Leaving the EU: Tourism and the Creative Industries

Graham Stringer Excerpts

Tuesday 17th April 2018 Westminster Hall

[Christine Jardine]

I do not agree that the decline in the value of the pound solves the problem, because it creates other problems elsewhere in the industry, as it suffered its biggest slump since the devaluation under Harold Wilson. However, I do agree that our main problem in this industry will be the workforce and how we will replace the workers who in parts of the country outside Edinburgh make up 20% of the workforce, but in Edinburgh and Glasgow in Scotland make up almost 50%.

Aviation is one of the UK’s success stories and supports 500,000 jobs in the tourism industry. The current ease of transit to and from the EU enables tourism to contribute £500 million a week to the economy, but 85% of the UK’s air traffic is through our EU membership.

[Graham Stringer (Blackley and Broughton) (Lab)]

On the first point, I think we are seeing record levels of tourism in this country, because the pound has dropped—I think that is more or less indisputable. On the aviation point, does the hon. Lady agree that abolishing air passenger duty would give a bigger boost to the UK economy with no cost? A number of studies show that if air passenger duty were abolished, Treasury income from other sources, because of increased economic activity, would benefit the UK as a whole.

[Christine Jardine]

While air passenger duty might have an economic impact, it cannot overcome the biggest single problem: it will not allow planes to take off. We need a deal on coming out of the EU that will allow our flights to continue to take off and land in Europe, and travel across Europe with the same ease that they do today.

For the creative industries, the figures are, if anything, even more impressive: these industries are worth an estimated £90 billion to the economy and account for one in every 11 jobs. That is something we often overlook. Those jobs are in fashion design, video games, television, theatre, furniture design, radio and many other sectors. International broadcasters alone invest more than £1 billion a year in Britain. It is our fastest growing sector and the UK is currently a world leader in the field, with creative exports from Stormzy and Shakespeare to “The Great British Bake Off”, which define what the UK is to visitors we want to attract from across the globe.

--- Later in debate ---

[Mr Edward Vaizey (Wantage) (Con)]

It is a great pleasure to appear under your chairmanship, Mr Bone. I congratulate the hon. Member for Edinburgh West (Christine Jardine) on securing this important debate. Let me begin by echoing what she said about the Edinburgh International Festival: it is indeed the world’s largest festival of its kind, and the oldest. It is incumbent on us to remember that it was started just after the war, at a time of austerity. It is worth recalling that throughout our recent history we have invested in the arts, even at the most difficult times.

This debate gives us the opportunity to put on record how important the creative industries are to the whole of the UK economy and to raise issues as we approach Brexit. Much as I would love to reverse Brexit, I am not sure that I can agree with the hon. Lady that that is a likely outcome. We sad remainers are now focused—I certainly am—on making the best we can of a very unfortunate situation.

As a former Minister with responsibility for the creative industries, may I take this opportunity to welcome the current Minister to his position? I think that this is the first debate I have taken part in where he has been in his role. I can tell him privately, because I know that no one watches proceedings in Parliament, that he is already extremely popular because of how he has hit the ground running. It has been a great pleasure to me to see the importance of the creative industries rise up the policy agenda.

The creative industries were, in effect, put together by Chris Smith in 1997 when he became the Culture Secretary. He was the first to define what is quite a disparate sector, ranging from architecture to fashion, television and film, and to start to show the huge impact it has on every aspect of our lives. I am glad that under the previous Government we made great strides in supporting the creative industries. Some of that was basic policy infrastructure, such as the creation of the Creative Industries Council, which brought together the Departments responsible for business and for culture with the creative industries to looks at policies. I am very pleased to say that it has been carried on by the current Secretary of State for Business, Energy and Industrial Strategy with the publication of an industrial strategy for the creative industries.

The introduction of tax breaks for many of the creative industries has had a huge impact on their contribution to the economy. I was struck by statistical analysis showing that the service economy contributed the most to our economic growth in a recent quarter—I cannot remember which quarter it was, but it was two or three quarters ago—and that the second biggest contributor from the service economy was the film industry. The film tax break now sees something like £1 billion of investment coming into the UK.

It was always my mission—I am glad to say that I succeeded, although I did not meet too much resistance—to persuade the then Prime Minister and the then Chancellor to visit a film set occasionally as well as a factory. That recorded the fact that film sets often contribute a significant amount to our economy. We have seen studios and employment grow, and that tax break ecology has now been extended to video games, visual effects and animation, as well as the arts, through theatres, orchestras and exhibitions. It has made a real impact.

I was privileged recently to attend the opening of a new animation company in London, Locksmith Animation, which has been started by two distinguished people from the film industry, Sarah Smith and Julie Lockhart. Using the latest technology, the company has the potential to rival Pixar. No one can be in any doubt about the contribution of the creative industries to our economy.

[Graham Stringer]

I am following the right hon. Gentleman’s speech closely. I do not share his pessimism about the impact of Brexit on the creative industries. Sometime in the early 1980s, the number of people employed in the creative industries in Manchester and Lancashire surpassed the number of people employed in the traditional cotton industry, so it is an important economic generator in the north-west. As the former Minister, does he agree that this country does not invest in the creative industries in a fair way when it comes to the regions? Far too much goes to London.

[Mr Vaizey]

The hon. Gentleman makes an important point. When I was the Minister, I was struck by how regionally diverse the creative industries were, particularly the video games industry. There are companies engaged in that pursuit in Leamington Spa, Manchester, Liverpool and Newcastle. It is a challenge. Sometimes it is straightforward economics: people want to base themselves in London to have access to the widest possible range of services, but it is incumbent on us—I am sure the Minister will respond to this—to recognise the diversity and talent in our regions. The recent merger of Tech North with Tech City UK has created a UK-wide tech quango, which is focused on highlighting tech success stories across the country. Different parts of the country have different specialisms in tech—I am moving slightly away from the creative industries.

The hon. Member for Blackley and Broughton (Graham Stringer) makes a valuable point, and the same criticism is often levelled at cultural funding. I am chairman of Creative Fuse North East, a project led by Newcastle University, which analyses the symbiosis between tech and culture. It is important to remember that culture is often a generator for success in the creative industries, so we must maintain a strong focus on investing in culture outside London. I am glad that the Arts Council has made great strides in doing that in recent years. We are very successful, and the creatives industries are now high on the policy agenda. I should give credit to the Creative Industries Federation, which was created two or three years ago to lobby on their behalf.

Tourism is a hugely important industry—the fourth or fifth most important in our country—that depends to a great extent on culture and heritage. By investing in and supporting culture and heritage, the Government support our tourism industry. We launched the tourism strategy in 2010, when the then Prime Minister gave a speech supporting tourism. One of my great bugbears is that far too few Prime Ministers—that is, none—ever make speeches about the arts. I hope that the Minister will continue to press the case to our Prime Minister that she should give a speech about the importance of culture and the arts in this country.

Despite the hon. Member for Blackley and Broughton trying to cheer me up, I am thoroughly depressed about Brexit. The small silver lining, which is worth recalling, is that our biggest export partner outside the EU is the USA, with whom we do not have a trade deal. A lot of that export investment depends on the creative industries, such as the film industry and the video games industry. Many of those creative industries are global service industries that will not necessarily be hugely affected by Brexit, such as advertising, architecture and publishing, where we lead the world. It is incumbent on us—including depressed remainers—to continue to beat the drum for the global success of the UK’s creative industries.