Creative Industries

Saqib Bhatti Excerpts

Monday 27th January 2025 Commons Chamber

[Saqib Bhatti (Meriden and Solihull East) (Con)]

It is a privilege to wind up the debate on behalf of His Majesty’s Official Opposition. There have been impressive contributions from across the House, and many Members have highlighted how their constituencies deliver for the UK’s creative industries. We heard from the hon. Member for Wimbledon (Mr Kohler), who participated in a punk rock band—the last one to perform at The Roxy, he said, although I think the jury is out on that. We also heard from the hon. Member for Bury North (Mr Frith), who I believe performed at Glastonbury. I do not think he talks about that enough; he should do so more in the future.

My right hon. Friend the Member for Maldon (Sir John Whittingdale) highlighted the places that made him the man he is today. My hon. Friend the Member for Isle of Wight East (Joe Robertson) secured a meeting for not just himself but his Labour colleague, the hon. Member for Isle of Wight West (Mr Quigley)—a great example of cross-party working. My hon. Friend the Member for Bridgwater (Sir Ashley Fox) made a very serious point about the impact of the Budget on the creative industries. The Chair of the DCMS Committee, my hon. Friend the Member for Gosport (Dame Caroline Dinenage), gave a tour of the power of the creative industries across the country. She is doing an excellent job of holding the Government to account.

As we have heard, the UK’s creative sectors are world-leading. They provide opportunities for young people up and down the country to gain employment and skills that can transform their lives. I welcome the fact that so many Members across the House recognise the potential of the creative industries to grow the economy. The UK’s creative industries are truly formidable. In both cultural and economic terms, they are absolute titans. In 2023 alone, it is estimated that the creative industries contributed around £124 billion to the UK economy—in other words, about 5% of our overall economic output. There has been a steady rise in the value of the creative industries to the UK, from accounting for 4.7% of economic output in 2010 to over 5.2% in 2023. It is important that we in this place recognise their growing importance in economic terms.

Our creative industries are also immense in terms of jobs. Around 2.4 million people work in the sector, which totals around 7.1% of all UK jobs. Although the creative industries are still quite heavily London-based, we see diversification of the sector and clusters of creative industry right across the UK, from the leading video game development hubs in Stoke-on-Trent to the beating heart of Northern Ireland, where the creative industries sector employs 29,000 people. Huge swathes of the UK benefit from our creative industries. I know that at first hand, as a west midlands MP. The remarkable director Steven Knight, who created “Peaky Blinders”, runs an incredible project in Birmingham where he recruits 20% of people from the most deprived neighbourhoods. Steven’s record shows that we must continue to champion our creative industries sector, because it has real potential to drive social mobility and generate economic growth. As “Peaky Blinders” is a huge international success, our creative industries ensure that Brand Britain rules on the international stage.

We cannot measure the value and importance of our creative industries just in economic terms, because their reach is impossible to estimate truly. Government statistics show that between July and September 2023 there were 12.5 million visits to DCMS-sponsored museums and galleries. Given the Government’s desire to ensure that 50 million people come to the UK each year, allowing these cultural hubs to thrive will bring more people to the UK to visit some of our great cultural attractions. As my right hon. Friend the Member for Daventry (Stuart Andrew) set out, the Conservatives have a proud record of supporting the creative industries. Between 2010 and 2022, the creative industries grew at more than double the rate of UK gross value added, expanding by over 50%. During that period, over one million new jobs were created in the sector. Rather than burdening the creative industries with tax hikes, we introduced over £1 billion of tax reliefs, including the UK independent film tax credit and business rates relief for theatres and cultural venues.

As my right hon. Friend the Member for Maldon set out, during the pandemic we introduced unprecedented support for the creative industries, including the £1.57 billion culture recovery fund, the £500 million film and TV production restart scheme and the £800 million live events reinsurance scheme. That support protected over 5,000 organisations and safeguarded 220,000 jobs, ensuring that our creative industries could bounce back and continue to offer opportunities for young people.

As we have heard, our ambition did not end there. In government, the Conservatives published a sector vision setting out our plan to grow the creative industries by £50 billion and create one million new jobs. These were jobs for young designers, artists, writers, creatives and others who wanted to bring joy, inspiration and opportunities to the lives of others. In this debate, the Government claimed to have similar aspirations for the creative industries and the young people eager to build careers in them, but we know that is simply not true.

Labour Members have spoken warmly about the creative industries, their impact on the economy and the many opportunities that they bring to young people, but the Government’s actions speak louder than their words. The Government know that one in eight young people are not in education, employment or training, and that many lack the essential skills and confidence to progress in work. How did Labour rise to that challenge? It scrapped the National Citizen Service.

The NCS, introduced by the previous Government, was designed to support young people during a crucial time in their life, connecting them to peers from many walks of life. It gave them opportunities to build their skills and confidence, and empowered them to make a difference in their communities. Having delivered over a million experiences to young people, who took part in over 18 million hours of volunteering, the NCS made a real difference. Does the Minister recognise that Labour’s decision to scrap the NCS will mean that fewer young people take up the opportunities presented by the creative sectors? UK Youth has warned that scrapping the National Citizen Service and the youth investment fund, along with other cuts, could lead to a net reduction in central Government funding for youth services in 2025-26, possibly by tens of millions of pounds. That will inevitably hurt the creative sector.

Many Labour Members spoke warmly about the creative sector, but their Government are doing irreparable harm to its industries. The truth is that the Chancellor’s Budget of broken promises raised taxes to the highest level ever and introduced a national insurance jobs tax. Labour slashed retail, hospitality and leisure relief. There is nothing to protect the creative industries from the Deputy Prime Minister’s radical Employment Rights Bill—a ill-thought-through piece of legislation that will bolster the power of the trade unions and take the country back to the 1970s.

[Gareth Snell]

The hon. Gentleman’s point about the trade unions is absolute nonsense, but that aside, he was first elected in 2019. He is on record as publicly supporting former Prime Minister Liz Truss and, according to Hansard, voted for the health and social care levy, which was a larger increase in national insurance across a much broader spectrum. At no point did he raise concerns about the creative industry then, so would he like to take this opportunity to apologise for that, or is this just naked political point scoring?

[Saqib Bhatti]

The hon. Member makes an interesting point. I can see the Whip furiously making notes: “Give the man a job.” He was reading that off the Whip’s handout, and that is all I will say.

Our creative industry sector, and especially the young people within it, will pay the price of the Chancellor’s growth-killing Budget and the Deputy Prime Minister’s radical Employment Rights Bill. The Institute for Fiscal Studies has warned that Labour’s national insurance jobs tax could lead to fewer opportunities. The sad truth is that under this Labour Government, many businesses in the creative sector will not survive. Don’t just take it from me; take it from Sir Nicholas Hytner, the former artistic director of the National Theatre, who warned that Labour’s jobs tax will force businesses to close, or from UK Theatre, which warned that 40% of venues could close in the next five years due to Labour’s autumn Budget. The inevitable truth is that this Labour Government are a threat to the entire creative industry sector.

But it is not just the Government’s rampant socialism that poses a huge threat to the creative industries. [Interruption.] I am glad Government Members are cheering the demise of the creative sector; people in them will be listening. Alongside the catastrophic impact of Labour’s increase in national insurance, there is the Government’s copyright and AI consultation, which is causing deep concern for the creative industries, but also for many Labour Members. The Minister’s preference for a data mining opt-out for the creative industries will place extra burdens on creators, who are rightly concerned that their work is under threat. My hon. Friend the Member for Gosport (Dame Caroline Dinenage) and many others made a compelling argument about how damaging the Government’s proposal is.

Given the magnitude of the potential changes to copyright and AI, one would think that the Minister would have allocated significant time for creative industry sectors to raise their views. Instead, during the Christmas break, he rolled out a consultation that finishes just next month. He left the creative industries scrambling to raise their concerns with a Government who refuse to listen.

The Minister also works in the Department for Science, Innovation and Technology, so can he tell me why, as my hon. Friend for Gosport mentioned, the Secretary of State for Science, Innovation and Technology has refused to meet representatives from the creative sector? I have heard myself just how worried, angry and frustrated the creative industry sector is about this proposal. Does the Minister have any idea about its impact? Has he considered having a full and transparent impact assessment to properly understand how the sector will be harmed by these changes? My right hon. Friend the Member for Maldon put forward some really important points and challenges, and I look forward to hearing the answers to those.

In our last exchange at the Dispatch Box, I asked the Secretary of State questions about her national youth strategy, but my questions remain unanswered. I hope that the Minister, in his closing statement, can address the serious concerns we have raised about Labour’s Budget of broken promises and its radical Employment Rights Bill, as well as the serious issues we have highlighted around the Government’s AI and copyright consultation.

I repeat, slightly changed, the question I asked Secretary of State at the Dispatch Box less than two weeks ago: can the Minister guarantee that the Chancellor, in a desperate attempt to save her job, will not balance the books by putting the burden on the back of our creative industry sector? When I asked the Secretary of State that question, she said that it was tired. Well, I can tell the Minister that Conservative Members will not tire of standing up for our young people; we will not tire of standing up for our creative sectors; and we will not tire of holding the Government to account.