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Select committee: Communications and Digital Committee

A creative future

Closed Opened 28 Jul 2022 Closed 7 Jul 2023 14 recommendations 34 conclusions

Communications and Digital Committee Inquiry on parliament.uk ↗

Inquiry scope (the committee's words)
This inquiry will examine future challenges for the creative industries, and explore what is needed from the skills and talent pipeline to ensure the sector can thrive in this fast-changing world.

Where it stands

The inquiry is closed, opened 28 July 2022.

The committee has published 1 report, most recently 2nd Report - At risk: our creative future on 17 January 2023.

The government's response

Published 26 April 2023. The deadline was 13 April 2023.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government thanks the Committee and "notes the findings", agrees that the creative industries are world-leading, disputes the finding that they are not a priority, and says its forthcoming Creative Industries Sector Vision will give "a fuller response".

  • The government will not proceed with its proposal for a broad copyright exception for text and data mining, citing "additional evidence of potential impacts on the creative industries", and has committed to work with users and rights holders, including a code of practice "by the summer".
  • On the Beijing Treaty, ratification "is expected to take place in 2024, subject to gaining the necessary clearances". A further consultation is intended to be published in spring 2023.
  • On R&D tax relief, the government "does not see the need to consult again on the definition of R&D at this time". It cites consultation findings and concern about fraud and error.
  • The government says it "does not formally benchmark" its creative tax reliefs against international comparators. It points to Spring Budget 2023 reforms and an external evaluation of the film and TV reliefs.

Read the government's response ↗ Report an error

Recommendations and conclusions

All 48 recommendations and conclusions

Reports

All reports

Evidence

  • 9 oral evidence sessionsLatest 22 November 2022
  • 46 witnesses
All evidence

Recent activity

Recommendations and conclusions 48 shown

Conclusion 1

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
In recent years the creative industries have delivered more economic value than the life sciences, aerospace and automotive sectors combined. The Government has a major opportunity to put the sector at the heart of its future growth agenda. It is failing to do so.

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Recommendation 2

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
The Government should commit to placing the creative industries at the heart of its growth plans. It should explain its rationale for omitting the creative industries from its Autumn Statement priority growth sectors.

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Conclusion 3

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
We welcome the Government’s plans for a Creative Industries Sector Vision, which has been delayed since summer 2022.

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Recommendation 4

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
The Government should publish the Sector Vision at the earliest opportunity. The Government should take account of the conclusions and recommendations in this report when implementing the Sector Vision’s workstreams.

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Conclusion 5

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Intellectual Property Office’s proposed changes to intellectual property law are misguided. They take insufficient account of the potential harm to the creative industries. They were not even defended by the minister in the Department for Digital, Culture, Media and Sport whose portfolio stands to be most affected by the change. Developing AI is important, but it should not be pursued at all costs.

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Conclusion 6

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Intellectual Property Office should pause its proposed changes to the text and data mining regime immediately. It should conduct and publish an impact assessment on the implications for the creative industries. If this assessment finds negative effects on businesses in the creative industries, it should pursue alternative approaches, such as those employed by the European Union. The Intellectual Property Office should write to us confirming its plans and timelines in response to this report.

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Conclusion 7

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
New technologies are making it easier and cheaper to reproduce and distribute creative works and image likenesses. Timely Government action is needed to prevent such disruption resulting in avoidable harm, or production moving to countries with better regulation.

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Recommendation 8

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
The Government should ratify the Beijing treaty on audio-visual performances at the earliest opportunity. It should set out its timelines for doing so in response to this report.

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Recommendation 9

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
The Uk’s intellectual property framework is respected across the world. These protections underpin the success of the Uk’s creative industry exports. The Government must not water them down when striking new trade deals.

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Conclusion 10

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Department for International Trade should commit to maintaining the UK’s existing standards of intellectual property rights in all future trade deals.

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Conclusion 11

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
Like other sectors, the creative industries are exposed to the opportunities and threats of automation and job replacement. Workers on lower incomes and insecure contracts are particularly vulnerable.

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Conclusion 12

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Government’s Sector Vision must set out a clear plan for ensuring that its encouragement of technological change is accompanied by complementary plans to help the creative industries sustain quality jobs and promote a diverse workforce.

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Conclusion 13

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
We fail to understand Uk Research and Investment’s rationale for not allocating funding to continue the Creative Industries Clusters Programme, and choosing to prioritise other projects—particularly before the final impact evaluation has been completed. Current assessments show the programme has far exceeded expectations in promoting innovation, attracting co- investment and delivering SME growth.

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Recommendation 14

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
UKRI should review its funding allocations and identify options for continuing the most successful clusters within the Creative Industries Clusters Programme after March 2023. UKRI should publish its plans and decision timelines in response to this report.

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Conclusion 15

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Arts and Humanities Research Council and participating universities should work with regions which are not part of the Creative Industries Clusters Programme to share best practice and create links between clusters.

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Conclusion 16

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Government’s definition of R&D for tax relief is narrow and restrictive compared with that in other OECD countries. This risks holding back innovation in the Uk’s creative industries.

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Recommendation 17

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
The Government should change the definition of R&D for the purpose of tax relief to include more of the creative sector. It should conduct and publish a substantial review setting out the risks, costs, and benefits of adopting such an approach. It should start by exploring the OECD definition of R&D tax relief. The Government should provide timelines for this review in response to this report.

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Conclusion 18

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
Tax reliefs have played an important role in supporting innovation, growth and international competitiveness in the creative industries. We welcome the Government’s commitment to continuing such support. But other countries are increasingly adopting similarly competitive tax relief systems. The Uk is falling behind.

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Conclusion 19

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Government’s consultation on creative industry tax reliefs must benchmark UK incentives against those in other countries to ensure the UK remains competitive.

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Conclusion 20

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
Access to finance remains a problem for SMEs in the creative industries. A lack of data, investor wariness and overlong processes present barriers to progress. It is not surprising that businesses turn to overseas investors, sell up or move abroad.

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Recommendation 21

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
The Government should work with the Creative Industries Council to explore international lessons for improving access to finance. It should set out its plans to address access to finance problems in the forthcoming Sector Vision.

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Conclusion 22

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
There is a welcome range of schemes providing business support and guidance. But they remain disjointed and hard to navigate, particularly for small organisations. The Government’s recent Create Growth Programme to support SMEs is welcome but limited in scale.

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Recommendation 23

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
The Government should monitor the impact of the Create Growth Programme, identify its most effective interventions and help local authorities share key learnings across the country.

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Recommendation 24

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
The Government should work with local authorities to help consolidate guidance for creative sector businesses into easily accessible support hubs. Local enterprise partnerships provide a good vehicle for delivering this work.

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Conclusion 25

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
Lack of access to affordable premises inhibits the growth of creative SMEs. Better co-location programmes could reduce overheads and encourage profitable exchanges of ideas and people.

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Conclusion 26

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Creative Industries Council should work with the Department for Levelling Up, Housing and Communities to evaluate options for improving long-term access to affordable workspaces for creative businesses, such as building on the Creative Land Trust programme.

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Conclusion 27

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Uk is rightly regarded as an international leader in the arts. Technological innovation and talent exchanges between public and private organisations will be key to the sector’s future success. We welcome Arts Council England’s existing support for improving innovation and digital competence in organisations.

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Recommendation 28

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
We recommend Arts Council England works with the Government to incentivise further collaboration between the commercial and non-profit sector to support innovation. This could include Government-backed incentives for SMEs to collaborate with arts organisations, for example. We also recommend that Arts Council England plays an enhanced role in providing coordination among organisations receiving public funding, to support cost sharing on expensive projects and ensure the widest possible reuse of new initiatives.

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Conclusion 29

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
Skills shortages present a major challenge to the creative industries. But detailed data on these shortages are limited and fragmented. This makes it difficult to forecast future requirements and develop evidence-based policy interventions that target priority areas. We welcome the launch of the Unit for Future Skills, but there is an urgent need for progress in its work.

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Recommendation 30

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
The Government should set out its plans for improving the collection and use of skills data (including on freelancers) in the creative industries to inform and drive change in skills policy.

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Conclusion 31

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
Careers guidance at school on the creative sector is vital. But its current provision is not good enough. Delivery is patchy and disjointed. Information about careers in the creative sector is too often out of date. The Careers & Enterprise Company does important work but is insufficiently well known. We were pleased that ministers recognised the need for improvements.

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Recommendation 32

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
The Government should work with education leaders and industry bodies to promote the work of the Careers & Enterprise Company. Programmes providing guidance on routes into the creative sector need to be expanded.

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Conclusion 33

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Gatsby Benchmarks provide a good opportunity for influencing the provision of careers guidance

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Conclusion 34

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Benchmarks’ guidance should be revised to include references to careers in the creative industries.

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Conclusion 35

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
We endorse the recommendation of the House of Lords Youth Unemployment Committee that careers guidance be made a compulsory element of the primary and secondary curriculum.

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Conclusion 36

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
Employers are increasingly calling for a blend of creative and digital skills. This interdisciplinary approach needs to be encouraged at school. Yet there are too few incentives for students to study a combination of creative and STEM subjects. The Government has been clear it has no plans to expand the EBacc. While this is a matter of regret, we have heard that improvements can be made without wholesale reform to the education system.

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Conclusion 37

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Department for Education must tackle the decline in take up of school subjects relevant to the creative industries—particularly Design and Technology. It should start by urgently promoting the value of creative subjects and highlighting the rewarding career opportunities they can offer. It should also review other options, such as including a greater focus on creative education in Ofsted’s inspection regime. The Department should provide an initial update on its plans in response to this report and a further update by the end of June 2023.

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Conclusion 38

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
Post-16 education plays a critical role in developing skills for the creative industries. But training pathways are confusing for students and employers. Clearer routes into the industry are needed.

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Conclusion 39

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
T Levels provide a key vocational route into creative occupations. But some adjustments may be needed to ensure they deliver on their objectives. The requirements for workplace placements are hard for many creative sector businesses to provide. And business skills must feature more prominently in the content of courses aimed at the creative industries, given the high proportion of freelancers in the sector. Closer collaboration between the Department for Education and the Department for Digital, Culture, Media and Sport will be key to making these changes a success.

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Conclusion 40

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Department for Education must work closely with the Department for Digital, Culture, Media and Sport in keeping under review the content and structure of T Level courses relating to the creative industries.

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Conclusion 41

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The apprenticeship scheme remains poorly suited to a large proportion of creative businesses, who are unable to provide the required length of training placements due to the short-term, project-based nature of much work in the sector. We welcome the recent launch of the pilot of flexi-job apprenticeships.

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Conclusion 43

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Department for Education’s sweeping rhetoric about ‘low value courses’ is unhelpful. We agree that universities should provide good value for money. But the Department must also acknowledge that many of those going into the creative industries will work flexibly, in freelance roles, and take time to generate higher salaries. That does not mean their studies and subsequent jobs are less worthwhile.

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Conclusion 44

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Department for Education, in providing strategic direction to the Office for Students, should change its approach to ‘low value courses’ to take better account 54 AT RISk: OUR CREATIVE FUTURE of the realities of work in the creative industries. This should take more detailed account of business lifecycles and freelance work.

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Conclusion 46

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
Courses available as part of the Lifetime Skills Guarantee and Lifelong Loan Entitlement should be informed by labour market data on creative industry skills needs.

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Recommendation 47

Recommendation · 2nd Report - At risk: our creative future

Recommended (the committee's words)
Engagement between employers and education policy is important, but too often fragmented or duplicative. The Government should be more active in providing co-ordination.

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Conclusion 48

Conclusion · 2nd Report - At risk: our creative future

Concluded (the committee's words)
The Creative Industries Council should have engagement from the Department for Education to support coordination between creative business needs and skills policy.

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Reports

1 report

Oral evidence sessions

9 sessions

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Date Session and witnesses Source
22 Nov 2022
Oral evidence session
Julia Lopez MP · Department for Culture, Media and Sport, Kevin Hollinrake MP · Department for Business and Trade, Robert Halfon MP · Department for Education 		View ↗
15 Nov 2022
Oral evidence session
Dr Darren Henley OBE · Arts Council England, Professor Christopher Smith · UK Research and Innovation (UKRI), Sir Peter Bazalgette · Creative Industries Taskforce 		View ↗
8 Nov 2022
Oral evidence session
Carolyn Warren · Canada Council for the Arts, Councillor Phil Seeva · Local Government Association (LGA), Dr Martin Smith · West Bridge Consulting, Paul Owens · BOP Consulting, Professor Hye-Kyung Lee · Kings College London, Professor James Bennett · StoryFutures/Academy: The National Centre for Immersive Storytelling 		View ↗
1 Nov 2022
Oral evidence session
Alun Francis OBE · Oldham College, Corrienne Peasgood OBE · Association of Colleges, Dinah Caine CBE · Goldsmiths, University of London, Dr Paul Thompson · Universities UK, Eliza Easton · Creative Industries Policy and Evidence Centre, led by Nesta, Olly Newton · The Edge Foundation, Simon Field · Skills Policy 		View ↗
25 Oct 2022
Oral evidence session
Dr Lisa Morrison-Coulthard · National Foundation for Educational Research (NFER), Dr Molly Morgan Jones · British Academy, Lesley Giles · Work Advance, Professor Steven Spier · Kingston University, Robert West · Confederation of British Industry (CBI), Seetha Kumar · ScreenSkills 		View ↗
18 Oct 2022
Oral evidence session
Adam Dickinson · Rezzil, Chris Michaels · National Gallery, Dr Nicola Searle · Goldsmiths, University of London, Professor Giorgio Fazio · University of Newcastle, Robert Husband · Moore Kingston Smith, Tom Box · Blue Zoo Animation 		View ↗
13 Oct 2022
Oral evidence session
Catherine Allen · Limina Immersive, Chance Coughenour · Google, Dr Jo Twist OBE · The Association for UK Interactive Entertainment (UKIE), Professor Melissa Terras · University of Edinburgh, Rishi Coupland · British Film Institute, Verity McIntosh · University of the West of England (UWE), Bristol 		View ↗
11 Oct 2022
Oral evidence session
Aidan Meller · Ai-Da ROBOT, Ai-Da Robot, Dan Conway · Publishers Association, Dr Andres Guadamuz · University of Sussex, Paul Fleming · Equity 		View ↗
6 Sep 2022
Oral evidence session
Annette Mees · Kings College London, Caroline Norbury OBE · Creative UK, Ed Shedd · Create Central, Tonya Nelson · Arts Council England 		View ↗

Who gave evidence

46 witnesses

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WitnessOrganisationSessions
Adam Dickinson · founding partner and Development Director Rezzil 1
Ai-Da Robot Not recorded 1
Aidan Meller · Director Ai-Da ROBOT 1
Alun Francis OBE · Principal and Chief Executive Officer Oldham College 1
Annette Mees · Artistic Director, Audience Labs and Visiting Senior Research Fellow, Culture and Creative Industries Kings College London 1
Caroline Norbury OBE · Chief Executive Creative UK 1
Carolyn Warren · Director General of Arts Granting Programs Canada Council for the Arts 1
Catherine Allen · Co-founder and Chief Executive Officer Limina Immersive 1
Chance Coughenour · Head of Preservation, Google Arts & Culture Google 1
Chris Michaels · Director of Digital, Communications and Technology National Gallery 1
Corrienne Peasgood OBE · President Association of Colleges 1
Councillor Phil Seeva · Culture, Tourism and Sport Board Local Government Association (LGA) 1
Dan Conway · Chief Executive Officer Publishers Association 1
Dinah Caine CBE · Chair of Governing Council Goldsmiths, University of London 1
Dr Andres Guadamuz · Reader in Intellectual Property Law University of Sussex 1
Dr Darren Henley OBE · Chief Executive Arts Council England 1
Dr Jo Twist OBE · Chief Executive Officer The Association for UK Interactive Entertainment (UKIE) 1
Dr Lisa Morrison-Coulthard · Research Director National Foundation for Educational Research (NFER) 1
Dr Martin Smith · Managing Director West Bridge Consulting 1
Dr Molly Morgan Jones · Director of Policy British Academy 1
Dr Nicola Searle · Digital Economy Fellow and Senior Lecturer, Institute for Cultural and Creative Entrepreneurship Goldsmiths, University of London 1
Dr Paul Thompson · Chair of Specialists Institutions Forum Universities UK 1
Ed Shedd · Chair Create Central 1
Eliza Easton · Deputy Director Creative Industries Policy and Evidence Centre, led by Nesta 1
Julia Lopez MP · Minister of State Department for Culture, Media and Sport 1
Kevin Hollinrake MP · Minister for Enteprise, Markets and Small Business Department for Business and Trade 1
Lesley Giles · Director Work Advance 1
Olly Newton · Executive Director The Edge Foundation 1
Paul Fleming · General Secretary Equity 1
Paul Owens · Co-Founder and Director BOP Consulting 1
Professor Christopher Smith · Executive Chair, Arts and Humanities Research Council UK Research and Innovation (UKRI) 1
Professor Giorgio Fazio · Professor of Macroeconomics University of Newcastle 1
Professor Hye-Kyung Lee · Professor of Cultural Policy Kings College London 1
Professor James Bennett · Director StoryFutures/Academy: The National Centre for Immersive Storytelling 1
Professor Melissa Terras · Professor of Digital Cultural Heritage, College of Arts, Humanities, and Social Sciences University of Edinburgh 1
Professor Steven Spier · Vice-Chancellor Kingston University 1
Rishi Coupland · Head of Research and Insight British Film Institute 1
Robert Halfon MP · Minister for Skills, Apprenticeships, and Higher Education Department for Education 1
Robert Husband · Partner Moore Kingston Smith 1
Robert West · Head of Education and Skills and part of the Future of Work Directorate Confederation of British Industry (CBI) 1
Seetha Kumar · Chief Executive Officer ScreenSkills 1
Simon Field · Director Skills Policy 1
Sir Peter Bazalgette · Co-Chair Creative Industries Taskforce 1
Tom Box · Managing Director and Co-Founder Blue Zoo Animation 1
Tonya Nelson · Area Director, London Arts Council England 1
Verity McIntosh · Senior Lecturer in Extended and Virtual Realities University of the West of England (UWE), Bristol 1

Correspondence

13 letters

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PublishedDirectionLetter
28 Jun 2023 To committee Letter from the Chair to Rt Hon Lucy Frazer KC MP, Secretary of State for Culture, Media and Sport, Department for Culture, Media and Sport, dated 27 June 2023
27 Jun 2023 From committee Letter to the Chair from Rt Hon Lucy Frazer KC MP, Secretary of State for Culture, Media and Sport, Department for Culture, Media and Sport, dated 14 June 2023
25 May 2023 To committee Letter from the Chair to Rt Hon Sir John Whittingdale OBE MP, Minister for Media, Tourism and Creative Industries, Department for Culture, Media and Sport, dated 23 May 2023
17 May 2023 To committee Letter from the Chair to Julia Lopez MP, Minister for Media, Tourism and Creative Industries, Department for Culture, Media and Sport, dated 3 May 2023
8 Mar 2023 To committee Letter from the Chair to Rt Hon Jeremy Hunt MP, Chancellor of the Exchequer, dated 8 March 2023
8 Mar 2023 From committee Letter to the Chair from ITV, Pact, Sky, Channel 4, BBC, Netflix, COBA and Paramount, dated 7 March 2023
12 Dec 2022 To committee Letter from the Chair to Julia Lopez MP, Minister of State for Media, Data and Digital Infrastructure, Department for Digital, Culture, Media and Sport and George Freeman MP, Minister of State for Science, Research and Innovation, Department for Business, Energy and Industrial Strategy, dated 12 December 2022
12 Dec 2022 To committee Letter from the Chair to Rt Hon Jeremy Hunt MP, Chancellor of the Exchequer, dated 12 December 2022
12 Dec 2022 To committee Response from the Chair to Professor Dame Ottoline Leyser, Chief Executive Officer, UK Research & Innovation, dated 12 December 2022
8 Dec 2022 Not recorded Response to the Chair from Professor Dame Ottoline Leyser, Chief Executive of UKRI, dated 2 December 2022
6 Dec 2022 From committee Letter to the Chair from Julia Lopez MP, Minister of State for Media, Data and Digital Infrastructure, Department for Digital, Culture, Media and Sport, dated 1 December 2022
22 Nov 2022 From committee Letter to the Chair from Dr Paul Thompson, Vice-Chancellor, Royal College of Art, dated November 2022
16 Nov 2022 To committee Letter from the Chair to Professor Dame Ottoline Leyser, Chief Executive Officer, UK Research & Innovation, dated 16 November 2022