Creative Industries: Research and Development

Lord Stevenson of Balmacara Excerpts

Wednesday 8th January 2020 Lords Chamber

[Lord Duncan of Springbank]

On tax, it is important to stress that we offer a significant amount of tax relief that covers all the wider creative industries, from film animation to museums and galleries and the theatre, and so far it affects a significant proportion of those areas. The noble Baroness raised the exact definitions, which is important, because thus far we are bound by the Frascati convention of the OECD definition, which is tilted primarily towards technology and science. I will not go into too much detail, but this of course misses the epistemic and aleatory uncertainties inherent in this particular problem—you do not hear that every day.

[Lord Stevenson of Balmacara (Lab)]

Indeed, we need to pause after that. A round of applause would not be inappropriate.

My Lords, I am glad that the Minister mentioned the creative clusters, because they have been a huge success in bringing out the exact points made by the noble Baroness in her Question. However, does she not also raise a wider definitional issue—it does not have a grand name—which is that the creative industries are often structured around freelancers working in small industries and, as such, they cannot take advantage of some of the scale issues for which the Minister’s department is responsible? I think particularly of the way in which the apprenticeship levy cannot be applied in this case. Does the Minister have any plans to change that?

[Lord Duncan of Springbank]

The noble Lord makes an important point. I was curious about that this morning as well. I was fearful that a lot of these funds would end up in the larger businesses and industries but, in actual fact, SMEs are disproportionately affected in this area for the very reason that the arts, humanities and wider creative industries are usually small ventures. So there is a significant proportion of benefit in that regard. If the noble Lord will allow it, I will drop him a note on the exact figures and put it in the Library for the edification of all others.