Creative Industries

Nusrat Ghani Excerpts

Monday 27th January 2025 Commons Chamber

[Chris Bryant]

I have heard tell of a film studio in the hon. Member’s constituency, so I wondered whether he was going to refer to that. Obviously, the previous Government and this Government have been committed in different ways to ensuring that we expand the provision of film studio space in the country. We are almost up to the level of having more space than Hollywood, and we are keen to progress that. Again, if he wants to come into the Department and talk about the specifics of what we might be able to do in his constituency, I would be happy to do that. He is right that sometimes we have focused on the massive projects, but we cannot get many massive projects in the creative industries without starting with the small and medium-sized businesses, and that is where we need to go.

One thing that has stood in the way of film studios for quite some time is the re-evaluation of business rates. I am glad that we have got to a much more sensible position over the past 12 months on the matter. Likewise, planning applications have been phenomenally difficult in many cases. We were proud to put £25 million into the Crown Works studio in Gateshead, which I look forward to visiting soon.

One of the principal barriers to innovation in 2025 is that not enough investment is going into research and development in the creative industries, and I know the Select Committee has looked at that. It is why the Prime Minister’s Council for Science and Technology recommended that

“Public investment in R&D in the creative industries should reflect the size, economic contribution, and future growth potential of the sector.”

That is why we confirmed earlier this month that we will strengthen the investment from our national research funding agency—UK Research and Innovation—into creative research and development.

Another part of the equation is, of course, tax relief. One of the great catalysts for the strong growth of our creative industries has been targeted tax reliefs for different sectors, introduced by both the Conservative Government and this Labour Government. We built on those reliefs in our first 100 days in government, with an enhanced independent film tax credit to support home-grown talent and UK co-productions and an enhanced tax relief for visual effects from the start of this year. That tax relief sends a clear message to our directors, visual effect artists and actors: “Be courageous, take risks and reap the rewards. Your Government are behind you.” I hope to be able to say more on film and high-end television at the Select Committee tomorrow morning—I am sure the Committee has some difficult questions for me.

On skills, education and the workforce, we want to see more good-quality creative jobs and more creative businesses popping up across the country. But too often what I hear from young people is that they could no more dream of getting those jobs than going to the moon. That is not just a tragic waste of human potential; it is bad business. That is why Steven Knight, the creator of “Peaky Blinders”, who is working to bring a film school to Birmingham, is recruiting and training 20% of the workforce from local postcodes, and I applaud him. It is essential for investors to know that they do not have to incur the cost of shipping people in to work on a project when that talent exists everywhere, but the opportunity does not.

That is why we made it a core priority in our manifesto to improve access to the arts and music as part of our opportunity mission. We wasted no time in getting that work under way, with the Education Secretary launching an expert-led independent curriculum and assessment review within a month of the general election. On top of that, we provided a further £3 million to expand the creative careers programme, so that we can broaden and diversify the talent pipeline in the creative industries.

Only by restoring culture’s place in the classroom and beyond will we be able to get young people ready for the creative jobs of tomorrow. We set up Skills England to work with employers and to help give us a coherent national picture of where skills gaps exist and how they can be addressed through further qualifications and technical education. In its first report, Skills England highlighted the importance of the creative industries for both current and future opportunity and growth.

We also need to ensure that there are opportunities in the workplace. We know that apprenticeships can be incredible springboards into creative careers, but that relies on there being a levy that works in the interests of employers and apprentices. For years before the general election, I heard repeatedly from the creative industries how difficult it was to use the apprenticeship levy in their industry. If someone is making a film, it might be a six, seven or eight-month project, which was not enough to meet the previous criteria for the apprenticeship levy. That is why I am really proud that we are working with Skills England to transform the apprenticeship levy into a new growth and skills levy, to create opportunities and provide greater flexibility for employers and apprenticeships. We plan to bring forward changes so that shorter apprenticeships are available from August 2025, recognising the particular needs of the creative industries. A 12-month apprenticeship is no good for employers who need skills for projects that are shorter than that. We are knocking down that needless hurdle.

For sectors such as music, the grassroots is always where it all begins. We are therefore not only continuing to support Arts Council England’s supporting grassroots music fund, but working up a 12-point plan for music—it says 10-point plan here, but when I looked at it this morning, it was already a 12-point plan. The truth of the matter is that music is a vital part of our lives, whether it is classical music, opera, pop music or heavy metal, which some people like—I see the former Secretary of State, the right hon. Member for Maldon (Sir John Whittingdale), nodding in a heavy metal sort of way; he has to be careful at his age, although I think he is younger than I am. The point is that we all have our different tastes in music, but we know how important it is to people’s enjoyment of life and to their being able to express themselves.

There is also nothing as important as being able to go to a live music event. One thing we are working very hard on—I made a statement about it earlier this year—is trying to make sure that the secondary ticket market, which has behaved in a frankly duplicitous and often parasitical way towards the music industry, is brought to heel and actually operates in the interests of fans.

I also want to talk about exports. We have some remarkable export strengths in the creative industries. Publishing achieved year-on-year growth and is now worth £11.6 billion to our economy, with export income accounting for almost 60% of its revenue. We are the largest book exporter in the world, and we should be proud of it. However, we need more success stories like publishing, and we need to make sure that the problems that publishing is having with exporting books—for instance, to the European Union—are overcome.

If we are to have such success stories, we need to fix some of the issues that the last Government unfortunately failed to address, such as touring. If we want the next generation of Ed Sheerans, Dua Lipas, Adeles and Stormzys to stand any chance of breaking into new markets, they must be able to perform overseas without having to navigate a maze of rules and regulations. That is why we are engaging with the EU and EU member states to find an answer that improves arrangements for touring across the European continent, without seeing a return to free movement.

That equally applies to the art market. Artworks are being brought to the UK to be sold in the UK art market, where they might command the highest price, but they are facing great difficulties entering the country. That is the kind of thing we also need to sort out.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. The Minister is giving a very substantial speech, but he has been on his feet for 30 minutes. Hopefully he will be coming to a conclusion at some point.

[Chris Bryant]

I am afraid that I inherited this speech, Madam Deputy Speaker, but I will try to shut up as soon as I possibly can. [Hon. Members: “Hear, hear!”] I think I have united the House there. That was very unkind—I feel a bit upset now.

It will not have escaped hon. Members that the challenges I have outlined today are all interconnected. As I have said, we cannot have thriving creative businesses without creative talent with the right skills. We will not see strong export growth numbers if businesses are unable to access the finance they need to expand. The independent film tax relief will be worth nothing if we do not have a curriculum that values culture and fosters, champions and promotes creativity. That is why we are focused on the whole creative ecosystem—from the first spark of inspiration in the classroom, through the first leap into the unknown at a theatre or grassroots music venue, to getting the first foot on the ladder to take a local business national or a national business global. This Government recognise that it all matters, and through the partnership I have spoken about today, we hope to make sure that growth in those industries continues for many decades to come.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

--- Later in debate ---

[Jessica Morden (Newport East) (Lab)]

As well as a rich industrial and political heritage, Newport has a vibrant community of creatives and creative industries, so it is good to have the opportunity to highlight them in Government time and, later on, to shamelessly plug some of the local bands that I like.

Creative businesses in Newport generate a not insignificant turnover of around £400 million annually. Those 555 businesses employ more than 5,000 people locally, and that does not even account for the number of talented freelancers. Many of these enterprises are microbusinesses—small but mighty, much like Newport—and together they form the lifeblood of our grassroots arts and culture scene and give future performers the space and opportunity to develop.

Newport is home to an extraordinary wealth of talent, from theatre practitioners and visual artists to community connectors—people who dedicate themselves to bringing arts and culture to life in our city. We have local champions such as John Hallam from Maindee Unlimited, Loren Henry of Urban Circle, George Harris of Tin Shed Theatre, and Juls Benson of Reality Theatre, among many others. For years, they have worked to ensure that access to the creative industries in Newport is inclusive. An example of that is the brilliant Operasonic, which is supporting a band formed by the city’s Roma community called Newport Boys.

It is not just about live performance. Thanks to our striking industrial and natural landscapes, and our distinctive architecture, Newport has become a veritable filming hotspot in the UK. For more than two decades, it has been a familiar backdrop for “Doctor Who”, and Newport was recently showcased in the new S4C series “Ar y Ffin”. Newport is prominently featured in ITV’s “Out There” and Netflix’s “Sex Education”. Supporting those productions are state-of-the-art studios such as Urban Myth and Studio Arth, both located in my constituency, where global streaming projects are being created all the time. The Minister mentioned the talent pipeline, and much work is being done to develop and find the many skills we need locally in this industry.

Any contribution about Newport’s creative industries would not be complete without celebrating our music scene, which has seen a remarkable renaissance. That fact was recently recognised by the NME. I was delighted to join Sam Dabb and the team at Le Pub to celebrate the building’s purchase, with help from the UK Government, by Music Venue Properties. That was set up by the Music Venue Trust, which launched its annual report here last week. For more than three decades, Le Pub has stood as the cornerstone of Newport’s music culture, and it is great that it has been safeguarded for future generations as a space to grow new bands. Bands that have emerged from Le Pub recently include the brilliant Bug Club, hailing from Monmouthshire, alongside Newport’s own Murder Club, The Rogues, Joe Kelly & the Royal Pharmacy, Failstate, Jack Perrett and many others. There is also a new generation of artists, such as a new band called Hairdye, who are getting much attention. Newport is fortunate to have many other grassroots venues, including McCann’s, The Cab and the volunteer-led Corn Exchange, all of which will be part of the upcoming Newport music trail, a free two-day festival in the city centre in March.

Newport is, indeed, a cultural powerhouse, but to ensure that it continues to thrive, we must ensure that this cultural renaissance in our city is not just celebrated, but supported. I am therefore pleased that the Government, along with the Welsh Government and Newport city council, recognise the importance of the creative industries as a driver of economic growth and social wellbeing. In the draft budget this year, the Welsh Government are committed to supporting the hospitality sector with 40% non-domestic rates relief. That builds on the £1 billion of support allocated to retail, hospitality and leisure rates relief schemes since 2020. We also should not forget the additional 25% rates relief that Newport council offers to help eligible small venues and businesses.

Increased funding opportunities to support grassroots organisations and venues will only help them flourish further. The £1 ticket levy for arena and big gig events to support small music venues will have a big impact, and I welcome the Minister’s commitment to making that mandatory if the live events industry does not do it voluntarily. Working to tear down the barriers to touring will also be crucial for the continued success not just of British performers and their art, but of our talented sound engineers and the haulage industry. An update on that work was much welcome.

With the right investment and a Government who truly understand the untapped potential of our world-leading creative industries, we can continue to build on that success and secure Newport’s creative legacy for generations to come. I look forward to welcoming the Minister to Newport whenever he can come.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Dame Caroline Dinenage]

We may be here for a long time if the Minister answers every question that I am going to ask over the next few minutes, but let us have a go.

We in the Select Committee are very excited, because tomorrow the Minister will be appearing before us for the final episode of a very long-running inquiry into film and high-end television. I do not want to give away too much—no spoilers, Madam Deputy Speaker—but I would like to share with the House evidence that we received recently. Everyone will have had a different TV highlight over Christmas, but two massive hits were undoubtedly “The Mirror and the Light” on the BBC and “Black Doves” on Netflix. Peter Kosminsky, the director of “The Mirror and the Light”, told us that every streamer turned down the option to take up the show, despite the awards, the critical success and the acclaim for that first series of “Wolf Hall”. In fact, the only possible way to make it was for the producer, the writer, the director and the leading star to give up a significant proportion of their fees. It is unimaginable—is it not?—but it is not unique.

The Producers Alliance for Cinema and Television, charmingly known as PACT, has warned that 15 green-lit dramas are stuck unmade because the financial contribution that a public service broadcaster can offer, together with sales advance and UK tax breaks, simply is not enough to compete with the current inflated cost environment. Jane Featherstone, the producer of “Black Doves” and other massive hits such as “Broadchurch” and “Chernobyl”, told our Committee that the PSBs were being “priced out” of making high-end drama, which means that British stories for British audiences are at risk, as are the training grounds for the next generation of talent. We talk so much about the importance of creative education, but if we do not have the jobs for those young people to come into when they leave school, we are selling the next generation a dream. I know that the Minister and the Secretary of State value the telling of British stories, so the Minister can expect us to press him on that tomorrow.

When it comes to British stories from across our isles, we cannot overlook the value of our PSBs and the challenges that they face owing to competition from international streamers and changing audience behaviour. The uniquely British flavour of PSB productions such as “Fleabag”, “Derry Girls” and “Peaky Blinders” makes them some of our most popular and enduring exports, but it is no exaggeration to say that they are facing an existential challenge. Over the coming months we will hear from the leadership of the BBC, Channel 4 and Ofcom about the BBC charter review, the implementation of the Media Act 2024, and the wider challenges that they face. We will also want to discuss advertising with them and with other broadcasters. The shift from broadcast to online advertising is not new, but we must ensure that broadcasters are not left disadvantaged by outdated competition rules.

I want to make sure that the creative industries are delivering for their employers and contractors. CIISA, the Creative Industries Independent Standards Authority, under the brilliant stewardship of Jen Smith and Baroness Kennedy, is at a critical point as it concludes its consultation on standards today. It concerns me that while some parts of the creative industries make positive noises about CIISA, in reality they do not lean in, and other organisations —especially those with headquarters abroad—are reluctant to engage at all. I know that the Minister cares about this, but if we are to recruit and, critically, retain talented people, there must be no hiding place for bad behaviour.

I am delighted by the Minister’s commitment to our grassroots music venues levy, and for the signal that he will be willing to act if a voluntary solution is not working out. The establishment of the LIVE Trust is a step in the right direction, and I hope that more will be done to include artists and independent promoters in the conversations about where the money will go and how it is distributed. May I ask the Minister to give us an update in his closing speech?

Let me continue my whistlestop tour of the creative industries and the performing arts. Last week, the National Theatre launched its “Scene Change” report, which highlights the willingness of the performing arts to innovate in their business models. I am sure that the Minister will look carefully at its recommendations, but I want to pull out two key points. First, as he said, our creative industries generate more for our economy than aerospace, oil and gas and renewables combined, and they need a robust industrial strategy to match their firepower. Without investment, there is no innovation. The National Theatre, for example, is as much a totemic British export as BAE or Rolls-Royce. “National Theatre at Home” has brought productions to new audiences across the United Kingdom and, indeed, the world. However, few in the sector have the funds for such projects, and I hope that the Minister will consider the report’s recommendation of an innovation fund, which could drive growth. Secondly, UK Research and Innovation, which the Minister also mentioned, exists to foster research and innovation, yet the creative arts are wildly under-represented, given their gross valued added.

I know that the Minister enjoys a bit of theatrics, so while I was at the National Theatre, I wondered which of its productions reflected him best. There is “The Importance of Being Earnest”; one review of the current production noted

“just the right amount of delightful mischief.”

There is “Nye”, the story of a hugely influential Welsh politician taking policies through against enormous opposition. But then I realised that we needed to go back a bit further, to the smash hit “One Man, Two Guvnors”, because the Minister finds himself working for both the Science Secretary and the Culture Secretary. Our story begins as he tries to justify the Government’s proposals on artificial intelligence and copyright.

The Secretary of State for Science, Innovation and Technology has claimed that I do not understand the idea of consultations, and the Minister has claimed that I do not understand the detail of this consultation. I am beginning to feel a bit gaslit by it all, but I know that the Science Secretary is not saying the same thing to the creative industries, because I am told that he is refusing to meet them at all. I wonder whether the Minister is telling the creative industries that they do not understand the detail—because everyone I have spoken to in the sector seems to understand the detail perfectly, and they do not like it.

This is not about pitting the creative industries against Al. This is not a luddite sector; the creative industries use Al to great effect, and are always at the forefront of embracing innovation. The Minister said so himself: he said that they never abide by the straitjacket of conformity. The aim is a system that is transparent, as he said, but with licensing arrangements that protect intellectual property. The Government’s consultation paper says there is a “lack of clarity” in the regime, but the people I speak to tell me that the situation is perfectly clear, and that the large Al developers cannot legally use it to their advantage. Instead, the Government’s proposals move the onus on to creators to protect their work, rather than Al developers having to seek permission to use it. This is known as the opt-out. We have the opt-in, the opt-out, the opt-in, the opt-out—it is the legislative equivalent of the hokey-cokey.

The fact that unscrupulous developers are not seeking permission from rights holders does not mean that we should bend the system in their favour. Our world-leading creative industries have made it clear that the European Union’s opt-out model, which the Government’s consultation favours, does not work. They say that there is no existing technical protection measure that allows rights holders to easily protect their content from scraping, and web bots take advantage of that unworkable system to copy protected works, bypassing inadequate technology and the unclear copyright exception. Put simply, the EU opt-out system creates an even greyer area.

I know the Minister does not agree with me on that, but may I ask him to agree with me on just two points? First, if the Government are determined to go down the opt-out route, any opt-out must be tightly defined and enforced, so that developers cannot wilfully disapply it or plead ignorance. Secondly, any technical solution that protects rights must be adequately future-proofed, so that creators and developers do not simply end up in an arms race to find new ways to stop those who are hoovering up copyrighted works.

May I also ask the Minister to address two questions? I have always said that AI should provide the solution to AI, and that is what we all hope will happen, but what if a suitable technical solution that protects rights is not found? Do we stick to the status quo, and keep the onus on AI developers to follow the law? It is notable that the creative industries are not represented on the Science and Technology Cabinet Committee. Can the Minister confirm that they will have a voice when the final decisions are made? If they are not, as he says, to be the cherry on the cake, they will need that seat at the table.

I do not want to end my speech on a pessimistic note. There is much to be optimistic about for our creative industries; they are the envy of the world on virtually every front. The Minister loves a song quotation, and it is almost as if the top three songs of all time, according to Rolling Stone magazine, could provide the backdrop for him and his role right now. Do you know what they are, Madam Deputy Speaker? “A Change is Gonna Come”, but the Minister needs to “Fight the Power” and give our creative industries what they deserve: “Respect”.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Follow that, Jo Platt!