Budget Statement

Lord Stevenson of Balmacara Excerpts

Friday 12th March 2021 Lords Chamber

[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, I welcome those making their maiden speeches today.

As the noble Earl, Lord Clancarty, said, the creative industries are a major UK success story, integral to our economy, our culture and our image abroad. The UK is recognised as a global hub for creativity and innovation, and our creative sectors have recently been among the fastest-growing elements of the economy, generating £116 billion of GVA and employing 2.1 million people. Their success makes it obvious that the sector must be supported so that it can survive and grow again.

However, today’s NAO report on the cultural recovery plan confirms that the Government risk destroying this sector, so I would be grateful if the Minister could explain the following three points. First, when did the Government decide that the CRF should aim to preserve only 75% of the organisations at risk at the start of the Covid pandemic? It cannot generate a very co-operative environment when those hoping to receive funding from their own sponsoring department learn that it aims to cull a quarter of our creative capacity.

Secondly, why have the Government prioritised London, which got 31% of the revenue grants, while the north-east got 4% and the north-west only 12%? I thought that we were on a levelling-up agenda.

Thirdly, the loan elements of the CRF have, unsurprisingly, been undersubscribed—this is not a sector that can borrow. Only 50% of the Culture Recovery Fund has actually reached organisations so far. At the same time, the Government have not adjusted the furlough scheme or the SEISS to ensure that the 750,000 freelancers and self-employed who make up the sector’s workforce get the support they need. Could the current underspend not be used to match the excellent Welsh scheme, already referred to, which has backed up this gap, in support for our creative economy?