Leading the Field: A Review of the Creative Industries An independent review of policy options for the UK’s creative industries John Woodward 27 March 2015 LEADING THE FIELD: A REVIEW OF THE CREATIVE INDUSTRIES Contents INTRODUCTION ............................................................................................................................................................................. 4 UK CREATIVE INDUSTRIES HEADLINES ...................................................................................................................... 8 EXECUTIVE SUMMARY ......................................................................................................................................................... 10 General points ........................................................................................................................................................................... 10 Competition and regulation ................................................................................................................................................ 10 Public and private finance ................................................................................................................................................... 10 Public service content ........................................................................................................................................................... 11 People, talent and skills ....................................................................................................................................................... 12 Intellectual property and copyright .................................................................................................................................. 12 Personal data and privacy .................................................................................................................................................. 13 Machinery of Government................................................................................................................................................... 13 CHAPTER 1: COMPETITION AND REGULATION ................................................................................................... 14 Introduction ................................................................................................................................................................................. 14 Key issues: impact of convergence and globalisation .......................................................................................... 15 Evidence gathered: implications for competition and regulatory framework ............................................. 17 Recommendations .................................................................................................................................................................. 21 Competition framework .................................................................................................................................................... 21 Regulatory framework ...................................................................................................................................................... 23 CHAPTER 2: PRIVATE AND PUBLIC FINANCE ........................................................................................................ 24 Introduction ................................................................................................................................................................................. 24 Evidence gathered: Private sector investment ......................................................................................................... 25 Government financial support to stimulate private sector growth ................................................................... 27 Grant-in-Aid funding, the National Lottery and the role of the public bodies............................................. 30 Taxation policy .......................................................................................................................................................................... 31 The European dimension .................................................................................................................................................... 33 The regional dimension ........................................................................................................................................................ 34 The administration of the Universal Credit ................................................................................................................. 36 Recommendations .................................................................................................................................................................. 36 CHAPTER 3: PUBLIC SERVICE CONTENT ................................................................................................................ 40 Introduction ................................................................................................................................................................................. 40 Key principles underpinning intervention .................................................................................................................... 41 Evidence gathered .................................................................................................................................................................. 43 Reinforcing the provision of public service content ................................................................................................ 43 Competition as a driver of creativity ............................................................................................................................... 47 Availability and prominence of public service content .......................................................................................... 49 2 LEADING THE FIELD: A REVIEW OF THE CREATIVE INDUSTRIES Recommendations .................................................................................................................................................................. 50 Reinforcing the provision of public service content ........................................................................................... 50 Competition as a driver of creativity .......................................................................................................................... 52 Availability and prominence of public service content ..................................................................................... 52 CHAPTER 4: PEOPLE, TALENT AND SKILLS ........................................................................................................... 54 Introduction ................................................................................................................................................................................. 54 The policy environment ........................................................................................................................................................ 55 Evidence gathered .................................................................................................................................................................. 56 Schools education careers guidance and the impact on diversity ............................................................. 56 Progression, Further Education and apprenticeships ...................................................................................... 57 Higher Education ................................................................................................................................................................ 58 Sector Skills Councils ....................................................................................................................................................... 59 The case for strengthening co-investment ............................................................................................................ 59 Diversity and inclusion in the workforce .................................................................................................................. 60 Recommendations .................................................................................................................................................................. 62 CHAPTER 5: INTELLECTUAL PROPERTY AND COPYRIGHT ........................................................................ 64 Introduction ................................................................................................................................................................................. 65 Policy context ............................................................................................................................................................................ 65 Evidence gathered .................................................................................................................................................................. 66 Review recommendations .................................................................................................................................................. 71 CHAPTER 6: PERSONAL DATA AND PRIVACY......................................................................................................