The C. Report 2016-17 Creative Federation Industries Creative Industries Federation UK Council 2016-2017

The C.2016-17 Report The C. Report 2016-17 Creative Federation Industries Creative Industries Federation UK Council 2016-2017

Marcus Davey, Chief Executive and Artistic Director, Roundhouse (Co-chair), Amanda Nevill, Chief Executive, British Film Institute (Co-chair), Caroline Rush, Chief Executive, British Fashion Council (Co-chair), Nick Allott, Managing Director, Cameron Mackintosh, David Anderson, Director General, National Museum of Wales, Paul Appleby, Chair, Bristol Media, Sir John Sorrell (Chair and Founder) Karen Blackett, Chairwoman, MediaCom UK, David Osa Amadasun, Goldsmiths and Founder, Project U.N.C.L.E, Sally Nigel Carrington, Vice-Chancellor, University of the Arts London Bacon, Executive Director, Clore Duffield Foundation, Joanna Baker, Managing Director and Company Secretary, Edinburgh Melanie Eusebe, Chair and Co-founder, Black British Business Awards International Festival, Rob da Bank, Founder, Association of Independent Festivals, Simon Belsham, Chief Executive, Lord Hall, Director-General, BBC Notonthehighstreet.com, Alice Black, Deputy Director, Design Museum, Andrew Brewerton, Principal and Chief Executive, Nick Harvey, Partner, Helion Partners Plymouth College of Art, Sally Britton, Partner, Mishcon de Reya llp, Dan Brooke, Chief Marketing and Communications Officer, Channel 4, Deborah Bull, Assistant Principal (Culture and Engagement), King’s College London, Lisa Burger, Anna Jones, Chief Executive, Hearst Magazines UK Executive Director, National Theatre, Dinah Caine, Chair, Creative Skillset, Jo Dipple, Chief Executive Officer, UK Music, Jude Kelly, Artistic Director, Southbank Centre Deborah Dawton, Chief Executive, Design Business Association, Michael Eakin, Chief Executive, Liverpool Philharmonic, Baroness Lane-Fox, philanthropist and public servant Naomi Gummer, Head of Public Policy and Government Relations, Google UK, Andy Heath, Chairman, Beggars Group, Ian Livingstone, games entrepreneur Darren Henley, Chief Executive, Arts Council England, Chris Hirst, European and UK Group CEO, Havas, Barry Ife, Janet Markwick, Chief Operations Officer, Grey EMEA Principal, Guildhall School of Music and Drama, Tom Inns, Director, The Glasgow School of Art, Richard Johnston, Chief Tessa Ross, Co-chief Executive, House Productions Executive Officer, Endemol Shine UK, David Jubb, Artistic Director, Battersea Arts Centre, Tiernan Kelly, Director, Film City Glasgow, Cat Lewis, CEO and Executive Producer, Nine Lives Media, Carol Main, Director, Live Music Now Scotland, Sir Nicholas Serota, Director, Tate Catherine Mallyon, Executive Director, Royal Shakespeare Company, Nicola Mendelsohn, VP EMEA, Facebook, Dorothy Philip Watkins, Partner, Katten Muchin Rosenman LLP (Company Secretary) Miell, Vice-Principal, University of Edinburgh, Dave Moutrey, Director and Chief Executive, HOME, Jonathan Newby, Tom Weldon, Chief Executive, Penguin Random House UK Deputy Director and Chief Operating Officer, Science Museum Group, Adrian Packer, Chief Executive Officer, CORE Education Trust, Natasha Plowright, Director of Communications, The Photographers’ Gallery, Abigail Pogson, Managing Director, Sage Gateshead, Victoria Pomery, Director, Turner Contemporary, Denise Proctor, Chief Executive, NoiseFestival. com, Jemma Read, Head of Philanthropy, EMEA, Bloomberg Philanthropies, Russ Shaw, Founder, Tech London Advocates, Robin Simpson, Chief Executive, Voluntary Arts, Alistair Spalding, Chief Executive and Artistic Director, Sadler’s Wells, Amahra Spence, Founder and Director, MAIA Creatives, Andrea Stark, Director, Foundation for FutureLondon, Giselle Stewart, Director, UK Corporate Affairs, Ubisoft, Phil Stokes, UK Entertainment and Media Leader, PwC, Geoff Taylor, Chief Executive, BPI, Kenneth Olumuyiwa Tharp, Chief Executive, The Place, Graeme Thompson, Pro-Vice Chancellor, University of Sunderland, Nick Toon, Vice President, UK Public Policy, Time Warner, Sharon Watson, Artistic Director, Phoenix Dance Theatre, Paul Williams, Director, Stanton Williams.

Creative Industries Federation International Council 2016-2017

Tom Fletcher, Diplomat (Chair), Hasan Bakhshi, Senior Director, Creative Economy and Data Analytics, Nesta, Anne-Britt Gran, Director, Centre for Creative Industries at Norwegian Business School and Secretary, Norwegian Government Council for Cultural and Creative Industries, H.E. Noura Al Kaabi , Minister of State for Federal National Council Affairs of the United Arab Emirates and Chairwoman of the Media Zone Authority – Abu Dhabi (MZA) and twofour54, Roly Keating, Chief Executive, British Library, Andrej Kupetz, Chief Executive, German Design Council, Ruth Mackenzie, Artistic Director, Holland Festival, Jairaj Mashru, Founder, Bombay Innovation Group and Ecosystem Architect, Lower Parel Innovation District, Linda Merrick, Principal, Royal Northern College of Music, Martin Roth, Director, Victoria and Albert Museum, Krishna Thiagarajan, Chief Executive, Royal Scottish National Orchestra, Phil Thomas, Chief Executive, Lions Festivals (including Cannes Lions).

CREDITS Report authors: Eliza Easton, Harriet Finney, Louise Jury, Jack Powell Designers: Toyas–OMara

With thanks to other members of the team including Rosa Carbo-Mascarell and Emilia Carslaw and to all Federation members who were so helpful in providing information and images and for hosting many of our events during the year. Contents

Foreword – Sir John Sorrell 3

The year at the Federation – John Kampfner 5

Industrial strategy 12 An industrial strategy for the creative industries – Submission to the business, energy and industrial strategy select committee

Europe 22 Policy work before the referendum Brexit Report: The impact of leaving the EU on the UK’s arts, creative industries and cultural education – and what should be done 24

International 42 Interview – Why diplomat Tom Fletcher is swapping global conflict for a creative future

Skills pipeline 48 Social Mobility and the Skills Gap, Creative Education Agenda 2016 51 Apprenticeships – Submission to the Department for Education 60

Diversity 62 Why diversity and creativity are crucial to the future of engineering – Naomi Climer, first female president of the Institution of Engineering and Technology 64 Votes for change: how to take the initiative – Catherine Mayer, co-founder of the Women’s Equality Party 66 My name is… A talk on the artist’s responsibilities – Kwame Kwei-Armah, writer/director 68 Sustainability of Channel 4 – Submission to the House of Lords communications committee inquiry 70

Around the UK 74 Countries of culture – Submission to the culture select committee inquiry 78 The view from Scotland, Wales and Northern Ireland 86 Culture-led regeneration in London – Submission to the Greater London Authority inquiry 91

1 Richard Alston Dance Company at the Federation’s

First Anniversary Celebration Broomfield Ben Photo:

2 Foreword

In Britain we have many things of which As I prepare to step down as Federation we can be justly proud but right at the top chair in 2017, I feel proud of the rate of of the list are the creative industries. They progress which is far greater than I ever make the country a better place, bringing joy anticipated. I want to thank the original and personal fulfilment. They build better group of founders, the members of our board communities. They deliver money and jobs. and our UK and international councils, as The world recognises and respects the well as our brilliant chief executive, John leadership position of our creative industries Kampfner, and his extraordinary team. But and other countries want to emulate our most of all I want to thank our members who success. Yet in the past, the sector struggled have joined together to create an inspirational to be seen as a whole and to show itself as movement which is unique in the world. indispensable, economically, culturally and Now and in the coming years, the work socially. That is why, nearly a decade ago, of the Creative Industries Federation will be I began the drive to create the Federation. vital for the sake of the sector itself and for There is no other country that has an the benefit of Britain. organisation with the diversity and quality of members we enjoy across all the arts, creative industries and cultural education. But the Federation is even greater than the sum of its parts, giving our creative community influence way beyond that achievable by any particular discipline acting alone. It opens doors, politically, and is what I always hoped it would be – an independent voice that is

fearless, independent and realistic. Swannell Photo: John

Sir John Sorrell, Chair and Founder, Creative Industries Federation

January 2017 Photo: Ben Broomfield Ben Photo:

3 David Cameron, then prime minister, with actor Dominic West, Baroness Jowell and Federation members, at the launch of the Fed’s

EU survey results at Abbey Road studios Copyright Crown Coupe Georgina Photo:

Grayson Perry, artist and University of the Arts London chancellor, with Brett Rogers, The Photographers’ Gallery director, at the Federation’s

first Unique Conversation, held at UAL Central St Martins Carbo-Mascarell Rosa Photo:

4 The year at the Federation John Kampfner, Chief Executive, Creative Industries Federation

If 2016 turned so many assumptions upside Our carefully curated Unique Breakfasts down, there is every reason to expect 2017 were much sought after, examining issues to be at least as turbulent. from the future of TV regulation to the role The Creative Industries Federation is of women in public life and policy parallels up for the challenge. Indeed our founders between our sector and engineering to the might wryly suggest that we were created for question of culture and national identity. challenges such as these. We are the UK’s, Our first Unique Conversation event, indeed the world’s, first independent and with the ever-provocative Grayson Perry professional fighting force for our fantastic in discussion with Brett Rogers from The creative sector. Photographers’ Gallery, was the resounding It seems hard to imagine that the start to a series designed to bring our unique Federation has been around for only two network of members together and inspire years, such has been the response and such them in a more sociable evening setting. has been the pace of change. With each year, Wherever we host events, I always like to as we grow, so our work accelerates. exhort our audiences not to talk to people We are now dealing actively with eight they know and I unashamedly encourage government departments and with all members to “do deals”. I love it when you the nations and regions on behalf of our can see unexpected relationships being 1,000-plus members – companies, arts forged and new commercial and creative organisations, universities, trade bodies collaborations beginning, between fashion and individual practitioners and supporters. houses and theatres, advertising and galleries, We are completely independent and act with creative tech and TV, industry veterans considerable freedom. We are authoritative, and the hottest young talent – improving fearless and pragmatic – but always optimistic. the bottom line, kickstarting new creative Our events and activities are listed in more projects. In 2017, that task will become detail elsewhere but here’s a flavour. We have possible online, as we unveil a new website hosted a plethora of politicians, including with a members-only noticeboard. the first “meet the sector” gathering for The unique network is a benefit in itself the incoming digital and culture minister, but also the source of our knowledge and Matt Hancock, as well as a reception with authority, feeding our reports, papers and the Edinburgh International Festival, a submissions on issues from regeneration to session at London Tech Week, a rural small higher education regulation. Our members business event in Cornwall and a debate at feed into our work via our board, UK council the International Festival for Business in and the nascent international council that, by Liverpool. We looked at local government chance, we launched the same hour that the and the arts in Cardiff, took part in a festival new prime minister was taking office. We also on future thinking in Budapest and worked have dedicated working groups: finance with the Association of British Orchestras is getting underway on issues from in Birmingham. We returned to cities such philanthropy to new routes to finance as Bristol to develop links forged in 2015 while education already has more than and in December, we held a very successful 120 members and great momentum. first meeting (not before time) in Northern We believe the more involved a company Ireland, completing the circle of the nations or organisation is the more it reaps the and regions. commercial and other benefits of working with us. The contribution from so many of our members has been fabulous this Photo: Rosa Carbo-Mascarell Rosa Photo:

5 past year. We pay tribute to the strong metropolitan and non-metropolitan mind- involvement of our 2016 corporate patrons sets. The election of Donald Trump as – Google, Bloomberg, PwC, Barclays and president in November demonstrated that Mishcon de Reya – and are proud to be these fractures are perhaps even greater in developing strong relationships with trade the United States. More of the same may bodies, hubs and other partners. be on its way in elections in continental More people are joining, but we are Europe and elsewhere in ensuing months. pleased, too, that our early members have The assumptions that many held about seen the benefit and are renewing at a rate globalisation and internationalism have been of more than 90 per cent. But we are not shaken to the core. remotely complacent. We know that in So where does that leave the creative straitened times, with economic and political industries? At a time of uncertainty, it uncertainty, every penny spent must be bears proclaiming even more loudly than accounted for. We are constantly seeking before that this is the fastest-growing sector to demonstrate that the Federation bolsters in Britain; this is the calling card of the members’ long-term growth and success. nation. Whenever UK politicians travel So the picture is positive, with one internationally, people want to talk about major caveat. The work this year has been our world-beating film, television, museums set against the backdrop of unprecedented and galleries, music, heritage, video games, political challenges almost no one expected. design, fashion, creative tech, architecture Brexit dominated 2016. and more. Our success stands the equal of We convened a major debate on the EU that in UK science and engineering, with at the British Library to hear arguments from many of the same policy challenges. And both sides and, even before the referendum the link between creativity and technology date was set, began a detailed members’ has never been more important. They are survey. The results of our Fed poll were clear interdependent. – 96% of members favoured staying in. There are huge opportunities if the However, when the country’s verdict was creative industries seize the moment to get announced in June, “no lament” was the action on issues of vital importance for future watchword. We lost no time in starting work success, such as education and skills, and on charting the future, looking at movement if political leaders get their response right. of people, access to the single market, EU We will continue to work with government to funding and implications for intellectual place the creative industries at the heart of its property rights and copyright protection. thinking, on the industrial strategy and more. We followed our initial meeting of The creative industries can be part of the chief executives, directors and individual solution in tackling the tensions exposed by practitioners at King’s College London the EU vote and building the social cohesion with 10 events from Swansea to Edinburgh, that Theresa May identified as one of her Manchester to Plymouth, Gateshead to top priorities when she became prime Norwich. More than 500 organisations minister last July. And the sector can help participated in the work that became the forge a new international identity for the Brexit Report presented to ministers in UK, alongside a different, but still open, October. It is available on our website for relationship with Europe. That is why I was wider advocacy. What we uncovered around delighted to join the delegations in Delhi the country also reinforced our other when the prime minister visited in October policy work on education, skills and access, and in Shanghai with the culture secretary finance and funding, infrastructure and Karen Bradley in November. content, and the quest to enhance the global A heartfelt thanks from me to all of competitiveness of all our creative disciplines. you for your ongoing support and your The decision to leave the European enthusiastic cooperation in helping ensure Union has posed new questions about that the creative industries, the powerhouse the role of so-called elites, the relationship of the UK, finally has a single, galvanising between the liberal arts and the general voice. The sector now has the heft it has long population and the apparent gulf between deserved. Here’s to year three.

6 Sadiq Khan, now mayor of London Georgesecretary, Osborne, then chancellor, minister, Eagle, then shadow Maria culture culture minister, Jo Johnson, universities Hancock, andculture Matt secretary, digital Fiona left: Hyslop, top Scottish from Clockwise Photo: Ben Broomfield Photo: Gabriel Popa Photo: Mihaela Bodlovic

Photo: Rosa Carbo-Mascarell

Photo: Ian Watts Photo: Rosa Carbo-Mascarell 2016 – The Federation year in events, speeches, parties and panels

January May 12 First Anniversary Celebration, 5 Finance working group on Television Centre, London sponsorship and philanthropy, held 14 First meeting of the higher and at the Foundling Museum, London further education (HEFE) working 12 John Kampfner briefs members of group, held at Central St Martins, the Liverpool Arts Regeneration University of the Arts London Consortium at the Bluecoat 22 John Kampfner, chief executive, Liverpool chairs panel discussion on 17 John Kampfner speaks at Cannes Photo: Gabriel Popa Photo: placemaking with Fed members Lions International Festival of including MAIA Creatives at the Creativity, Cannes

Association of British Orchestras March 20 EU survey results launch with then conference, held at Birmingham prime minister, David Cameron, at City Hall 2 London mayoral candidate Zac Abbey Road studios Goldsmith meets the sector in 24 Harriet Finney, deputy chief Q&A held at Soho Theatre, London executive, leads a session on 9 Louise Jury, director of influencing policy through communications and strategy, makes partnership at Culture Forum keynote speech at Women of the North symposium in Leeds World festival, Southbank Centre, 25 Phil George, chair of the Arts London Council of Wales, leads debate on 14 London mayoral candidate Sadiq cultural strategy and economic Khan meets the sector in Q&A success, held at Cardiff School held at Tate Britain, London

Photo: Ben Broomfield Ben Photo: of Art and Design in partnership 22 John Kampfner chairs session at with Barclays Manchester cultural partnership 25 Andrew Major, head of February conference on the vision for a membership, attends Futuro northern cultural powerhouse, 3 Eliza Easton, policy and research Summit of Creative Visionaries, held at the Whitworth Gallery manager, speaks on the creative Ibiza industries ecosystem at Kingston 29 John Kampfner discusses the value University, Kingston upon Thames April of the arts in education with Jesse 8 John Kampfner gives keynote at Norman MP at the Hay Festival 12 Higher and further education Regent’s University London’s working group meeting, held at international conference on The Custard Factory, Birmingham creativity in business, sciences and the arts, London 19 EU referendum debate with speakers including Baroness 16 Eliza Easton speaks on creative Lane-Fox and Munira Mirza, education at Cleveland College then deputy London mayor, at of Art and Design, Hartlepool British Library, London 19 John Kampfner gives keynote at future talent event hosted by the Creative Industries Knowledge Cluster at Manchester Metropolitan

University Productions Bobbin Courtesy of 23 Then shadow culture secretary Maria Eagle gives first speech to the sector, Southbank Centre, London Tim Photo: Dickeson

8 Edinburgh

August • Edinburgh International Festival reception

Newcastle

September • Brexit response meeting Northern Ireland at the Sage Gateshead

December Hartlepool • Creative economy debate Manchester/ in Belfast Liverpool/Leeds • Creative and Cultural February Skills Awards in Derry- February • Creative education Londonderry • Future talent event with speech at Cleveland Creative Industries College of Art and Design Knowledge Cluster in Manchester June Leicester • International Festival of Business panel and November speech in Liverpool • Diversity debate at Leicester Business Wales September • Leeds Brexit response Festival meeting May Norwich • Cultural strategy debate in Cardiff Birmingham August September • Brexit response meeting • Brexit response meeting January in Swansea • Placemaking debate at Association of British Orchestras conference Bristol

September • Brexit response meeting London

March Redruth • London mayoral hustings April October Plymouth • EU referendum debate • Unlocking potential in Cornwall debate September September • Brexit response meeting • Digital and culture minister Matt Hancock’s first speech to sector

9 2016 – The Federation year in events, speeches, parties and panels (continued)

June July September 2-4 John Kampfner speaks at Brain 1 Louise Jury debates the EBacc and 6 Harriet Finney gives evidence on the Bar Budapest, Europe’s festival of future of design education at the countries of culture inquiry at culture future thinking, in Hungary New Designers fair, London select committee 6 John Kampfner chairs skills 7 First EU Referendum response event, 6 Swansea Brexit response meeting, roundtable with Nick Gibb, schools hosted by King’s College London held at Volcano Theatre minister, at the Institution of Civil 13 First meeting of the international 7 Bristol Brexit response meeting, Engineers, London council, held at Somerset House, held at the Colston Hall 8 Louise Jury speaks in discussion London 8 Plymouth Brexit response meeting, on artists and collective action at 13 Summer drinks party and launch held at Plymouth College of Art the Foundling Museum, London of C.International journal, at 9 Digital and culture minister Matt 10 John Kampfner chairs future of The Hospital Club, London Hancock gives first keynote speech theatre debate at the SohoCreate 20 Unique Breakfast with Jesse Norman, and meets the sector, at BFI festival, London newly named energy and industry Southbank, London 14 John Kampfner chairs business and minister, held in partnership with 9 Eliza Easton takes part in All Souls creativity panel with Fed members Google at The May Fair Hotel, College Brexit conference, Oxford Stufish, Liverpool John Moores London 13 Harriet Finney leads session on University and the Crafts Council 20 Birmingham Brexit response meeting, creative education at education select at the International Festival for held at Birmingham Hippodrome committee conference, London Business, Liverpool 21 Nottingham Brexit response meeting, 14 Leeds Brexit response meeting, held 16 Louise Jury speaks at conference on held at National Videogame Arcade at University of Leeds change in the creative industries run 25 Q&A with Vicky Ford MEP on the by Creative City Partnership, Greater 15 Newcastle Brexit response meeting, repercussions of Brexit as seen from Birmingham and Solihull LEP with held at Sage Gateshead Brussels, held at PwC, London Birmingham City University 21 Unique Breakfast with Naomi Climer, 28 Manchester Brexit response meeting, 16 Unique Breakfast with David first female president of Institution of held at Manchester Metropolitan Abraham, Channel 4 chief executive, Engineering and Technology, held at University held at Built Environment Trust, The May Fair Hotel London 23 Louise Jury discusses the implications 22 John Kampfner chairs London of Brexit with Ben Evans of the Technology Week panel on how London Design Festival and others at startups can partner with established the 100% Design trade show, London companies, in partnership with 27 John Kampfner interviews writer/ Tech London Advocates, held at director Kwame Kwei-Armah at the Digital Catapult, London launch of the 2016 MOBO season, 28 Jason Jones-Hall, head of held at BFI Southbank, London development, speaks on why local authorities cannot afford to cut culture at the Chief Cultural and Photo: MihaelaPhoto: Bodlovic Leisure Officers Association annual general meeting in Telford 30 John Kampfner speaks at August International Festival for Business 23 Edinburgh Brexit response meeting, closing dinner, Liverpool held at University of Edinburgh 23 Evening reception with Edinburgh International Festival at The Hub, Edinburgh Courtesy of MOBO Courtesy of 25 John Kampfner is rapporteur at culture and heritage session, Edinburgh International Culture Summit 31 Norwich Brexit response meeting, held at Norwich University of the Arts Photo: Photo: Watts Ian

10 October November 8 John Kampfner speaks at Northern Ireland Creative and Cultural Skills 3 Harriet Finney is panellist in Brexit 2 Harriet Finney chairs panel on Awards, Derry-Londonderry discussion organised by CACIN diversity in the creative industries, (Conservative Art and Creative Leicester Business Festival 8 Harriet Finney takes part in Continental Drift?: EU-UK Industries Network) at Conservative 2 Eliza Easton speaks to British Party Conference, Birmingham negotiations in the cultural sector Fashion Council colleges on politics panel, held at Bozar, Brussels 7 Social Mobility and the Skills Gap, and the creative industries, London 14 Jack Powell, policy and Creative Education Agenda 2016 3 HEFE working group event with report is published communications officer, speaks on universities minister Jo Johnson, at the Brexit Report at the all-party 11 Louise Jury joins mentoring teams Royal Academy Schools, London parliamentary group for art, craft for Day of the Girl at Southbank 7 John Kampfner speaks at India/UK and design Centre, London Tech Summit attended by the prime

12 Unique Breakfast with Sharon minister White, chief executive of Ofcom, at 11 Sir Peter Bazalgette gives keynote The May Fair Hotel speech on the business of the arts, 17 Louise Jury speaks on Brexit at at Bloomberg, London What Next? international event, 16 John Kampfner speaks at an Manchester Oxfordshire Business Growth event 18 Unique Breakfast with Tom Fletcher, organised by Digital Remit and

diplomat and international council OxLEP Photo courtesy of Department for Trade International chair, held at Battersea Power Station, 21 Unique Breakfast with Catherine London Mayer, co-founder, Women’s 18 John Kampfner briefs British Fashion Equality Party, at The May Fair Hotel Council patrons, at Haymarket Hotel, 23 Unique Conversation with Grayson London Perry, held at Central St Martin’s, All events are the Federation’s 21 How to unlock the potential of the University of the Arts London unless specified creative economy in Cornwall – event supported by the Cornwall and Isles of Scilly Local Enterprise Partnership at the Heartlands, Redruth December 27 Brexit Report is published. John 1 Eliza Easton represents Fed at Kampfner and Harriet Finney Creative Fuse North East advisory present it to culture secretary board meeting, Newcastle Karen Bradley and Brexit minister 2 John Kampfner chairs a discussion Robin Walker at meeting of the on the creative sector in a changing Creative Industries Council, London digital environment with Fed members the Royal Opera House, Book Trust, Kudos and National Film and Television School at the FutureBook Conference, London Pictures January to December: 3-7 John Kampfner co-chairs the Members Anna Jones, Melanie Eusebe and UK-China Creative Innovators Natalie Richardson at First Anniversary Forum, Shanghai, China Celebration; Zac Goldsmith at London mayoralty 5 Harriet Finney gives keynote on Q&A; Professor Olwen Moseley, Dean of Cardiff School of Art and Design, at Cardiff culture debate; Brexit and industrial strategy at directors Paulette Randall, Indhu Rubasingham of Pictfor (all-party parliamentary the Tricycle Theatre and Max Stafford-Clark with group for the technology sector) the Fed’s John Kampfner at SohoCreate festival,

Photo: Simon Burt Simon Photo: annual dinner in House of Commons London; John Whittingdale, then culture secretary, 7 Expert panel debate on Northern with Sir John Sorrell and John Kampfner at Fed 27 John Kampfner speaks on the summer drinks party at The Hospital Club; Fergus partnership between universities and Ireland’s burgeoning creative Linehan, Edinburgh International Festival director, the creative industries at University economy, in partnership with at joint reception with Fed; MOBO season launch Alliance’s annual dinner Barclays, held at The MAC, Belfast with the Federation L-R – Writer/director Kwame Kwei-Armah, former culture minister Ed Vaizey, MOBO founder Kanya King, John Kampfner; John Kampfner speaks at the UK-China Creative Innovators Forum

11 Matti Braun exhibition at Arnolfini, Bristol

12 Industrial strategy

Photo: David Hedges, SWNS

13 Industrial strategy

An industrial strategy for the sector has been a central demand of the Federation since our launch. This is because investment in the creative industries is being undermined by gaps in government policy and the failure to have joined-up thinking across all departments. An industrial strategy would encourage government departments to assess the impact of any given policy – from education to funding decisions – on the creative economy. We see this as an opportunity for the sector to help the government correct a previously piecemeal approach.

The paper below is an edited version of a submission made by the Federation to the business, energy and industrial strategy (BEIS) select committee. It highlights where there are holes in thinking and examines where the lack of an all-embracing plan may have held the sector back.

Only a few weeks after its submission, prime minister Theresa May told the Conservative Party conference that the sector was a strategic priority1 and she later told the Confederation of British Industry that British creative talent was recognised and respected worldwide.2 The Federation has been working with central government since then to develop thinking on the strategy and will be holding the government to account on plans as they emerge.

John Kampfner at Brain Bar Budapest on the future of economy, technology, arts

Photo: KrisztiánPhoto: Bódis and society Why the creative industries must be at the heart of a new industrial strategy

Submission to the business, energy and industrial strategy select committee (abridged)

September 2016

Prime Minister Theresa May announced It is often taken for granted that Britain her plans for an industrial strategy almost is a creative nation, but at the Creative as soon as she arrived in Downing Street. Industries Federation we are clear that The Creative Industries Federation success has been nurtured and is not random. applauds that, and firmly believes that the The sector has benefited from a suite of creative industries, the UK’s fastest growing successful government interventions over sector since 2008, should be at the heart the last 20 years – from public arts funding of this strategy. to tax relief and investment in our specialist As the national membership body for higher education institutions. There have also all the UK’s arts, creative industries and been areas where a lack of joined-up thinking cultural education, we argue that this is a has held back the success of the sector. For huge opportunity for government and example, investment in the skills pipeline is policy makers to embrace our sector’s being undermined by policy on schools. power and potential. In this document we address where the The creative industries are worth £87.4bn sector most needs an industrial strategy in in GVA to the UK and the creative economy order to stop this piecemeal approach and employs one in every 11 working people.3 what that strategy might look like, under But for far too long, the sector has been four headings: undermined by a piecemeal approach to investment and support. 1. Skills pipeline Despite its size and success, our sector’s need for an industrial strategy has never 2. Finance and funding been fully recognised by the government. When business secretary Vince Cable set 3. Infrastructure out his plans for industrial strategy under the coalition government, the creative 4. International policy/trade industries were not named as a key sector. This was a mistake. Why hasn’t this happened before? It might Now, ministerial responsibilities under be because of a lack of understanding: parts the Department for Business, Energy of the sector (including creative tech, games and Industrial Strategy (BEIS) have been design and animation) are high growth but announced without mentioning the also relatively new. And misconceptions creative industries. prevail. Some assume the sector is made

15 How startups and established businesses can work together, a Fed event for TLA (Tech London Advocates) Creative Tech week, held at Digital Catapult Photo: Jeanne Le Roux Jeanne Photo:

up of only artists, when in fact it supports which have their origin in individual the third most STEM (science, technology, creativity, skill and talent and which have engineering, mathematics) graduates of a potential for wealth and job creation all sectors.4 An industrial strategy for the through the generation and exploitation sector would go some way to addressing of intellectual property’.5 this. It could set out routes into the creative The proportion of creative jobs for each industries, as well as explaining the industry was calculated (by creative intensity different ways in which employees and – based on working practice). Industries with industry are supported, from public funding enough people working in jobs with a creative and tax relief to training. This would form intensity above a specified threshold are the basis of a blueprint for all ministers considered creative industries. The creative who make decisions that might affect this economy includes the contribution of all world-beating sector. We work with all those who are in creative occupations outside government departments to help form a the creative industries as well as all those comprehensive strategy for the sector and employed in the creative industries. we hope that an industrial strategy would The sector includes: advertising, help the government work in an equally architecture, broadcasting, crafts, design, joined-up way. creative tech, fashion, film, heritage, museums and galleries, music, performing What are the creative industries? arts, photography, publishing, video games The creative industries were defined in and visual arts. the government’s 2001 Creative Industries Mapping Document as ‘those industries

16 What needs to go into an industrial employment, with 87% of highly creative strategy for the creative industries? occupations at low risk of being replaced by robots in the future.8 We believe the Shortage Occupation List is likely to grow, in particular 1. Skills pipeline as the number of 18-year-olds will decrease by 8.9% between 2012 and 2022. The creative industries have long- Despite the need for arts subjects in a standing skills shortages. These stem range of careers across several industries, from inadequate training and provision entries for GCSEs in arts and creative in schools in this country compounded subjects have fallen by 8% (46,000) this year by the ever-greater need for talent in compared with last, according to official a growing sector. The skills pipeline is statistics published by exam watchdog perhaps the area where an industrial Ofqual.9 The steep decline is in sharp strategy is most needed by the creative contrast to some other GCSE subjects, industries. notably those included in the English These skills shortages are why education Baccalaureate (EBacc) – the suite of subjects is one of the cornerstones of our work on which the government judges school and why the skills pipeline should be a performance, which notably includes no arts key pillar of an industrial strategy. We subjects. Academies do not have to offer any look at the entire skills pipeline through arts subjects from the age of 11 to still qualify school education, apprenticeships, higher as ‘outstanding’ schools. and further education, learning later in This limits both those who want to go on life and immigration regulation. In order to apprenticeships or technical education and to understand how these shortages have those who want to go into higher education. emerged, the government must take the Our observation, having worked with all same holistic approach. relevant government departments, is that The Migration Tier 2 Shortage an industrial strategy would go some way to Occupation List (jobs where the government addressing the mismatch between policies. will permit sponsorship of migrants in For example, a high percentage of the new recognition of severe skills shortages) technical and professional pathways being highlights that our country is already crying introduced by the Department for Education out for a combination of creative skills – and need practical design and technical skills. But in particular, design and technical skills. the EBacc (school age 14-16) is inhibiting The list includes 17 creative industries the development of these skills by assessing occupations reliant on both such as graphic schools on the uptake of seven to eight designers (working in visual effects and traditionally academic GCSEs at the expense 2D/3D animation). The Migration Tier 2 of subjects like design and technology, where Shortage Occupation List also contains provision is, as a consequence, becoming seven types of engineer. This is notable increasingly scarce. These same policy because engineering often requires the same priorities are having an impact right through combination of skills as those required by the primary and secondary school system. the creative industries – technical ability An industrial strategy providing an alongside creativity in design and craft. understanding of the makeup and skills Taking a sample of 200 civil engineering pipeline of the creative industries might also (QUEST) scholarship applicants in 2014, have prevented some of the problems with 36.5% studied a creative or design subject the apprenticeship levy. For example, STEM to AS/A-level, with 67% combining arts and sectors receive more financial support from STEM at GCSE.6 government to deliver new apprenticeships, The UK already has a high percentage but the narrow definition used excludes of creative employment (including creative highly-trained apprenticeships in technical jobs outside the creative industries and the jobs within the creative industries, such as creative economy), at around 24% of the lighting designers and games developers. This workforce.7 It is also particularly valuable failure to understand the sector also

17 has implications for careers guidance have a global skills shortage. The best and which at the moment does not present the brightest in our sector have traditionally students with a real understanding of the wanted to work in the UK and we are keen opportunities within the sector or of the to make sure routes are there to allow these routes to those careers. global innovators to continue to do so. In Policy makers need to recognise the fact short, we need to be encouraging the great that careers in the creative industries do not designers and technologists of the future necessarily resemble the structure of those to live here and work here, to ensure that in other sectors. This means that these Britain’s creativity remains its calling card. exciting, innovative and automation-proof jobs are sometimes not recognised as ‘successful’ by government. For example, 2. Finance and funding it is often preferable for creative industries graduates in jobs such as video games or In the creative industries, a small graphic design to build up a portfolio of work investment can go a long way. This from different short-term contracts in the government and the last have introduced early years of their careers. Yet universities a suite of supportive policies to ensure are often judged by how many of their that our fast-growing creative sector students are in permanent employment does not just survive but thrives in an six months after graduation. Likewise, the internationally competitive arena. creative industries include large numbers of Tax relief schemes, for example, in freelancers and microbusinesses, but these video games, children’s television and high- are also little understood. end television have helped to bring big There is also a very real risk that skills business opportunities and helped safeguard shortages in the UK will be exacerbated – at production in the UK. The international least in the short to medium term – by any competitiveness of the sector has been restriction on freedom of movement that boosted by this system, inspiring large- comes as a result of tightening immigration scale overseas investment and increasing laws and the UK leaving the European demand for the national workforce. By Union. European talent has supplemented subsidising production cost in innovative our own in terms of supplying high-skilled industries including animation, these tax talent to our creative companies. But there incentives also mean that some of the most are other benefits to having employees from exciting developments are happening in Europe living and working here: more than the UK. Further sector tax reliefs should be half of our creative industries exports go to considered to unlock additional value and to Europe and so freedom of movement within continue to attract international investment. the EU has allowed us to build workforces At the other end of the scale, more work that help us better understand this market. needs to be done to ensure routes to finance In the future, our immigration system for early stage and small and medium-sized will need to better take into account what creative companies are clearly signposted. employment in our sector looks like. Given Last year (2015) the Federation partnered the skills shortages, we need talent to be able with the Institute of Chartered Accountants to live and work in the UK, regardless of of England and Wales to investigate the whether they work freelance or for a creative spread of routes to finance available to the company. Talented creative graduates trained sector. An industrial strategy should consider in our world-beating institutions should be a similar range of finance routes and where encouraged to stay in the UK. The Home policy might better facilitate them. Office will further need to understand that in Investment in the publicly-supported the creative industries, skill and talent is not arts is also a crucial part of underpinning always commensurate with high pay. the wider creative economy, amongst Some of the most innovative parts of the countless other benefits. Publicly-supported creative industries, such as creative tech and organisations train employees and nurture design, will need special consideration by the young talent. This investment is a seedbed for Home Office. These will, by nature, always our creatives – whether that is the arts council

18 Sage Gateshead Photo: David Tiernan

funding that allowed JK Rowling to write Ensuring that local authorities understand Harry Potter or the funding which keeps free the case for investment in our sector as well entry to the national museums that inspire as the importance of other infrastructural our up-and-coming artists.10 support (for example, the availability of There are also more immediate affordable studio space) would be an financial returns. Investment in public arts essential part of an industrial strategy. organisations including the Tate, National Examples like Margate demonstrate that local Gallery, V&A, National Theatre and Royal authorities can encourage small and medium- Opera House have made the UK a global sized business growth through investing in arts centre and an attractive place to visit, culture. Cultural investment is also frequently live and work. the driver of increased tourism. The sector, Although arts funding through the working with government, should also Department for Culture, Media and Sport explore the ways in which the impacts of the (DCMS) was protected in the 2015 Autumn arts and heritage sector can be measured to Statement, the cuts to local authorities are of unlock the potential of social investment. arguably greater significance as they remain the biggest investors in culture. Spending is under increasing pressure: between 2010 and 2015, figures from the Department for Communities and Local Government (DCLG) show a decline from £1.42bn to £1.2bn, a reduction of 16.6%, in spending on arts and culture development and support, theatres and public entertainment, museums and galleries, and the library service.11

19 EU funding has also offered investment It is vital that businesses, individual and international partnerships to the creators and rightsholders are afforded the UK’s creative industries, particularly at a best possible protection for their intellectual regional level. The Creative Europe fund has property. Government understanding and supported high-profile successes, from the support for a strong legislative IP/copyright distribution of Slumdog Millionaire to the framework and enforcement measures are Opera Platform (a large-scale digital project critical – particularly as we exit the EU live-streaming opera across Europe). The and look to forge new international trading European Regional Development Fund has relationships. helped to rebalance the discrepancy between In parallel with prioritising protection capital and regional funding, investing in for creative products, the education system cultural projects including Sage Gateshead also has an important place in promoting (£5.6m grant to complete building), the importance of IP and copyright, in Manchester’s HOME and Falmouth accordance with recommendations from the University. We have conducted 11 meetings Intellectual Property Office and Alliance for looking at the impact of Brexit around the Intellectual Property. country, which made clear the way in which Equally, in order to ensure that the sector EU money is embedded in our sector. The is able to grow and compete internationally, government needs to understand this deep any industrial strategy must identify and complex network of European support, other necessary infrastructure. Digital and how it has combined with domestic infrastructure, especially access to ultra-fast investment, to prevent inadvertent damage to broadband, is an essential part of creative the sector. industries strategy. A sector that includes Public broadcasting sits at the heart of the creative tech, games and design businesses is creative industries ecosystem, with the BBC even more reliant on this infrastructure than a larger investor in the creative economy many traditional sectors. than either DCMS or Arts Council England. Infrastructure also covers the physical The way in which broadcasting impacts spaces that businesses and freelancers in our businesses as diverse as advertising, design, sector need. As the cost of living and working fashion and games is another example of the increases in many of the metropolitan areas complexities of the sector and reinforces the where the sector is primarily based, we want need for a clear industrial strategy. to make sure that the full impact of these rising costs to small businesses and individual artists who must pay for both is understood – 3. Infrastructure whether that is protecting workspaces or the night-time economy. The Federation advocates a full industrial strategy for the creative industries, both at national and local/ regional level, and this means also 4. International thinking about the many different kinds policy/trade of infrastructural support that affect the creative industries – from broadband The creative sector has always worked to workspace to robust and effective internationally. As the government intellectual property (IP) legislation and negotiates on what terms we will leave enforcement. the EU and begins to explore new The creative industries can only prosper markets, a relevant industrial strategy if creative ideas can be monetised and for this sector becomes ever more protected for the creators, as well as by necessary. those who get the ideas to market. The UK The creative industries must be given has taken a leadership role in designing the proper consideration in all future trade current legal framework for IP and copyright negotiations, both pertaining to exiting the which offers strong protection to creators and EU and in new deals with other markets. rightsholders in the creative industries. The creative industries sector should be a

20 priority because of its size, success and future as quotas for domestically-produced shows potential. It is worth more than £87.4bn in on state television. Many emerging markets GVA to the UK, has been the fastest growing also do not have adequate intellectual part of the economy since 2008, and in 2014 property protection to secure appropriate (last available figures) grew at almost twice returns for creative goods. So this needs to the rate of the economy as a whole. The be considered in future trade deals. creative economy now employs one in every A strategy must also reflect the importance 11 working people.12 of service exports to this sector. In 2014, An industrial strategy needs to fully the creative industries exported £19.8bn understand the makeup and needs of the worth of services, an increase of 10.9% from sector to maximise potential exports. 2013, accounting for 9% of UK total service Growth is certainly possible: whilst UK exports.14 Yet too often the conversation exports have grown over the last decade, about service exports focuses solely on the others have grown faster. The goods export demands of the City. growth rate (where there is comparable data) The Federation has launched an of China (15%), Germany (7%), France international council for the creative (7%) and Korea (6%) has been outpacing industries, which operates like an our own (4%).13 international business council, identifying Export markets that will work for some best practice and innovation in policy around traditional sectors might have to be a long- the world and scoping risks and opportunities term aim for the creative industries, rather for the sector. However, all the appropriate than a quick fix. This is for a whole host government departments and agencies must of reasons. Some markets give a strategic make the sector a trade priority if we are to advantage to domestic creative goods, such capitalise on the potential. Courtesy of PathéCourtesy Pictures of

Poster of BAFTA-winning film, Pride, which was backed by Fed members the BBC and BFI

21 Europe

Policy work before the referendum

Within weeks of David Cameron setting Four areas of concern emerged: the date for the referendum on UK membership of the EU, the Federation Talent and skills – including access to began work on two important initiatives. specialist workers, skills shortages, touring, festivals, visas, freelancers, Erasmus+ We organised a debate which was held programme before a capacity audience of members at the British Library on April 19. Munira Mirza, EU funding – including access to pots then deputy London mayor for culture and such as Creative Europe and Horizon 2020, education, Lady Bridgeman, founder of the cultural exchange, export opportunities, Bridgeman Art Library, and Luke Johnson, regions, eligibility in the run-up to Brexit founder of Risk Capital Partners and former chairman of the Royal Society of Arts and Trade and investment – including the Channel 4, made the case for leaving the EU as main market, regulated services, new EU while Jude Kelly, artistic director of the markets, ‘country of origin’ principle, tax Southbank Centre, Baroness Lane-Fox and relief, World Trade Organisation (WTO) Maria Eagle, then shadow culture secretary, terms argued to remain. At the same time, we asked our members Regulatory frameworks – including digital to participate in a survey that had two single market (DSM), intellectual property objectives. The first was to assess strength (IP) rights, copyright protection, influence of opinion for leaving the EU or remaining. on new regulations, respect for IP in potential The second was to probe the areas of new markets concern and opportunity. Those of our members who are linked in some way to On May 20, we published the findings at government (such as Arts Council England, a roundtable of sector leaders chaired by Creative Scotland and Arts Council Wales) the then prime minister at Abbey Road or who had public service broadcasting studios. The Brexit Report, which follows impartiality obligations removed themselves in edited form, revisits what happened from the process. The survey, which was next and our detailed policy response. conducted in strict anonymity, produced an overwhelming vote – 96% – in favour of staying in the EU. Clockwise from top left. Luke Johnson, entrepreneur, Jude Kelly, artistic director, Southbank Centre, Baroness Lane-Fox, public servant, Maria Eagle, then shadow culture secretary, Lady Bridgeman, founder of Bridgeman Art Library, Munira Mirza, then deputy London mayor

22 Photo: Photo: Watts Ian

23 Brexit Report

The impact of leaving the EU on the UK’s arts, creative industries and cultural education – and what should be done (abridged)

October 2016

24 At the same time, the Federation has Response to EU held intensive meetings across Whitehall referendum decision and beyond, working closely with the new government on its priorities of promoting The June referendum is widely deemed to an industrial strategy, international trade have exposed severe social divides and the and community regeneration. creative industries have an important part Meetings have taken place with the Prime to play in improving social cohesion – a Minister’s Office, Treasury, Foreign Office, government priority. At the same time, it is Department for Exiting the European crucial that government consider the needs Union, Department for International of the sector during exit negotiations. Trade, Department for Culture, Media The result of the EU referendum was not and Sport and Department for Education, what our members would have preferred, alongside the Scottish Government, mayor but the Federation recognised that the next of London’s office and local authorities. We step was to be practical and identify the key have presented evidence to the culture select challenges, opportunities and red-line issues committee on the impact of Brexit and to the for the Brexit negotiations. By late morning education select committee on how leaving June 24, the morning after the count, we had the EU will affect the UK’s higher education invited our members to a national meeting. sector, as well as to the House of Lords EU The event, held at King’s College, external affairs sub-committee on the future London, on July 7, saw 200 leaders from of UK-EU trade. We have also had meetings commercial companies, arts organisations with MPs across the political parties. and higher education institutions from across the UK, begin work gathering evidence to inform the Federation’s Work with the Creative Industries response. We examined what was already Council happening as a consequence of the vote The EU referendum result made it even and assessed priorities. clearer that the sector must be organised and Further meetings were held between coordinated to fight its corner, given the scale July 20 and September 15, in Birmingham, of the challenges facing government as we Nottingham, Manchester, Edinburgh, build a new relationship with Europe and the Norwich, Swansea, Bristol, Plymouth, rest of the world. Leeds and Newcastle. In addition, we asked As such, the Federation worked alongside members to complete a further detailed industry members of the Creative Industries survey on the implications of leaving the Council (CIC), a joint forum between the EU and the opportunities. sector and the government, to develop a Nearly 500 leaders and practitioners from single set of recommendations concerning all the creative disciplines have contributed to issues such as funding, regulatory and our work, providing empirical evidence and trading framework and the skills agenda. individual stories. This document is based These were presented jointly to culture on those meetings and places that evidence secretary Karen Bradley and Brexit minister in a broader policy context. Robin Walker in October.

255 Brexit Report: Recommendations

The government should take steps to Short term ensure that the new apprenticeship and Urgent actions for immediate impact technical education policies work to increase We should immediately establish a and broaden opportunities in the creative government-industry partnership to tackle industries, and should remove disincentives trade barriers and open up access to priority to investment in training of freelancers. markets outside the EU. While full trade The government should continue to agreements are likely to take some years strengthen the links between higher education to conclude, it should be possible to start and creative industry employers, particularly making progress through international in areas of practice-based education that dialogue and cooperation in the short are specific to occupations in our industries, term. We should commit to making strong including through making the new Teaching protection of IP rights a red line in future Excellence Framework more relevant for bilateral trade agreements and ensure that we courses linked to the creative industries. retain scope for continued public support for media and creative sectors. Medium term The UK should engage proactively with ongoing negotiations on the digital single To start work now, for resolution before market, a series of proposals on copyright, the UK’s exit takes effect media regulation, data and other issues The UK should ensure that access to the which will have a major impact on the future EU market for the creative industries in prospects for our industries in Europe. respect of services is retained without the The government should confirm as a imposition of non-tariff barriers. As a key matter of priority that EU nationals currently part of this, the UK should look to maintain employed in the UK will be able to stay. inclusion in the EU ‘country of origin’ framework for regulation of audiovisual The government should affirm its media services – while protecting the commitment to: territoriality of IP rights for the UK – and ensure continued free flow of data with EU • maintaining creative industry tax reliefs, countries. It is also important that the current at least at current levels, while considering definition of ‘European works’ is retained in the case for expansion where supported by EU law, ensuring that UK-originated content evidence continues to count towards broadcasting and video-on-demand quotas. • maintaining the strength of the core The UK should secure reciprocal intellectual property regime currently in retention of freedom to invest in, and secure force and to securing industry cooperation investment from, EU businesses to enable to reduce online copyright infringement the UK’s continued growth as a centre from which to build international businesses in the media and other creative industry sectors.

26 The government should commit to future UK/EU cooperation on intellectual property Long term issues, particularly on action to reduce Preparation now for full implementation online infringement and the proliferation of after the UK’s exit from the EU counterfeit goods. The government should reform the The UK should secure continued ease of migration system to enable easy access to movement between UK and EU countries for critical skills and talent from both EU and time-limited activities, such as concert tours non-EU countries, including a review of and film production. the Shortage Occupation List in the light The UK should retain tariff-free access to of our exit from the EU. the EU market for goods. The government should commit The government should enhance bespoke to continued funding for research and support for creative industries exports, development (R&D) post-exit, with a focus ensuring that it is firmly industry-led. on high-innovation sectors and continued The government should quantify the total scope for domestic and transnational benefits to the creative and cultural sectors partnerships, preferably including a from EU funding sources and ensure that continued association with Horizon 2020. these are at least maintained following the The UK should look to maintain UK’s exit. participation in Creative Europe, alongside Government should work with industry other non-EU partners given its effectiveness, to develop focused business and investment particularly for cultural exports, to the UK support programmes, which are sensitive as a net beneficiary. If this is not possible, to the specific needs and growth potential equivalent funding should be redirected for of creative businesses across the UK. In similar purposes within the UK. particular, we recommend that government Once the terms of exit are clear, following should look to establish a new access-to- the repeal of the European Communities Act, finance support scheme for investment the government should conduct a systematic in growth of creative industry small and review of EU-based regulation with a view medium-sized enterprises (SMEs). to reducing or improving regulation where The government should ensure that possible, in the interests of businesses public interventions support the and consumers, and we should take the widespread availability of affordable, opportunity to strengthen the UK’s voice and high-speed broadband networks, which influence in international forums such as the are especially critical for creative and tech World Intellectual Property Organisation. businesses, particularly in areas where those The government should explore the businesses cluster. scope to improve the impact of creative The UK should commit to further sector tax incentives. cities of culture initiatives and continue to participate in the European capital of culture programme.

27 The Guildhall School of Music & Drama in London photographed its student orchestra with (left) and without (right) its non-British EU students before the referendum to illustrate the potential impact of leaving the EU

28 Photo: Paul Cochrane Paul Photo:

29 Gareth Pugh SS17 at London Fashion Week Photo: Shaun James Cox, courtesy of British Fashion Council British courtesy of Fashion Cox, James Shaun Photo: Brexit Report Brexit Report: Talent and skills “In an increasingly global business world, we simply can’t win without the right people who understand all our markets. It’s like cutting off a creative limb if we can’t rely on attracting the very brightest and best from that pot of global talent.” Chris Hirst, European and UK Group CEO, Havas

The UK is a world leader in the arts and easy access to Europe has helped develop creative industries with our brilliant home- audiences for young talent and provided grown creative workforce reinforced by an revenues that are, in some cases, critical to international labour pool. International staff subsidising UK operations. drive innovation, plug skills gaps and provide Leaving the EU will also have a major competitive advantage by offering expert impact on higher education, with the insight into foreign markets for architecture, anticipated fall in EU student numbers design, fashion and beyond. resulting in a loss of revenues. EU funding Restricting movement risks compromising such as Horizon 2020 grants account for creative and commercial success. But a a quarter of all public investment in UK revamp of our immigration and visa rules research and losing access to this could provides an opportunity to understand the further tarnish the attractiveness of the UK specific needs of the creative industries where as a place to study. the value of the brilliant cellist or early-stage The need to foster British talent presents app designer is not necessarily commensurate an incentive to create an education system fit with salary. In addition, freelancers provide for the 21st century. Instead of marginalising important skills. creative subjects, we should provide young Widespread skills shortages exist in a people with the mix of creative and technical number of creative disciplines, notably skills required for success. animation, visual effects and video games. These will need to be accommodated in any new visa system. Freedom of movement enjoyed in recent decades has benefited film and TV production and festivals as well as touring companies, such as bands, orchestras and dance and theatre companies. Cheap and

31 A view from Leeds, A view from Edinburgh Yorkshire and the Humber and Scotland

Devolution was a central theme at Leeds Home to the Edinburgh International alongside discussion of the importance Festival, the Fringe and other of EU structural funding to much of programmes which make Edinburgh the Yorkshire and the North East and what largest arts festival in the world, access devolution might mean for any funding to international talent is a pivotal schemes that replace it. The referendum issue for the city. With thousands of result raised questions about social international performers programmed cohesion in the UK which prompted every year, changes to UK visa consideration of whether the Northern requirements for non-EU performers Powerhouse initiative places too much have already made booking these acts far focus on metropolitan centres at the more difficult. There are worries about expense of towns and rural areas. the impact of tougher visa conditions Freedom of movement was supported if they are extended to European for having allowed companies to recruit performers. Changes to ease of entry skilled workers from overseas, as well could also damage visitor numbers, as developing UK talent by giving them as Europe constitutes the largest easy and affordable access to markets for international market. touring. Local arts venues are also able to EU students in the UK currently develop their own offer to UK audiences qualify for home fees, with because of the ease of booking EU acts. undergraduates studying for free in Leeds has spent some years planning Scotland. Exiting the EU therefore has its bid to be European Capital of Culture unique consequences for the nation’s in 2023 but the process is now being higher education sector. While the delayed by the uncertainty surrounding Scottish Government has confirmed exit from the EU. that students starting in both 2016 and 2017 will be fully funded for the duration of their courses, there is a fear that Scotland’s appeal as a destination for study will be reduced in the long term. This is of particular concern to conservatoires and specialist institutions, such as the Glasgow School of Art where visiting EU nationals make up 16% of the student body. There was an eagerness for the UK Photo: Richard Moran Richard Photo: to continue to steer negotiations on the digital single market in a way favourable to creative exporters until the moment it leaves the EU.

Left. Phoenix Dance Theatre Right. The ECA Lauriston Campus

at the University of Edinburgh Mentasti Federica Photo:

32 Brexit Report: Funding

The UK’s creative economy is a dynamic participants, the way in which this funding mix of publicly-supported and for-profit sets up working relationships between commercial sectors, underpinned by a world- organisations is as important as the cash class higher education system. This mixed injection they receive. It helps to develop model means that public – including EU – networks and export opportunities, funding is an important driver of the wider which can be very important for smaller creative economy. creative business. Britain has been a major beneficiary of The government has guaranteed that, EU funding both from designated culture for those funding streams it administers, it schemes and general pots for regional and will honour and fully fund all projects with social development, innovation and business contracts signed before the November 2016 support. The UK receives more funding than Autumn Statement. However, the status of almost any other country through Creative many plans long in development but not Europe. It is second only to Germany in the yet confirmed remains uncertain. [NB: The amount it receives from Horizon 2020, an guarantee was later extended, for projects £80bn innovation scheme. deemed value for money and in line with The impact has been transformational in “strategic priorities.”] many parts of the UK’s nations and regions Whitehall needs to lead a full audit of and has supported development at every EU funding so that it understands the scale. Major construction projects such as extent to which it underpins the UK creative Sage Gateshead and High House Production industries, from major projects to seed Park in Essex have become important hubs funding, and can devise new ways to deliver for their local communities and boost their the best of it. local economies. Funding has also developed New domestic business and investment local business support services, including programmes are required to support and R&D labs, investment funds and trade grow the UK’s creative economy, including consultancies. a commitment to further city of culture Many EU funding schemes require initiatives. But the UK also remains eligible projects to be delivered through a partnership for schemes until Brexit and could pay into between international organisations. For some post-Brexit for access.

“European Regional Development Fund (ERDF) support has been vital in providing match funding for awards from Creative Skillset, Arts Council and Creative England. It allows us to draw down around 75% of the money we use to do our work. ERDF is also our main source of core funding. Without the stability offered by its contribution to staffing and other costs, we would not be able to engage in many of the projects we run funded by other bodies. These funds help us to plan for the long term and preserve the sector expertise we have built up, to the benefit of our clients and the wider economy.” Rupert Lee, Commercial manager, Northern Film and Media

33 Case study: The Giant’s Causeway Visitors’ Experience in Northern Ireland Named best new sustainable building in the Sustainable Ireland Awards thanks to an innovative carbon-free heating and cooling system, the experience is a model energy-efficient building that also helps to bring customers to the local economy. In its first six months, it attracted more than 320,000 visitors from more than 160 countries to Northern Ireland.

Total cost: £18.5m; ERDF contribution: £6.1m

To p . Giant’s Causeway Bottom. Nixon Design in a video by Brett Harvey for Creative Kernow Photo: ShutterstockPhoto:

Case study: Cornwall Next Generation Broadband The aim of the Cornwall Next Generation Broadband project is to transform Cornwall and the Isles of Scilly (CIoS) economically and socially into a more knowledge-based and lower carbon economy. The project has attracted high-value businesses (including startups) and inward investors, providing them with fibre connectivity with up to 100Mb/s capability. About 12,000 of Cornwall’s 25,000 businesses were connected by March 2015.15

Total cost: £114m; ERDF contribution: £49m

34 A view from Plymouth, Devon A view from Norwich and and Cornwall East Anglia

Uncertainty over eligibility for EU The local approach to funding from funding is already delaying or even the EU was valued in Norwich. The halting funding bids in the area. An administration of much EU money application for European funding in England through local enterprise was abandoned for a project linked to partnerships (LEPs) was seen as Plymouth’s Mayflower 2020 scheme, benefiting experimental and ‘fringe’ using the 400th anniversary of the sailing creative projects that might otherwise of the Mayflower to drive regeneration. be overlooked, with a strong sense that A lack of clear communication by the this feature must be replicated in any government about the UK’s eligibility replacement funding schemes. for funds prior to leaving the EU was Partnership working was also a key blamed for compromising individual topic in Norwich: production companies projects and the long-term economic in the city’s burgeoning creative cluster and infrastructural benefits they could depend on collaboration with EU create for the region. partners to finance new products, while Over the Tamar Bridge, Cornwall is Horizon 2020 has encouraged local home to a density of creative businesses universities to work with smaller creative normally found only in urban areas. businesses. With the UK’s access to both These have been key to regenerating the EU funds and audiovisual markets up for region and have drawn down significant renegotiation, the question was how to EU funding to achieve this. With tourism secure these partnerships for the future. a major employer in Cornwall, culture is important in attracting visitors and creating local jobs. A host of local creatives have used EU funding streams to develop the cultural offer and generate returns for the local economy. Cornwall has received support through the European Social Fund to skill up the local workforce, including both those still in education and the area’s many freelancers and microbusinesses, who Photo: Philip Vile often have limited access to training in Snape Maltings, Suffolk new skills and technology. There were concerns that the region will not be able to produce a workforce with appropriate skillsets, given the marginalisation of creative subjects in schools.

Photography: Dom Moore Dom Photography:

Plymouth College of Art

35 Brexit Report: Trade and investment

Creative exports including books, film, We will help negotiators charged with television and film, from Adele to Harry forging our new relationship with the Potter and Downton Abbey to Sherlock, are EU, and with trade partners in the rest the UK’s calling card to the world. They are of the world, to understand the creative valuable in their own right but also promote industries and deliver trade deals that the broader trading interests of UK plc benefit the economy. Most creative firms as a symbol of the country’s imagination, are microbusinesses or SMEs who might innovation and diversity. require extra support to tap into export Exports of creative services account for markets. Some parts of the sector, such as 9% of the entire UK total at present; they audiovisual and architecture, are covered have faster growth than any other sector so by specific regulations which must be taken have the potential to contribute more. into account. This should place the sector at the heart The UK is also an international hub for of government trade and export strategy. the creative industries and attracts significant Trade delegations should include the creative inward investment. The country’s appeal industries, including tech, and education. rests on a number of factors, including its There is enormous potential to develop workforce and its tax reliefs. But, for many new markets for the country’s creative goods investors, its role as a gateway to the EU is and services, not least because the English crucial and the impact of losing this ready language is one of our principal assets. access must be addressed. However, intellectual property and Our highly-respected and valuable copyright infringement are commonplace in higher education sector is also affected by some countries targeted for export growth. these issues. Creative businesses cannot reap proper rewards unless and until IP and copyright Sainsbury Laboratory, University of is acknowledged and enforced. Cambridge, designed by Stanton Williams Photo: Hufton and Crow Crow and Hufton Photo:

36 Chris Cowley as Enjolras in Sir Cameron Mackintosh’s Les Misérables, Queen’s Theatre, London Photo: Johan Persson Johan Photo:

375 The Custard Factory, Birmingham Photography: Suzanne Lea Smith Suzanne Photography:

A view from Birmingham and the West Midlands

Devolution and the development of a authority culture budgets in recent Midlands Engine for Growth – akin to the years. Those who have benefited from Northern Powerhouse – are due to raise this support thought it essential that the regional output by almost £30bn over the government clarifies their eligibility in next 10 years: for Birmingham, the EU coming years with a number of planned provides crucial support for this agenda funding applications already scrapped by building the city’s infrastructure. due to a belief they would no longer be The city was a microcosm of how an option. European funding has affected every There was also a belief – echoed in sector, from Erasmus+ and Horizon 2020 cities such as Norwich – that EU funders at the universities, to ERDF money for were more willing than domestic bodies the redevelopment of the Birmingham to take risks in supporting projects for Hippodrome, to backing the publicly- the sake of innovation. supported and commercial sectors for The meeting also covered the benefit festivals, performances and the city’s of programmes like Interreg and highly-important conference business, URBACT, which help cities to co-develop from Marketing Birmingham to the West civic policy and with which Birmingham Midlands Film Production Fund and the has considerable involvement. Be Festival. The immediate impact of the EU vote Discussion revealed the scale of EU was also clear. MAIA Creatives were support to the local creative economy – re-writing business plans for a hotel for from investment in major projects like touring artists which was likely to be Birmingham City University’s upcoming affected by restrictions to freedom of £14m innovation lab to a three- person movement while independent record not-for-profit working in the community. labels were highlighted as a loser in the The ability of funding and support to currency stakes. The Czech Republic is interact with creative businesses at every the home of vinyl pressing plants and the level was seen as key to its value. slump in the pound had wiped out profits There was a strong sense that EU for many indie labels who had contracted funding has provided local creative Czech services. industries with a degree of financial stability through successive cuts to local

38 A view from Manchester and the North West

The Manchester meeting explored how the devolution of power and funding to regions will be affected by exiting the EU, both in terms of domestic funding A view from Newcastle and and loss of EU funding. The Northern the North East Powerhouse project – newly endorsed by the prime minister – should be The benefits and challenges of used as a spearhead to secure the Newcastle’s location were analysed, with best deal for Manchester during exit some creative businesses believing that negotiations, as well as for the North of it was sometimes as easy for North East England at large. creatives to work in Europe as in the UK. Creative industries have the power The meeting considered how the to open up trade opportunities for North East might work with the British other sectors so local creatives must Council to find new export markets but work with the city council to brand one contributor argued that it was easier Manchester as open for business. The from Newcastle to deal with the British sector should also work to identify Council’s office in Edinburgh than potential new markets. with the assigned office for northern Businesses highlighted the England, based in Manchester, because uncertainty exiting will create around of the distances involved. But there import duties and how increased was a sense that, despite ambitions to costs and bureaucracy might dissuade maximise the number of companies prospective first-time traders from exporting, the sector as a whole was not exporting, despite the government’s yet accustomed to thinking in terms of desire to increase the rate of export international trade. among UK creative businesses. The city is a net beneficiary of EU funding and there were a range of ways that this had come to benefit the creative industries, from the detoxification of industrial wasteland ready for the building of Sage Gateshead through to match funding such as a grant Northern Film and Media secured from Creative Europe. Photo: Paul Karalius Paul Photo:

Manchester’s HOME

Photo: Photo: David Allan The National Glass Centre, part of the University of Sunderland Brexit Report: Intellectual property and regulatory frameworks

The creative sector needs to be able to make A view from Nottingham money. A regulatory framework with strong and the East Midlands enforcement of intellectual property rights including copyright and trademarks is crucial Many creative companies in the to enabling creative industries to capitalise East Midlands act as suppliers to on their ideas and talent. businesses such as Rolls-Royce, Toyota The UK has been at the forefront of and Bombardier Transportation which developing this framework in Europe and highlights the relationship between it is vital that we influence decision-making creative industries and some of the around it for as long as we are able. Key East Midlands’ largest employers. During issues, such as the digital single market, are exit negotiations, the sector must leverage in active negotiation, with all to play for. the support of major players across other But the government must understand industries who understand the role of how IP protection and the regulatory creative industries in the wider economy. framework will be affected – and, in some Collaboration with these companies has cases, undermined – for British creatives already formed the basis for explorative when the UK leaves the EU. work on STEAM (science, technology, It should take action to plug gaps, engineering, arts and maths) education enshrining appropriate additional protection in the area, which has been supported in UK law, promoting IP rights worldwide through EU funding and philanthropy. and making strong protection a red-line issue Microbusinesses and freelancers will in future trade agreements. There are also face particular challenges and require common standards across Europe which particular business support in the wake make it easy for businesses to win business of the UK’s departure from the EU and and work across the continent and must be these must be factored into negotiations. understood. For example, small companies may need The UK should also be a stronger voice training on how to negotiate new visa in international trade forums. requirements. Support on these issues will help the sector to perform to the best of its ability. Photo: Photo: Arkwright Newton

Nottingham Trent University

40 A view from Bristol and A view from Swansea and Wales the South West The referendum result in Wales exposed The question here was how we can work a fracture between Cardiff, where at 60% best with the new government and the the proportion of remain voters topped opportunity provided for the sector by even that in London, and a nation that a fresh emphasis on industrial strategy. largely voted to leave. This mirrored It was felt that the creative industries the split between metropolitan and must build relationships with the non-metropolitan areas seen across new chancellor, the Departments for the country. With the majority of Welsh International Trade and Exiting the EU arts and creative industries based in the and beyond – demonstrating the sector’s capital, it raised questions around how benefit to the wider economy. the sector can best engage with their The networking element of EU nation’s audience. funding schemes was highlighted with a The EU has had a special role in strong sense that any UK replacements growing the cultural offer in Wales, for funds such as Horizon 2020 and particularly around the Welsh language, Creative Europe must feature the same because of the European Union’s support mandate for partnership working, rather for foreign language productions and than acting as a simple cash injection. a mandate to ‘safeguard and enhance’ Festivals, forums and venues supported cultural diversity. The Welsh voice needs by the EU offer valuable chances to to be heard in Brexit negotiations and distribute work across the continent, as has to include the creative industries. well as opportunities to meet the top This is particularly important given that talent Britain’s creative industries need the country receives a high proportion to maintain their competitive edge. of EU funding. Attendees also called for the development of a national cultural strategy, akin to that developed by Creative Scotland. Collaborating with other sectors, such as science and higher education, on issues of common concern, would help the creative industries gain traction. Many had already opened up talks with European partners on how best to preserve their relationships and largely

Photo: Toby Farrow Toby Photo: reported a supportive reception. Watershed, Bristol Photo: Darren BrittonPhoto:

National Museum Cardiff

41 International

Antony Gormley: Event Horizon, presented in Hong Kong by the British Council, 2015

42 Photo: Oak Taylor-Smith. Courtesy of White Cube Courtesy of Taylor-Smith. Oak Photo:

43 International

The creative sector has always worked internationally, with British talent in demand worldwide and the most dynamic and innovative creatives regarding the UK as an exciting place to work. Millions more who will never be employed in the creative industries know the UK through its cultural exports. Just think of the popularity of Downton Abbey in America, One Direction’s global fame, every manifestation of Harry Potter, Sir Cameron Mackintosh’s Les Misérables or Burberry’s heritage check.

Yet that doesn’t mean working internationally It is also clear that many other countries is easy, particularly when concerns about have identified the potential of the creative Brexit loom large. economy for growth and are investing in Brexit will encourage the UK to explore skills and infrastructure designed to capture new markets so it offers new opportunities – their share of the global market. and challenges. Some markets give a strategic To provide intelligence and insight, the advantage to domestic creative goods, for Federation has begun work in creating example, with quotas for domestically an international council for the creative produced shows on state television. Many industries. This aims to operate like an emerging markets also do not have adequate international business council – identifying intellectual property protection to secure best practice and innovation in policy around appropriate returns for creative goods. the world and scoping risks and opportunities But the Federation believes that the for the sector. UK can increase our creative exports. The We have also launched a members-only growing wealth of many emerging nations international journal, C. International, printed from Chile to China is creating growing twice a year. The interview which follows markets for international content, with digital gives a taste of what these journals offer. platforms bringing these potential markets closer. The audiences are there, but we need to be strategic if we want to reach them.

44 Why diplomat Tom Fletcher is swapping global conflict for a creative future

Interview by Louise Jury

July 2016

High-flying foreign affairs expert Tom but, most importantly, creativity, because any Fletcher has only just taken on the task of decent negotiation is going to involve new chairing the Federation’s new international creative ways of getting to the right answer. council but he has long been an advocate for There’s a massive gap for more creativity in the sector. diplomacy – and in government as a whole.” In Foreign Office postings from Paris This enthusiasm is why he has joined the to Beirut, he says it is the royal family, Federation. He had bonded with Fed chief our sports stars and – in a very big way – executive John Kampfner at the Hay Festival our culture that counts. “More people in some years ago and stayed in touch. His Lebanon know about Prince Harry and interest in the sector grew personal when David Beckham and Benedict Cumberbatch he started a blog as ‘the naked diplomat,’ than they do about our foreign policy.” then a book, ‘Naked Diplomacy: Power And he has taken a pro-active approach and Statecraft in the Digital Age’. He loved to waving the flag for Britain’s creativity writing. “I found the mornings when I got up overseas, memorably even taking to the and wrote from six to seven I was then much skies. “I thought I could do more for more productive for the rest of the day.” British design as an ambassador by flying His aspirations for the international a Red Arrow upside down than I could council, with a mix of experts offering insight by making a speech.” It was, he admits, on different countries and sectors, mirror “utterly terrifying”. his work as a diplomat. “There was no point Fletcher, 41, joined the Foreign Office pretending I knew more about business at 22 with a first in modern history from than the businesses I was promoting but Oxford, spending time in Kenya and Paris I did know about networks and about the (where he met and married Louise, a local market so I could help people position psychologist), as chief of staff to the Africa themselves.” So the Federation work will ministers, Baroness Amos and Chris Mullin, be about knowledge and, potentially, match- and as foreign policy advisor to three prime making, knowing where there are the most ministers – Tony Blair, Gordon Brown and brilliant and innovative people worldwide and David Cameron. He then spent four years how to connect with them. “We’re not going as ambassador in Lebanon. to be in the business of telling people how to He is now creating the next generation of paint but we might be able to tell them where diplomats, splitting his time between New the next opportunity to paint is.” York and Abu Dhabi. “Rather than teaching Education is vital which is why he shares the history of international relations and current worries about creativity being humanitarian law and protocol etiquette, scheduled out of the curriculum. “There is I’m teaching them a series of skills – so much of what our kids are learning that resilience, courage, curiosity, communication, ultimately is not going to be necessary.

45 I met this guy who’s a brain scientist rewiring Speaking with a united voice, as the brains in order to teach people foreign Federation was established to do, is crucial. languages. I asked, ‘How many decades He feels the creative industries still fail to before you can put Chinese into my brain?’ interact with government in a coherent way. And he said, ‘Not decades, but years’.” “The sum is not greater than the parts. He adds: “Einstein said, ‘Don’t bother We’ve got to be better in making our case, learning anything you can read in books.’ about what the sector does and how it adds We’ve got to be teaching our kids stuff that very specific value.” helps them understand how to use these His other projects shed light on his own massive amounts of data. Creativity is the can-do approach. He is trying to provide key to that.” education for a million Syrian children and Other countries have seen the potential. is pulling in business partners to deliver on Take, for instance, Lebanon. “The the buildings, transport, tech and educational Lebanese are so attuned to global trends, so content required. international in their outlook. 90% of them He is also overseeing a report for the live overseas because of war and because next UN secretary general on using digital they’ve always been travellers and traders. technology to crack big world problems. They are training their kids up to be more “I have a team working on questions creative because they think that is how they’re such as, can robots get a better climate going to succeed in the global market.” change deal than humans, can artificial Abu Dhabi has a more government-driven intelligence change the nature of international approach, with support for the creative negotiations, can we use digital mapping to industries and giant projects such as the deliver better disaster relief after the next Saadiyat island cultural centre with its own volcano...There’s a whole load of creative Guggenheim and Louvre museums. “They ideas there at the space where technology, just make it very easy for people to have the innovation and creativity meet my very old time and resource and support to be creative maps and chaps business.” and to be entrepreneurial.” There’s nothing old-school maps and Fletcher thinks it is important to seek out chaps about Fletcher. these new sources of power and influence and work with them. And it would be foolish to do anything to undermine our own role as a cultural powerhouse. “I think it would be really dangerous if we lose that market position. The harder it becomes to deploy hard power the more we have to rely on this amazing set of soft power superpowers.” The UK was second place behind the United States in the Portland consultancy’s soft power rankings this year (2016), after topping the chart in 2015. It warned leaving the EU would have a negative impact. “The EU referendum result, and the Scottish referendum before that, point to a broader danger of Brits becoming a bit too inward-looking,” he adds.

46 Diplomat Tom Fletcher launches the Fed’s international council and journal

“We’ve got to be better at making our case, about what the sector does and how it adds very specific value.” Photo: Photo: Watts Ian

47 Art and design masterclass at Sorrell Foundation Saturday Club

Skills pipeline

48 Photo: Magnus Andersson Photo: Magnus

49 Art and Design, University of the Arts London, Skills pipeline Royal Central School of Speech and Drama, University of Cambridge, Coventry University, The skills pipeline remains the biggest University of Hertfordshire and the Royal concern for the majority of Federation College of Art (RCA). members and a key pillar of our policy There have also been concerns about work. We look at the entire pipeline – policy changes in the HEFE sector itself. from school through to apprenticeships, As around 60% of creative industries higher and further education (HEFE), workers are graduates, investment in tertiary and learning later in life – to identify education is vital to the sector’s success. what must be done to give young people The Federation used evidence given the skills needed for a career in the by the working group as the basis of a creative economy and fill the skills gaps submission to the green paper on higher for the sector’s employers. education. Acknowledging that the working group is a uniquely comprehensive representation of the creative industries skills Our higher and further education working pipeline, universities minister Jo Johnson group is an important forum for information- addressed it in November. A lengthy Q&A sharing as the starting point for concerted explored a few pressing topics: action in this area. The group now has more than 120 members – including industry • School education and the EBacc professionals, employers and artists as well • STEM to STEAM as schools, colleges and universities – and • Teaching Excellence Framework has looked at both HEFE-specific issues • Industrial strategy and broader issues affecting the creative • Research and the Arts and Humanities industries ecosystem. Research Council The group provided much of the evidence Apprenticeships were also a key issue at this for Social Mobility and the Skills Gap, our meeting. Seetha Kumar from Creative Skillset most recent paper on school education, provided an overview of what the introduction reprinted below. Higher and further education of the apprenticeship levy could mean for institutions are seeing first-hand in their the sector. The Federation’s response to an recruitment the impact of the significant fall inquiry into the levy, written earlier in the in the teaching of creative subjects in schools. year, is also reproduced in the following pages. Contributors included Cleveland College of Image courtesy of University of the Arts University courtesy of Image London the of

50 Social Mobility and the Skills Gap, Creative Education Agenda 2016 (abridged) October 2016

“When it comes to opportunity we won’t entrench the advantages of the fortunate few, we will do everything we can to help anybody, whatever your background, to go as far as your talents will take you.” Theresa May, Prime Minister, July 13, 2016

Britain’s got talent. It is the basis of our There is a mismatch between, on the hugely successful creative industries, which one hand, the government’s embrace of are the fastest growing sector of the UK the creative industries and calls for social economy and are worth £87.4bn. Our mobility and, on the other, what it is doing creative economy now employs one in 11 in our schools. This is an enormous missed of the working population.16 opportunity. If not addressed, we risk losing But we also have a talent crisis. We are our position as creative world leaders. failing to provide enough young people with the right mix of skills for many of the exciting In this document we provide details of: jobs in the creative economy as well as in other sectors, including engineering. 1) Creative subjects, the economy Brexit will make the skills shortage even and Brexit worse – at least in the short term. Ready 2) How to make education work for access to often highly-skilled Europeans, everyone comprising 6.1% of the creative industries 3) The skills needed by industry workforce, has long masked these issues.17 and where they sit within school Education policy, which should be part of education the solution, is a major part of the problem. 4) Policy recommendations While industry calls for creativity, technical knowledge and design skills, our teaching is driven by the thinking of an academic elite. Children from disadvantaged backgrounds and communities are likely to be most badly affected by a focus on a traditional set of subjects to the exclusion of creative ones. Far from encouraging the prime minister’s aims of social mobility, education policy is cutting the life chances of the country’s young people as well as narrowing the diversity of the future workforce.

51 Yet the creative industries have long- Creative subjects, the standing skills shortages. These stem from economy and Brexit inadequate training and provision at schools in this country compounded by “We will identify the sectors of the the ever-greater need for talent in a sector that is growing. economy – financial services, yes, These skills shortages in the UK will but life sciences, tech, aerospace, car be exacerbated – at least in the short to manufacturing, the creative industries medium term – by any restriction on freedom and many others – that are of strategic of movement that comes as a result of tightening immigration laws and the UK exit importance to our economy, and from the European Union. European talent do everything we can to encourage, has for decades supplemented our own in develop and support them.” terms of supplying high-skilled talent to our 21 Theresa May, October 5, 2016 creative companies. This shortage can also be seen in the The creative industries are one of Britain’s Migration Tier 2 Shortage Occupation List biggest success stories, worth £87.4bn in (jobs where the government will permit GVA. The creative economy (which includes sponsorship of migrants from outside the those in creative jobs outside the sector) EU in recognition of severe skills shortages). employs one in every 11 working people.18 This highlights that our country is already It has been the fastest growing sector of the crying out for a combination of creative economy since the 2008 financial crash. It skills – and in particular, design and technical has highly attractive jobs and ones that are skills. The list includes creative industries also at low risk of being replaced by robots occupations reliant on both such as graphic in the future.19 In her keynote speech at the designers working in visual effects and Conservative Party conference this month, 2D/3D animation. [Breakdowns of some of Prime Minister Theresa May named the these skills pathways and their relationship creative industries as a key strategic sector to the school curriculum were provided in for the economy at large.20 the original paper.] Image courtesy of University of the Arts University courtesy of Image London the of

52 There is a need for arts subjects – art and The Federation believes that many design, design and technology, music, drama, schools are simply following the clear media, film and TV studies and performing/ message sent out by government that creative expressive arts – for a wide range of careers. subjects are not a priority. The EBacc is But entries for GCSEs in arts and creative being interpreted as a signal of what matters subjects have fallen by 8% (46,000) this year and what is best for young people. compared with last, according to official Yet the referendum result means it is statistics published by exam watchdog even more important that the government Ofqual.22 Some subjects have fared worse redresses the mismatch between education than others: the numbers taking design and policy and what industry needs. It is technology fell by 41% between 2007/8 and only ready access to often highly-skilled 2014/15.23 The steep decline in students Europeans, comprising 6.1% of the creative taking creative subjects is in sharp contrast industries workforce, that has masked these to some other GCSE subjects, notably issues for so long. those included in the English Baccalaureate Ministers should work with us and (EBacc) – the suite of subjects on which other sector bodies to fix the skills pipeline the government judges school performance, for these jobs. Otherwise, with Brexit and which notably includes no arts.24 lack of provision at school, we believe The government has laid down a target the Shortage Occupation List is likely to of 90% of students taking the EBacc which grow significantly. The problem will be is going to reduce numbers further, unless compounded by the decrease of 8.9% in it also ensures that the numbers of GCSEs the number of 18-year-olds between being taken increase dramatically. 2012 and 2022. In 2015, more than a quarter of students Ultimately, if not remedied, we will in academies (28%) took seven GCSEs or lose our place as world leaders in the fewer.25 If such students have to take the creative industries. EBacc in future, there would be no space for other subjects, even if these subjects were offered. Students with a high level of deprivation take on average 7.9 GCSEs, with 38% taking seven or fewer.26 Image courtesy of University of the Arts University courtesy of Image London the of

53 offering creative degrees require different How to make education combinations again. work for everyone For many students, a technical education may be a better option than university. The “Justine Greening and I have set out government is introducing new technical 30 a new package of reforms, building pathways as an alternative to A-levels. Under new laws, schools are required to give on Michael Gove’s success, to equal attention to these non-academic routes, increase the number of good school which pupils can take post-16. However, here places across the country… so there’s there is a particularly serious mismatch in not just a school place for every child, terms of what students are now being pushed to study up to 16 and what is needed but a good school place for every for them to continue their studies or start child. A school place that suits the work afterwards. skills, interests and abilities of every There were 1,460 arts, media and single pupil.” publishing apprenticeships in 2014-15, 18,290 in construction, planning and Theresa May, October 5, 2016 the built environment,31 and 74,060 The need for a greater commitment to in engineering and manufacturing creative subjects is not just about the technologies. Together these make up economy. It is also a matter of individual 93,810 apprenticeships – almost 20% of the 32 life chances. There are many students who apprenticeships started in the UK that year. could have successful careers in the creative These positions require many of the skills industries who will not get the chance learnt in creative subjects, such as drawing because of current education policy and lack or tool usage. of provision. Government policy will lead to The government has committed, in law, to exciting jobs being denied to students who creating 3 million new apprenticeships, but might excel at them. current education policies are restricting the This government has made clear that it numbers of pupils likely to be able to follow 33 wants this country to work for everyone, no these pathways. matter where they come from or what they Policy makers must ensure that students excel at. But provision of creative subjects who are not talented academically but are has fallen most significantly in schools with a talented in creative and practical subjects can higher proportion of free school meals.27 keep learning those relevant subjects until Academies and free schools are at they leave school. Otherwise these pathways even greater risk of removing provision as may be closed to them. they do not have to follow the curriculum The particular case of students with and so creative subjects can be dropped special educational needs must be also entirely without affecting their assessment.28 acknowledged. Evidence from our higher Academies do not now have to offer any and further education working group, which creative subjects to students from the age of represents higher and further education 11 to still qualify as ‘outstanding’ schools. providers, has shown that many of the That means no music, no design and courses which need students to have studied technology, no art and design and no drama. creative subjects at school level also have The EBacc is based on a list of ‘facilitating high levels of students with special subjects’ devised by the Russell Group of educational needs. universities. But even this institution does Dyslexic students, in particular, are not believe this list is suitable or desirable a useful example of a large group who for all pupils. It is simply one way of keeping might struggle with traditionally academic options open. In fact, 11 of the 61 most subjects but excel elsewhere. The British popular subjects offered at Russell Group Dyslexia Association says that in terms universities either require or suggest a of careers, “people with dyslexia are creative subject taken to A-level.29 Specialist frequently successful in entrepreneurship, institutions, conservatoires and universities sales, art and design, entertainment, acting,

54 Sharing a story at an after-school writing club, a partner project between Penguin Random House and Ministry of Stories Below. Hereford College of Arts students running an affordable arts fair

Photo: Tom Oldham Tom Photo: Image courtesy of Hereford College of Arts College of Hereford courtesy of Image

55 Case study: If you want to start the BTEC extended diploma: interior, architecture and product (3D) at the age of 16 at Cleveland College of Art and Design, they expect you to have studied creative GCSEs such as art, Image courtesy of Escape Studios Studios Escape courtesy of Image resistant materials or graphic products.34 This is a course that offers a pathway into the following jobs; interior designer, prop/ set designer, architect, product designer, exhibition designer, furniture designer, TV/film set designer, theme park designer, games designer, computer animator. All these are potentially off-limits to pupils in schools with no provision. Patrick Chapman, head of employability and enterprise at CCAD, says: “Although we try not to be restrictive in our recruitment requirements, we do find that for many of our BTECs, GCSEs in creative subjects are the obvious foundation. This is also what industry told us they expected when we carried out a survey in 2016.”

Case study: For those who want to apply for a junior 2D artist apprenticeship at 18, the NextGen Skills Academy says: “Individual employers will set the selection criteria, but this is likely to include A-levels (or equivalent level 3 qualification) in a moving picture or art- related subject. Most candidates will also have English and maths at level 2 on entry.”35

Students working at vfx academy Escape Studios, Pearson College London

56 engineering, architecture, IT, computer students studied were obviously important, animation, technical and practical trades but it is a reminder that creative subjects and professions.”36 can be a valuable part of training, too, and More than 4,000 students (24% of the improve achievement at HEFE level.39 student population) at University of the Naomi Climer, who was the first female Arts London are disabled and/or dyslexic,37 president of the Institution of Engineering while alumni of the Royal Central School and Technology, supports this: “Creative Image courtesy of Escape Studios Studios Escape courtesy of Image of Speech and Drama include students subjects including design and technology with learning difficulties including dyslexia, and art and design teach spatial, design dyspraxia and ADHD who have graduated to and practical skills that are absolutely key become renowned actors, directors, lighting to the future of engineering. The evidence and sound designers. Many have won awards shows that for many, and especially for including Oliviers and work in television, women, creative subjects are the route film and with the major performing into our sector. They are also important in companies and on national events such providing a pathway to the apprenticeships as Olympic ceremonies. engineering offers.” There are many high-profile examples of people with dyslexia in our industry, “I am clear that the arts, with sports, including Lord Rogers, the award-winning architect known for the Pompidou Centre are clear drivers in producing in Paris and Lloyd’s Building in London, dramatic improvements in some of who told the Yale Center for Dyslexia and the more challenging schools I have Creativity: “In my youth, in the 1940s, I was worked with. But creative subjects also called stupid. Not only could I not read but I couldn’t memorise my school work. I was offer the opportunity to enrich social always at the bottom of the class. I became cohesion and encourage engagement very depressed. When I was young, seven or with the wider society that some of eight, I remember standing on the windowsill our children feel alienated from. This and saying, ‘Should I jump or shouldn’t I jump?’”.38 Dyslexic students epitomise the is particularly important in schools kind of pupils who are disenfranchised by an with a narrow demographic. The lack over-emphasis on a small range of subjects of arts at Park View was a result of from 14 onwards. the previous leaders deeming them However, creative subjects are not just academically unimportant. We need for those who do not fit the government’s traditional academic structure. They can also to promote curriculum models that accelerate learning, attainment and success make a strong statement about the in students who do fit within this framework. importance of arts and sport in For example, an education including creative British culture.” subjects can produce better qualified graduates even in STEM subjects: in a study Adrian Packer covering 200 civil engineering graduates at Chief executive, CORE Education Trust the University of Bath, it emerged that having Transformed the so-called Trojan horse studied art and design or music offered a schools in Birmingham 1.74% advantage to the class average, whilst design and technology offered a 2.21% advantage. In contrast, having studied only maths and sciences gave a 1.43% disadvantage and further maths offered a 1.9% disadvantage. The STEM subjects the

57 The skills needed “Creative success at UAL takes curiosity, determination and, above by industry all, a passion for your chosen subject. There has frequently been confusion about It is no secret that this passion often exactly what skills are needed for jobs in the develops early in life – most UAL creative industries and how these relate to undergraduates have already obtained education at school. qualifications in creative subjects It is relatively easy to identify jobs that businesses find it difficult to fill. As explained before they apply to study here.” earlier, the government’s official Shortage Occupation List has a high percentage of Nigel Carrington creative and technical jobs.40 But it is more Vice-Chancellor, University of the Arts London difficult to identify at a national level exactly what skills businesses are looking for, and in particular, how these skills relate to the What must be done subjects learnt at school. We know that our sector is broadly It is crucial that education policy is growing in areas that need both design and formulated with a proper understanding technical skills, alongside basic numeracy of the needs of industry and the talents of and literacy skills. Previous evidence all students. was reinforced this year by a new report There is a widespread view in the creative produced by Nesta with researchers at the industries and in education that the EBacc University of Sussex’, which found that should be dropped or the range of subjects firms using STEM and art and design amended. We acknowledge the government skills (STEAM skills) experience faster believes that the EBacc delivers a sound employment and sales growth than STEM- traditional curriculum, but the Federation 41 only firms. calls on it to be flexible and practical to The creative industries, like all highly- deliver the skills our sector needs to compete. skilled sectors and, in particular, the science The following four proposals, if and engineering sectors, are reliant on implemented, would encourage creative specialist tertiary and higher education education and boost British competitiveness. training. So you need to work back along the talent pipeline to identify how students qualify for these specialised courses in order to understand what preparation they need at school level. For many industries, what is needed are the basic drawing, design and spatial skills learnt in art and design, or the practical and craft skills (including use of electronic products, graphics, materials and textiles) learnt in design and technology. For broader benefits, there is considerable evidence42 of the cognitive skills developed in music, as well as of the important communication skills taught in drama and performing arts which are among the most in-demand of all skillsets.43

58 Our policy recommendations:

1. Drop the 90% target The EBacc should not be the headline assessment measure for schools, but used as part of Progress and Attainment 8.44 These alternative measures give greater flexibility in terms of what subjects schools are judged on and send out a message that a wider selection of skills are valued.

2. Limit ‘outstanding’ to schools that warrant it A school must teach at least one creative subject, in lesson time, in order to be eligible for an ‘outstanding’ rating. 3. Audit the skills gap The Department for Education should conduct a proper audit of the skills and education needed by the creative industries as part of an industrial strategy. This work would logically extend to all sectors identified by the government as a strategic priority. 4. Adopt proper careers advice The government should work with industry to launch a sustained national campaign demonstrating the range of jobs in the creative industries and the subjects that lead to them. This should form a substantial part of the work being done by the Careers Enterprise Company, which is implementing the government’s careers advice programme.

59 Apprenticeships

The creative industries depend on an array of highly-skilled workers who have not acquired their technical knowhow from a traditional school education. This is why the option of a well-funded and efficiently-run apprenticeship scheme is absolutely vital for our sector, and for young people in general. In April 2017, the UK government intends to introduce an apprenticeship levy, which will be charged to UK employers with a wages bill of more than £3m a year at a rate of 0.5%. Each employer will receive an annual allowance of £15,000 to offset against their levy payment. In England, control of apprenticeship funding will be placed in the hands of employers through the digital apprenticeship service. Levy-paying employers will be allowed to transfer up to 10% of the annual value of funds entering their digital accounts to other employers or apprenticeship training agencies.45 The Creative Industries Federation made a submission on the Department for Education’s apprenticeship funding proposals. A summary of this submission follows.

The cost of training apprenticeships varies Apprenticeships – massively across different sectors of the Submission to the creative industries. For example, disciplines which require high levels of interaction with Department for innovative technologies, such as VFX and Education (abridged) animation, will involve far larger training costs than others, in the same manner as September 2016 many STEM apprenticeships. Different companies must be consulted on the kind The number of apprenticeships in the of financial support their industry requires. creative industries is steadily increasing. It should also be noted that a number of We believe that it is very important that those creative industries roles that command companies – including microbusinesses the highest training costs appear on the and small and medium-sized enterprises Migration Advisory Committee’s Shortage (SMEs) – are encouraged to take on a greater Occupation List. Appropriate funding must number of apprentices and it is encouraging be calculated in order to tackle the UK’s to see proposals that attempt to effect this. deficit of workers including animators, However, it is for individual employers to modellers and VFX workers. indicate what is appropriate and financially Tariffs for our sector seem to have been viable for them to do. set low given the urgent need for these skills, The vast majority of creative companies with 17 roles on the Shortage Occupation are microbusinesses or SMEs, with an List. In some instances, where there are the average of 3.3 employees.46 The majority most serious skills shortages, the Creative also operate on far smaller profit margins Industries Council has demonstrated that than companies in other sectors. As such, a it will become difficult to find people who large number have neither the time, money can deliver the roles for the funding made nor staff to develop effective in-house available in the tariff. For example, the two training schemes. The difficulties involved new VFX apprenticeship standards will with training up a workforce on the job is sit within the £9,000 band although the demonstrated by the high levels of graduate quotes for providing the training range from employment in the sector, with graduates £10,500 to £20,000. totalling 60% of the workforce.

60 Erin Hills training as a wigs and makeup apprentice at High House Production Park. Now a member of the Royal Ballet wigs and makeup team at the Royal Opera House Photo: Sim Cannetty-Clarke Sim Photo:

Money paid under the apprenticeship If companies are not allowed to spend levy will be accessed through an employer’s digital vouchers – or other forms of financial digital apprenticeship service account. support – on developing standards and an The government has declared that levy- effective training infrastructure, we fear that paying employers can transfer up to 10% the levy will, in effect, extract money from of funds entering their digital account to liable companies in the creative industries other employers or apprenticeship training and divert these funds into apprenticeship agencies (ATAs). It is essential that the schemes in other sectors which have proportion of digital vouchers available for developed standards and greater training transfer be increased if the creative industries resources, such as the catering industry. are to develop an effective system of We hope to see changes to these proposals apprenticeship training. that will allow the creative industries to ATAs offer an efficient and cost-effective better develop apprenticeship programmes way of streamlining funding. Allowing that benefit trainees, employers and the many small creative businesses to pool their sector at large. digital vouchers to support such ATAs would encourage many businesses to exploit apprenticeship investment potential that it is likely would go unused otherwise. ATAs could offer training at a far greater scale and provide far more opportunities for both employers and trainees.

61 Diversity Image courtesy of Channel 4 Channel courtesy of Image

The cast of E4’s Chewing Gum

62 Diversity remains a cornerstone of Federation work not only because it is socially just to ensure opportunities for all but because it makes good business sense – whether you are a commercial creative business seeking sales or a publicly-supported arts organisation looking for audiences.

In the Federation’s first year, we released Diversity is also integral to the artist’s the report, Creative Diversity: The state of responsibility to their community, according diversity in the UK’s creative industries, and to the writer and director Kwame Kwei- what we can do about it, which showed a lack Armah. Speaking at the launch of the 2016 of diversity in gender, sexuality, disability, MOBO (Music of Black Origin) awards with age and socioeconomic background across the Federation, he highlighted the struggles the sector even though the failure to diversify of being a black artist in a sector where meant lost business opportunities. minorities are often misrepresented and This year, the issue has been woven excluded. through our policy work and events with We offer edited insights from all three leading figures explaining what they are figures below and conclude this section with doing to address inequalities. a summary of our submission to the Lords Diversity is an important factor in our inquiry on the possible privatisation of work on education and skills. For example, Channel 4. denying students the chance to study creative Although public service broadcasting subjects alongside scientific ones has the falls under the policy heading of critical knock-on effect of removing an identified infrastructure for the broader creative route for women into engineering. This was economy, one of the distinctive elements a vital topic at our unique breakfast with of Channel 4 has been its commitment to Naomi Climer, the first female president promoting groups often under-represented of the Institution of Engineering and in British television, in front of and behind Technology. the camera. We explored the way it provides Catherine Mayer, co-founder of the diverse content, from a mix of independent Women’s Equality Party, addressed the and private production companies, problem of gender inequality from the showcasing a variety of viewpoints from perspective of how best to effect change BAME, LGBT+ and people with disabilities. – which she concluded was through winning votes.

63 Why diversity and creativity are crucial to the future of engineering Naomi Climer First female president of the Institution of Engineering and Technology

Unique Breakfast, September 2016

“I want to talk about engineering, creativity, the UK, and probably the planet, will be and diversity. I’ve spent my life in and around desperately short of engineers over the next broadcast engineering, holding positions couple of decades. This matters, because in at the BBC, ITV and Sony. I’ve spent order to crack big topics like global warming, most of my life working in an incredibly poverty, or food shortages, we will need male environment, campaigning around engineers who know what they’re doing. But gender diversity. Frustratingly, very little has also on the creative agenda, and elsewhere, it changed: in the UK, under 10% of engineers matters if we can’t encourage enough people are women. into engineering. “As I come to my final week of my year- “For me, this raises two issues. Firstly, long stint as president, I’ve been thinking engineering is not perceived as a cool or about the many studies that show that creative career, so people don’t want to do it.

Naomi Climer Image courtesy of IET courtesy of Image

64 “This is a hideous mistake: I personally think what they’re being fed is true or what story it’s a very creative career. Secondly, given it really tells. the incredibly low number of women going “Engineers are being forced to get better into engineering, it would help with the skill at storytelling, and journalists are being shortage we’re predicting if we could at least forced to get better at engineering. Divisions attract the same number of women as men. between different disciplines are blurring. “Engineering has been elitist in the “STEM to STEAM is something I past. If you don’t have maths or physics feel very strongly about. If we could bring A-levels, or if you haven’t been to the right together arts and sciences, we would get university and got the right degree, you aren’t a much better creative and engineering considered a proper engineer. This has not result. Encouraging kids aged 16 to pick been helpful. only three subjects is a mistake, especially “Therefore, as an institution, for the when they are urged to choose between arts next year we are thinking about inclusivity, or sciences. We would like to give children meaning that there are many routes to opportunities to develop a wider range of becoming an engineer. We are looking at skills until an older age. how to bring people into engineering from “Studies by McKinsey and the Harvard unexpected places. There are examples of Business Review have put forward evidence other organisations clearly thinking in the that more diverse companies have better same way. results. The World Economic Forum has “University College London, for shown that more diverse countries have instance, used to require, as did almost a higher GDP per person. I think that, every university, maths and physics A-level. similarly, there is a technical argument for Now UCL have dropped physics as a having better diversity. requirement, although they do require maths. “Technology is becoming more and They’re interested in drawing in historians, more woven into our lives. Nowadays, I’m linguists and artists and seeing what breed so app-driven: I use apps that dictate the way of engineer that grows. The core skills of my life runs. I would like to think that the analytical thinking, problem-solving and things that are dictating my travel, education structured methodology are things that can and healthcare were designed by people who be taught. The technology, however, is out have some vague notion of who I am and of date by the time students have graduated what my life is like. and new technology must be learned. “There are glorious examples of Academic institutions need to teach ground companies that get this wrong. Apple’s methodologies. UCL think that different health app, for example, was trumpeted as disciplines might bring something new to tracking all bodily functions, but there was the profession. no menstruation tracker. It is such a basic “New types of engineering will also function and was forgotten. They have now emerge from the Dyson School of Design added one. But the story I tell myself is if Engineering, recently opened by Imperial they had more women on the team, that College, which works closely with the Royal disaster probably wouldn’t have occurred. College of Art. On similar lines, the first artificial heart “Twenty years ago, when I was at the was too large for most women, and it was BBC, it was almost a badge of honour for the 10 years before one the right size was created. on-air talent not to understand tech or maths. Some of these examples illustrate that a lack But I am told by my journalist ex-colleagues of diversity leads to the wrong results.” at the BBC that computational journalism is a part of today’s journalism courses. Budding journalists are taught programming and analytical skills. “The theory behind this is that a journalist must deal with a mass of stats or data when they are trying to tell a story. They must interrogate this data to work out whether

65 Votes for change: how to take the initiative Catherine Mayer Co-founder of the Women’s Equality Party

Unique Breakfast, November 2016

“Jude Kelly of the Southbank Centre is sort it thinks it can’t be bad on gender because of the mother of all this because she started it is the party of gender equality, when in the Women of the World (WOW) festival fact it’s not. in 2010 and co-opted me and others onto “I knew the only way to get parties to the founding committee. Initially I really pay attention was to start stealing votes and didn’t want to do it. Not just because you the model I took, though this may seem can spend your life doing things for free but unlikely, was from UKIP. At the time when for me a more profound thing: I didn’t want I started the Women’s Equality Party, people to confront the truth of why we still needed said, ‘Well unless you get into government WOW in 2010. you can’t really do anything’. Look at UKIP “Not only is there nowhere in the world – the most MPs they’ve ever had was two but that is gender equal, but nowhere in the world they’ve had their entire cause delivered. is anywhere near gender equal. Progress is There are loads of brilliant women’s not only slow, but in many cases is reversing organisations and they are forever being or encountering new sets of problems – for brought in to do reports on how we should example, in the digital world, which the do things, or invited for cups of tea and a inventors thought would create a space for pat on the head. I wanted this to be taken women to thrive because they would be seriously and I wanted people to see that it’s disembodied, but which instead became a vote winner. the primary vehicle for body shaming and “We now have 65,000 members and every aspect of looking at women in bad supporters and have 73 branches across the ways. There are of course many positives UK. We stood in the London mayoral and too. I’m not coming at this from a Luddite assembly elections as well as those for the perspective, but it adds to the complexity. Welsh Assembly and the Scottish Parliament “What WOW does every year is it creates this year. In London, we got more than this extraordinary energy. But at the end of it 350,000 votes – 5.2% of the vote – in our no one knows where to put this energy. Being first election. By contrast (it’s not really a a political reporter for most of my 30 years fair one, but I’ll give it to you anyway), the as a journalist means I had seen how bad the Greens received 0.01% of the vote in theirs. main parties are at ‘doing’ gender. Labour It shows there is a really strong appetite for has done some great things on gender over gender equality. the years but it now rests on those laurels:

66 Catherine Mayer Image courtesy of Catherine courtesy of Image Mayer.

“The other thing about this is, of course, create a more equal world in gender terms, that there are tons of studies out there does it bring other forms of equality of do saying ‘gender equality isn’t just good for you just enshrine white dominance within women, it’s good for all genders, it’s good for that new accommodation? organisations and it’s good for economies’. “The creative industries are utterly at the So the big question is, since everyone knows core of many of these issues. The creative it is better for us, why isn’t it happening? If industries and the media can be a huge it’s such a good thing, why aren’t we doing it? facilitator of change but they also can anchor What are the other mechanisms holding us conventional wisdoms and stereotypes in back and how can we identify these? If you really bad ways.”

67 My name is… A talk on the artist’s responsibilities

Kwame Kwei-Armah Writer and director

MOBO season launch with the Federation, September 2016

Kwame Kwei-Armah Kidd Laura Photo:

68 “What’s in a name? A name is far more rehearsal rooms, I started reading, I started than an identifier. Often, in many cultures, flying between here and the United States and your name tells you who you must become looking at different director’s work. – and it is a must. “I looked at different directing posts, “Anyone who knows my history will and I started moaning about what they were know that I reclaimed my ancestral name. doing and what plays they were putting on. But that wasn’t the biggest name or title that Invariably, black plays sat in two camps: the I had a struggle with. What I struggled with black holocaust play, set in Africa, or the black was calling myself ‘artist’, of knowing that underclass, set in cities. The black middle class with that comes great responsibility, or aspirational class just didn’t exist. I had to but more importantly, a whole raft of move from complaining to saying, ‘How do I negative stereotypes. When we think about become the gatekeeper?’ the artist we think about divas. Sometimes “Being artistic director now of Baltimore there are connotations that the artist can be Center Stage is the biggest thing I have had to this irresponsible being that can produce challenge myself with. I think I have only just genius, but in the real world doesn’t function come to terms with the name, with the title of properly. artist, with its responsibilities. My community “Many of us know those stereotypes and is Baltimore. When Trayvon Martin was we know a couple of people that fulfil those killed and [neighbourhood watch coordinator stereotypes. But I would say that on the George] Zimmerman got off, I looked in the whole, the artists I know and respect actually eyes of my staff and people around me in stand for something. Being the artist is about Baltimore and saw existential angst. We came more than standing and basking in the glory up with the idea of serving the communities or the applause. that are most in pain. Let’s commission 10 “I was an actor but I didn’t feel I was a artists, let’s send these artists onto the very good enough actor to make acting the art streets of East and West Baltimore that you that could change something. An actor guys have seen on The Wire. Let’s go into waits for the parts to come. I read the the houses, the community centres, let those autobiographies of Malcolm X, of Marcus artists perform and then lead discussion at the Garvey – this is about self-determination. end of that. I could feel some people in the How are you just going to sit there and wait office were worried that this was dangerous, for it to come to you? It doesn’t work that that we would lose some of our patrons, that way: stand up, find, do. So I taught myself to some of our older white patrons are going to write. And I became a writer. think this is political. “I remember there was a group of us. “Ultimately, sitting firmly within the skin The BBC and ITV, for a season, decided to of being an artist, my job is to be a catalyst for only do period dramas. And in those period a debate that says ‘Look at yourself. Are you dramas at that time, of course they didn’t have happy with what you see in the mirror, and if black actors. So I decided I had to write – not you aren’t happy, then what are you going to just for me, not just so I could star in it, not do about it?’ See yourself in your ugliness and just as a vehicle, but because of the lack of then ask yourself, ‘Do I wish to stay here?’ stories that came from us, that were about us, “I’m overjoyed to be back in England, that validated us, that critiqued us. directing at the Donmar, a brilliant and “I started to write in order to do that. I radical theatre. As much as I enjoy being at was fortunate. Things started happening at home, as much as the infrastructure work that the National Theatre. But it got to the point is being done is magnificent – I switch on my where the directors who were directing my TV and I see far more faces of colour that I pieces were all white. I wondered if there were saw five years ago – I’m not sure that the faces any black directors who could interpret this behind, the producers, have changed as much work, but it was deemed that there weren’t as they should. There lies our fight, as artists, any. I said to myself, ‘What do I do? Do I sit as citizens. We must let our country operate here and do I moan? No. I will try and learn and look the way it looks when I’m walking to direct.’ I asked if I could sit in people’s down the South Bank.”

69 Sustainability of Channel 4 – Submission to the House of Lords communications committee inquiry (abridged)

April 2016

In anticipation of potential privatisation would argue that this is a relatively small plans for Channel 4, we would like to return for the loss of the channel’s public reiterate evidence which expresses the value remit. If it were to be sold, the channel of public sector broadcasting to our sector. would be incentivised by shareholder The UK creative industries are booming interest instead. But it is the channel’s public and are an increasingly important part of remit that prioritises investment in skills, the economy – with growth outgunning the exclusive use of independent production finance and insurance. Public investment companies all over the country, and a and ownership of all sorts contribute to the diverse workforce and output. Even if the UK’s unique mixed economy in the creative company wished to continue many industries and help to feed this success. of these streams of work, it might be unable Work produced by the Creative to as shareholder interests would influence Industries Federation – most notably the commissioning standards and output. our report How public investment in the A public remit does not only benefit the arts contributes to growth in the creative production sector. The variety of voices industries (2015)47 – has demonstrated who contributed to the Creative Industries that captains of industry (from fashion, Federation’s submission to the green advertising, film, visual art, publishing and paper on the BBC demonstrates that more) embrace this mixed economy, where broadcasting is a fundamental part of our government investment supports innovative entire creative industries ecosystem, from ideas, and public investment and risk-taking music (classical and popular), to film, returns and stimulates private profit.48 advertising and design. Yet business is in some ways running ahead of politicians where, despite the creative economy boom, the Department for Business, Innovation and Skills does not About Channel 4 and include the creative industries in its data the creative industries for industrial growth and the current education system fails to deliver the skills Channel 4 is the UK’s only publicly-owned needed by the sector. This is despite vocal but commercially funded public service support from the chancellor at the (2015) broadcaster, which makes it unique within Autumn Statement and subsequent the wider UK creative industries ecosystem. spending reviews. In addition to Channel 4 itself, C4C also We would urge the government to see comprises E4, More4, Film4 and 4 Music the retention of a public remit for Channel 4 as well as on demand services. The channel as part of an investment in fast-forwarding returns its profits into programming and growth and diversity in the creative talent development – acting as an incubator industries in general, and in broadcasting in that feeds the sector as a whole. particular. This is both in terms of creating Under the terms by which it was innovative and groundbreaking content, as established and its remit as given by well as in terms of diversifying workforce government, Channel 4 has no in-house and on-screen programming. production company, which means that it The selling of Channel 4 could raise uses independent production companies around £1bn for the government,49 but we from all over the UK and invites them to

70 71 create content that fulfils its public remit of high quality content which is educational, Channel 4 distinctive and innovative. It currently works market impact with more than 300 production companies in the UK. In 2014, more than half of these Research produced in January 2016 by were situated out of London, which has Enders Analysis, who are Federation given an essential boost to the government’s members, argued that Channel 4 and the ambition of fostering creative industries hubs BBC were the foundations of a now world- outside of the capital and the South East. beating production ecology. The independent Channel 4 and the BBC are both essential sector has seen its share of UK commissions to the independent production sector. This grow (from £2.2bn in 2009 to £2.9bn in is not only because they are willing to take 2014), partly as a result of policy changes risks (although in recent years there have made by the Conservative governments of been criticisms of the BBC becoming more the 1980s and 1990s53 followed by legislation risk averse) and commission and employ a introduced by the Labour government, diversity of companies, but also because they including the terms of trade negotiated in provide the certain funding and IP ownership 2003 after the Communications Act. needed by smaller production companies.50 However, there is now an issue with This supports talent and training around the new television content. Total investment in country and helps to develop creative hubs, original television content in the UK (outside but would not necessarily offer immediate sport) fell by £400m between 2008 and returns for shareholders so Channel 4 2013. Investment by all the public service privatisation would be likely to put the future broadcasters combined fell by around 15%. of some of these companies at risk. Increased investment by pay-TV channels C4C continues to be well regarded both made up some of the difference, but not among public and industry experts. Film4- all, and a majority of their expenditure is backed films won three Oscars in 2016, while on sport. These figures and a useful further C4C altogether picked up eight RTS awards. analysis of public service broadcasters In particular, Channel 4 is perceived as the (PSBs) and multichannel provision can be PSB that is the most risk-taking. found in Ofcom’s Third Review of Public Although some in broadcasting and Service Broadcasting – Public Service advertising have supported the idea of a Broadcasting in the Internet Age. privatised Channel 4 (notably Lord Grade51), We would urge the House of Lords to there have been many more industry recommend that this government continue voices who have argued that the public to invest in this world-beating sector – remit of Channel 4 has helped to create its which is still increasing in growth from distinctiveness and a platform for content foreign income and new multi-platform and advertising, representative of particular exploitation of intellectual property – both demographics of viewers. These have indirectly through funded skills bodies included Karen Blackett, chair of MediaCom and training schemes, and more directly UK, Mark Lund, chief executive of McCann via financial support for the BBC and the Worldgroup UK, and Richard Eyre, ownership and public remit of Channel chairman, Internet Advertising Bureau.52 4. Although investment and ownership They, among others, are concerned that if the of C4C is not the only way to invest in channel were privatised, this distinctive voice the media and broadcast sector, many of might be replaced by something which was our members value its public remit which more generally appealing. encourages investment across the country in small businesses, supporting production companies, and fast tracking diversification of content and sector workforce. In terms of growth, between 2013 and 2014 the GVA of the film, TV, video, radio and photography sector overall increased by 13.8% driven by recent growth in production and distribution in media, and by television 72 Channel 4 Paralympics presenting team for Rio 2016 Courtesy of Channel 4 Channel Courtesy of programming and broadcasting activities. paper shows progress on 24 of the original Although it had previously decreased by 30 initiatives.56 3.0% between 2012 and 2013, and 2.0% in Channel 4 has also become well known for the year prior to that, since 2008 there has producing iconic moments which highlight been 4.7% growth at large. its commitment not only to diversifying Our television and production sector has the workforce but to showing a range of also become essential to the UK in terms of lifestyles and backgrounds on television. soft power promotion. For example, Chinese These range from Queer as Folk and the businesses have been cited saying that they first pre-watershed lesbian kiss on Brookside have much to learn from Undercover Boss, to The Undateables, The Autistic Gardener the Channel 4 series which sees senior and their coverage of the Paralympics, which executives going ‘back to the floor’ to was watched by 40m people – 83% of whom understand how their businesses really work, said the coverage would positively change including empathising with hard-working perceptions of disability. More recently, the staff. The series is now broadcast in more Alternative Voices campaign saw five people than 200 territories.54 with communication difficulties join the continuity announcement team.57 This on-screen diversity has also been Diversity echoed by the public perception of the broadcaster. Audiences have rated the Channel 4 has made a major and channel above other PSBs for showing the comprehensive commitment to diversifying views and perspectives of BAME, LGBT its workforce and on-screen presence with and people with disabilities. its 360º Charter. This charter is a five-year Channel 4’s position as a commercial plan with 30 commitments to improve channel with a public remit and ownership diversity across the board, with detailed means it is able to push diversification to commissioning diversity guidelines and clear the top of their agenda without consulting numbers and targets. It also aims to be a shareholders. It reaps the benefits of catalyst for changing the wider attitude of diversification in commercial terms while public service broadcasters, and broadcasting proving to other businesses that it is possible at large. The charter was praised by Sir actively to diversify whilst remaining Lenny Henry who said that it was “an competitive. Furthermore, this means that extraordinary step forward”, although he generations of talent are not lost while they called for further ring-fencing of money wait for the market to catch up and the life explicitly for black, Asian and minority ethnic chances of those who would benefit from (BAME) projects.55 The One Year On these opportunities are not diminished.

73 British road sign by Jock Kinneir and Margaret Calvert

Around the UK

74 Photo: Luke Hayes, courtesy of the Design Museum 75 Around the UK

It is absolutely essential to the Federation that we work to reflect the diversity of the creative industries across the whole of the UK. Our meetings and events nationwide inform our understanding of the on-the-ground significance of policy shifts in areas such as education, funding and trade.

We recognise that what happens at a local An edited version of the Federation’s level – whether dictated by national decisions submission is provided in the pages that such as cuts to local authority budgets from follow. Harriet Finney, the Federation’s the Department for Communities and deputy chief executive, also gave oral evidence Local Government, by the local authorities to the committee in September 2016.58 themselves or by the funding decisions of arts This section also includes an abridged councils and other bodies – is critical. version of the Federation’s submission to the Some of these issues were explored by the Greater London Authority on the importance countries of culture inquiry launched by the of cultural regeneration in the capital, which culture select committee in March 2016, the is currently home to around a third of the sequel to its 2014 investigation into the work country’s creative businesses with the creative of Arts Council England and the difference economy accounting for one in six jobs. in funding between London and the rest of This formed the basis of a larger England. That concluded that the imbalance submission on proposals for the London had been at the expense of taxpayers and Plan, submitted in December 2016, which Lottery players outside the capital and must also included recommendations on the be urgently rectified. night-time economy, a policy issue to Countries of culture called for which we will return in 2017. Much of the submissions examining issues including the discussion around the night-time economy current funding situation for cultural and recent escalation in the closure of music sectors in the regions, the regional impact of and performance venues has centred on the local authority settlement on the cultural the impact on communities and tourism. sector, skills and management, physical and But the wider creative sector is increasingly virtual accessibility of cultural sectors in concerned about these closures and their the regions and value and impact of culture impact on its success. in the regions Announcing the inquiry, Jesse Norman, committee chairman, said it would look at how best to preserve and enhance the huge cultural and artistic riches of the UK’s regions and nations. Despite his move to ministerial office at the Department for Business, Energy and Industrial Strategy, he discussed countries of culture with Federation members at a Unique Breakfast in London in July.

76 Gwyn Hughes Jones as Canio and Meeta Raval as Nedda in Welsh National Opera’s Pagliacci Photo: BillPhoto: Cooper

77 Architect Haworth Tompkins’ Stirling Prize-winning Liverpool Everyman theatre Photo: Photo: Philip Vile

78 Countries of culture – Submission to the culture select committee inquiry (abridged) April 2016

This paper looks at: 1. The current funding 1. The current funding situation for situation for cultural cultural sectors in the regions and sectors in the regions and subregions and the regional impact subregions and the of local authority settlement on the cultural sector regional impact of local • Mixed funding model authority settlement on • Putting heritage back in the picture the cultural sector • Arts officers • Local government opportunities Mixed funding model In the UK, culture is funded by a mixed 2. New funding models in the economy model, where public investment cultural sector in arts and skills attracts and complements philanthropy and other investment. The • Corporate sponsorship importance of the mixed economy model • Philanthropy was recently expressed in the government’s • Tax relief Culture White Paper which argued that • Heritage maintenance funds “we have a successful model of cultural investment in which public funding works 3. Physical and virtual accessibility alongside earned income, private sector of cultural sectors in the regions, finance and philanthropy. This mixture of including digital outreach and income streams provides the basis for a 59 engagement thriving and resilient cultural sector”. The Federation represents businesses alongside public arts organisations and creative education and argues that the public sector contributes to the strength of the wider creative economy, not least in the development of talent and the exchange of ideas.60 We represent the business case for culture, alongside its social and educational importance. Reduced funding hits not only the arts, but growth in the creative industries. The raw materials of the creative industries are talent and ideas, and public investment in creative and cultural public organisations around the country is an investment in innovation and research and

79 development. As the case of the National For many communities, the closest Theatre’s War Horse illustrates, this can cultural space is in heritage rather than lead to significant commercial returns that the arts, including spaces run by the were not expected or predicted at the risky National Trust, National Trust Scotland, development stage. This effect has been Historic Houses Association, English shown to work on a local and regional Heritage and Historic Scotland, among level, as well as a national one, as illustrated others. For example, Waddesdon Manor in by research projects such as the Brighton Buckinghamshire acts as a focus for cultural Fuse, or BOP Consulting’s work on the activity in both the village of Waddesdon economic impact of the City of London’s and the wider area – from plays, to cultural cluster.61 More recently, the Arts exhibitions and local projects with schools.67 and Humanities Research Council (AHRC) For these communities, their most important Cultural Value Project has worked to identify cultural spaces may not be supported by arts modes of measuring the many benefits of councils at all. cultural organisations and investment, both A proper mapping of UK culture should in the local area and more widely.62 include these spaces alongside those funded George Osborne acknowledged by local authorities and arts councils. The the economic as well as the social case mapping should also include festivals. for culture in his chancellor’s Autumn The innovation charity Nesta is currently Statement in 2015, when the settlement for mapping creative industries businesses the Department for Culture, Media and across the country. It would be of great value Sport (DCMS) was better than expected. for local authorities, national policy makers, But cultural spaces (in particular those and business leaders if this evidence were out of London) are also heavily reliant presented in a way that also showed where on investment from local authorities who there had been public funding of arts so remain the largest investors in culture if you we can see where public investment in include spending on libraries.63 This means culture may be underpinning the wider that the cuts to local authorities may have an creative economy. unprecedented impact on culture across the UK. Already, the Museums Association has Arts officers reported that 40 museums have closed since Coordination can amplify the benefit of 2010 due to reduced funding,64 and almost publicly-funded culture. The impact can be 8,000 jobs in libraries have disappeared in multiplied if there is someone to make links six years.65 We ask the government to take between arts organisations and other local the lead in communicating the benefits bodies, such as schools, care agencies and of investing in arts, not just for local the NHS, and in the past this post has been communities, but to stimulate jobs and filled mostly by local authority arts officers. growth in the regions. Yet funding cuts have caused a damaging loss of personnel. The Chief Cultural and Leisure Putting heritage back in the picture Officers Association (CLOA) estimated Public funding through arts councils is that 6,000 jobs in development posts for the absolutely essential for the future growth of arts, museums and sport had been lost at the creative industries, as well as the cultural the time of their publication (June, 2015).68 health of the UK. This is explored in detail Part of the function of these personnel is in our report, How public investment in to help the cultural sector collaborate with arts contributes to growth in the creative other local authority departments and industries.66 But the arts councils only secure funding for relevant projects. They support a proportion of the cultural spaces make sure that culture is an essential part of of social and economic value to the UK. regeneration plans, as in the London borough of Southwark, or they secure funding for

80 cultural events within other budgets, as in on how to benefit most from the new system. Kent County Council where the culture team This could and should include information has collaborated with the refuse department on how the arts and creative industries can in using artists for environmental messaging. catalyse local growth but also how growth This may mean small amounts of money can requires local authorities to protect their have more than one benefit – as, for example, cultural spending. in the employment of arts professionals and In January 2016, the Federation wrote arts facilities in caregiving activities. This in to Greg Clark, then communities and local turn helps the arts organisations to become government secretary, to argue that DCLG, increasingly resilient and also ensures that a in particular, could and should adopt this wider section of society benefits from their leadership role. work and expertise. The danger is that shortsighted decisions on cutting arts funding and other Local government opportunities infrastructure investment risk damaging job creation and economic success in a sector Although arts funding through DCMS was with enormous potential for expansion. protected in the 2015 Autumn Statement, The ability of local government to retain the cuts to local authorities are of arguably increasing amounts of business rate revenues greater significance as they remain the means business in fast growth areas, such as biggest investors in culture. Spending is the creative industries, is to be encouraged. under increasing pressure: between 2010 This is particularly because creative and 2015, figures from the Department industries provide compounded benefits to for Communities and Local Government the local economy by their ‘hub’ nature. As (DCLG) show a decline from £1.42bn to the examples of Brighton, Shoreditch and £1.2bn, a reduction of 16.6%, in spending on the BBC move to Manchester demonstrate, arts and culture development and support, creative businesses boom when they interact theatres and public entertainment, museums with one another, especially within the and galleries, and the library service.69 context of a wider cultural offer that attracts This is a lower reduction than for and inspires designers, advertisers, games spending overall, which suggests that many developers and filmmakers. councils have been protecting services where If efforts to protect spending on the they can.70 But we still feel that there is a NHS, aid, school and defence are successful, need for central government to promote real-terms cuts to other areas of spending the benefits of culture and the creative will be around 10.9%, on average, from economy and take the lead in explaining 2010-11 to 2019–20 (IFS, 2016).71 The to local authorities the potential benefits of risk is that, faced with making the cultural investment. These benefits include decisions on the ground, local authorities investment acting as seed funding for specific will not find the critical mass of investment projects or as infrastructure to support needed to sustain a creative economy, broader growth of the local creative despite the incentive to do so. Arts economy, including creative microbusinesses institutions may be hit hardest in the local and tourism. authorities which have least ability to find The DCLG consultation on the other ways to protect them. The arts have in provisional local government finance general become more entrepreneurial,72 but settlement 2016-17 marked a point of radical it is likely that these areas are also the ones change in terms of the funding model for with the least developed creative industries local authorities, and – given the scale of the infrastructure to support their artistic centres ‘devolution revolution’ changes and their and with fewer philanthropists to make up potential impact – we believe that central the shortfall. government has a responsibility to provide information and advice to local authorities

81 2. New funding models in the We also welcomed many of the recommendations made in the Culture cultural sector, including use White Paper on cultural investment, of Lottery funding resilience and reform, although it is not always clearly communicated exactly how As explained earlier in this document, the these recommendations will be implemented. cultural sector in this country relies on a mixed economy funding model. With reduced public investment in the arts – Corporate sponsorship which is likely to be particularly felt by There are many examples of successful and our members in the regions and small arts innovative sponsorship models in London, organisations – it is vital that government but these partnerships are largely far more takes a fresh look at new funding models. ad hoc and less well established outside In 2010, in his Action Plan to Boost the capital where fundraising can be a Philanthropy, then culture secretary Jeremy daunting task. Hunt committed to exploring ways to Corporate sponsorship can never encourage more investment in arts and replace the stability provided by core public culture by the business sector. A series of funding but government should explore events and initiatives were held throughout ways to incentivise greater flows of corporate 2011. These did not materialise into greater investment into the arts, with a particular levels of corporate sponsorship; in fact, focus on stimulating corporate sponsorship according to Arts and Business, corporate beyond London. The Creative Industries investment in the arts fell for a fourth Federation proposes the government year running in 2011, to its lowest level should take the lead in a high-profile initiative since 2004. promoting the benefits of, and encouraging, There has been no formal tracking corporate investment in the arts. Public of corporate investment in the arts since recognition, which could be in the form of 2011/12 when Arts and Business published a kite-marking scheme, for sponsors and its last private investment in culture survey. benefactors would highlight the importance of At this point, corporate investment was participation and help promote best practice. £113m, and had been declining steadily from In order to promote sponsorship of a peak of £171.5m in 2006/7. Currently only regional arts organisations and touring around 30% of FTSE 100 companies engage of London productions and exhibitions, in any form of arts sponsorship. Arts Council government should explore tax incentives for will be repeating this survey later this year. corporates who commit to support the arts Following conversations with our outside the capital. members, we submitted a paper to There are other sources of support that Treasury ahead of the spending review in could be explored such as a tax incentive November 2014. This focused on specific to encourage corporate sponsorship that is recommendations designed to boost well established in Brazil. The Rouanet Law, traditional funding models and suggestions which has been operating successfully since of new funding models. A summary of key 1991, is a tax incentive for corporations, recommendations from our paper is below. whereby they are able to invest up to 4% In addition we are hosting a roundtable on of their payable corporation tax in cultural corporate sponsorship and philanthropy in activities. The flows of income into the sector May which will further inform our work in would be significant if a similar system this area. were introduced in this country: a company paying £10m in corporation tax would be able to contribute up to £800,000 to cultural sponsorship projects of its choice.

82 The BBC at MediaCityUK on Salford Quays Photo: Craig Holmes Photo:

83 Consideration should be given to whether Tax relief it might be possible to offer a Rouanet Government has given major support to the Law-type tax incentive to corporates creative industries with the introduction of who undertake to sponsor London-based a raft of vital new tax incentives. The recent exhibitions or productions if they agree introduction of tax relief schemes to extend their sponsorship arrangement for theatres, orchestras and exhibitions to encompass touring. Even acclaimed are welcome. productions such as War Horse and The They do not, however, necessarily help Curious Incident of the Dog in the Night- to build and maintain infrastructure or Time, while well supported during their vital education and outreach in the way London runs, failed to receive any corporate that public investment can. Neither do tax support on their national tours. Tours of breaks mitigate the risk for private investors exhibitions and theatrical productions are in the way public investment can at the immensely expensive and public funding high-risk stage of idea development. And cuts are likely to diminish the appetite to many theatres and orchestras are small tour. Whilst welcome, the recently introduced and medium-sized charities, and as non- tax relief for theatres, with an incentive for taxpayers do not always realise they too are touring, will not plug the funding gap. eligible for the schemes. More needs to be done to highlight the eligibility of charitable Philanthropy organisations and what they need to do As with corporate sponsorship, philanthropy to access the tax relief. Some have also will never replace core public funding. mentioned the complexity of the process However, in light of reduced public funding, for claiming the relief. We request more it is necessary to revisit ways of stimulating assistance for the small and medium-sized interest in arts philanthropy. According to theatres, orchestras and galleries – many of the Coutts 2014 philanthropy survey, which whom are out of London – for whom this looks at donors giving more than £1m, the tax relief would be of enormous benefit. arts and heritage sector received just 8.5% of total £1m+ giving in 2013. The regional Heritage maintenance funds bias is also marked. The 2010/2011 Arts We also suggest that mechanisms are and Business survey showed that 80% of introduced to support our many cultural all philanthropy generated in England goes assets in the heritage sector, starting with to London-based organisations. a recalibration of heritage maintenance A number of reports were commissioned funds (HMFs). by DCMS and published in 2012, including HMFs were created in 1976 to enable Philanthropy in the Regions by Peter S owners of historic houses (of national Phillips, Removing Barriers to Legacy importance and open to the public), to Giving by Roland Rudd and Democratising channel resources for maintenance into a Philanthropy by Matthew Bowcock.73 There ring-fenced fund, which would be sheltered were many interesting recommendations set from capital transfer and inheritance tax. out in these reports, many of which have not Research by the Historic Houses Association been taken forward, or which require a more and The Heritage Alliance indicates that consistent approach to implementation. reducing the tax rate for income from HMFs used only for maintenance of the historic house to which the HMF applies would encourage more HMFs to be set up and allow these funds to grow, enabling longer term projects for maintenance to be envisaged.

84 An additional £13m of maintenance In order, then, to continue to be a global funds would be generated each year if the cultural powerhouse, it is important that the government adopted the HHA proposal UK not only keeps investing in our physical to make income with HMFs available to cultural spaces and the people who support heritage owners in the same way as other them, but also considers how the digital income. The annual cost to the Exchequer revolution will impact on consumption of would be £8m, but it is an example of culture. There is potential for the digital a measure which would produce public revolution to allow previously isolated benefits well beyond the maintenance of audiences to explore new art forms and historic houses. Employment, recreation, cultural organisations and to create new art education, local cultural events, as well as forms and experiences distinct from those the positive impact of an active heritage available regionally. attraction on the surrounding economy, Projects currently in process by would all be sustained, in areas of the country Federation members include the One Click where other government policies do not Culture work by the Rothschild Foundation always reach. as well as the National Theatre and Royal Opera House’s programme of live broadcasts (which reached an audience of 3. Physical and virtual 1.2 million people). accessibility of cultural Federation member Google has also been sectors in the regions, working across the public/private divide including digital outreach with its Cultural Institute, which aims to help cultural institutions make the most of digital and engagement opportunities to reach new audiences, helps to preserve diverse heritage with state of Research by Ofcom has indicated that nearly the art technology, and aims to enhance the nine in 10 people use the internet anywhere, ways in which people experience culture by on any device. According to their research, making museums’ collections more two-thirds of adults (66%) use the internet accessible and promoting innovation in the both at home and elsewhere; around one in cultural sector. five (18%) use it at home but not elsewhere, Whilst digitisation of collections offers arts and 4% only do so in places outside the organisations access to broader audiences, home. Overall, in 2015 close to nine in it must be equitable. The benefit for the 10 (87%) of all UK adults said they used arts organisations is in improved access, the internet (on any device), either at home and opportunities to develop new revenue 74 or elsewhere. streams and the benefit for those who deliver includes enhanced profile and reputation as well as access to unique intellectual property.

85 Edinburgh International Festival 2016 Standard Life opening event: Deep Time

Scotland, Wales and Northern Ireland

The Creative Industries Federation is proud to span the whole UK. We believe it is ever more important to understand perspectives from all parts of the country as we make the case for the infrastructure and investment our sector requires to grow and thrive. Photo: Neil Hanna NeilPhoto: Hanna

86 Scotland Fergus Linehan, EIF director, praised the connectivity and collaboration the EIF The creative industries are a vital part of the and the Creative Industries Federation Scottish economy and employ more people both foster. He said: “Often at this time of than the oil and gas industry. But even in year many delegations come from all over Edinburgh, which is renowned for its mix of the world to ask our advice and to see how annual festivals, there are people who operate our success might be replicated. They ask a nearly entirely within their own sector and lot about Festivals Edinburgh, a collective rarely mingle beyond. organisation founded by the festivals, to see Last summer, the Edinburgh International how all of the festivals can articulate the Festival (EIF) suggested trying to remedy reach of what we do and work together to that by working with the Federation to make our sector stronger and better serve the implement some of the cross-discipline people of Scotland, Edinburgh and the UK. networking that is part of our USP. So “I think the Creative Industries Federation we co-hosted a party as part of a raft of has done that, but on a much larger scale: work expanding our understanding and joined together sectors with creativity at connections in the country. their core to those making arguments to After an in-depth meeting between John stakeholders and investors and looking at Kampfner and Fiona Hyslop, the Scottish areas of shared endeavour. As members, I can Government’s cabinet secretary for culture, tell you we’ve got an awful lot out of that.” tourism and external affairs, she was then He stressed that the festival’s own work guest speaker at the EIF/Fed reception. in making connections was similar to that Ms Hyslop highlighted the importance of the Federation. “When you look at some of the creative industries to the Scottish of the artists in this year’s festival, you see economy and how she had appreciated her an increasing amount of engagement and working relationship with the Federation. collaboration. Our opening event, Deep Time, “We want to celebrate what we have here was a collaboration of 59 productions, digital in Scotland and indeed internationally. We media, arts organisations, the University of know that our creative industries generate Edinburgh and the ubiquitous Mogwai.” more than £5bn of growth for our economy The Federation took part in the and help support the cultural and economic International Culture Summit, a Creative importance for our country. We have a Europe event on Brexit and the Beyond thriving games sector, our music industry Borders Festival and also met members and is vibrant and diverse, and film and TV enjoyed a string of performances at both the producers spent an unprecedented £45.8m EIF and on the Fringe. shooting in Scotland in 2014. The summer’s events built on previous “We want to make sure that we can drive meetings both in Edinburgh and Glasgow this forward. We’re going to develop with and were followed in November with and for Scotland our first ever cultural our first major engagement with Dundee strategy. It’s very important we drive which is building its cultural profile with forward support for the creative industries. the £45m V&A Dundee. John Kampfner The lifeblood of the creative industries is a met representatives from various sectors, thriving cultural sector. including University of Dundee, Abertay “We are not selfish and we will face the University, the Dundee Rep Theatre, challenges of the referendum: 62% of Scots Creative Dundee, V&A Museum of voted to remain and we will make sure that Design, Dundee, Tag Games, and our interests are protected as we go forward FifeScreen+TayScreen Scotland at a meeting with discussions and negotiations. But the hosted at Dundee Contemporary Arts. emphasis we will have is not just about what we can get from the rest of the world, it’s what we can offer and share.” Photo: Neil Hanna NeilPhoto: Hanna

87 Fed panel discussion at the Cardiff School of Art and Design L-R Professor Olwen Moseley, Dean, John Rostron, Swn^ Festival, festival founder, Phil George, chair of Arts Council of Wales Photo: Tim Tim Photo: Dickeson Photo: Tim Tim Photo: Dickeson

88 Wales The arts could also promote engagement in community life, developing skills, The Federation’s first major meeting in imagination and hope, including in Wales brought together a panel of experts to disadvantaged communities, as well as debate the landscape for arts and the creative making major contributions in education and industries and ask whether a cultural strategy health. He pointed to a string of regeneration was necessary for regional economic success. projects in places such as Swansea and The panellists at the lively debate, held Blaenau Gwent which had contributed to in May at the Cardiff School of Art and a more resilient economy. “High-quality Design, included Phil Bale, leader of the experimental thinking and delivery in arts City of Cardiff Council, Carole Anne Davies, and architecture are opening up possibilities chief executive of the Design Commission through collaboration with local consortia for Wales, Professor Olwen Moseley, Dean and community groups.” of Cardiff School of Art and Design, and The way the Arts Council in Wales John Rostron, founder of the Sw ^ n Festival. develops its strategies in dialogue with Phil George, the chair of the Arts Council the Welsh government was also explored. of Wales, outlined the major impact of art and “The challenge strategically for the culture on the Welsh economy in a keynote government is to sustain the core public address, highlighting the growing importance funding for the arts. If grant-in-aid declines of the creative industries to the region with further – and we’ve already seen a an estimated 30,000-plus jobs. significant decline – we’ll find that the He said his own experience of expertise, the person-power and the artist the REACT hub, centred at Bristol’s development will not be there to drive these Watershed, and of the growing network initiatives forward.” of the Creative Cardiff project had shown He welcomed the openness of Phil Bale him the importance of artists to successful and his Cardiff city colleagues to developing partnerships between higher education a cultural strategy with the arts sector. researchers and business and technical talents “Even in these times of major downward in the creative industries. pressure on local authority funding, Cardiff’s But he also spoke about the broader role ambition to be ‘Europe’s most liveable city’ of the arts, both for society and the economy. will only be achieved if the social and cultural “Arts and cultural strength in a region or lives of its citizens are enriched beyond the nation attract talent and investment by development of physical infrastructure.” enriching the lives of citizens across a wide He said the challenge for the city was to range of activity. They make life sing. They use its leverage with assets and planning, make somewhere a good place to live and buildings and land, to support arts and work and to find a creative workforce.” culture and creative hubs and champion And cultural events were also key to cultural and creative interests but also to attracting certain kinds of tourists and provide crucial leadership to the surrounding visitors, he said. “Ask the European Capital local authorities in getting the best deal for of Culture 2017, Aarhus in Denmark, where culture from available public funds. 100,000 visitors are expected for just one of the events. We know how to do these things in Wales – look at The Passion in Port Talbot, the Dahl City of the Unexpected in Cardiff this September and the huge opportunities of our themed years, especially The Sea in 2018.” Photo: Tim Tim Photo: Dickeson

89 Northern Ireland Donal Durkan, director of development at Belfast City Council, was confident the Northern Ireland’s ambition to be a major creative industries would catapult Northern player in the creative industries was the clear Ireland into the 21st century. The city has message from the Federation’s inaugural a 20-year plan and is positioning itself event in Belfast in December 2016. on an international platform because the A panel of leading cultural figures from key to future survival was to sell itself Northern Ireland augmented by games internationally. It is working hard to attract development and publishing entrepreneur investment through a range of initiatives. Andy Payne discussed its successes to date, Yet, as in other areas of the UK, there was such as the production of the global hit a failure to align education policies with the Game of Thrones, and the challenges skills needed for the sector – compounded by of funding, skills and infrastructure for a second problem of talent retention. A large the future. number of the region’s students educated in In a wide-ranging discussion on the arts, other parts of the country did not return. competition and collaboration held at The The prospect of Brexit and what it might MAC, Richard Williams, chief executive mean for the border with the Republic of of Northern Ireland Screen, said the region Ireland was causing some alarm. Kathryn was aiming high. “Northern Ireland Screen Thomson said the museum sector employed has a mission to be second only to London many EU nationals. But Richard Williams and/or the South East within the screen suggested they needed to ignore the politics industries within 10 years,” he said. They of Brexit and just get on with their work. have built skills and infrastructure thanks to As the outsider grit in the oyster for the Games of Thrones. The question now was discussion chaired by John Kampfner and how to build on that. supported by Barclays, Andy Payne asked Kathryn Thomson, chief executive what the big creative industry would be in of National Museums Northern Ireland, Belfast in 10 years’ time and suggested self- suggested the creative industries sector employment was the future with coding the was much deeper than was sometimes lingua franca. understood but it was important to build But he also flagged a major problem for the regional brand to attract the funding the sector – that banks do not understand they needed. “It is through our arts and non-physical assets. “They don’t understand culture that we create a place and we create a that our IP, intellectual property, is worth a lot destination and we create something unique of money,” he said. The sector had to explain and we position ourselves globally. Therefore to government, too, that creative jobs are it is even more important that we are very serious jobs. “It’s real, it creates wealth and coherent in what we advocate for and what exports which the government is quite rightly we stand for,” she said. obsessed with.” The creative industries, and especially arts and culture, also had a big role to play in Northern Ireland in terms of Irish history – “how we deal with the legacy of the past because it helps us to look at things very creatively, differently”.

90 Culture-led regeneration in London – Submission to the Greater London Authority inquiry (abridged)

September 2016

In his campaign to be mayor of London, place to work and live and because these are Sadiq Khan pledged “to ensure that decision- often businesses which grow quickly and pay makers in Westminster, Brussels and back into the economy this way. If spaces are elsewhere hear the voice of Europe’s biggest not made available, the city will lose these commercial centre” and to promote “the city’s important benefits. cultural riches – our fashion, music, design, film, art and architecture – to Londoners, the Policy recommendation: rest of Britain and the world”. We suggest that the mayor urgently addresses the London has the highest percentage and need for affordable workspace. This should be an number of creative industries jobs in the element of the London Plan from early drafts as UK. It is a global centre for the sector and a key area of policy for the future of the sector the mayor must take a leadership role in the and the capital. country’s policy in regards to this sector in Westminster and beyond. Policy recommendation: Yet, between 2007 and 2015, London lost The GLA should classify affordable workspace for 35% of its grassroots music venues, a decline the creative industries as ‘infrastructure’ - essential from 136 spaces to just 88, while some 3,500 support to the capital’s creative economy. This artists are likely to lose their places of work by would allow providers to apply for Community 2019 (30% of the current provision). Infrastructure Levy (CIL) funding. Although there are some areas where the sector requires movement at national Policy recommendation: government level, there are many policy issues The GLA should provide robust direction where the Greater London Authority can and on developing and implementing workspace should make positive changes, and even more provider lists at borough level to ensure that areas where the mayor should use his position charitable as well as commercial providers secure to put pressure on central government. the appointments.

In this report we give a sectoral overview of: Funding and local authority spend • The cost of living and working There are issues at local authority level • Funding and local authority spend including funding of the arts and local • Skills shortages authority spend that the mayor can provide • Visas and freedom of movement direction on. The raw materials of the creative industries, including the publicly- supported The cost of living and working arts, are talent and ideas. Therefore, investment The rising cost of space in London has in innovation and research and development an effect on many other industries, but is across the creative industries is essential for multiplied for many small creative businesses economic and employment growth. or artists, who need both living and studio Even sectors that might appear strictly space and so are doubly affected by the high commercial such as IT, software development price of living. The city needs these artists and digital games rely on public investment and young creatives – both because they for maximum growth. For example, 37% of make the city an attractive and interesting video games businesses depend on public

91 grants and government financial schemes. encourage more women to pursue technical So the issue of funding is not just about subjects, then the mayor will need to be an the arts but about the entirety of our advocate for arts and creative subjects too. interrelated sector. More broadly, as technologies change We believe that the city mayor should quickly – with innovation happening all assume a leadership role in encouraging over the world, rather than confined to a local authorities to grow their creative few states – there is a need for London to industries by investing in the vital foster as many links as possible with those infrastructure that supports them. The who might be at the genesis of new ideas danger is that short-sighted decisions on and to encourage them to interact with the cutting arts funding and other infrastructure city (whether by moving to it or sharing investment risk damaging job creation and innovative ideas) and develop those new economic success in a sector with enormous technologies here. potential for expansion. With London holding almost a third of all of the UK’s creative economy jobs (28.2%) Policy recommendations: and 30.8% of the creative industries, it is The London mayor should assume a leadership perhaps more urgent for the capital than role in advocating the importance of funding for any other part of the UK to think about the creative industries, and in particular the how to make sure it is able to fill the new job arts both at borough and at a national level. vacancies that are being created. The mayor should investigate and highlight best practice in London. Policy recommendations: The mayor and the GLA can send out a message Skills shortages to the national government that they are serious The creative industries have long-standing about addressing this education and skills crisis. skills shortages. These stem from inadequate One first step in doing this would be to have a training and provision at school and design/engineering/architecture module in the university in this country compounded by London Curriculum aimed at 13-14-year-olds. the ever-greater need for talent in a growing This would mean that those students taking the sector. In his manifesto, Sadiq Khan pledged module would have the opportunity to discover to “establish a tech talent pipeline, through some of the wide range of jobs that utilise the the Skills for Londoners task force, following combination of technical and creative skills. It the model developed by Bill de Blasio in would also have a value in acting as a blueprint New York, with more young people enabled for other cities and devolved regions, who could and encouraged to gain key digital skills, use it to ensure that they too are encouraging and more apprenticeships in the sector. students to think about careers in these sectors. In particular I will ensure more girls are supported to develop tech skills, so that we Policy recommendations: can turn around the underrepresentation of As education policy continues to be devolved, women in tech jobs”. there will be many more opportunities to In order to do this, he will need to look address the skills gap. But as London benefits at the talent pipeline more broadly – and at from creative talent from across the country, what is happening at a national level. The the skills shortage will not be truly addressed lack of relevant tech skills is accelerated until national policy is changed. The mayor by the drop in students taking design and should therefore become a vocal supporter of the art subjects. Engineering and tech sectors importance of creative subjects at school and in have both shown that, in particular, women higher education and put pressure on national are more likely to go into these sectors if government to change existing policy. encouraged to learn technical and creative subjects in parallel. If we want to fill our These skills shortages will be exacerbated greatest skills shortages in industries like by changes to freedom of movement as animation, engineering and VFX, as well as a result of Brexit. Changes to the visa

92 Agora by Richard Wentworth at Bold Tendencies, Peckham Photo: Quintin Lake Photo:

National Theatre The Roundhouse

Photo: Nici EberlPhoto:

Royal Albert Hall Photo: Photo: Philip Vile Ginns Marcus Photo:

Natural History Museum Barbican Centre

93 Photo: Tom Flynn Tom Photo: Image courtesy of trustees of the Natural History Museum trustees courtesy of Image the Natural of History Museum system can only currently be made by the Policy recommendations: Home Office, but there have already been The mayor needs to make the creative and calls for a London-only visa system by the technology sectors (including small businesses London Chamber of Commerce. Part of and startups) a key consideration in any the mayor’s election campaign manifesto lobbying on visa provision. was to “challenge unfair visa rules which make it harder for London businesses to What role should culture play bring in the world’s best talent, who in turn in regeneration projects? What create future opportunities for Londoners”. opportunities are there for regeneration The EU referendum vote has made this more to help expand London’s cultural offer? important than ever before. The creative industries rely on European There have been high-profile uses of culture talent to supplement our own. Currently as an essential part of regeneration. In 6.1% of our sector across the UK comes 2008, Liverpool, as the European Capital from Europe. But freedom of movement of Culture, received 9.7 million additional within the EU has also allowed us to build visitors, which meant more than £735m of workforces that help us better understand additional spend in the capital. our market as more than half of our creative In the first edition of our international industries exports go to Europe. Loss of this journal we also looked at other city-based talent could hurt the sector. projects that have been based around the Our sector is also disproportionately creative industries and culture – from Cluj in made up of freelancers, microbusinesses Romania to Rotterdam in the Netherlands. and SMEs, who are less likely to be able to Culture must be an essential part of any sponsor talent. By losing out on a diverse regeneration attempt, but investment must group of freelance designers, computer be sustained and dependable rather than engineers, architects and more, we will be piecemeal. And regeneration which positively inhibiting the growth of this sector more than works for an area means providing affordable any other. space in a sustainable way for artists and Existing visas already do not fit the needs creative startups. Putting in public art is not of our sector at large. enough. If the arts are not being enjoyed by There is also concern around the way everyone – starting at school but including in which London and the UK more widely participation right the way through – then are seen by those who might work and social divides will be exacerbated. study here. Already further education and higher education institutions are reporting a reduction in applications for courses given prospective students’ uncertainty as to their eligibility for both visas and EU fee rates after Brexit comes into effect – which for three- or four-year course students may be before they complete their studies. This not only causes greater skills shortages, but will impact the financial performance of many UK educational institutions. There is an opportunity for the creative sector to remind international talent about the vibrancy of London.

94 Endnotes

1 Speech available from: http://press.conservatives.com/ 20 Speech available from: http://www.independent.co.uk/

2 news/uk/politics/theresa-may-keynote-speech-conservative- Speech available from: https://www.gov.uk/government/ conference-birmingham-in-full-a7346171.html – speech speeches/cbi-annual-conference-2016-prime-ministers- given on October 5 2016. speech 21 3 Windsor, George, Hasan Bakhshi, and Juan Mateos Garcia. “DCMS Sectors Economic Estimates.” DCMS, August “Skilled Migration and the UK’s Creative Industries.” 2016. Nesta, September 2016. 4 “Understanding the UK STEM Technician Workforce: 22 http://www.artsprofessional.co.uk/news/exclusive-arts- For the Gatsby Charitable Foundation.” TBR: economic schools-plummets-new-figures-show research & business intelligence, September 2014. 23 5 Pooley, (Dr) Emma, and Andrew Rowell. “Studying “Creative Industries Economic Estimates January 2016.” Craft 16: Trends in Craft Education and Training.” Crafts DCMS, January 2016. Council; TBR, October 2016. 6 More on this can be found: Easton, Eliza, and Jonothan 24 The English Baccalaureate (EBacc) is a performance Neelands. “Creative Education Agenda.” Creative measure for schools, awarded when students secure a grade Industries Federation, May 2015. Available at: http://www. C or above at GCSE level across a core of five academic creativeindustriesfederation.com/assets/userfiles/files/CIF_ subjects – English, mathematics, history or geography, the EduAgenda_spreads.pdf sciences and a language – equalling 7-8 GCSEs. 7 Mateos Garcia, Juan, and Hasan Bakhshi. “The Geography 25 http://www.cambridgeassessment.org.uk/Images/307016- of Creativity in the UK.” Nesta; Creative England, July uptake-of-gcse-subjects-2015.pdf 2016. 26 8 http://www.cambridgeassessment.org.uk/Images/307016- Bakhshi, Hasan, Carl Benedikt Frey, and Mike Osborne. uptake-of-gcse-subjects-2015.pdf “Creativity vs. Robots: The Creativity Economy and The Future of Employment.” Nesta, April 2015. 27 Cairns, Sam. “English Baccalaureate Research: January 2013.” Cultural Learning Alliance, January 2013. 9 Analysis of DfE figures available from: http://www. artsprofessional.co.uk/news/exclusive-arts-schools- 28 https://www.gov.uk/types-of-school/overview plummets-new-figures-show 29 https://www.russellgroup.ac.uk/media/5272/ 10 Easton, Eliza, Jonothan Neelands, and Te-Anne informedchoices-print.pdf

Robles. “How Public Investment in Arts Contribute to 30 Growth in the Creative Industries.” Creative Industries https://www.gov.uk/government/news/technical-and- Federation, July 2015. Available at: http://www. professional-education-revolution-continues creativeindustriesfederation.com/assets/userfiles/files/CIF_ 31 GoConstruct, the website of the Construction Industry Arts%20and%20Growth%5B3%5D.pdf Training Board, recommends choosing “creative subjects” 11 Harvey, Adrian. “Funding Arts and Culture in a Time of to “keep options open” – https://www.goconstruct.org/how- Austerity.” Arts Council England; New Local Government to-get-into-construction/choosing-academic-subjects/ Network, April 2016. 32 Apprenticeships Starts by Geography, Learner 12 “DCMS Sectors Economic Estimates.” DCMS, August Demographics and Sector Subject Area.” Department for 2016. Business, Innovation and Skills, January 2016. 33 13 Latest comparable data from 2003-2012. https://www.gov.uk/government/news/government-kick- starts-plans-to-reach-3-million-apprenticeships 14 “Creative Industries: Focus on Exports of Services.” 34 DCMS, June 2016 http://middlesbrough.ccad.ac.uk/interior-architecture-and- product-3d-design/ 15 More information available from: http://www. 35 superfastcornwall.org/assets/file/Superfast%20 https://www.nextgenskillsacademy.com/course/junior-2d- Cornwall%20Evaluation%20-%20Executive%20Summary. artist-visual-effects pdf 36 http://www.bdadyslexia.org.uk/dyslexic/workplace- 16 Including those employed in creative jobs outside of the ¬information creative industries. Creative industries employ one in 17. 37 http://www.arts.ac.uk/study-at-ual/student-services/ “Creative Industries: Focus on Employment.” DCMS, June disability--dyslexia/ 2016. 38 http://dyslexia.yale.edu/rogers.html 17 “DCMS Sectors Economic Estimates: Employment Update.” DCMS, August 2016. 39 Data provided by Paul McCombie, Admissions Tutor for Civil Engineering and Deputy Head of Department, 18 “DCMS Sectors Economic Estimates.” DCMS, August Department of Architecture and Civil Engineering, 2016. University of Bath. 19 Bakhshi, Hasan, Carl Benedikt Frey, and Mike Osborne. “Creativity vs. Robots: The Creativity Economy and The Future of Employment.” Nesta, April 2015.

95 40 https://www.gov.uk/government/uploads/system/uploads/ 55 http://www.broadcastnow.co.uk/channels/channel-4-raises- attachment_data/file/486107/Shortage_Occupation_List_-_ the-diversity-bar/5081824.article November_2015.pdf 56 “360 Diversity Charter: One Year On.” Channel 4, January 41 Siepel, Josh, Roberto Camerani, Gabriele Pellegrino, and 2016.

Monica Masucci. “The Fusion Effect: The Economic 57 Returns to Combining Arts and Science Skills.” Nesta, http://www.channel4.com/programmes/bornrisky/articles/ May 2016. alternative-voices/ 58 42 https://www.gov.uk/government/uploads/system/uploads/ http://data.parliament.uk/writtenevidence/ attachment_data/file/180973/DFE-00086-2011.pdf committeeevidence.svc/evidencedocument/culture-media- and-sport-committee/countries-of-culture/oral/37970.html 43 http://www.recruiter.co.uk/news/2014/01/lack-of- 59 communication-skills-a-growing-concern-as-skills- “The Culture White Paper.” Department for Culture, shortages-vacancies-rise/ Media and Sport, March 2016. 60 44 The Progress 8 measure is designed to encourage schools Easton, Eliza, Jonothan Neelands, and Te-Anne Robles. to offer a broad and balanced curriculum at KS4, and “How Public Investment in Arts Contribute to Growth in reward schools for the teaching of all their pupils. The the Creative Industries.” Creative Industries Federation, measure is based on students’ progress measured across July 2015. eight subjects: English; mathematics; three other English 61 The Economic, Social and Cultural Impact of the City Arts Baccalaureate (EBacc) subjects (sciences, computer science, and Culture Cluster” Bop Consulting, January 2013 geography, history and languages); and three further subjects, which can be from the range of EBacc subjects, 62 Kaszynska, Patrycja, and Geoffrey Crossick. or can be any other approved, high-value arts, academic, or “Understanding the Value of Arts & Culture: The vocational qualification. https://www.gov.uk/government/ AHRC Cultural Value Project.” AHRC, March 2016. uploads/system/uploads/attachment_data/file/285990/ Available from: http://www.ahrc.ac.uk/research/ P8_factsheet.pdf fundedthemesandprogrammes/culturalvalueproject/ 45 https://www.gov.uk/government/publications/ 63 http://www.artscouncil.org.uk/localgov apprenticeship-levy/apprenticeship-levy 64 http://www.museumsassociation.org/museums-journal/ 46 Mateos Garcia, Juan, and Hasan Bakhshi. “The Geography news-analysis/01022016-museum-services-across-uk- of Creativity in the UK.” Nesta; Creative England, July jeopardised-by-funding-cuts 2016. 65 http://www.bbc.co.uk/news/uk-england-35707956 47 Easton, Eliza, Jonothan Neelands, and Te-Anne 66 Easton, Eliza, Jonothan Neelands, and Te-Anne Robles. Robles. “How Public Investment in Arts Contribute to “How Public Investment in Arts Contribute to Growth in Growth in the Creative Industries.” Creative Industries the Creative Industries.” Creative Industries Federation, Federation, July 2015. Available from: http://www. July 2015. creativeindustriesfederation.com/assets/userfiles/files/CIF_ Arts%20and%20Growth%5B3%5D.pdf 67 http://www.waddesdon.org.uk/ 48 Easton, Eliza, Jonothan Neelands, and Te-Anne Robles. 68 “Financial Settlements for Culture & Leisure 15/16 and “How Public Investment in Arts Contribute to Growth in beyond.” CLOA (Chief Cultural & Leisure Officers), June the Creative Industries.” Creative Industries Federation, 2015. CLOA used information given by 16% of the 326 July 2015. local authorities in England. This pertains to all who lost their jobs through the closure of frontline services – e.g. all 49 http://www.independent.co.uk/news/media/tv-radio/ librarians, museum curators, in-house development officers channel-4-could-be-sold-for-1bn-by-a-new-tory- and these places. government-10061986.html 69 Harvey, Adrian. “Funding Arts and Culture in a Time of 50 “Channel 4 Market Impact.” Enders Analysis, January Austerity.” Arts Council England; New Local Government 2016. Network, April 2016. 51 http://www.campaignlive.co.uk/article/michael-grade-backs- 70 Harvey, Adrian. “Funding Arts and Culture in a Time of channel-4-privatisation/1376013 Austerity.” Arts Council England; New Local Government 52 http://www.campaignlive.co.uk/article/channel-4s-unique- Network, April 2016. remit-cherished/1375458 71 Harvey, Adrian. “Funding Arts and Culture in a Time of 53 “The Conservative Governments of the 1980s and 1990s Austerity.” Arts Council England; New Local Government deliberately fostered the growth of independent production, Network, April 2016. introducing the requirement for ITV and the BBC to 72 http://www.ifs.org.uk/uploads/budgets/budget2016/ spend at least 25% of their commissioning budgets with budget2016_rc.pdf independent producers, while Channel 4 has never been allowed to produce its own programming in-house. The 73 https://www.gov.uk/government/uploads/system/uploads/ 1997-2010 Labour Governments built on that success, for attachment_data/file/78577/philanthropy_in_the_regions. instance introducing Terms of Trade, negotiated between pdf; http://www.legacy10.com/sites/default/files/downloads/ the public service broadcasters (PSBs) and independent Removing%20Barriers%20to%20Legacy-Giving_0.pdf; producers after the 2003 Communications Act, which https://www.gov.uk/government/uploads/system/uploads/ enabled producers to fully exploit their rights. The Coalition attachment_data/file/78048/Digital_Giving_in_the_Arts extended Labour’s successful policy of tax relief for film V2.pdf production in the UK to animation and high-end TV production”. “Channel 4 Market Impact.” Enders Analysis, 74 “Adults’ Media Use and Attitudes.” Ofcom, 2016. January 2016. 54 http://www.independent.co.uk/arts-entertainment/tv/news/ not-bad-for-a-small-island-that-no-one-listens-to-british-tv- exports-hit-12bn-8864779.html

96 Creative Industries Federation UK Council 2016-2017

Creative Industries Federation International Council 2016-2017

CREDITS Report authors: Eliza Easton, Harriet Finney, Louise Jury, Jack Powell Designers: Toyas–OMara