very friendly person—is from my mother’s part of the world: Glasgow. She made a very important point about the world’s window on us. That element of soft power, which several Members have referred to, is important. The Edinburgh festivals as a whole are an important part of that. For instance, the film festival and the television festival are world-renowned moments when people look to the UK. She talked about the cost of accommodation in Edinburgh, which goes back to some of our discussions about short lets. It is a significant concern, and one of the things that we want to learn lessons from.
My hon. Friend the Member for Edinburgh North and Leith (Tracy Gilbert) also referred to accommodation costs. I am conscious that some people think we are going to be looking at dynamic pricing in relation to those costs: we are not; we are looking at dynamic pricing in relation to tickets. It is very interesting that the Edinburgh festivals do not use dynamic pricing. That is a really important part of making the whole package affordable and more accessible to more people.
My hon. Friend the Member for Glasgow West (Patricia Ferguson) referred to the book festival—it is not just because Walter Scott gets a great big statue; so many literary figures have come from Edinburgh. She also referred to the importance of Edinburgh being a UNESCO city of literature.
The hon. Member for Cheltenham (Max Wilkinson) talked about the Cheltenham festival. I welcome him to his place and look forward to working with him. I am going to answer the questions from the shadow Minister, who I think sings in a barbershop quartet or chorus—
Chris Bryant
Not yet—all right. He asked about the levy in Scotland, which is of interest to lots of people. Lots of other countries do it; it is not something that we are pursuing at the moment. He asked about the creative industries in the Budget—well, he will have to wait for the Budget, won’t he? He asked about tax reliefs—he can wait until tomorrow morning.
Question put and agreed to.
Resolved,
That this House has considered the cultural and economic contribution of the Edinburgh festivals.
Data and Digital Infrastructure: Security and Resilience
Chris Bryant Excerpts(2 months, 2 weeks ago)
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The Minister for Data Protection and Telecoms (Chris Bryant)
The security and resilience of the UK’s data and digital infrastructure are of central importance to the Government’s strategic objectives. This statement provides two updates on the Government’s approach to safeguarding connectivity and the foundations of the digital economy.
Designating UK data infrastructure as critical national infrastructure
Data infrastructure—the physical data centres and cloud infrastructure which provide the foundations of the digital economy—faces significant risks and challenges that threaten the day-to-day lives of citizens and other critical infrastructure in the UK. We are today taking a significant step to meet these challenges by designating UK data infrastructure as critical national infrastructure, putting our digital foundations in the same category as energy and water.
Data infrastructure underpins essential services that are critical to the UK economy and our way of life and will only become more vital as technologies like AI require greater data centre and cloud capacity. The data it contains is highly valuable, and as such attracts security threats from cyber and physical attacks. Data centres are also vulnerable to the effects of climate change, which is increasing the risk of environmental hazards like flooding, heatwaves, and other extreme weather that can disrupt operations and result in a compromise or loss of crucial services.
Although the sector already has high standards, CNI designation enables better mitigation of risks the sector faces through an improvement to the Government’s visibility and engagement with the data centre and cloud service industry. It signals the Government’s intention to better partner with the UK’s data infrastructure sector to work together to mitigate these. We will also explore further how to ensure the right conditions are in place to drive necessary capacity expansion to support economic growth and innovation.
As the Department responsible for monitoring, protecting and enhancing the security and resilience of data infrastructure, the Department of Science, Innovation and Technology will be working to better understand industry operators’ existing risk mitigations and identify areas for Government support. Data infrastructure will be managed under existing cross-Government CNI structures led by the Cabinet Office, as a sub-sector of communications. We will work closely in a joined-up approach with internal colleagues, other Government Departments and their respective CNI sectors, such as energy and water, contributing to cross-sector work and planning.
I am confident that these measures, taken together and implemented in close consultation with industry, will provide a high level of security and resilience for this increasingly critical infrastructure, giving confidence to the public and investors, and supporting the growth of the UK economy.
Telecoms Supply Chain Diversification Advisory Council report
In addition, I want to thank the independent Telecoms Supply Chain Diversification Advisory Council, who will today publish a new report setting out recommendations to Government on telecoms diversification policy.
A healthy and diverse supply chain for the technology that goes into our telecoms networks is essential for resilience—ensuring that UK network operators can deliver good, reliable connectivity for all. Concentration of that supply chain into a very small number of companies means the UK network is more vulnerable to disruption and means that outages, when they occur, may have greater impact. It is important that we take action to address this, working closely with international partners and allies.
I will review the Council’s recommendations carefully and will provide a Government response and update to this House on our efforts to maintain secure telecoms networks, supported by a healthy, diverse supply chain. I value the ongoing collaboration of the technology vendors and UK operators that have been engaging productively with Government on this matter.
A copy of the report will be deposited in the Libraries of both Houses.
I look forward to continuing work to strengthen, secure and expand our data and digital infrastructure, working with stakeholders across the economy and international partners.
[HCWS89]
Dynamic Ticket Pricing
Chris Bryant Excerpts(2 months, 2 weeks ago)
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The Minister for Creative Industries, Arts and Tourism (Chris Bryant)
It is a particular delight to see you in the Chair, Madam Deputy Speaker; I have not had an opportunity to congratulate you on your election—hurrah!
It is also a great delight to see the hon. Member for Gosport (Dame Caroline Dinenage) and to congratulate her on her election. Not many Tories have been elected to many things this year, but it is a great delight to see that she is returning as the Chair of the Select Committee on Culture, Media and Sport. She knows a lot about this subject and has devoted a lot of her time and energy to it, and I look forward to working with her. I am sure there will be times when she has cross words with me, but sometimes cross words make Governments better. That was certainly my policy when I was sitting on the Opposition side of the House, so I am sure that what is good for the goose is good for the gander.
Live events are really important to the British creative economy, and to the whole economy in the UK. It is the joy that they bring. I am sorry to start with a Kylie reference—well, actually I am not—but I would defy anybody to have gone to the Kylie concert in Hyde Park this summer and not come away bouncing with joy and full of the joys of spring. It was beautiful. It was amazing. It was thousands and thousands of people in a royal park enjoying themselves and celebrating. For others who went the night before, it was Stevie Nicks, in a completely different vein, but none the less providing that same sense of joy. That is an important part of what live events can do—that sense of being part of an enormous crowd of people enjoying either singing along or listening and that special sense of being together.
Live music is really important to our economy. I remember, it must be a year ago now, being in Newcastle: Sam Fender was performing at St James’ Park and we went to see P!nk, who was on at the Stadium of Light. That must have brought millions of pounds into the local economy. It was certainly an awful lot of money for the local hotels. Down in Cardiff we have lots of concerts, which many people from the south Wales valleys go to, and people come from all over the world. When Springsteen was there earlier this year, Cardiff basically had to be closed off, but the knock-on for the hotels, the bars and the hospitality industry was really significant. It was also significant for tourism, for which I am also the Minister.
It was reckoned that 200,000 people in the UK worked in the live events industry last year and it is an important part of what we do. It is part of the reason many people want to come to the UK. If I may gently say so, one of the things we would like to sort out is British acts being able to tour elsewhere in Europe, but it is good that Europeans are able to come here to see some of our acts.
The hon. Lady makes a really important point that this issue is not just about very big venues; it is about small venues as well, and I do have anxiety about the state of play for many of them. Some of those problems are shared with the whole of the hospitality industry, incidentally—skills, staffing, the costs of fuel, security and so on—but it is a simple fact, as she points out and as her Select Committee has pointed out, that there have been far too many closures over recent years. We stand ready to do what we possibly can to try to slow down, if not halt, that process of closure, because she is right: if an act does not have somewhere to start with a capacity of 250 or 300 or 500, how will they ever grow to end up filling Wembley or any of the arenas we have been talking about? The value in live events is created by the artist, the fans and the venue—it is a combination of the three; it is not created by ticket touts—and it is that combination that we really have to work on.
The hon. Lady is absolutely right that ticketing has changed. I remember once when I was in Saint Petersburg, or Leningrad as it was then—that is how old I am—I went to buy tickets for the opera and we bought tickets that were rolled up in a little peg hole. That is what a ticketing system used to be. That is what theatres used to have in the UK. Then we changed over to a system of having a physical ticket that we presented. Many of us have kept all our tickets for all the shows we have ever been to; I know friends who have collections of Orchestral Manoeuvres in the Dark tickets through the years and so on. Now, of course, we have a completely online, digital system. That is great in many ways. It can be easier and enhance security, but it can also be much more difficult, and has produced a whole set of new challenges for fans, artists and venues to make the market work effectively: barcodes, QR codes and all the rest of it; transferring a ticket from one person to another; different apps developed by different venues, and so on.
There are very new challenges. First, there is security, to which the hon. Lady referred, and someone getting the ticket that they actually paid for, rather than a ticket that did not exist in the first place. We have all heard hideous examples of that, and it is an embarrassment for us all that over recent years we have seen so few prosecutions in that area, despite the fact that nearly all of us can cite instances of constituents falling prey to those who are effectively selling tickets that they thought they might be able to buy online but do not possess. People then turn up to the venue and find that their tickets are not being honoured because they were not tickets in the first place. That is a security issue in the modern market.
There is also a fairness issue. The hon. Lady points out the experience of people logging on at 9 o’clock and sitting there for hours and hours. It is a system in which we have no idea how somebody gets to be number 1,273 rather than 1,884 in the queue. It seems completely and utterly random, but one suspects that there might be clever means by which people who have deep pockets and know how to navigate the system are able to manipulate it. It is clear that there are many instances of bots effectively hoovering up a large number of tickets using lots of different IDs, credit cards and the rest of it. That is an issue of fairness. Is everybody queuing fairly or not?
Then, there is the question of transparency. Online sites are not as open as they might be about the real or original cost—the face-value cost—of the ticket that they then sell for a different price. Some people say to me, “Well, it says ‘FV’, and all you have to do is click on the FV,” but why do sites not make the face value immediately obvious? Let me give the House one instance of inflated pricing, which is much more excessive in the secondary market than the hon. Lady said.
If someone who wants to see Dua Lipa at the Royal Albert Hall on 17 October visits the Viagogo site, they can either buy a ticket with a face value of €63 for £912— I do not know why it is cited in euros—or they can buy a ticket with a face value of £70 for £1,000. Or—and this is my favourite—they can buy for £9,444 a ticket that has a face value of £126.38. As the hon. Lady rightly said, not a single penny of the difference between £126 and £9,444 will go to the artist, the venue, the cleaner or lighting expert in the venue, the person who wrote the songs that Dua Lipa will sing, or the fans. It is simply going to Viagogo, and I think that that is unfair. It is not right; it is inappropriate. I know dozens and dozens of artists who are utterly embarrassed about the situation in which they find themselves, and they want us to act in this sphere.
Pete Wishart
We are delighted that the Minister is on top of this and knows about the issues and difficulties, but we are more interested to hear, in the time that he has left, about what he will do to resolve it. There have been reports from the Competition and Markets Authority and the Select Committee of the hon. Member for Gosport (Dame Caroline Dinenage). Will the Government look at them constructively and bring in legislation so that this is no longer a feature of live ticket sales?
Chris Bryant
The hon. Gentleman is a terribly impatient man; I am just coming that. [Interruption.] No, we have until 7.30. He is right that we must take action on the secondary ticketing market, and we committed ourselves to doing so during the general election. We believe that those people are denying true fans the opportunity to buy tickets on the primary market and are pocketing any profit for themselves. As I said, very little of the additional revenue actually goes to artists, venues or anyone working in the live venue sector more generally. The Government are committed to putting fans back at the heart of live events, and to clamping down on unfair practices in the secondary ticketing market.
That is why we have committed to introducing new protections for consumers on ticket resales, and we will be launching a consultation in the autumn to find the best ways to address ongoing problems on the resale market. The consultation will consider a range of options, including revisiting recommendations from the Competition and Markets Authority’s 2021 report, such as putting limitations on the price of tickets listed for resale over the face value; limiting the number of tickets that individual resellers can list to the number of tickets that they can legitimately buy via the original platform; making platforms accountable for the accuracy of information about tickets that they list for sale; and ensuring that the CMA has the powers that it needs to take swift, decisive action against platforms and touts to protect consumers.
We want live events ticketing to work for UK fans. I would say that the market was made for humanity, not humanity for the market, and sometimes Government need to intervene to ensure that the market does indeed work for humanity.
John Slinger (Rugby) (Lab)
As an Oasis fan, I too was queuing endlessly, and it proved to me that badly regulated markets have no morality. The conclusion from the dynamic pricing policy in that incident was that people with more money or touts could get those tickets. I speak as someone who played in rock bands when I was a younger man, although none so famous and successful as that of the hon. Member for Perth and Kinross-shire (Pete Wishart). Live music is universal in that it reaches out to the souls of people of all backgrounds. I would be grateful for the Minister’s view on what he can do to ensure that as many people as possible can get tickets for live music.
Chris Bryant
Persuade people to do more gigs, I guess. Obviously, there are only so many tickets for certain events, but what people want to have guaranteed is that the market is not excluding them solely on the basis of price. Sometimes there is a ballot for tickets, as there is for Wimbledon, and I gather that Oasis has now introduced a partial ballot for the next round of gigs that are being advertised, but we want to look at all these issues in the round.
I should say something about the CMA announcement. Like many Members across the House, I know lots of people, including my hon. Friend the Member for Rugby (John Slinger) and the Leader of the House, with stories about their process of trying to buy tickets two weekends ago for the Oasis reunion tour—I should point out that Oasis only reunites under a Labour Government. In the light of the concerns expressed by fans about the sales process, we welcome the CMA’s announcement that it has launched a formal investigation into Ticketmaster. The CMA has said that it is
“concerned that fans trying to buy Oasis tickets through Ticketmaster may not have been given clear information about ticket prices”
and has asked fans to share their experiences. Its investigation will look at whether the sale of Oasis tickets by Ticketmaster may have breached consumer protection law.
Others have greater freedom in what they can say than I do as a Minister. This is a live investigation and the CMA is an independent law enforcement body, and it is important to ensure that the independence and integrity of any investigation is protected, so, in order to avoid prejudicing the process, I am not going to comment on that investigation. I look forward to reading the CMA’s findings and I merely note that lots of people have said that they would like their money back. Following recent events, however, the Government will look at issues concerning the transparency and use of dynamic pricing in the live events sector, and we are carefully considering how that is taken forward in the light of the CMA’s announcement.
I want to talk specifically about dynamic pricing for a moment. In general terms, dynamic pricing involves a business adjusting its prices according to changing market conditions such as high and low demand. It is an established pricing strategy and it has been a feature of our live events industry for some time, at least in certain forms. As an example, I am sure that many Members will have managed to snap up cut-price tickets to popular west end shows by purchasing them on the day of the event. We are used to seeing organisers or venues slash their prices in that way in order to fill the few remaining seats.
It is also common to see early-bird tickets released at lower prices—punters essentially receive a discount on full-price tickets for an event by buying their tickets within a certain period after they go on sale or until a limited batch has been sold. Glastonbury does that, Wigmore Hall does that for people who are signed up to its programme, and for that matter, the Rhondda arts festival in Treorchy also does that. I urge people to look online and buy some tickets for next year.
In both of those scenarios, there are fans who benefit from a better deal than they might otherwise have been able to secure had they bought their tickets at another time. Equally, there will be other fans who bought their tickets at another time and had to pay a different, or indeed higher, price. Hon. Members will have their own views on all this, but I suggest it is a trade-off that most people are accustomed to, and one that we can generally accept.
Chris Bryant
We would not want half-empty venues—despite looking around the Chamber—due to tickets being priced too high, nor venues and festivals that are not economically sustainable. What we should not accept, however—I am very clear about this, as are the Government —are practices that see fans of live events blindsided by price hikes, either because they were not provided with the right information up front or because that information was not provided clearly enough. Doing so might be in breach of existing consumer law, which requires businesses to be fair and transparent in their dealings with consumers. It is the responsibility of the CMA to investigate potential breaches of consumer law arising from or involving the use of dynamic pricing methods, and to take enforcement action where appropriate. I have already referred to its investigation in this case.
It is the responsibility of Government, however, to confront the wider policy questions around the use of dynamic pricing for tickets to live events. We have already said that we will look at this issue further to establish whether consumers are adequately protected under existing law, or whether more needs to be done. The hon. Member for Gosport asked whether this means that we are going to take our eye off the ball on the secondary ticketing market—it does not. We are very clear: we have a set of manifesto commitments, and we will bring out our consultation this autumn. Once we have completed that consultation, we expect to take the necessary action that we committed to in our general election manifesto. Since most of that action is in line with what the Select Committee was advocating before the general election, I hope we might still enjoy the Committee’s support for it.
The hon. Lady is right that we will also be looking at websites: that is part of the whole panoply of action. She also effectively referred to vertical integration within the ticketing system. Of course, that has to be part of our considerations, because it is another part of making sure that the market works for humanity—for fans, artists and the creative industries—rather than all of us having to operate as slaves of the market.
The Prime Minister has said that we are committed to putting fans at the heart of music and ending extortionate resales. As I have said, we will launch a consultation this autumn to work out how best we can do that. That consultation will look at tickets for live events, and a call for evidence on the topic of price transparency, including dynamic pricing, will be sent out. That will help us understand the needs of fans and the live events industry. To be absolutely clear with the House and the hon. Lady, that will be about tickets for live events, not the whole of dynamic pricing across all industries in the UK.
The hon. Lady asked when we will respond to the grassroots venues report from May. We have been getting our feet under the table as fast as we possibly can, and I am very eager to respond to that report in swift order. I take the responsibilities of Select Committees very seriously—I sat on the Culture, Media and Sport Committee from 2001 to 2005; it is one of the most important things I have done as a Member of Parliament—so we will respond as soon as we can. It will certainly be in the autumn, and I would like it to be as soon as possible after the Committee is fully formed.
In conclusion, I would like to thank the hon. Lady for securing this debate. I am not allowed to refer to what she tried to get as urgent questions, but I have now. We have a world-class live events sector in the UK, and I am absolutely determined that fans have every opportunity to experience it at first hand.
There is nothing better than someone standing in an audience—in a crowd, along with hundreds of other people—either experiencing an artist they have never seen before and suddenly realising, “My God, that’s just pierced right through to my heart”, or going to see somebody they have seen 50 times before, having listened to the album 75 times in the past week, and having that joyful moment. They will be different artists for every single one of us, but I want far more people in this country to be able to enjoy that opportunity. I want every child to have a creative education, and I want them to have the opportunities that so many others enjoy in my constituency and every other.
I acknowledge that dynamic pricing can help match supply with demand, resulting in both higher and lower prices, but when it is used as a business model it needs to be transparent and fair, and that is what we want to ensure.
Madam Deputy Speaker (Ms Nusrat Ghani)
It was wonderful to hear from two musicians, and Sir Chris Bryant has given away his true old age.
Question put and agreed to.
Space Sector: Government Support
Chris Bryant Excerpts(2 months, 3 weeks ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
I beg to move,
That this House has considered Government support for the space sector.
It is a pleasure to serve with you in the Chair, Mr Dowd. I welcome the Minister to his place and to his new role, and I wish him every success in it. When we talk about the UK space sector, it is worth reflecting that, when the Minister and I first arrived here as fresh-faced and enthusiastic newbies in 2001—
Mr Carmichael
I don’t think I ever was, actually.
Back in 2001, there was no such thing; the sector has emerged at a quite remarkable pace and has its roots in the early days of the coalition Government. Competitions were set up looking for opportunities to develop infrastructure in a UK space sector. That has led to a UK-wide space strategy, with interests in the north of Scotland, Cornwall, the Western Isles and other parts of the country. It is worth reflecting that the legacy of that competitive start-up has been a sense of competition between the different players in the sector. Now, as we approach maturity—we are perhaps months from the first vertical launch in the United Kingdom—a different picture is emerging. The success of any one of the different parts of the UK space industry can be only good for all parts.
The Minister for Creative Industries, Arts and Tourism (Chris Bryant)
It is a great delight to see you in your seat, Mr Dowd, not least because, as I have commented before, you are one of the snappiest dressers in Parliament and London fashion week is fast approaching. That is not part of my space portfolio, but it is part of my culture portfolio. I very much hope we will see you on the catwalk.
What goes around comes around. It is a funny old world, isn’t it? I think the last debate I addressed in Westminster Hall from this side of the Chamber was also led by the right hon. Member for Orkney and Shetland (Mr Carmichael). It was about the global abolition of the death penalty. We completely agreed with one another on 28 October 2009 and, funnily enough, we completely agree with one another today.
I am slightly nervous about the right hon. Member saying that we should sing from the same hymn sheet, only because I am an Anglican—not a particularly good one—and I have a particular loathing of paraphrases sung to dirges, so I am not sure we can sing exactly from the same hymn sheet, but he makes an extremely good point. The Government are very keen to work with the Scottish Government, with local authorities and obviously the commercial players in the field to make sure that we gain all the possible benefits from space to the UK economy and to the way we run our society, our business and our Government.
It is a particular delight also to see the hon. Member for Wyre Forest (Mark Garnier), because I know he has been interested in the subject and led the last debate on it in Westminster Hall. I know that a series of Members are interested in the matter, and I hope to ensure that by the end of this Parliament even more Members are cognisant of the issues and able to drive the agenda forward with the Government. There are many things that we need to change in this country, but we are absolutely committed—as committed as the previous Government—to ensuring that we harness and garner the benefits and opportunities of space.
I do not think of space as the final frontier; I think of it as the biggest opportunity in my portfolio when it comes to economic growth and our economic advantage in relation to other countries. There are other aspects, some of which the right hon. Member referred to, and I will of course come on to the specifics of Shetland—though my family is rather more Stornoway.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
There is of course room for more than one space launch site in the UK, and we wish SaxaVord well in its future endeavours. The Minister has talked about the economic benefits to the country, but for Sutherland a space launch represents a social benefit to young people and jobs for the future in a fragile and remote part of the UK. My request is simply this: Ministers have a good relationship with the company Orbex, referred to by the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter), and I would be grateful if that relationship could be built on.
Chris Bryant
I have every intention of building on all these relationships as fast as I possibly can. There are others—indeed, I am going to see Airbus in the next couple of weeks. Hundreds of companies in the UK are engaged in the various aspects of the value chain that lead to sending something up into space, keeping something up in space or taking something down from space, or that use the data that comes from space, or that provide the software, the mission control or whatever. There is a wide range of companies, and I want to engage with as many of them as fast as I can. Obviously, the two that we have referred to are already high on that list, and I would like to make a visit to Shetland soon if possible.
I know Grantown-on-Spey very well because I spent a lot of my childhood in Aviemore. I had a very constructive conversation with Mr Strang last week, and we are keen to work with his organisation. I suspect I will be visiting Grantown, as well as Shetland, in the not-too-distant future. Incidentally, there are some issues in relation to telecoms on mountains in Scotland that I would also like to address.
As has been said, space is a strategic priority for this Government, as it was for the previous one. It is also a competitive advantage for the UK. The point has been made about vertical take-off; we have more than half the capacity across Europe. The right hon. Member referred to Norway as a neighbour. It does not feel so much like a neighbour in the south Wales valleys, but I understand his point. None the less, because of our geography, our time zones and so on, the UK has a unique opportunity to steal a march on the rest of Europe, and we are determined do so if we possibly can.
The right hon. Member also made a point about skills and young people coming into the industry. We have spent quite a lot of time and DSIT money trying to ensure that we have the skills in the UK. We are well served, and we need to ensure that there is an ongoing build-up of people available to work in the industry, that they are able to get the training and support they need, and that people from a variety of backgrounds can conceive of a future career in those industries, even if it is not necessarily on their doorstep. We intend to work on that.
Of course, this is a commercial domain in large measure, but it is not necessarily a cheap or easy one. As has been said, space is hard; long-term investment is obviously far more important than short-term gain. We want to ensure that all commercial operators working in the field have an opportunity to seize investment opportunities, and we are aware that there will have to be Government involvement in that process.
Mark Garnier
Before I start, I refer hon. Members to my entry in the Register of Members’ Financial Interests. Everything the Minister has said so far is music to my ears. I hope to carry on as chair of the all-party parliamentary group for space, as I was in the last Parliament. One criticism that the all-party group had of the Government then was although the space strategy was a very good manifesto, it did not stack up to being a strategy. Everything the Minister has talked about in relation to the commercialisation of space is really important, but the strategy needs detail. He will not be able to answer this question immediately, but could he consider, as he gets more involved in his portfolio, looking into more details on the strategy in order to make it more than just a manifesto, so that businesses can really get their teeth into the industry?
Chris Bryant
That is a very fair point. All the new Ministers arriving in DSIT have been very keen to provide as much strategic clarity as possible about our direction of travel. Perhaps one could say that the advantage of having a decent majority in Parliament is that one can lay out a strategy for a period of time, rather than just running to catch up with one’s tail. Likewise, I take the point made by the right hon. Member for Orkney and Shetland that it is that clarity of strategic objectives that shows, “Yes, this is what we are doing; that is not our priority.” That makes it much easier for inward investment into the UK to make secure investments for the long term.
Some of the things that my right hon. Friend the Chancellor has said about business taxation are important as well. The aim is to create an environment in which people can invest securely, knowing where they are going, that the Government will have their back and that the strategy will not change every six months. I note the points made by the National Audit Office. I think the previous Government were very much trying to point in this direction, but perhaps they did not quite land it; maybe there was an anomaly at some point in the process of developing the long-term strategy.
Some hon. Members might not initially think of space as significant to the daily lives of their constituents, but I think it is worth pointing out something that is part of our lives: sat-nav. We all used to have rows in the car, trying to work out where we were going. Sat-nav now does the work for us—although I note that none of the sat-nav operators seems to understand how to say the name of my street in Wales or, frankly, any of the roads or towns in Wales—but this is not just about sat-nav for personal life; it is also about Earth observation, which makes it much easier to predict weather patterns. I had an interesting conversation the other day with a wine operator from the south-east, who was saying that that is really important for them to work out when they should harvest to ensure that there is the right amount of sugar in the grapes and so on. Similarly, data coming from satellites will enable the Government and many operators to provide services more effectively, efficiently and cheaply, and in a way that is more intuitive for ordinary consumers.
In all those fields, space is a really important part of how Government do their business, and how we better facilitate a strong economy and better society. Of course, it is not just the Department for Science, Innovation and Technology that has a very significant interest in space. I pay tribute to the Ministry of Defence, which has been a major player in the field; obviously, it is a NATO operational domain, apart from anything else. The MOD is investing £6.5 billion over a decade, including £5 billion for satellite communications through Skynet and £1.5 billion through the defence space portfolio. Many other Departments—the Department for Business and Trade, the Foreign, Commonwealth and Development Office, the Department for Transport, the Department for Environment, Food and Rural Affairs and so on—are also engaged in this work.
Skills were mentioned earlier. The UK Space Agency has been funding £19.6 million since 2022 in this skills field, because if people want to invest, they are going to do so on the basis that we have a skilled workforce in the UK that is available not just today but in five, 10, 15 and 20 years’ time.
I will say a few things about the launch sector, which is obviously of primary interest to the right hon. Member for Orkney and Shetland. Roughly 200 companies are engaged in the launch sector in the UK. As I said, some are involved in rockets; we have also referred to subsystems, spaceports, mission control, apps and all the technology that goes into making all of this possible. Roughly 1,500 people in the UK are involved, and they are fairly well paid, so that is a significant part of our economy with significant opportunity for growth. It brought in something like £336 million last year and had a GVA of £153 million. Over the past six years, the Government have invested something like £91 million in our launch capabilities—the right hon. Gentleman referred to the £10 million loan to SaxaVord.
We are ongoing in our commitment, and that commitment has not been shaken by any anomalies that might have been seen on launch. I did feel a bit worried that my first engagement with space was something going not entirely to plan, but I do not think that there is a causal relationship between that and my arriving in post.
In relation to Shetland, the right hon. Gentleman is absolutely right that we need to work with the devolved Administration. I am very keen to have conversations with our colleagues in Scotland, my counterparts in Scotland, and of course with the Scotland Office. We need to work as a united Government to achieve what we want in the field.
As I say, I have spoken to Frank Strang and I am very keen, at the earliest opportunity, to visit both Grantown-on-Spey and Shetland. I cannot say when the next attempted launch may be, but Members are absolutely right: it is not a failure to have an event that does not go entirely to plan, when all of the contingency plans do click in correctly and properly so that there is no harm or danger to life. We see it as a blip, not as a final problem, and it does not undermine our long-term commitment.
There are a couple of points to be made about value for money, which goes to the point about clarity of strategy. We are going to have a very tough spending review—I think everybody might have sussed that by now; the messaging has been strong enough on the subject—and that will undoubtedly be true in this field too. We need to be absolutely clear about what we are seeking to achieve, and about what the whole consortium of businesses and players in the space field want to achieve, so that we get really good value for money for the UK economy. It would be a terrible dereliction of a significant economic and strategic opportunity for the UK if we were somehow or other to abandon this field or diminish our commitment.
I hope that I have reassured the right hon. Member—just as I reassured him on 28 October 2009, when we were both in favour of the abolition of the death penalty everywhere in the world—that the UK Government are not stinting in our commitment to space and to the strategic and economic opportunities that it affords us.
Peter Dowd (in the Chair)
Thank you. On the subject of space, Minister, can I say that your tie is stellar?
Question put and agreed to.