Leeds' Film, TV, and Digital Media Sector

Leeds’ Film, TV, and Di gital Media Sector – Baseline and Future Vision

Final Report presented to Leeds City Council by Olsberg•SPI

11th January, 2013 2nd May, 2014 Leeds’ Film, TV, and Digital Media Sector – Baseline and Future Vision

CONTENTS 1. EXECUTIVE SUMMARY ...... 1 1.1. Findings ...... 1 1.2. Recommendations ...... 2 2. INTRODUCTION ...... 5 2.1. Objectives of the Study ...... 5 2.2. The Creative Sectors ...... 5 2.3. Leeds’ Creative Sector ...... 6 2.4. The UK Sector ...... 6 2.5. Other Cities ...... 7 3. LEEDS’ CREATIVE SECTOR – DESCRIPTION ...... 8 3.1. The UK Creative Sector ...... 8 3.2. Current Status Report ...... 9 3.3. Map of Leeds’ Creative Sector ...... 12 3.4. Conclusions and Recommendations ...... 14 4. ECONOMIC IMPACT OF LEEDS’ CREATIVE SECTOR ...... 16 5. ANALYSIS OF THE SECTOR’S NEEDS ...... 17 5.1. Mapping and Networking ...... 17 5.2. Working Space ...... 18 5.3. Skills Development ...... 20 5.4. Recognition from the Council ...... 21 5.5. Strategic Engagement ...... 22 6. FUTURE VISION ...... 23 6.1. Responding to Manchester ...... 23 6.2. The Yorkshire Content Fund and Tax Credits ...... 23 6.3. Creative Sector Working Space ...... 24 6.4. Studio Space ...... 26 6.5. The Leeds Creative Community ...... 26 6.6. The Leeds International Film Festival ...... 27 6.7. Local TV ...... 27 7. THE NEED FOR A CREATIVE SECTOR LEAD IN LEEDS COUNCIL ...... 28 7.1. Leeds City Council’s Current Offer ...... 28 7.2. The Needs of the Sector ...... 28 7.3. Recommendations ...... 33 8. CONCLUSIONS AND RECOMMENDATIONS ...... 35 8.1. Conclusions ...... 35 8.2. Recommendations ...... 35

9. APPENDIX 1 – CONSULTATION LIST ...... I

1. EXECUTIVE SUMMARY

1.1. Findings

1.1.1. A Vibrant and Sizeable Creative Industry It is clear from the research and analysis undertaken by SPI that Leeds as a city has a vibrant, well-sized, and highly active creative sector of unusual diversity, which provides a solid basis upon which a future strategy can be developed. Starting from the handful of very large employers such as Sky and Emmerdale, which have significant economic importance, the city has a wide range of companies, many of which are on the micro level of less than 10 employees. This is common throughout the sector, but has not – at a national level – impeded the double-digit economic growth which the creative industries have recorded over the recessive period.

All the available data point to Leeds as being a creative hub of national importance – Business Register and Employment Survey data analysed in 2011 show the city to have a larger sector than other key cities such as Birmingham and Glasgow. This is ratified by a recent IPPR report – March of the Modern Makers – which placed Leeds as one of the UK’s key creative centres. Both of these studies underline the city’s existing strength in the sector, though as we note elsewhere, this is something which is currently under significant threat due to perceived inertia.

Overall, the creative sectors of interest – Film, TV, and Video Games – can be seen to generate a significant amount of income for the city, with our estimates suggesting a GVA of between £225-360 million, and in the region of 4,250-6,800 jobs.

1.1.2. Paucity of Clear Data That we are unable to provide an exact figure on this issue speaks to the lack of granularity within existing data sources – many of them focus on national-level databases, which do not provide sufficient detail to ‘zoom into’ the current status of the sector in a specific location. Many of the sources that exist are dated from the early 2010s, and given both the impact of the recession, and the double-digit growth which the UK creative industries have seen in the last few years, it is likely that the sector they describe is no longer the one which exists. As such, this lack of data presents a clear stumbling block for future development – from the Council’s point of view, it serves to inhibit the development of a clear, consistent baseline to measure future growth, while the professionals working in the sector also express exasperation at their inability to comprehend the exact shape of the Leeds creative sector, outside of their immediate circle of contacts.

1.1.3. Dispersal of the Creative Sector Another factor driving this difficulty is the highly dispersed nature of the Creative Sector in Leeds – the overall sector, including industries like advertising, comprises nearly 3,400 businesses, of which the vast majority are micro-sized. Though this is the normal way of operating in the creative sector, Leeds exhibits an unusual level of dispersal in the location of these businesses, which are scattered across the city rather than congregating in and around a central location, such as London’s Soho or Silicon Roundabout. The result of this is that networking – which is crucial in an industry where teams typically come together for the purpose of a single project – is inhibited, and the development of economies of scale through agglomeration is stymied.

A lack of creative co-working space was highlighted as a particular issue within this, and we note that the development of further co-working space would offer significant agglomeration benefits, which are central to the success of many hubs worldwide. This would also aid in the development of formative technologies – adapting ideas from one sector into another – in which Leeds traditionally excels, as well as in retaining the talent base Leeds presently develops. Nonetheless, we note that the city’s current creative sector success, in spite of a coherent core, underlines the inherent quality that the sector in Leeds offers, and leads to the belief that there is significant potential for future growth should a hub be developed.

1.1.4. Leeds as a Regional Production Hub This is particularly the case when we consider the fact that Leeds – along with Sheffield – is central to a broader Yorkshire creative sector. Screen Yorkshire’s Yorkshire Content Fund (YCF) has been of significant importance to this in recent years, attracting inward-investment productions to the region such as Jonathan Strange and Mr Norrell and Jamaica Bay. Jonathan Strange outlines this, being based in Leeds, but filming in North Yorkshire, and accessing supplies and employees from across the county. This is standard industry practice, but underlines the fact that Yorkshire is seen as a major regional production hub, and the natural scale of activity – Leeds role at the centre of this can therefore be a significant engine of growth for the city.

1.1.5. Potential for Digital Growth Leeds already has a significant market for Digital Media, hosting Rockstar and Activision (two of the largest games firms in the world), and being the second largest IT market in the UK outside London. Globally the games sector is evolving into the boundaries of other disciplines, such as medicine, and this provides exciting potential for future technical growth in areas where Leeds already excels. The emergence of the new tax incentive for Video Games at the start of April will offer significant additional impetus in this regard.

Leeds already has significant expertise in medical and sports science technologies, the impact of a thriving games sector for developing new startups could be significant.

1.2. Recommendations

1.2.1. Council Recognition and Vision Despite the success of the sector, there is a feeling from the companies in Leeds that the Council neither recognises the impact that it has, nor does much to support the industry. On multiple previous occasions, exercises similar to this one have been undertaken but no future plan developed, or a plan developed and later dropped. This has led to significant lack of faith in the council, particularly from those who have put their names to such ventures, together with a significant degree of disillusionment and little confidence that there will be action on this occasion.

Compared to other cities such as Nottingham – which has a far smaller sector, but a significant pot of investment safeguarded by the council – there is an apparent lack of vision from Leeds, despite the bedrock of significant activity and companies. This should be solved both through the adoption of clear changes at this point – leading the sector, securing the talent base, working to develop a cluster, and aiding businesses – as well as the development of a long-term engagement plan to develop future steps. This should be twinned with a communication strategy which outlines the success of Leeds’ creative sector internally and externally.

These elements will, together, build into a future vision whereby Leeds looks to double the GVA of the creative sectors covered by this report by the end of the decade, a vision which ties into the city’s aim to become European Capital of Culture in 2020.

1.2.2. A Leadership Role to Implement the Vision Central to this is the need for a new leadership role within the council to drive engagement between the various sectors of a kind that has been missing since the loss of Yorkshire Forward. This proposed Director of Creative Media would be tasked with developing a partnership between the various public and private stakeholders. Though we would ideally not wish to recommend a location for this role, the atomised and micro-sized nature of much of the Leeds’ creative sector means that no private body has the trust or the scale to develop such a role outside of the council. Without the council’s engagement, it is highly unlikely that the sector will be in a position to organise itself and move forward to build greater employment for the city.

As well as driving the elements of this plan which are feasible even without a clear picture of the shape, this role should be charged with understanding and communicating the business support and other programmes already in place for companies in the sector. Whereas issues such as connectivity were often complained about, the presence of programmes such as High Speed Leeds/Bradford suggests many solutions already exist, which should be more widely known about. Akin to the size of the creative sector, it feels like much is already in place within the Council to support this properly, but the organisation and drive to follow this through needs to be added.

1.2.3. Developing a Communication Plan Communication is a substantial problem for Leeds – from the Council, to other public bodies, to the industry, there is a shortfall in effective communication. Both inside Leeds and with the outside world, there needs to be a communication strategy to ensure everybody knows what’s happening. This should be owned by the Director of Creative Media, and be designed to outline the success of Leeds’ creative sector both internally and externally, with the aim of attracting further work and investment for the city across all creative sectors.

1.2.4. Mapping the Sector While we have been able to develop an overview of the size and shape of the sector, the myriad different sources used cannot nonetheless provide the level of data which will allow a detailed footprint of the sector to be analysed. Given the atomised nature of the sector, we recommend a piece of primary research be taken to identify the individuals and companies operating in the sector in a way that secondary research cannot. We feel this will help the Council to understand in detail what the shape of the sector is, determining the most effective interventions which can be made. It will also offer those working in the sector the ability to describe it better, as well as find collaborators, potentially further catalysing the sector’s development and growth

1.2.5. Retaining a Secure Talent Base While Leeds has a strong record in developing creative sector talent, there is a significant disconnect between the educational institutions and the industry they serve, a factor not aided by the dispersed nature of the sector. This leads students to feel there are no options to develop a career in the city, instead moving to Manchester and London – this is despite the fact that there are a large number of presently advertised jobs. By developing a central point to connect the two elements together, the city will find it significantly easier to fill permanent

jobs in the sector, as well as the internships which are a necessary part of the education process. With the Northern Film School continuing to grow – adding several hundred more students in the next three years, and projected to outgrow its current premises – this would add immensely to the city’s creative sector.

1.2.6. Additional Creative Working Space Linked to this is the development of greater creative sector working space within the city, including both shared working facilities and pop-up studio space to augment the current offering. Unlike in Manchester, Leeds has a significant advantage in that there are a number of private companies looking to invest in this area, but there is nonetheless a risk within this. Given the current fractured nature of the sector, and the haphazard approach that this development implies, future growth may inhibit the developing of networking and agglomeration economics, as the various locations remain physically separate, and the current lack of overall networking continues.

As a result, we strongly advise that the city adopts one of two models. Either the city should define an area as the ‘Creative Media Zone’, facilitating the development of this by preferential planning consent and strategic use of council programmes. Alternatively, the Council should undertake to connect up the existing scattered creative centres of the city through physical, digital, and human networks, recognising the uncontrolled development which has previously occurred.

1.2.7. Leveraging Yorkshire and the Yorkshire Content Fund The Yorkshire Content Fund, developed and administered by Screen Yorkshire, has been a boon for the creative sector in the county, and within this framework Leeds’ production sector has taken a leading role. Given Leeds’ leading role in the county, it can leverage both the Fund and the diverse range of surrounding scenery to draw incoming productions. Together with the addition of the new High-End TV, Animation, and Video Games tax credits, and the improvements to the Film tax credit, this should form a key element of the city’s communication strategy surrounding the sector.

1.2.8. Leveraging Manchester We feel there is a significant amount more which can be done in leveraging the existence of MediaCity UK and Manchester as a commissioning base, particularly at the level of the City council. Various consultees noted that there has been a significant degree of engagement with the BBC from other cities competing with Manchester, not least Liverpool where the Film Office has been highly active. The city has recently hosted BBC Worldwide’s annual sales showcase.

Taking the lead from other cities in recognising Manchester as an opportunity as much as it is a threat, we strongly suggest the city and its creative community adopts a more proactive approach to visiting the commissioners now based less than an hour away.

2. INTRODUCTION

2.1. Objectives of the Study

Leeds City Council, together with Leeds and Partners and Screen Yorkshire, is keen to support a stronger film, TV, and digital media sector in Leeds which can continue to grow. As a result, Leeds City Council (“LCC” or “the Client”) engaged Olsberg•SPI, via Screen Yorkshire, to develop a vision for future growth, a group of policy options to achieve this, and a baseline against which progress can be measured.

Three fronts have been identified as particularly important in this:

• Telling the Leeds story better, and setting out for the industry why Leeds is the place to set up companies and base productions • Supporting, growing, attracting and retaining talent, working with the industry, Creative Skillset, Creative England, and education partners • Developing an overall strategy to guide public support for the sector in Leeds to 2020.

This assignment focuses on the third of these elements, but will comment on the first two of these where appropriate.

In order to deliver this work, SPI has implemented a methodology which contained:

• A preliminary review of documents relating to the city and sector • Inception meeting with the steering group • Data gathering and further desk research • Confidential consultations, with 38 undertaken • Team brainstorm of data to produce interim findings • An interim report, circulated to the steering group for comment • Further research and consultations • This final report 2.2. The Creative Sectors

The UK Government defines the Creative Economy as being the sum of nine sub-sectors, representing both those directly employed in companies specialising in the Creative Industries, and those outside this core nonetheless undertaking creative jobs. These nine sub- sectors are: • Advertising and marketing, • Architecture, • Crafts, • Design: product, graphic, and fashion design, • Film, TV, video, radio, and photography, • IT, software, and computer services, • Publishing, • Museums, galleries, and libraries; and • Music, performing, and visual arts. Within these areas, this report is specifically focussed on the Film, TV, and Video Games sectors, located within ‘Film, TV, video, radio, and photography’, and ‘IT, software, and computer services’ respectively. Both of these sub-sectors are of significant importance to

the overall UK Creative Economy, acting as major drivers to the other elements, as well as significant employers on their own account. Though this report has focussed on the Film, TV, and Video Games sectors, nonetheless we feel that a number of the recommendations could serve to support other elements of the Creative Economy as well. Notwithstanding this, we believe that the focus of implementation should clearly be on the sectors studied. 2.3. Leeds’ Creative Sector

Historically, Leeds has been a significant location for the production of Film and Television content in the UK. Hosting one of only three ITV drama hubs, the city has been the production centre for many years of Emmerdale, one of the UK’s leading soap operas, and a significant driver of activity throughout the city’s creative sector. The significant heritage which has come from the city being host to Yorkshire TV as well as elements of the BBC and Sky provides the city with a major base from which to build. This is in many ways replicated in the games sector, with both Activision and Rockstar having bases in the city, and major games such as Call of Duty and Grand Theft Auto being partially produced in Leeds. In both cases these large-scale creative enterprises are only part of the ecosystem, which also comprises a large number of small and micro enterprises, and a significant number of freelancers. The exact composition of the sector is somewhat difficult to discern on account of the sheer volume of different, small operations which are contained within it. A recent IPPR study nonetheless categorised the city as having three creative clusters – advertising, software, and games.1 To this we would add the TV and Film sector – though much harder to count, our research has made clear to us that there is a significant number of operators in this sector within Leeds, though they remain highly disparate in location, and lack any central core location. 2.4. The UK Sector

Leeds current strength sits within the context of a very strong – and fast growing – UK creative media sector. Through the recessive period, the creative industries in the UK grew at a significant rate, with sectoral GVA growing by 15.6% from 2008-2012, and the overall Creative Economy now providing one in twelve UK jobs.2 Within this, the two sectors of interest to this report – Film, TV, video, radio and photography, and IT, software and computer services – grew at an annualised rate of 4.2% and 4.5% respectively. While this past performance in a recession is impressive, there is good reason to believe that the future growth of the sectors will be equally strong. In recent Budgets, the Chancellor has both introduced new incentives for the High End TV, Animation, and Video Games sectors, and improved the Film tax incentive to make it easier to use UK post-production facilities. The combination of factors has already led to a significant increase in enquiries to base productions and projects in the UK, as well as leading to the impression that London’s film and TV production sector is swamped, with Pinewood Studios currently full until the end of 2015. This presents a significant opportunity for growth in the remainder of the UK.

1 March of the Modern Makers, Institute for Public Policy Research, February 2014, p. 22 2 Creative Industries Economic Estimates, Department for Culture, Media and Sport, January 2014, p. 7; the Creative Economy accounts for both jobs in the Creative Industries, and those creative jobs located in other sectors

2.5. Other Cities

The significant opportunities offered by this sector have not gone unnoticed in other UK cities, many of whom are making significant plans to attract existing creative businesses, and grow their creative sectors. Manchester is the most obvious of these – the creation of MediaCity UK in Salford has seen a significant number of BBC and ITV productions move to the city, whilst both the Sharp Project and the planned revitalisation of Granada Studios offer major production space within the city itself. However other cities in the UK are also aiming to increase their share of the creative industries, including: • Birmingham, which has launched a ‘Creative City’ initiative, and is engaged in a knowledge-sharing partnership with other European cities like Berlin • Nottingham, with its planned ‘Creative Quarter’, which has at least £2o million of investment guaranteed under the Nottingham Growth Plan • Bristol, which has a significant wildlife documentary sector, and where the Council has been supporting the Bottle Yard Studios • Cardiff, which already has a significant BBC presence, and where the Welsh Government has put together a £30 million production fund, together with a studio offer in association with Pinewood, and • Glasgow, which is expected to be the destination for the recently-announced Scottish Government-backed Film and TV studios Compared to these locations, Leeds arguably has a significantly greater sectoral heritage, both in terms of number and quality of productions in the film and TV sector, and the range of video games companies. Nonetheless, the city also appears to be behind the curve in capitalising on this – without a significant show of support, there is a likelihood that many of Leeds’ creative businesses and individuals will be lured to cities who have invested in the future of the sector.

3. LEEDS’ CREATIVE SECTOR – DESCRIPTION

3.1. The UK Creative Sector

3.1.1. Economic Impact of the UK’s Creative Sector The most recent Creative Industries Economic Estimates, published in January 2014, underline the degree to which the Creative Industries in the UK are a large, important, and fast-growing element of the national economy. These data show that for 2012 – the most recent year for which statistics are available – the Creative Industries accounted for 5.2% of the UK’s output (£71.4 billion) and 5.6% of jobs (1.68 million). Including creative occupations in non-creative industry companies, the total employment in the creative economy in 2012 was 2.55 million, or 1 in 12 UK jobs.3 In a period in which the overall UK economy has undergone sluggish growth, the Creative Industries have proved a noticeable bright spot. During the period from 2008 to 2012, the GVA of the industry grew from £61.8 billion to £71.4 billion, increasing its share of economic output from 4.7% of the overall UK economy to 5.2%.4 In a period in which the overall UK economy grew by 5.4%, the creative economy grew 15.6% - this was second only to Real Estate. In terms of foreign trade, the Creative Industries is also seen to account for a significant percentage of the UK’s overall service exports. 2011 data show that the sector was responsible for £15.5 billion of service exports, representing 8% of the UK total. Between 2009-11, service exports in the Creative Industries grew 16.1%, compared to 11.5% for overall UK service exports.5

3.1.2. Sectors Covered by This Report Within this significant growth industry, two sub-sectors are of particular interest for this study: Film, TV, video, radio, and photography, which represents the Film and TV industries; and IT, Software, and Computer Services, within which the majority of Video Games is located. Employment within both of these Creative Industry sectors shows significant growth between 2011 and 2012. In this single year period, Film, TV, video, radio and photography grew 13.6% to 238,ooo jobs nationwide, an increase of 29,000. Meanwhile IT, software, and computer services grew 15.6%, adding 76,000 jobs for a total of 558,ooo.6 It is worth noting that a large percentage of Creative Jobs exist outside of the Creative Industries sectors as defined by the DCMS.7 In the case of IT, software and computer services these amounted to 233,000 in 2012, some 29.5% of total Creative employment in this sector. There are a smaller number of Film, TV, video, radio and photography jobs outside of the core sector, at 28,000 nationwide. In addition to strong employment growth, both of the sectors show strong annualised GVA growth in the period from 2008-2012. The Film, TV, video, radio, and photography sector grew at an average annual rate of 4.2% over this period, reaching a total of £9.8 billion in GVA

3 Creative Industries Economic Estimates – January 2014, DCMS p. 7 4 Ibid, p. 15 5 Ibid, p. 7 6 Ibid, p. 13 7 In the DCMS definition, ‘Creative Industries’ refers to the core creative industries, outlined using the Standard Industry Classification (SIC) code model; ‘Creative Economy’ refers both to the ‘Creative Industries’ and to creative occupations in non-Creative Industries firms

for 2012. Meanwhile, IT, software and computer services grew at an average of 4.5% per annum, for a total of £30.9 billion GVA.8 These data underline the importance of the sector in the UK overall, highlighting both the significant amount of employment it brings to the nation, and both the economic output and exports that this employment generates. Nonetheless, there are issues with this data which it is not possible to – by reference to statistical sources alone – overcome. In many cases, these data cover multiple sectors, some of which are not of interest to this study. For example, the IT sector contains a Standard Occupational Classification code for ‘Programmers and software development professionals’. Whereas this undeniably covers the programming of computer games, it will also cover other programming occupations, with no clear ability to derive a more nuanced dataset. This is a known problem within the current SIC/SOC model, in particular for the games sector. In order to provide an estimate for Leeds in the Current Status Report section, below, these data and their regional GVA comparators for the Leeds economy are used as the base. However qualitative elements have been added by the consultants to derive a more realistic estimate of the employment within the areas of interest for the Council. These come from both from consultations and from further desk research relating to the Leeds Creative Industries sector. 3.2. Current Status Report

3.2.1. Headline Data for Leeds Overall, the data tend to show that within Leeds, the Creative Industries are of a demonstrably greater importance than it is for the broader UK. Various reports produced for the Council in the last few years underline the importance of the Creative Industries to the Leeds economy. This underlines the data produced through the consultation process, which showed a feeling both within Leeds and the broader region that the City is at the centre of a larger Yorkshire creative sector, acting with Sheffield as a co-hub. In 2011, a Creative Industries sectoral assessment was conducted for the Council by Michael Canning and Dan Kudla. Using the Yorkshire Forward GVA methodology, this estimated that the Creative Industries GVA for Leeds at that point was £1.5 billion; compared to the overall Metropolitan Region’s GVA for the period of £18.8 billion, Leeds’ Creative Industries can be seen to provide 7.96% of the city’s GVA.9 It is not entirely clear from the report whether this relates solely to the Creative Industries, per the DCMS definition, or to the broader Creative Sector. Nonetheless, contextual information relating to company numbers is suggestive that these data solely relate to those businesses which form the Creative Industries. This being the case, the data strongly suggest that the Creative Industries in Leeds are of proportionally greater importance to the City’s economy than they are at the national level. Whereas the output of these businesses in the UK in 2011 was 5.2% of the whole, in Leeds they accounted for almost 8% of GVA. According to figures in the Leeds City Growth Strategy of 2012, the city’s Creative Sector employment numbers are similarly impressive – at 36,500 total sector employees, Leeds

8 Creative Industries Economic Estimates, p. 18 9 The Creative & Digital Industries in Leeds, Canning, M. and Kudla, D., 2011 p. 4; ONS Regional GVA data http://www.ons.gov.uk/ons/taxonomy/index.html?nscl=Regional+GVA

accounted for 1.65% of total national Creative Sector Employment.10 Total employment in Leeds being 395,100 in 2012, the Creative Economy can be seen to account for 9.24% of the total for the period.11 This is marginally higher than the 1 in 12 jobs which the sector accounts for at the national level.

3.2.2. Leeds Within Yorkshire As many consultees noted, Leeds is central to a broader Yorkshire creative sector, centred jointly on Leeds and Sheffield. The data produced for Leeds Council demonstrate the significant size of this overall creative conurbation, which accounted in 2012 for 153,100 jobs. Compared to the national figures, these data show that Yorkshire and the Humber accounted in 2012 for 6.96% of total UK Creative Economy jobs.12 That many of these roles centres on Leeds is unsurprising when we consider the supply chain for a project such as the YCF-supported Jonathan Strange and Mr Norrell. As a production, this was based in Leeds, but filmed across North Yorkshire as this scenery fitted the needs of the production. Meanwhile, produce, supplies, and employees to support the production came from all over the county to work in Leeds and North Yorkshire; this is common in an industry with a highly educated, but also peripatetic workforce. It also acts to demonstrate the Yorkshire is, in many ways, the natural scale for the screen production sector, but Leeds can act as a hub for such production.

3.2.3. Composition of Leeds’ Creative Sector These two datasets provide comparable, if not identical, views relating to the size and composition of the creative sector in Leeds. Whereas the 2012 report states that there are 36,500 Creative Economy employees in the city, Canning and Kudla state that “there are up to 30,000 people working in creative industries across the City”.13 Methodological differences are likely to account for these differences – Canning and Kudla used desk-based research and an online survey, whereas the 2012 report was based on the Office of National Statistics’ Business Register and Employment Survey (BRES). While there is broad comparability within the two datasets, however, the differences underline the significant difficulties to be found in interpreting the size, shape, and nature of the city’s creative sector by way of secondary data sources. Canning and Kudla also describe the shape of the Leeds creative sector in terms of companies, estimating there to be nearly 3,400 businesses operating in the sector, of which 70% are ‘micro’, or less than 10 employees in size.14 This resonates with the nature of the Creative Industries on a national level, as much of the sector rests on such small businesses. Nonetheless, the proportion of ‘micro’ businesses in Leeds is greater than those found in other comparable cities, an issue which was ratified through the consultation process. Whereas many comparable cities have one or a number of medium or larger businesses operating in their film and TV production sectors – for example Red in Manchester, and Warp in Sheffield – there is no such equivalent in Leeds.

10 Sectors of the Economy, Leeds City Council 2012, p. 6; though it is not stated, the ‘Creative Industries’ numbers listed in this account correlate, at a national level, with the ‘Creative Economy’ as defined by DCMS 11 Ibid, p. 3 12 Ibid, p. 6 13 The Creative & Digital Industries in Leeds, p. 3 14 Ibid, p. 3

While there is no major independent production business in Leeds, the city does host one of only three ITV centres in the country, and as part of this produces one of the most watched soap operas in Emmerdale. It is difficult to overstate the importance of such ongoing production to an area such as Leeds – by providing an ongoing baseline of work, the show will underpin broader creative sector activity so long as it continues in Leeds. It also has the ability to serve as a training ground for young talent, along with the broader ITV base, something which is of significant importance to the health of the overall sector.

3.2.4. Programmes and Companies As we note elsewhere, there is a significant benefit to be gained by attracting such ongoing work, and as a result it is of great importance that Emmerdale’s production base in the city is secured. Despite this importance, it is not clear that the programme is as valued as its equivalents in other British cities. Whereas Manchester Council openly celebrated the 50th anniversary of Coronation Street in 2010, the 40th anniversary of Emmerdale in 2012 went unremarked upon by Leeds, which was felt to underline the differences between the two cities’ approaches to the sector. Though True North operates as such for the factual sector, and a number of computer games developers – including Blast Furnace and Rockstar Leeds – exist in scale, no larger-sized drama producer operates. Those which do, particularly Rollem, have a significant impact, but have not developed a scale seen in other areas – in some cases, this has been a deliberate choice. Given that Yorkshire, with Leeds at its centre, has historically been a major production centre for scripted drama, this current lack of a scale producer is something of an anomaly. Dispute this, the legacy of Leeds’ role as a major ITV drama centre means that the city has an enviable basis of talent upon which to draw in building the industry up further.

3.2.5. Leeds as a Creative Hub The BRES data analysed by Leeds City Council show Leeds to be one of the UK’s major creative hubs, second only to London as a media sector, and significantly ahead of Birmingham, Glasgow, and Manchester in numbers of employees. While consultations underline that Leeds remains a major creative sector, it is worth noting that these data were produced before MediaCity in Salford was fully online. Furthermore, since Salford falls outside the statistical definition of Manchester, it may be that many Creative Industries employees working in the Greater Manchester region are not counted through these statistics. Notwithstanding this qualification, it is clear that Leeds continues to be a key creative hub for the UK, as well as the centre of a significant Yorkshire creative sector. The Creative Industries contribute a large amount to the city’s economy, both in terms of jobs and GVA, though for the most part do so in an unstructured and atomised way. While the majority of creative businesses across the UK are ‘micro’ level, and the industry tends to operate through informal networks, in Leeds this appears to be a significant problem. Consultations have indicated that the city’s creative sector is significantly more dispersed than in other cities, and that networks are weaker and unconnected, minimising the agglomeration effects which are seen in other creative hubs, such as London’s Soho and Salford in Greater Manchester. The significant benefits which such informal co-working brings to a coherent or semi- coherent industry form a recognised branch of economics, known as agglomeration economics. This underlines that the existence of co-working space allows for increased economic activity as ideas spread faster, competition between individuals for work leads to increased competence and skill, and individuals work together more, both formally and informally. In many ways, agglomeration of this form is akin to the development of an

economy of scale within a single company, though occurring between discrete individuals or small companies. An ideal example of this is the so-called Tech City (or Silicon Roundabout) in East London, which has seen the development of a number of technology and music companies, including Last.fm, TweetDeck, and Dopplr. In recent years, other companies such as BT, Cisco, Intel, Amazon, and Sports Interactive have located there to be close to this significant new technology cluster. 3.3. Map of Leeds’ Creative Sector

3.3.1. Methodology As part of this work, SPI undertook an exercise to catalogue the major companies, individuals, and locations in the sector. This investigation has focused solely on those operating from or within Leeds Metropolitan District, using the ‘LS’ postcode area as a proxy for this when more detailed data were not available. These data have been collated from two, publicly available databases – The Knowledge, a traditional industry source, and Creative England’s crew, facilities, and locations databases. Given the provenance of these databases, they are non-exhaustive, in particular they will not cover individuals working on specific long- running Television projects, such as Emmerdale. In particular, it is worth noting that the Creative England database operates along wholly self- registered lines, with the onus being on the producer to make their details available for investigation through this system. As a matter of course, many of the better-known individuals operating in the sector will not do this. There is a feeling that, for established industry professionals, making your details available in such a way both acts to cheapen your personal brand, and is often unnecessary. We noted in the previous section that this is a highly networked industry, and it is through such networks that well-known individuals will tend to find work on projects. To add to the difficulties in determining clearly the shape of this sector in Leeds, it was also made clear during the consultation process that many of those operating in the city’s creative sector live and are registered outside of the Metropolitan District. Historically, crew working on long-running shows like Emmerdale have tended to live in North Yorkshire and commute, but with the tools available there is no way presently to capture the size of this community as it relates to the operation of the Film and TV industries in Leeds itself. This underlines the issue previously noted that Yorkshire tends to be seen as a ‘natural unit’ for the purposes of the Creative Industries. With regard to the Digital Media Sector, no real equivalent to this database model exists, and many of the major employers – being subsidiaries of larger companies – were not in a position to talk. While we spoke with two Yorkshire-based games developers associations in the process of preparing this report, they were not able to derive from their data the size and shape of the industry specifically in Leeds either, noting much the same with regard to major employers. At a national level, there are a distinct shortage of reliable secondary sources relating to the size and shape of the games sector, though we note that UKIE are currently undertaking a mapping exercise of this, and the BFI’s next Film Economic Contribution report will cover the games sector as well. This leads us to believe that baseline data may become available by the end of the year, though these have not been done in time for this investigation.

3.3.2. Results Taking this into account, we have been able to conduct the survey solely with regard to secondary data sources which considered the shape and size of the film and television sectors. Considering the major production roles and budget items which you would expect to

see in any production, the databases present the following picture of the sector solely in Leeds Metropolitan District: Camera Equipment Hire Crewing Services 4 companies 0 Companies Grip Equipment Lighting Rental 2 Companies 4 Companies Sound Rental Costume Hire 3 Companies 0 Companies Prop Hire Post-Production (Sound) 1 Company 3 Companies Post-Production (Video) Post Production (VFX) 4 Companies 4 Companies Set Build Studios 1 Company 3 Companies Production Offices Listed Locations 2 Companies 79 Locations Production Managers Location Managers 6 Individuals 6 Individuals Production Accountants Directors 4 Individuals 7 Individuals Production Designers Art Directors 3 Individuals 4 Individuals

It is our view and that of the consultees that this does not represent an accurate picture of the industry in Leeds, but rather indicates the paucity in the available data sources. As we have noted elsewhere, the ability of secondary data sources to accurately capture the size and complexity of the industry is significantly compromised both by the highly networked nature of the sectors involved, and the small scale of many of the companies within them. These nuances are often lost in complex datasets, and in the case of many self-registered databases the networked nature of the industry inhibits individuals from joining in the first place. With this in mind, we would advise that a full survey be undertaken of the sector to ascertain it’s true size and complexity. Such a survey was undertaken by Canning and Kudla in 2011, but has been overtaken by the significant growth and changes which the sector has seen in the intervening period. Without an accurate picture of the sector, it will not be possible to determine some the most effective interventions which the Council can make from either a cost or a scale perspective. This said, we note that there are some decisions – outlined elsewhere – that the Council should take as a matter of urgency, and in advance of any detailed mapping survey.

3.4. Conclusions and Recommendations

3.4.1. Availability of Data Undertaking this mapping exercise has acted to underline the paucity of the available data relating to the Film, TV, and Digital Media sector in Leeds. Though high-level data from various sources demonstrates the significant success of the sector, and their related economic impact on the city, it has not proved possible through existing datasets to fully describe the shape of the sector. While the consultations have also underlined the city’s success, they act as a reminder that Leeds’ Creative Industries are both highly atomised and less networked than normal, increasing the difficulty of providing clear estimates. During the Yorkshire Forward days, Screen Yorkshire had a significantly greater remit, operating as a screen agency – with responsibility for sectoral development and servicing incoming productions – rather than just as a fund manager. Whereas the ‘old’ Screen Yorkshire held a comprehensive database on the Sector, since the arrival of Creative England this hasn’t been actively maintained, as Creative England have switched to a user-driven model for data collection. For various reasons, people have not chosen to register on this system, and both Creative England and the Knowledge show a far lower number of individuals operating in the sector than the economic output of the city suggests must be the case. In the games sector meanwhile, no such database exists, and though our consultations have strongly suggested that a large and active sector is operating, it is not possible to use these to quantify this. As a result, all three areas – Film, TV, and Digital Media – suffer from a paucity of available data on their size, scope, and impact which is at odds with the importance which they have for the city’s economy. To their credit, Creative England have now begun to adopt a new model for their database, recognising the limitations of their current approach and the need for more robust data to fulfil their role as a national body, but this is only in its infancy, and is unlikely to deliver the granular detail needed to understand the Leeds creative sector. As a result, we strongly feel that a comprehensive baselining effort needs to be brought forward to understand the current shape and nature of the creative industries in Leeds. Though high-level surveys will be able to explain the place of Leeds within the broader national environment, our work has underlined the unique, complex, and fractal nature of the Leeds creative sector – it is much more diverse than for comparable cities, and much less ordered.

3.4.2. Impact of Leeds’ Creative Sector Though it is clear from our analysis of secondary data that this sector is both of significant scale and has a major impact on the city, the currently available data are either outdated, or do not allow sufficient granularity to undertake robust analysis. Given the significant national growth which the sector has seen since 2011, and the impact of initiatives like the Yorkshire Content Fund on the industry in the Leeds City Region, it is clear that the data which we have had access to can give only a partial picture of the current status. As such, a significant degree of primary research needs to be undertaken to provide a clear picture of the number, size, and activities of freelancers and companies in the sector. This will allow both internal and external stakeholders to understand and navigate the Leeds creative sector, as well as allowing the Council to better target and measure interventions. A well-developed survey would form the basis for robust future analysis of the size and activity in the sector, and is vital to target future interventions from the Council if they are to have the maximum impact. It will also clearly and unequivocally underline the size and importance of the city’s creative sector.

This weakness notwithstanding, it is clear that the city has a vibrant, well sized, and highly active sector, upon which a future strategy can be built. The available economic data, combined with the consultations we have undertaken, underline that the city has a thriving and inventive creative sector, across all the sub-sectors which we have considered. Though there is difficulty in digging deep into the granular data, all of the sources point in the same direction, highlighting Leeds as an important, vibrant creative hub, both for the Yorkshire region and the UK as a whole.

4. ECONOMIC IMPACT OF LEEDS’ CREATIVE SECTOR

So far, the data we have analysed consider the Creative Industries as a whole, undertaking a broader overview of what the sector’s economic contribution to Leeds entails. The two key sub-sectors in which we are concerned for this report – Film, TV, video, radio, and photography; and IT, software, and computer services – represent a significant proportion of this overall national whole. Nationwide, these two sub-sectors account for around 47% of the total jobs within the Creative Industries, and 57% of the sector’s output, based on the data provided by the DCMS. As we have noted, the nature of the various relevant databases makes analysis of the size and shape of these sectors in Leeds as a city hard to achieve. Neither the Creative Industries Economic Estimates, APS, nor BRES offers the level of granularity which would allow an accurate description of the jobs and GVA contributions that the Film, TV, and digital media sectors make to the city. Though significant data are available, the high level of atomisation observed within the sector makes a clear description of jobs and outputs hard to achieve. Nonetheless, the available data suggest that the two sub-sectors in Leeds – Film, TV, video, radio, and photography; and IT, software, and computer services – provide approximately 17,000 jobs, and almost £900m in GVA to the city. This estimate has been derived using the current percentage output attributable to the sectors within the DCMS model, applied to the sectoral GVA and jobs figures described in the 2011 Canning & Kudla report, and the 2012 Leeds City Growth Strategy employment numbers. As such, it likely does not capture the nuance of Leeds’ specific creative sectors. The consultation process undertaken as part of this research does provide us with some suggestions in the interpretation of these data. It is worth noting that the video games sector in Leeds is of particular interest, and that a significant proportion of the IT sub-sector work would fall within this. Nonetheless, this will also cover other major industries in the city – including Banking, which relies heavily on IT, and Sky’s sports and gambling entities, neither of which are creative. Leeds also has a significant number of digital marketing companies, being the hub for these in the North of England, many of whom will have employees operating in this creative sector. Similarly for Film and Television, it is likely that many of the employees within the sector operate wholly or partially in the digital marketing sector, which may account for a large number of these employees. As such, we feel that the percentage of this overall output which the sectors which we are interested in are likely to be responsible for falls in the region of 25- 40% - between 4,250-6,800 jobs, and £225-360 million in GVA. However, given the number of steps which we have taken to estimate this from the secondary data sources used, we would strongly advise that steps are taken to ratify this as part of a mapping survey which we feel should be undertaken.

5. ANALYSIS OF THE SECTOR’S NEEDS

5.1. Mapping and Networking

As previous sections of the report have made clear, there is a significant gap at this moment in time with regard to broader knowledge of the shape and size of the sector in Leeds. This is apparent both from the data available, and from conversations with individuals in the city – plenty of people have a partial view of the Leeds Creative Sector, but there is a significant lack when it comes to an understanding of the whole. It is clear to us that this lack of data presents a significant stumbling block for the future development of the creative industries in Leeds. Not only has this prevented us from creating a clear, consistent baseline from which future growth can be measured, but many consultees have expressed exasperation relating to their own knowledge of the sector. The purpose of a mapping exercise would thus be two-fold – it would help the Council to understand in detail what the shape of the sector is, and it would allow individuals working in the sector to locate possible collaborators for their work. In such a way, we feel that a mapping exercise would serve both to allow a baseline to be developed by the council, and to catalyse the development of the sector by its own efforts. Development of such networks is a key issue within the future growth of the Leeds City Creative Sector. Traditionally, the creative industries have been highly networked, with individuals often finding work through recommendations from others whom they know. However the atomisation of the Leeds Creative Sector in recent years has seen this break down to some degree, and we feel that a spur towards networking in this way would be of great use. This is also the case for the games sector – though traditionally such a model has not existed for games development, evidence is emerging that increasingly teams are coming together to develop on a project-by-project basis, similar to the film and TV development model. Networks of creative sector companies and practitioners do exist to facilitate this process – notably Game Republic and Ga-Ma-Yo, both of which are focussed on the games sector in the broader Yorkshire region. These groups aid the intervention both by working to bring leading industry practitioners and companies, such as Sony and Havok, to the region to meet freelancers and companies, by facilitating networking between members, and by ensuring that their members are aware of job opportunities. By facilitating networking, these organisations increase the coherence of the overall sector, ensuring that individuals both within and without formal companies are familiar with both one another and potential opportunities. Though this does not quite reach the level of full agglomeration economics, explained earlier, nonetheless it provides a significant boost to the economic output of the region as a whole. No counterpart appears to exist in the Film and TV production sector, which is a particular problem for identifying job opportunities. Increasing the networking capacity of the city will also help to keep emerging talent here, by demonstrating both the scale of the sector, and helping them to find opportunities within it. Our conversations with Leeds’ educational institutions have underlined that there is a significant will among students to stay in Leeds, but that the lack of clear opportunities forces them to move to London or Manchester. Educational leaders have expressed to us that if it was easier for students on programmes to find a diverse range of placements – interning being a necessary part of courses at the Northern Film School – then this would also allow for greater future economic activity in the city. Understanding the shape of the creative industries and being able to apply that knowledge is a key element in ensuring the success of future creative workers in the city.

5.2. Working Space

5.2.1. The Need for Working Space in Leeds Developing more creative working space is a key part of this – the majority of consultees expressed to us a view that there are huge limits on the number and quality of co-working locations within the city, and that those which exist are too expensive, particularly for emerging companies. There is significant evidence that having single locations which allow for both co-working and networking – both of those who are based there and others in related sectors – is a significant driver of increased economic activity within cities. In the creative sector this is clearly the case – though in many cases these develop organically (for example, London’s ‘Silicon Roundabout’ in Old Street), it is possible that a spur is needed on occasion. It is worth noting that several interesting projects are under discussion in Leeds right now which might fulfil all or part of this need. ‘Engine’ is one of these, and is aiming to develop a model offering a ‘pre-incubator’ space to small creative companies, together with networking and meeting areas which are likely to benefit the entire creative economy. We have also been made aware of other proposals or plans, though these seem mostly to be at an early stage. Nonetheless, we feel confident that there are ideas for the development of this element of the sector in train, many of which are coming from property companies. While this is of significant benefit to the council, we feel that the ad-hoc development of properties carries as many risks as it does benefits. When we consider the already-atomised nature of the sector, it is clear that should a range of options be produced in different locations this will do little to solve the issues around networking that the sector already faces. Furthermore, such an approach will likely lead to an unsustainable volume of competition within the sector, as spaces will undercut both one another and existing facilities, such as Studio 81 and Prime. This will do little to aid the sector, instead exacerbating the historical problem of a spread-out sector in a city with multiple, conflicting support structures.

5.2.2. The Role of Leeds City Council Having considered the problem, we feel there are two potential approaches which the council could take to solve the issue: 1. The definition of a clear, defined part of the city as a Creative Industries zone, within which planning applications for Creative Industries facilities would be dealt with swiftly and looked upon favourably (if realistic). Other council initiatives – such as strategic use of rates relief and peppercorn rents for council buildings in the Zone – should be deployed to support this. This would offer the significant benefit of developing a single hub, though it is undeniable that some established firms and locations would not wish to move, being comfortable where the are. 2. Alternatively, the council could recognise the current situation of a dispersed sector, and act to connect it together better, both physically and digitally. This would involve the development of a smaller hub site, though there is a clear question around how new developments would be managed. It is likely that, should this option be taken, they will continue to spring up much the same as before, though we would expect the Council to take an active role in managing this. Our strong recommendation is that the council should opt for one of theses options and present it to the industry. As we have noted elsewhere, there is a significant degree of discontent regarding the council’s prior actions within the Creative Industries Sector in Leeds which we feel the presentation of a strong plan for solving the space issue will do much to dispel.

Though we recognise that action is needed, the best role which the Council can take is one of facilitation rather than displacement – the private sector appears to be willing to develop the required facilities, though the council should be looking to shape these to the benefit of the city as a whole. Ensuring that there is some loose structure within which decisions can be facilitated is likely to be the best choice that the council can make in this regard. Compared to other locations, such as Manchester, the Leeds creative sector has a significant volume of private sector activity in such endeavours, which the council should be looking to shape as the first priority, stepping in only in the case of private sector failure. In doing this, the city will be able to develop the facilities required without a significant outlay, which we recognise is difficult in the current climate. While some consultees noted that there is co-working space in Round Foundry, the general consensus is that this does not fulfil the needs of the sector: though there is a belief that it is intended to, this was never the case, and the building does not fit the sector’s needs. The film and television industry in Leeds remains focussed in the Kirkstall Road area, which is a more natural centre given its history, and is significantly easier to access using the size of lorry which production often entails. Meanwhile for small companies – of the kind which form the basis of the creative sector in Leeds – the facility is considered too expensive, with a single desk being a significant multiple of the price of a comparable office space in London. This feeds into the overall feeling that, at present, there is a significant lack of suitable workspace for small companies, individuals, and freelancers in the Leeds creative sector.

5.2.3. Studios Drama production in the Leeds area remains predominantly location based, but there is some activity within the studio sector. Based on our consultations with the industry in the local area, we believe that no new studio development should be prioritised by the council. Considering the activity seen in other parts of the country – such as the Outlander shoot in Cumbernauld. Rather than using a formal studio space, this production has opted to shoot in an empty factory complex, which offers a similar volume and shape of space, though requiring significant remedial work to make it ready for filming work. The TV sector, in particular, is familiar with the opportunities and challenges of using this kind of space for production, and many professionals are willing to opt for use of pop-up space, particularly where this facilitates access to the right locations. Given the location-based nature of Leeds centred production, we feel that the onus should be on identifying pop-up spaces to use in conjunction with locations at this juncture. Nonetheless, should dedicated shooting space be co-located with the proposed hub or cluster, we feel that this would be helpful for future development. Screen Yorkshire are, at present, looking into developing a register of such pop-up spaces within the region, allowing the studios to advertise both their own space and that which exists offsite for use. If put into place, this would be of significant added value for the Leeds Film and TV sector in attracting further inward investment productions.

5.2.4. The Benefits of Developing a Hub One clear additional benefit in creating a coherent space for small company creative activity will be the associated agglomeration benefits, which are central to the success of many activity hubs worldwide. From an economic standpoint, the benefits of co-location – collaboration on projects, rapid communication of new ideas, and increased productivity – allow economies of scale to develop even without the formation of specific companies. Leeds current creative sector is unusual in being relatively large and well developed in spite of this lack of a coherent core, leading to a belief that should such a centre be developed, there is significant potential for the city to capture future economic growth.

A number of consultees noted that Leeds has a traditional strength in the adaption of different ideas into one another, and it seems readily apparent that opportunities would exist in this area too should a centre be developed. The city’s existing expertise in sports science and medical technologies are areas of particular interest for the technology used in computer games, as an example. Already, technologies have been developed in the UK to allow the Kinect system which ships for the Xbox360 to monitor and report on the physiotherapy process in outpatients, aiding recovery. Though such formative technologies are by their nature difficult to predict and catalyse, the existence of a coherent cluster inherently catalyses the process, increasing the chances of future new business formation, and economic growth. Ensuring that there is sufficient space for networking is a key element of ensuring that this will occur – people need to know that there are possibilities out there, and have the ability to reach out to one another. This goes for both established practitioners and those entering the industry, who are considered below. While there are a number of projects moving forward, however, the lack of coordination between these is worrying – Leeds has historically had projects developing in unconnected locations, which has undoubtedly inhibited the overall growth of the sector. As a result, we believe that the Council should adopt one of two models: either a Creative Industries Zone in Leeds should be clearly demarcated for future private development, or a plan should be brought forward for connecting a currently disparate industry together. We feel that the first of these is the preferable option – though it will upset a number of people who are comfortable outside the defined zone, wherever it is, it will allow for a centre to develop which is clearly visible both within and without the sector in Leeds. In doing this, it will maximise the potential impacts of networking and agglomeration, drawing together a disparate sector to move forward together, and facilitating the birth of new projects and businesses. 5.3. Skills Development

As we have noted in other elements of this report, Leeds has an excellent track record in developing young talent for the Creative Industries, but despite this there is a feeling that these graduates have to head to London or Manchester to build a career. Despite this there are – at present – some 300 industry jobs listed from Leeds companies, and though not all of these are entry level, it is clear that there is a disconnect between the talent pool and the companies operating in the sector. Ensuring that this is filled is a key building block in guaranteeing the future success of the Creative Industries in Leeds, however it is one which should be relatively simple to do. Various consultees noted the keenness of undergraduate and graduate students at Leeds’ creative education institutions to continue working in the city, so even the simple step of having a clear location to post jobs – so small companies can advertise widely, and students can find opportunities – can have a significant impact. Considering this more broadly, there is an opportunity for the proposed Director of Creative Media to provide a clearing-house for a broader range of internship opportunities as well. This would allow students to access a broad range of smaller companies, outlining to them the significant variety of work available in Leeds’ creative sector. Though it is a required element of the course at facilities such as the Northern Film School, at present such internships are derived largely from personal relationships, and there was a belief expressed through consultees that having a single location to link interns to productions would pay significant dividends.

The Northern Film School itself presents an interesting conundrum for the future of the creative sector in the city. It has been a significant success, and its increasing number of students means it is expected to outgrow its present Millennium Square location within three years, also adding more courses. Should the School move, a form of co-location with the proposed Creative Industries Zone would be an ideal outcome, as it would help to link the School directly into the creative industries of the city. This would mirror the model adopted by other cities, in particular Manchester where both the University of Salford’s media campus and UTC@MediaCityUK - a 14-19 age group University Technical College specialising in the creative sector – are also located. In London, Central St Martins’ new campus is in King’s Cross, where an increasing number of design and technical firms are re-locating, to be close to both the college and to Google’s new UK campus. This proximity aids significantly in ensuring that the skills developed in a location stay nearby – by ensuring that students have access to potential employers, this helps graduates find work, as well as allowing employers to access new developments or ideas. In such a way, proximity to an educational institution can significantly add to the agglomeration benefits which the development of a hub site can bestow upon an industry sector. 5.4. Recognition from the Council

Leeds is a major success story for the creation of film, television, and digital media; this is demonstrated by the size of the impact of these sectors on the city’s economic output, the passion of the city’s workforce in this area, and the heritage which Leeds possesses in content creation. Data provided by the city council indicates that – for the Creative Economy as a whole – Leeds was in 2012 second only to London as a provider of creative employment in the UK. Furthermore, it is at the centre of a thriving regional economy, providing a hub for the Yorkshire creative sector, which has a significant impact on the country as a whole. Despite this success though, there is a feeling from the creative sector in the city that the Council neither recognises the impact which they have, nor does much to aid the sector. It was noted in multiple consultations that the council has, on occasion, undertaken exercises such as this one with the aim of developing a future plan for the Leeds creative sector, but these have been quietly dropped some months in. Various individuals were particularly concerned that, in the past, they had put significant time and credibility behind council plans, and been embarrassed when there was a failure from the Council to follow through with these.

There is, therefore, a significant risk that the creative sector in Leeds will have a major adverse reaction should the Council fail to make any significant moves on this occasion. Though the city has a significant bedrock of creative companies, there is significant pressure for many of these to move to London or Manchester, given the existing and emerging clusters there. Creative companies operating in Leeds are also envious of the clear, major, and public development plans for the sector which have been announced not only in Manchester, but also in cities such as Nottingham.

As such, we strongly recommend that the Council do more to recognise the impact which the creative sector has on the Leeds economy. This need not be an expensive or complicated endeavour, it is likely that many individuals would be happy simply to see the council mention the sector more overtly as a key one, or publicly recognise the contribution of its members. Ensuring that there is a Director of Creative Media at the Council – a role which is developed in more detail below – will be one clear way of dealing with this.

One concrete recommendation that we would have is that we strongly feel that future strategic planning for the sector in Leeds should be public, though the Council should come

to the table with a significant slate of recommendations, particularly regarding creative sector space. Offering clear steps which are to be taken forward with regard to creative hubs, talent development, and small company support, all the while engaging the creative community in these, and demonstrating how the Council is helping the sector to develop would all allay fears that future plans resulting from this report will not be a Council priority, and hence not move forward.

5.5. Strategic Engagement

The sum of these recommendations should be the development of a strategic framework through which the Council engages with the sector – this should be public and clear, allowing people to understand how much the Council values the sector, and what it will do to support it. As an example, we note that rates relief has been provided to businesses in the past, but it is not clear the circumstances under which this decision is taken. Ideally, this kind of decision should be based on a strategic view about the overall aims the Council has with regard to the development and growth of the sector, and taken in support of this As we have noted, there is a strong undercurrent of private sector initiative currently operating within the Leeds Creative Sector, but this is both broadly hidden, and taking place in a highly incoherent manner. To support this, the Council should take a facilitation role – empowering actors within the sector to operate within the framework of a strategic vision, and intervening only on rare occasions where there is no other option. There exists a strong and vibrant private sector within Leeds, and it is our strong feeling that any Council intervention should serve to support this; particularly given the current straightened budget conditions, it would seem sensible to utilise private initiative where possible The results of our consultations also demonstrate a significant desire from existing actors to engage with a growth programme, which we feel the Council should act to draw together. Though there is a certain degree of reticence given the perceived failures of Leeds Council to follow through on previous sectoral plans, nonetheless a groundswell of desire exists to work with the council in support of improved conditions for the overall sector. Engaging with this is a desirable outcome, so long as it is clear that the body is engaged to act, not just to talk.

Finally, there is currently a significant market gap for how the various elements within the sector can engage with one another. Through our consultation process, we have heard a range of queries which we feel could be dealt with through a single point of contact in the Council – these include facilitating interns into current projects, connecting parties in different elements of the city’s creative sector, engaging possible construction projects, and coordinating efforts to attract Inward Investment. With regard to the construction of new facilities, we have heard on multiple occasions that people are interested in freeing space for creative companies, but do not know who to speak to with regard for this – the creation of a single, empowered individual within the Council would therefore offer significant benefits.

We believe that this role should take the form of a Director of Creative Media, charged with the ownership of the future strategy for the Council, the communications plan with both the City and the wider sector, and the development of future initiatives. While some of these will need to wait the provision of a granular study into the shape of the Leeds creative sector, we strongly feel that the definition of a creative industries zone or equivalent and the appointment of a strategic lead should be undertaken immediately. As both of these will improve the city whatever the shape of the sector, we do not feel there is a risk for the Council in this.

6. FUTURE VISION

6.1. Responding to Manchester

Throughout our consultation process, we have been working to ascertain the impact on the Leeds production sector which the emergence of MediaCity UK in the Greater Manchester region has had. To date, it is not clear that there has been a significant impact – though there is significant fear that the BBC now regards Salford as contiguous with ‘the North’, in many cases the Corporation appears to have brought its own staff up from London, displacing local work there rather than impacting on Leeds. Nonetheless, we feel there is a significant amount more which can be done in leveraging the existence of Manchester as a commissioning base, particularly at the level of the City council. Various consultees noted that there has been a significant degree of engagement with the BBC from other cities competing with Manchester, not least Liverpool where the Film Office has been highly active, and the city has recently hosted BBC Worldwide’s annual sales showcase. During our consultations, we came across a significant degree of criticism from those outside Leeds that the Creative Sector and City expected “you to come to them.” While there have been complaints made that BBC commissioners haven’t visited Leeds often, it is worthy of note that many other city authorities have travelled to Manchester for such consultations. We would strongly advise that Leeds takes a more proactive approach in engaging with the BBC’s commissioners in Manchester, outlining what the city can offer, in terms of locations, cast and crew, and financing through the YCF. A number of consultees suggested that facilitation of low-risk projects like Sports and Children’s programming might be an option as part of a strategy to deal with Manchester. The former of these builds on existing city-level expertise in this segment, while the latter offers an option for careers development, helping to build skills and utilise emerging talent. This ties into the desire to see more graduates of institutions like the Northern Film School remain in Leeds after graduation Overall, we feel that Manchester offers a significant opportunity for Leeds – while it is a threat, consultations have indicated a reticence from public broadcasters to wholly base in a single location such as MediaCity, and the reality is that major commissioners are now within an hour’s travel. This being said, without a strategic vision of where Leeds wishes to be as a creative city, it will be difficult to properly leverage this. Through the development of such a high-level vision, the City of Leeds can clearly elaborate how to use the emergence of Manchester to their benefit. 6.2. The Yorkshire Content Fund and Tax Credits

The Yorkshire Content Fund, developed and administered by Screen Yorkshire, has been a boon for the creative sector in the county, and within this framework Leeds has taken a leading role. As we noted with regard to productions like Jonathan Strange and Mr Norrell, Leeds often takes a central role in production despite filming taking place elsewhere in Yorkshire – in this case in the North of the county, in addition to Croatia and Canada. To some degree this is reflective of the natural scale of media production, which finds a comfortable home in the county of Yorkshire, with its wide range of scenery and locations. Leeds can leverage both this and the Yorkshire Content Fund as a draw for incoming productions to build its creative sector, advertising itself both as the centre for a broader production sector and directing incoming productions towards the funding on offer. In many cases, this will build on the existing heritage which Leeds has in the sector: this is a significant

strength for the city, and one which other locations are desperately trying to build up. As a result, Leeds has a significant head-start, though one which is presently undervalued in positions of authority, and which risks being squandered without a degree of investment and engagement from the Council. In addition to this local growth, the emergence of the High End TV, Animation, and Video Games sector tax credits offer significant growth potential for the sector. Estimates from both the Treasury and independent accountants suggest that the High End TV tax credit alone will be worth £300m in inward investment this year, with early data from the BFI suggesting that this is accurate. The continued support from both government and opposition for this system – it was mentioned as a major positive in the recent budget statement – strongly suggests that future growth is likely. Indeed, from an average of £1 billion at the start of the decade, production of Film and High End TV in the UK is projected to reach up to £2 billion per annum by 2020. As our data suggest, Leeds already captures a significant part of this work, and both the city and the wider Yorkshire creative sector are in a strong position to capture a significant portion of this increased work. The emergence of a new creative sector lead within the Council should allow the city to better explain its offer in this regard both to the UK production community and the wider world, allowing the city to capture a significant proportion of this increased business. 6.3. Creative Sector Working Space

6.3.1. UK-Wide Demand This will be aided by the infrastructure weaknesses evident within the London film and TV production sectors. Though Film London claim to have ‘unlocked’ 1.25 million square feet of filming space in the capital, much of this is effectively unusable – almost half is the busy ExCeL Exhibition Centre – and the reality is the capital is at the present moment full. Studios such as Pinewood have full order books until the end of 2015, and this in combination with the expense of working in London will lead more of the incoming productions to look to locate elsewhere in the UK. The addition of a few strategic elements – in particular enhanced working space, a clear communications plan, a talent management infrastructure, a Director of Creative Media, and networking space – to the city’s creative infrastructure will offer Leeds an opportunity to both capture this work and to create a base for the future growth of a range of creative industries in the Metropolitan District. Though much of the direct investment will be within the Film, TV, and Digital Media sectors, our experience is that these – in particular the first two elements – strongly support the growth of other creative sectors. Film and TV are key drivers for the creative industries – of the 8 other sectors recognised within the UK classification model, only ‘Museums, galleries and libraries’ and ‘Publishing’ are not directly impacted by major productions. If we consider the nature of a Film or TV budget, it is evident that investment in such productions provides a significant boost to the wider creative sector: • Advertising and marketing benefit from the work undertaken to sell a Film or TV series to the audience, and Leeds’ existing strength in this sector offers a significant opportunity for the development of synergies; • Architecture is utilised through set design and construction, particularly for the Scripted Drama productions which Yorkshire has such a tradition in;

• Crafts are utilised in the designing and manufacture of props and set elements, which are also key to such Scripted Drama; • Design is used in much the same way; • IT, software and computer services are of increasing importance to the Film and TV production sector: filming increasingly requires a significant IT backbone, and post production is heavily reliant on high-level computer skills; and • Music, performing, and visual arts take a significant place in Film and TV production, not only through the high use of original scores in Scripted Drama, but also leveraging other elements of the performing arts throughout their production.

6.3.2. Leeds’ Digital Media Sector While the Computer Games industry has not, to date, had the same impact on the other Creative Sectors, it is clear that technologies developed through games development are of increasing importance for a wide range of science and technology applications. The applicability to medicine – both through examples such as Kinect, and in utilising video games’ control systems for ever more advanced keyhole surgery are well known. Though consultees have not been able to highlight specific further initiatives in this sector, there is a general feeling that a significant range of added benefits are likely to be derived from Video Games development in the near future, as it becomes apparent how to re-purpose the technology for other sectors. In addition to this, Leeds has a significant market for Digital Media, hosting Rockstar and Activision (two of the largest games firms in the world), and being the second largest IT market in the UK outside London. Encouraging the growth of this sector offers the opportunity to expand on this role, connecting the existing Leeds IT sector into new technologies, and offering options for the development of new businesses. With Leeds already having a significant expertise in medical and sports science technologies, the impact of a thriving games sector for developing new startups could be significant.

Investment in this sector therefore offers a boost both to the entire Leeds creative economy, and potentially to a wider range of companies operating in a variety of emerging fields. This combination and variety of sectors offers the city a significant advantage over many of the other core cities, which are reliant on at most one or two of these. It is our belief that the most useful way for the city to intervene in this is to facilitate the creation of new creative sector working spaces, operating at low cost, and allowing the agglomeration benefits which in cities such as London, Berlin, and Seattle have catalysed the development and growth of such cutting-edge industries.

6.3.3. Networking This will be built upon through the development of a new model for talent management and networking, to allow companies both operating in the space and those in the broader community to access the talent being developed in Leeds, and opportunities coming into the city. As it stands, Leeds has an extraordinarily diverse creative sector – ranging from traditional Film and TV development, to international Video Games developers, award- winning advertising firms, and avant-garde operations in all sectors. The provision of such a facility to this range of firms offers the potential for significant growth, building upon this unique – if presently fractured – base.

We don’t feel that there is any benefit to be found by picking winners or limiting the development of the sector along narrow lines – rather, Leeds tradition is in the development

and adaptation of new technologies, and the range of existing labour to be found in the city provides a strong base for this to continue. Given the strong output of the various sectors in their current, atomised state, we would be confident that with the organisation and encouragement which this Vision proposes, Leeds would have the ability to enjoy significant growth as a creative city, at the heart of a broader Yorkshire creative community. Furthermore, past performance both in Leeds and in these sectors in other cities strongly suggests that new, cutting edge businesses are a possible outcome from such investment.

6.4. Studio Space

As the production sector in and around Leeds is predominantly location based, it is not clear that significant new dedicated shooting space should be a major part of any future vision for the sector. There exist in Leeds at this moment a number of studios – including Studio 81 and Prime Studios – who would be expected to benefit from increased productions which come in, and we believe that the combination of these and pop up space will be sufficient to meet the future needs of the sector. This said, should it prove possible to c0-locate some dedicated shooting space adjacent to the cluster/hub, this is likely to be useful for the future development of the sector, and bringing through young talent. While we do not feel there is significant value to be gained in developing new permanent space, ensuring adequate access to other potential spaces for productions is still a concern. With this in mind, we believe that working to ensure a register of option for pop-up spaces, coordinating these with and through the existing permanent studios, has the potential to be a significant positive for all elements of the industry. There is clearly a feeling from some that there is not enough space for production at the moment, but we do not feel that the Council should work on a project to potentially undercut the existing infrastructure. Allowing these studios to access a network of temporary space provides the best balanced solution for all interested parties. 6.5. The Leeds Creative Community

Analysis of both economic data and consultations underlines the significance of the Leeds production sector – this is a major industry, worth up to a third of a billion pounds in GVA, with a significant number of employees in the city. It sits at the centre of a broader Yorkshire offer, which provides the city with an opportunity to sell a wide range of products and services both to the broader UK and the wider world. With the advent of the new tax incentives for High-End TV, Animation, and Video Games offering strong future growth; the major centre for production in London already at capacity; and a strong base in Leeds already, there is a significant opportunity for the city to grasp this sector and move it forward. We believe that the city should outline a vision to double the size of this sector by 2020, utilising the opportunities which Inward Investment brings, and leveraging the emergence of the BBC in Manchester and the Yorkshire Content Fund locally. We note that this aim would dovetail with that of the council to attract the European Capital of Culture title to the city in 2020, as well as making a strong statement about the kind of city which Leeds wishes to be in the future. Inward Investment in the Film sector has averaged £1bn per annum in the last few years; the impact of the High End TV tax credit is projected at £350 million per annum, and overall the value of inward investment to the UK could well be £2 billion per year by the end of the decade. Meanwhile, the recent clearance for the Video Games tax relief offers further opportunities, with TIGA – the games trade association – expecting an additional £188 million of investment to be generated in the next 5 years, together with £172 million in Tax Receipts.

With its existing expertise in both the games and IT sectors, Leeds is in a strong position to capture a large amount of this work, and should make this a key element in its Vision. Within this, we feel that Leeds City Council should take a facilitation role with the sector, acting to empower existing actors in the sector, rather than to intervene directly. There exists a strong and vibrant private sector within Leeds in these industries, and it is our belief that any Council intervention should serve to support this, rather than displacing it. An example of this is seen within the creative workspace sector, where various actors are keen to develop such sites, but there is a clear lack of consistency in approach – we feel these energies, properly channelled, could serve to solve a number of the issues the city currently faces. The results of our consultations also demonstrate a significant desire from existing actors to engage with a growth programme, which we feel the Council should act to draw together. However, we note that there also exists a degree of reticence from a number of actors, who feel that on past occasions where this has happened the Council has failed to follow through on its promises, and that should this happens again it presents a serious risk to the long-term viability of the sector in Leeds. Other cities, not least Manchester, have placed a significant amount of effort and money behind the development of their creative sectors, and should Leeds not look to replicate this at least in part, there is a risk that companies will choose to move to cities that do.

6.6. The Leeds International Film Festival

Though it is clear that the Leeds International Film Festival (LIFF) is a relatively successful event, particularly with regard to attracting a high-quality range of films, nonetheless consultees have suggested that LIFF might be better advertised to the public. This could be part of the broader communications strategy, aimed at generating much greater buzz for LIFF, bringing in more attendees, and developing it as a major city cultural and industry event. In addition to this, the council should explore the possibility of supporting local filmmakers – in particular young producers and directors – to get their product into LIFF, as a way of building the culture of the city. 6.7. Local TV

Local TV might also be a way of doing this, providing an outlet for local cultural projects. Consultees noted that, at present, the company behind local TV in Leeds desires not only free use of content, but also that the company bringing projects to them also provide sponsorship revenues of some kind. There is as a result a potential opportunity to support local producers and directors to bring products to greater audience attention through local TV, as part of a broader strategic approach.

7. THE NEED FOR A CREATIVE SECTOR LEAD IN LEEDS COUNCIL

7.1. Leeds City Council’s Current Offer

Inherent within the issues currently facing the Leeds Creative Sector is the lack of any senior leadership role within the Council to address the problems the City faces, corral the various private sector forces together, and evangelise about Leeds’ creative industries to the wider role. This is exemplified – to some degree – by the issues seen around the availability of Leased Lines, which was commented on by a number of consultees. Though there is a High Speed Leeds/Bradford project to subsidise the installation of these, nobody whom the consultees had spoken to at the council was aware of this, and it was only by chance that one of the businesses was told about it. It feels from our consultations that this happens on multiple occasions – there are often initiatives which could help the sector, but they are not in a position to find out about them, and there is nobody in the Council who takes that role. The development of a leadership role need not, as a result, entail a significant increase in spending for the council. There are various such initiatives which the Council could link the sector more regularly into, as well as developing a strategic overview around the use of such tools as rate relief. In general, there is a significant degree of admiration for the work of the Council in this sector – it is seen as highly supportive and flexible with such issues as road closures. Nonetheless, it is apparent from the outside that there is a lack of joined-up action on occasion, which if rectified offers the opportunity to significantly improve conditions for the sector. In addition to this role in drawing together existing council initiatives, we feel that a new Film and Digital Officer role – operating akin to these seen in other major cities like Liverpool and Bristol, though with the addition of the Digital Media sector – should look to take an active position in engaging with commissioners and potential investors in the UK and beyond. As we have noted, Leeds has several significant advantages as a production and business location, and in conjunction with Leeds and Partners, the Council could fruitfully engage a role to evangelise about these. Such a position would also allow a better level of engagement with productions, working with educational institutions to help channel interns, and in a broader sense to rebuild the creative sector networking in the city. 7.2. The Needs of the Sector

Based on our evaluation of the Needs of the Sector in the previous segment, we feel that there are various elements of this Leadership role which should be brought forward. These are outlined below.

7.2.1. Leadership and Responsibility At this moment, and arguably, since the loss of Yorkshire Forward, no single entity is responsible for the success of the film, TV, and digital media sectors in Leeds. As we argue above, we feel this should be a key part of the future Vision for the Leeds creative industries – somebody should be charged with implementing the future strategy, and ‘owning the vision’.

We do not see this role as requiring the public sector to lead the existing community, rather the individual should be charged with drawing together the various industries, agreeing a common plan, and implementing this. There is significant private sector initiative and potential investment in the Creative Industries, and we feel that this does not require displacement so much as leadership and consistency. This would be manifested through steps such as ensuring that the community are aware of opportunities – both production and funding – and that there is a coherent plan and strategy in place for development of creative sector working space.

A responsible role would require significant engagement with a wide range of parties operating in the sector, including:

• Production, development, support companies, and freelancers in the interested sectors; • Incoming projects and productions; • Educational institutions, both in the sector and in related industries; • Festivals and community groups; • National funding and support bodies, such as Creative England and Creative Skillset; • Local TV, and other Broadcasters; and • Other Council agencies.

In doing this, the responsible party would be expected to understand current trends within the sector, using this to direct educational institutions’ interns and freelancers towards job opportunities. They would understand potential funding opportunities for companies and individuals both at a local and a national level, helping to manage and direct those enquiries. The individual would also be expected to act as a first point of call for incoming projects – both filming and construction, along the lines of Engine – ensuring that there is a consistent approach in handling these, and that all interested parties are kept aware of developments.

From our consultation process, we feel that there is a significant amount going on in Leeds at this point which is highly commendable, but that there is a significant lack of structure to this. The addition of a Director of Creative Media with responsibility for the sector would offer a solution to this, provided they were someone both knowledgeable about the industry, and trusted by the sector to undertake the role. Inherent within this is our perspective that, although the council would prefer the industry to drive this forward themselves, the reality is that the sector is to fractured, and there are too many small companies, for this to happen. If the council does not take the role of pulling the sector together, it is not going to happen organically.

7.2.2. Partnership Part of this role will involve engaging with the various local and national stakeholders whose cooperation will be a vital part of the success of any strategy. At the national level, there are various parties who should be involved – including Creative Skillset, Creative England, BAFTA, the BFI, UKIE, and TIGA. Ensuring the coordination of all of these is, inherently, a hard task: all have their own agendas and issues, and many have conflicted with one another in the past. Nonetheless, we feel that an effort must be made to ensure that all parties are engaged with the strategy, in particular Creative Skillset and Creative England, each of whom has a specific remit for this kind of Vision.

In addition to these national level bodies, there are various local stakeholders – not least Screen Yorkshire – whose engagement will be vital in ensuring the success of the project moving forward. These include major employers and production companies – such as True North, Rollem, and Rockstar Leeds – as well as representatives of the smaller companies in the sector, such as Ga-Ma-Yo and Game Republic. Educational institutions, including both the University of Leeds, and Leeds Met – possibly by way of the Northern Film School – should also be invited.

This partnership should be developed to move the sector forward, as a way of understanding the issues which each of these partners sees in their element of the sector, and how they can help to move the sector forward. We feel that whoever takes the leadership role for the

sector as a whole should be backed by these parties, though of course gaining this backing should not be done at the cost of bringing the sectors together.

As we have noted, the private sector within Leeds is one of the city’s greatest strengths, and we feel that ensuring that there is partnership between these institutions will be one of the best ways of moving the sector forward without undermining this. There is, of course, a danger that such a partnership model will turn into a ‘talking shop’, and it is important that this does not happen. Consultees in all parts of the industry noted that this is how previous such strategic plans have ended up, with forward momentum sacrificed as a result – on this occasion, this cannot be allowed to happen, as it will erode any faith that the community has in the Council to act in their interest.

As such, we propose that the Council – while looking to gain the buy in of the interested parties – should be entering the process with a clear vision of what it wishes to achieve, and how it is willing to help the sector. It will invariably be a tricky balancing act to ensure buy-in from the various interested parties whilst also trying to drive the agenda forward, but this is nonetheless what needs to happen if the Council is to avoid losing the support of the companies whose help it needs to achieve its aims in the Creative Sector.

7.2.3. Organised Strategy In order to achieve this, the Council will need to develop and adopt a strategic plan which outlines what the Council is prepared to do to support the industry, and what the expectations are for industry participation. This should be publicly available, as this will allow the community to engage with the project, and be able to track its implementation and successes – given that in the past, there has been criticism that the council has not followed through on proposals, we feel this is of significant importance. The adoption of such a model would allow for clear and effective cost/benefit analyses of proposals, understanding how they improve the situation for the creative sector in Leeds, and ensuring the Council’s interventions are undertaken with a view towards wider public value.

As noted, we believe that a significant amount of the detail of such a plan would come through the partnership process, and with the agreement and buy-in of all leading parties. This notwithstanding, the Council should look to provide the framework within which the strategy will operate, in particular outlining early on what it is willing to do in support of the structure, how it will do this, and according to what schedule.

We believe that there are several key initiatives that the council should bring forward at the outset, as they do not require significant buy-in from the industry, including:

• Delineation of a Leeds creative industries zone, channelling private sector development, or the networking of existing sites; • Development of a model for linking students into jobs and internships to secure talent; • A communications strategy, outlined below; and • Collation and explanation of existing business support schemes which are relevant to the companies within this industry, for example High Speed Leeds/Bradford.

7.2.4. Communication Structured communication has proved to be a significant problem for Leeds in the past – both the Council and other public bodies currently have a shortfall in this regard, and if this is not solved the above Strategy will not have the kind of impact which is desirable. Put simply,

both inside Leeds and with the outside world, there needs to be a communication strategy to ensure everybody knows what’s happening. As one of the issues in the past is the perception – whether accurate or not – that the Council doesn’t have much time for the sector, ensuring that there is successful communication with the sector is of significant importance.

This must be part of the leadership role, with this individual offering regular updates to the industry regarding progress against the strategic plan, and ensuring the continued support of the creative constituency in the city. But in this regard, communication must operate in a two-dimensional manner, ensuring that the broader creative community in Leeds – in particular those outside of the partnership group – are fully engaged with the process. Though we would expect this partnership group to act as representatives of the broader community, inherently it is preferable to ensure that the entire community feels that they can work directly with the project.

At the core of this communication strategy should be a clear explanation of what Leeds is looking to achieve, and how it expects to get there. For the local sector – as well as for individuals looking to join the sector – this will provide a clear indication that the sector will progress, ensuring that people are willing to remain in Leeds and invest. Meanwhile for the broader sector – both in the UK and beyond – it will act to provide a statement of what the city wishes to be, and how they can engage with Leeds. We feel that in both of these ways, ensuring clear communication will act to significantly strengthen the sector in Leeds.

7.2.5. Securing the Talent Base A key element within this strategic plan should be securing the talent base within the City. Leeds has a strong record in developing talent, but this is exploited by other cities, with students moving to place such as London or Manchester shortly after graduation to pursue careers in this locations. Oftentimes, this is not what they wish to do – various consultees noted that students often go to university in Leeds as they wish to pursue a career there, but regrettably they do not believe that the opportunities exist. Ensuring that students recognise the potential to undertake a career in Leeds in Leeds and have the chance to access productions and companies is therefore a key part of this, allied to the communication strategy.

This should take several elements, not least through ensuring the ability of students to – as interns – reach a broad variety of productions in Leeds. In order to achieve this, the responsible individual should be given the mandate of engaging with productions, companies and educational institutions to understand the needs they have, and to act as a matchmaker for these. In doing this, it will be ensured that students reach the locations which interest them as part of a long-term career strategy, solving an issue which has been highlighted through consultations whereby many end up not in locations of interest for internships, but in well-known productions such as Emmerdale.

Engagement of this form should continue post-University, with the responsible individual continuing to work with companies and careers advisors to ensure opportunities in the local area are clearly highlighted. As we note below, there is also a long-term gap with regard to the freelance community in Leeds, for which such a role would also be highly valuable. With the Northern Film School continuing to grow, some form of co-location with the proposed hub might prove desirable, particularly if this eases access from education to production for students.

We note that, in parallel with SPI’s work, Creative Skillset have also been undertaking a study into skills gaps in the Leeds area. With this in mind, we do not recommend further steps on this issue, recognising Skillset’s mandate as a funder in this area.

7.2.6. Engaging with Clusters or Hubs Throughout this project, it has become apparent that the Leeds creative sector currently suffers from a severe lack of working and co-working space, in particular space which is accessible to freelancers and small companies. Solving this issue would be of significant interest to the broader creative community – even those who do not choose to locate there – given the related need for a visible place where the industry can get together and network.

As we have noted, the creative industries are traditionally highly networked, with work being generated and found through informal linkages between individuals. Despite the success of the Leeds creative sector though, it feels like a lot of these network links have become very weak in recent years, demanding an element of engagement to revitalise them. The creation of a hub or cluster location should be an element of this – by including such elements as a café and access to current jobs listings, it would go a long way toward rebuilding these kind of informal links. In addition to this, the economics of agglomeration strongly suggest that – through the development of such a location – economies of scale will further catalyse the growth of the industry, both in its current form and through the development of new technologies and companies.

While various consultees have suggested that something Sharp Project might be desirable, we do not recommend that Leeds attempt to develop a facsimile of this. Though it has had some success, the Sharp Project is undeniably an expensive model, requiring significant and ongoing public-sector support to underpin its balance sheet. We believe that it would be better work alongside the various private sector co-working hubs which exist or are emerging, ensuring that they meet the needs of the sector, and are developed both in proximity to the industry as it currently stands, and at the pace which the industry requires.

Having said this, one of the historic issues within Leeds is the lack of a coherent centre for the industry as private growth has been left unfocussed. With this in mind, we firmly believe that the Council should either choose to designate a specific zone within the city as a creative sector area, working to focus growth solely there, or provide a clear, consistent physical, digital, and human networking overlay onto the locations which already exist. By undertaking one of these tasks, the council will ensure a degree of coherence within the growth of the sector which will allow the development of agglomeration economics, facilitating greater scale.

Such a hub (or hubs) should be open both to emerging and existing companies, and empower companies through networking and access to financiers operating in the city. As with many other elements of the Creative Industries in Leeds, it is clear that though there is significant financial activity in the city, it is not clear that the Creative Sector has access to it. Indeed, various consultees noted that they have to head to London to find Venture Capital or project finance, which seems quite the indictment of the financial sector in Leeds, as the UK’s second largest.

7.2.7. Mapping Given the atomised structure of the industry, there needs to be a serious effort made to develop a clear map of individuals and companies working within Leeds, to be able to understand the impact of the strategy, and to provide a clear picture of the city to be outlined

through the communications strategy. Though we have noted the need for this elsewhere in the report, we feel that driving this should be the responsibility of the sectoral lead role proposed, together with the partnership group. 7.3. Recommendations

Following from this, our recommendations for the council are as follows. A Leadership role should be developed within the Council to take ownership of the success of the sector, and lead the future vision for the Leeds Creative industries. This individual should act as a Single Point of Contact for both internal and external individuals and agencies, taking charge of engagement with all interested parties, and being able to direct the local creative community around both national and local incentives and funding opportunities. Given the gravity and importance of this position, we feel this role should be filled by someone with significant knowledge of the sector, who is trusted by all parties. Included within this role will be the development of a Partnership between the Council and the various national and regional stakeholders, in particular the employers and business networks, Creative Skillset, Creative England, and Screen Yorkshire. Given past experience in this regard, it is of paramount importance that such a forum does not become a mere ‘talking shop’, but is adequately empowered to make recommendations to the Council which it acts upon. Such a partnership model should be designed to move the sector forward, supporting the leadership role within the Council, and acting as a significant link between it and the creative community in the city. Inherent within this should be the development of an Organised Strategy – a strategic plan which outlines what the Council is prepared to do, and what the expectations on the industry are. Though we feel that the detail of this plan should be developed through the partnership model, given past experience it is important that the Council makes clear at an early stage its role, how it intends to achieve this, and the schedule for specific actions. These details should be made clear to the public as part of a clear and structured Communication strategy, working to address the serious shortfall in this regard which previous actions have entailed. This communication plan should be two way, allowing non- members of the partnership group to feel valued and engaged as part of this process. It should also offer clear and regular updates against the strategic plan, underlining the work which the Council is taking, and maintaining the buy in of the creative sector in the city. The leadership role should work to Secure the Talent Base, acting to capture all or part of the student body which Leeds currently develops for other cities. This will include adopting a more structured work experience and internship model, leveraging the increased information which will become available through this role. Engagement of this form should continue post- University, creating a forum in which employers, projects, and careers advisers can highlight vacancies to interested students, ensuring that skills gaps are filled locally where possible. The Council should also prioritise the development of a Cluster or Hub, looking to solve the issue of a sever shortage of working and co-working space for small creative industry companies and freelancers in the sector. Though it should not look to be a facsimile of the Sharp Project in Manchester, we feel that it will generate significant agglomeration economies, both internal to the creative sector, and between this and other sectors of significant importance to Leeds’ future growth. Such a hub should be open both to emerging and existing companies, and also look to link the sector into finance providers and other useful third parties. Finally, a significant effort should be made to develop a clear Map of the current status of the Creative Sector in Leeds. Though we have, using secondary information, developed a view as

to the size and shape of this at present, the available data have not proven granular enough to undertake detailed analysis, suggesting that further primary research should be brought forward.

8. CONCLUSIONS AND RECOMMENDATIONS

8.1. Conclusions

Leeds has a fantastic creative sector, which is clearly of significant importance to the city’s wider economic health; it is, together with Sheffield, the hub for Yorkshire’s wider creative community, and at the centre of a large, successful creative industries network. This has only been strengthened by the emergence of the Yorkshire Content Fund, managed by Screen Yorkshire. Together with the new tax incentives, and building on the significant growth seen in the creative industries in the last few years and the nascent strength of Leeds’ creative sector, these elements provide a significant basis for growth. In comparison to many of the other key cities, Leeds’ creative sector is both larger and more diverse, containing a strong mixture of film, television, and digital media, together with some of the UK’s leading advertising agencies, and all of the statutory bodies for the sector. There is a strong base through ITV and Sky, and one of the UK’s leading soap operas in Emmerdale which acts to drive activity. Such a broad-based and diverse sector provides a significant basis for the growth of the industry, particularly within the context of a rapidly-expanding inward investment sector, spurred by the creation of new tax incentives by central government. Indeed, it is in many ways an enviable group of companies, programmes, and individuals, of the kind that other cities are striving through their creative sector programmes to develop. Cities such as Nottingham, Glasgow, and Manchester have recognised the significant employment, economic, and cultural growth opportunities that the fast-expanding creative sector offers. Given this strong growth is coming at a time when London’s production sector for film and high-end TV is regarded as both full and highly expensive, and with further expansion expected due to the tax credits, a significant opportunity has emerged. Despite the inherent strengths within the Leeds creative economy, the Film, TV, and Digital Media sector in the city is highly atomised, with few large independent companies like Rockstar or True North. This is underlined by the almost paradoxical conclusions of the mapping element of this study, which underlined the financial strength of the sector, without being able to discover the companies and individuals behind this. As a result of this fracturing, it is difficult for the sector to see the benefits of its scale; as there is no recognition of the size of the sector, or central hub for co-working. By developing a closer-knit community, working both across the sectors and outside into areas such as medical technology, agglomeration economies should develop to further increase the growth of Leeds’ creative economy. This would be expected to allow the city to capture a significant percentage of the increased growth which we expect to occur as a result of the tax credits, building on the success the city already enjoys. Ensuring visibility would, furthermore, benefit the city by capturing a much greater percentage of the talent which the city is presently developing for other locations such as Manchester and London. 8.2. Recommendations

As a result, we have proposed a strategy to include the following: Recognition and Vision – despite the success of the sector, there is a feeling that the Council neither recognises nor supports the creative industries, and has in the past failed to deliver on promised improvements. This should be addressed through a clear, public vision for the future of the city’s creative sector, delivered with the aim of doubling the size of the sector by 2020.

Leadership and Responsibility – a post should be developed within the council charged with driving this plan forward, and acting as a lead evangelist for the city’s creative media sector. This individual – which we have proposed calling the Director of Creative Media – should take a role in organising the advertising of the city’s creative achievements and scope, in managing the jobs and internships process, and in delivering existing business support programmes to the sector. Following this, the role should look to work with existing businesses to develop and deliver such programmes as are deemed necessary to underpin future growth and development. Partnership – a key part of this leadership role will be the development of a partnership between the various public and private parties with an interest in the sector. Screen Yorkshire, Creative England, Creative Skillset, UKIE, TIGA, BAFTA, the BFI, and many others all have their own aims and perspectives, but all have a role to play. A significant but highly delicate roll for the Director of Creative Media will be to get all of these bodies working effectively towards a single goal. Communication – the sector currently has a significant shortfall in effective communication, both internally and externally; this is partially a result of its fragmentation, but there is also a significant degree of reserve in celebrating the successes achieved. The Director of Creative Media should overturn this, trumpeting the significant opportunities and talents which the city offers, outlining the future strategy and vision, and driving further inward and project investment into the city. Cluster/Hub – there is a significant lack of creative working space within Leeds at this moment in time, though fortunately there appears to be a number of private sector projects and proposals which would look to address this. Despite this positivity, there is a significant risk that the Leeds’ creative sector remains disorganised and un-networked should all of these proposals take place simultaneously. To guard against this, the council must adopt one of two models, either outlining and supporting a single Creative Industries Zone in the city, or otherwise providing for the physical, digital, and human networking of a continuation of the current haphazard approach. Secure Talent Base – Leeds currently generates a significant array of talent, but the disconnect between the education sector and employers means that much of this ends up in other cities. Ensuring that there is a single point of call for employers looking to attract entry- level workers or interns, which the university students can access, would act to solve many of these problems. It is also imperative that the city works with the Northern Film School to find an expanded site as this continues to grow. Mapping – finally, though we have been able to develop a picture of how the city is currently situated, it is clear that the available sources at present do not offer the detail required for a detailed footprint to be developed. This is largely due to the atomised nature of the firms in the sector, which are generally both micro-sized and scattered throughout the city. The development of a clear sectoral map through primary research will be of significant value, both for policy makers to develop and evaluate further programmes, and for those working in the sector to understand, utilise, and celebrate the scale Leeds currently has. Through these steps, we believe that doubling the size of the sector to £600-700 million GVA by 2020 is possible – this both ties into the LEP’s strategic plan for the city economy, and Leeds’ aim to become European Capital of Culture in 2020.

9. APPENDIX 1 – CONSULTATION LIST

Imran Ali (Engine) Marc Allen (True North) Larra Anderson (Northern Film School, Leeds Met) Phil Bedwell (The Other Planet) Simon Brereton (Leeds City Council) Linda Broughton (Engine) Erica Clarke (Creative Skillset) Matt Cleary (ITV) Martin Cook (Studio 81) Deborah Copeland (Leeds+Partners) Andrew Crawshaw (Ga-Ma-Yo) Amy de-Balsi (formerly Sky) Carole Dove (University of York) David Eccles (Numiko) Kaye Elliott (Creative England) Jim Farmery (Creative England) Chris Fell (Leeds City Council) Stewart Gilray (Just Add Water) Claire Heap (Leeds+Partners) Ben Hepworth (Prime Studios) Lee Hicken (Hebe Media) Christ Hordley (Creative England) Nick Jaspan (Prolific North) Sally Joynson (Screen Yorkshire) Craig Lawson (Access Moving Image) Guy Lewis (Guy Lewis TV) Judy Lysaght (The Other Planet) Dee Marshall (Welcome to Yorkshire) Kay Mellor (Rollem) Jamie Sefton (Game Republic) Carol Smith (BBC) Hugo Smith (Leeds Met) Paul Taylor (Round Foundry) Helen Thomas (BBC)

Frith Tiplady (Tiger Aspect) Matthew Warneford (Dubit) David Wilson (Bradford City of Film) Cllr Lucinda Yeadon (Leeds City Council)