Arts and Creative Industries

Debate between Kelvin Hopkins and Alex Cunningham

Wednesday 19th June 2013 Commons Chamber

[Alex Cunningham]

My hon. Friend is also an angel; I congratulate him and my hon. Friend the Member for Hartlepool (Mr Wright)—who personally constructed the angel, if we are to believe some of the stories that I have been hearing.

During the decade that followed the erection of the Angel of the North, some £350 million was invested in new and established arts venues, which saw the beginning of an under-recognised British success story. It has provided a major boost to the regional economy and resulted in the creation of not hundreds but thousands of jobs across the culture and tourism sectors. The result of that clever combination of investment and foresight is that the north-east, often one of Britain’s poorest and most deprived areas by many other measures, has established some of the finest creative arts infrastructure in the entire country.

We can boast of not only international attractions such as the Baltic Centre for Contemporary Art and the Sage Gateshead concert hall, both in the constituency of my hon. Friend the Member for Gateshead (Ian Mearns), but national and regional establishments such as the ARC in Stockton and the Middlesbrough Institute of Modern Art.

[Kelvin Hopkins]

I am not from the north-east myself, but it strikes me that this is being driven by many visionary Labour councillors in the area.

[Alex Cunningham]

That is very much the case, none more so than in the work of the leader of Gateshead metropolitan borough council.

A huge variety of other events and festivals grace our region every year, such as the Stockton international riverside festival, and we celebrate some of the largest-scale street festivals in the world. The Billingham international folklore festival, which also takes place in my constituency, will mark its 50th anniversary in 2014.

It is a colossal failure that the Government do not grasp the importance of the sector to the regions. They are missing an opportunity to integrate cultural programmes into the agendas of multiple Departments to safeguard the legacy that previous investment has produced. Culture and the arts not only enhance our lives and promote the ability to achieve our potential; they also support a creative sector that was forecast to grow by 31% by 2020. The additional cuts to the DCMS budget will therefore come at a huge cost, threatening to kill growth stone dead and denying many the opportunity to access the artistic and cultural experiences that shape individuals and help define communities.

The basis for the severity of the cuts is framed in a simple economic argument—that spending on the arts is difficult to justify—yet last week the Arts Council published independent economic analysis by the Centre for Economics and Business Research that found that the sector currently makes up 0.4% of GDP compared with just 0.1% of investment. For every pound of subsidy provided to the arts and culture industry, the sector returned a £7 contribution to GDP. That is a higher return than that from the health and wholesale and retail industries, and it blows the economic viability argument out of the water.

Stockton, at the heart of my constituency, is renowned for delivering a host of arts and culture events with great success. Audiences at events such as the riverside festival and the Stockton Weekender continue to grow year on year. The riverside festival—which this year features “Prometheus Awakes”, a model that is almost as high as this Chamber, and various other performances by local, national and international participants—was central to bringing the Cultural Olympiad to the north-east. Some 80,000 people flocked to the town to experience the events.

It is important, however, to see beyond the obvious economic benefits. The impact of the sector can be seen in many ways, not least in the increased involvement in the arts. ARC arts centre in my constituency is a case in point. Since opening 13 years ago, ARC has developed into a flagship, multi-purpose cultural venue, hosting hundreds of events a year, from music and dance to theatre, film and comedy. As a direct result, engagement has increased substantially. ARC hosted 230 professional performances, as well as 80 community performances, last year alone and this attracted more than 100,000 visitors. It is of real benefit to our economy.

Similarly, more than 100 artists are employed to provide 1,000 creative learning opportunities, enjoyed by more than 14,000 people. That has provided professional development and training opportunities for more than 200 artists and practitioners. With evidence showing that emerging partnering between creative industries and schools has the potential to improve the productivity and learning and earning potential of young people, our future would be markedly bleaker without proper access to the arts.

Just across the River Tees, at the Middlesbrough Institute of Modern Art, 18,000 people took part in formal and informal programmes last year, and it delivered a series of creative workshops in conjunction with Teesside university occupational therapy students for dementia patients and their carers. That highlights perfectly the level of innovation that the creative industries can generate, ensuring significant benefits and stronger communities.

To hammer home the case for Stockton and everywhere else, and in case naysayers have any doubt, recent figures suggest that ARC now generates about £4.5 million annually for Stockton’s local economy. If that does not signify value added—both socially and culturally, as well as economically—I do not know what does.

The arts are a valuable commodity—this much is true. Their real value, however, lies in the wealth of other benefits that they bring. Support for our creative industries is key to encouraging and nurturing the talents and appreciation that were unearthed only relatively recently. Slashing funding to the Arts Council and local government while sidelining creative education is not the way to do that.

Tax Fairness

Debate between Kelvin Hopkins and Alex Cunningham

Tuesday 12th March 2013 Commons Chamber

[Alex Cunningham (Stockton North) (Lab)]

This is a debate about fairness, as well as a mansion tax. Unemployment in my constituency has been higher every single month compared with the previous year since the coalition Government came to power. There are 4,293 on jobseeker’s allowance, and many more want to work. My local authority, Stockton-on-Tees—we do not have many £2 million mansions—will shed 1,000 jobs before the current massive cuts are fully implemented. Councillors are working hard, but problems persist.

The Cleveland fire authority, which I met on Friday, faces tough decisions that could reduce the number of firefighters in the highest risk area in Europe because of the cuts and a funding formula that does not recognise the risk we face on Teesside. Other hon. Members have mentioned the unfairness of energy prices, train fares and payday loan sharks, and all are unfair, but it is the tax cut for millionaires that sticks in the craw. People see millionaires getting a tax cut at a time when working mothers face a £160 loss in their income. I could go on at much greater length about unfairness.

I hear from a friend of mine up on Tyneside, Ian Wilson, that Champagne Fever won the first race at the Cheltenham festival today. The partner of the horse’s owner earned £44 million in pay and bonuses last year. He is a banker. I am sure he can afford the mansion tax.

[Kelvin Hopkins (Luton North) (Lab)]

I have some suspicion about anyone who earns £44 million. They may have received £44 million a year, but they did not earn it.

[Alex Cunningham]

My hon. Friend is much skilled in these debates and I take his point entirely.

Time and again, Government Members have challenged us to make clear what tax changes we would make to rebalance the unfairness in the tax system. I am delighted, therefore, that the Labour Front-Bench team has backed the Lib Dem policy of a mansion tax, while going further by saying that the money could be used to fund a 10p tax rate, which would bring immense benefit to the lowest-paid in our communities. It would be a tremendous boost to many of the lowest-paid people across Teesside and the rest of the country, including all the people who have landed one of these low-paid, part-time jobs that the Government gleefully boast about. Those people are to be praised and helped. Their pay is derisory, yet they want to work hard and be in a job, so we should do something to help them. They already face the prospect of a cut in income from the changes to tax credits from the end of this month, and today the Lib Dems, and others, could join us in helping to correct that unfair tax change and in recognising their commitment to hard work.

We need action to tackle the unfairness in the system, to sort out the big six energy companies, to stop the rip-off rail fares condoned by the Government and to stop the poorest people—the most vulnerable in our society—being ripped off by payday loan companies and loan sharks. Let more of those with the assets, rather than those with none, pay the taxes. There is real poverty in our communities. One illustration is the increasing number of food banks. I will be opening another one on Monday at the New Life church in Billingham in my constituency. We should not have to be doing such things. We should not need food banks. I know that their use increased even when we were in government, but they should not be necessary.If we had a fair income tax system, we would not need food banks.

The mansion tax might mean £5 a week for some families. That would not buy a small glass of wine in a Canary Wharf bar, but it could make a huge difference to the people at the bottom of the earning scales. It would buy enough bread from Asda for a family of four for several days, yet the Tories—and, more shamefully, the Lib Dems—would miss the opportunity to put bread in the mouths of poor families by failing to send a message to the Chancellor that he should adopt this mansion tax in next week’s Budget. I am sure that people who own property worth more than £2 million could afford the extra charge to help the poor. If not, they can move to a less expensive property and dodge the tax. Like my hon. Friend the Member for Edinburgh East (Sheila Gilmore), I see a parallel with the bedroom tax. Thousands of people in my area are facing a cut in their income. The answer, apparently, is to move to a smaller property. Those with homes valued at more than £2 million but who cannot afford a mansion tax should do what the poor have to do and downsize.

I am one of those who supports higher taxes, particularly when people can afford to pay, so I plead guilty as charged. Earlier today, a Minister said that the Government were focused on the causes of poverty, but all the time cash is being shifted from the poorest to the wealthiest, just as the funds available to local authorities in the north of England are being shifted to the richer areas in the south. I said that unemployment was not falling in my constituency, but in some parts of the south it has fallen, albeit owing to part-time, low-paid jobs. The Government’s austerity measures have devastated local authorities in the north-east, and the contractors who build roads and houses and promote and deliver other services are the losers, being forced to pay off skilled workers who want to work and support their families.

Next Wednesday, the Chancellor will deliver his Budget for 2013-14. It is probably his last chance before the general election in 2015 to come up with a set of policies that could make a real difference to people’s lives. The biggest difference he could make would be to abandon his plan A, under which growth has stagnated, unemployment in areas such as mine has grown and deficit and debt reduction has become even harder, but we know he will not do it. He is tied to his ruinous plan A because he has staked his credibility on it—but there is no credibility in it. The Tories still talk about what will happen if the economy turns around, but if we return to growth, will ordinary people suddenly stop feeling the strain of higher costs and less money in their pockets? I very much doubt it.

This ignores the fact that the Chancellor’s plan has already failed on its own terms. Not only is the national debt far higher than it was when he took office, but he has failed, and failed again, on growth. The reason is that without a good level of growth it is difficult to reduce deficits and debt, and as the Chancellor’s own Office for Budget Responsibility pointed out last week, cutting spending and hiking up taxes for ordinary people has slowed and stopped economic growth. As the ratings agency Moody’s pointed out when it downgraded the UK’s credit rating, the country’s lack of growth has made it nearly impossible for the Government to meet the only real goal they set themselves, which was eradicating the structural deficit.

Although a return to growth would be welcome, only strong growth would be enough to make up for the lost years of economic stagnation under this Government and to keep up with the growing and ageing population. Unless economic growth is above population growth, we are all getting poorer. Add to that the fact that the Government are redistributing from the bottom to the top by cutting the top rate of tax for millionaires while capping welfare, increasing VAT and cutting public services, and the scale of their failure becomes all the more apparent.

In Stockton North, we know all too well the impact of the Government’s policies. Long-term unemployment has more than doubled in the past 12 months and youth unemployment remains stubbornly high. Next Wednesday, the Chancellor has a chance to change course, cut spending less quickly and focus on taxing obscene wealth in order to invest in young people. He is very keen to point to the past and the failures—as he sees it—of the Labour Government, but he has been in his role for nearly three years and has failed abysmally. There will be much for a Labour Government to do in 2015 to address the unfairness built into our country by the Conservative-Lib Dem alliance. I have talked about energy, rail fares and housing, and we are already making clear some of the things we would do. Today, Government Members can help us get our fairness agenda under way by backing a mansion tax and helping to fund lower taxes for those who need them most—I hope they will.