Arts and Creative Industries Strategy

Lord Bassam of Brighton Excerpts

Thursday 8th December 2022 Lords Chamber

[Lord Bassam of Brighton (Lab)]

My Lords, I draw attention to my interests as set out in the register as a trustee of the Royal Pavilion and Museums Trust in Brighton and a trustee of the People’s History Museum.

I join in the general congratulations to my noble friend Lord Chandos on securing this important debate, which, as a number of Members have noted today, is extremely timely, given that, as the noble Baroness, Lady Featherstone, has just made clear, we are at something of a crossroads in government policy. I liked the way my noble friend neatly invoked Churchill’s being in favour of the arts during a time of national crisis; I think we are at that point, and my noble friend was right to do so.

As the noble Baroness, Lady Bull, and my noble friend Lady McIntosh alluded to, this is an extremely broad debate about a sector, the arts and creative industries, that is broad in its extent and impact. As the title of the debate highlights, and as outlined in the very helpful Library briefing, the UK, as many noble Lords have mentioned today, is a world leader in the arts and creative industries. Many of our cultural institutions are the envy of the world. We are one of the largest exporters of creative goods and services, and British TV, film, music and video games are enjoyed across the globe.

The economic benefits of the creative sectors have been cited throughout the debate but are worth repeating: a £110 billion-plus contribution to the national economy, the direct creation of more than 2 million jobs, and support for the associated jobs in supply chains. Perhaps it is timely to remind the House of the BBC’s role, which makes for a case study. The role of the BBC in generating cultural investment is very much at the heart of our creative industries—a sector that, as many have reminded us today, is growing faster than the rest of the economy. Between 2010 and 2019 it grew by 44%, and it could, given the right circumstances, more than double by 2030. The BBC is the single largest investor in original UK content: £1.4 billion-worth in 2021, which is 60% more than its nearest rival, Netflix. It also commissions more than its rivals. More importantly, perhaps, it has, as it always has had, a strong regional base, with 71% of its content coming from producers based outside London.

Those are impressive figures, and they are repeated across the sector. As has been noted, the creative industries have outperformed other parts of the economy in recent years, and they are likely to be a key factor in our eventual return to GDP growth. The cultural sector has the capacity to bounce back faster, quicker and higher than all other sectors, but it needs support to do so. We will remain a world leader in these crucial sectors only if central and local government continue to nurture them. In our experience, local government recognises the value of the arts and creative industries. Arts-led regeneration is now very much flavour of the month in terms of what local authorities are trying to do, and it makes a massive contribution to local economies. But if we get it wrong, as a number of Peers have said today, the cultural sector suffers and shrinks.

Councils and regional partnerships play a supportive role through the planning system, with funding for venues, events to highlight local talent and so on. However, in the past few years we have seen what happens when central government fails to support the arts and creative sectors. Yes, the Government provide funding via the Arts Council and other bodies, and we accept that there are tax incentives in other areas, but many creatives feel that more could be done to support them. The noble Lord, Lord Aberdare, made a strong case for the use of fiscal incentives. Perhaps today the Minister could comment on this without upsetting his ministerial colleagues in the Treasury.

The Covid lockdowns brought the arts to a standstill. That was understandable from a public health point of view but it means that many artists, museums, galleries and other cultural organisations are only just getting back on their feet. Gaping holes in the then Chancellor Rishi Sunak’s coronavirus support schemes left creative freelancers, as a number of Peers have said today, very much out in the cold. Labour repeatedly called for action to bring freelancers within the scope of emergency funding, as I think the noble Lord, Lord Londesborough, said, but none was taken. Event organisers and performers experienced visa problems; many performers also experienced a downward push in their opportunities and their ability to export our cultural excellence.

Covid restrictions may have eased, but the cost of living crisis and the Conservative Government’s wider economic failures mean that the sector’s costs are literally going through the roof, threatening much of our cultural inheritance. At the same time, household finances are being squeezed, meaning that people have less to spend on leisure and cultural activities. What assessment has DCMS made of the likely impact of current economic circumstances on demand for the output of arts organisations and creative firms?

As the Library briefing makes clear, and as colleagues have referenced, DCMS has been slow to come forward with a sectoral vision for the creative industries, despite the importance of having such a strategy in the current economic climate. We have had months of dither, delay and chaos at the centre of our Government. While we have been fortunate in some senses to have the Minister reappointed—a second coming, one might say—he must surely share our frustration with regard to the lack of recent progress in key areas. I am sure the Minister will disagree, but there is a growing feeling across different sectors that DCMS is unable to deliver. Its failures to deliver on a sector vision are the latest in a long list of delays, downgrades and cancellations. As my noble friend Lord Griffiths argued, we need to see that sector vision so that we can give greater certainty to the cultural institutions that thrive in our country. Importantly, that vision should link the creative sectors with the Government’s wider levelling-up agenda, which many noble Lords alluded to during the debate. This is another area where progress has been unacceptably slow.

Colleagues have referred to the recent Arts Council funding decision, which will see a greater emphasis on areas of the country outside London. We will of course have a more detailed debate on that next week but, today, my noble friend Lord Chandos made a very powerful case for ENO and opera, and rightly so. I could make an equal argument for better and stronger support for Glyndebourne, my local opera house, set wonderfully as it is in the Sussex Downs—and now hampered, as my noble friend Lady Andrews suggested in her powerful speech.

We all agree on the need to address geographic disparities, which are greater in this country than any other. These disparities are reflected in funding, but this does not need to be a zero-sum game; nor, as the noble Baroness, Lady Bull, argued, should these disparities be tackled in such a short timeframe. My noble friend Lady McIntosh argued that the background to the decisions that were made undermined the integrity and independence of the Arts Council’s decision-making. I think we all need reassurance on that. Why do we need to level down London, whose cultural offering draws in tourists from around the globe, to support the rest of the country? Is that really the best way to achieve levelling up?

On the Arts Council and English National Opera, why were certain decisions not properly consulted on or communicated better? That has been a strong feature of comments made during the debate.

To finish, we must always remember how lucky we are to have the incredible talents that we do across the arts and creative industries in this country. We can put a sum on these sectors’ economic value, but it is hard to convey the immense enjoyment and educational value that comes on top of those economic benefits. Our brilliant creative industries struggled during Covid but pulled together, innovated and weathered the storm. However, they now face sky-high energy bills and the impacts of a recession. The Government need to stop dragging their feet and, as the noble Lord, Lord Foster, and the noble Baroness, Lady Bull, argued, pull together several departments—DCMS, BEIS, DLUHC and the Cabinet Office—to drive the strategy. It is vital that they deliver a strategy that gives the arts and our creative industries greater certainty and puts them at the centre of future growth.