Libs Dem Demand Top Table for Creative Industries
The Lib Dem DCMS Team recently led a debate on the impact of Brexit on the Creative Industries
Here is how I introduced it :
Last July, when I took part in the two-day debate on the outcome of the European Union referendum, I talked about the implications of Brexit for the creative industries. Uncertainty about the future on the part of both government and those industries was understandable then, but the sad truth is that six months later, despite myriad representations from different parts of the industry, from the Creative Industries Council, the Creative Industries Federation, Arts Council England and many others, and even an extensive speech by the Prime Minister on Tuesday, we are still almost as much in the dark about the implications of Brexit for those industries—and whether the Government have taken on board the concerns of those industries—as we were then. Indeed, it was notable that the Prime Minister mentioned a number of sectors in her speech but not the creative industries.
Therefore, the purpose of those of us on these Benches today is to highlight in no uncertain terms the importance of these industries to our economy and our future, and the essential matters than must be safeguarded on Brexit. Lest we be accused of being miserable remoaners who cannot accept the outcome of the referendum, we also want to set out the opportunities in terms of industrial policy that the Government must grasp in order to make sure that those industries prosper in the future.
Before I go any further, I want to try to give a picture of the importance of these industries, which span such a broad range of creative endeavour. In the UK, we are a vital hub for the TV, design, games, visual effects, publishing, film, advertising, music and fashion industries. They make a contribution of over £87 billion to the UK economy, employ almost 2 million people and are growing at twice the rate of the rest of the economy. As a result, we are second in the world only to the US for cultural influence or soft power. After all, what other country has instantly recognisable characters such as Harry Potter, James Bond and Sherlock Holmes in quite the way we do? Their exports are worth £20 billion, and the fact is that Europe as a whole is the largest export market for the UK creative industries, accounting for 56% of their trade in the sector. That is not all digital or audio-visual. Europe, with 31% of the total, is the largest market for physical book exports. I could go on. However, I recommend the report from the industry members of the Creative Industries Council, and also the one from the Creative Industries Federation, which give a much better overview than I can in the time available.
The other aspect that is of key importance, but on which I will only touch today, is the relationship of this sector to the tech sector. That relationship and interdependence is becoming more and more important for Britain’s future. Increasingly, tech platforms need creative content, and both sectors rely on creative skills. They are both strongly impacted by government policies on superfast broadband rollout and spectrum allocation, and, of course, by the outcome of Brexit on our telecoms sector, whose consumers have benefited so strongly from an EU-wide regulatory regime. My noble friend Lord Foster will be expanding on this. Both too are going to be strongly affected if there is a change to the way that data can flow freely between the UK and other EU countries. This comes to a head in the games industry, but concerns all creative and tech industries that distribute content or software digitally. Ensuring continuing adequacy of data protection under EU law will therefore be crucial.
It is not always easy to generalise about the creative industries, since they have many individual characteristics. However, some very strong common themes emerge from the work that the creative industries have done so far in responding to the prospect of Brexit. The first and most crucial of these is the need for access to talent. Yes, we need to accelerate the development of our skills here in the UK, and the industries have not been slow in showing how that must be done over the middle and long term by adopting what we might call a full STEAM agenda. However, the fact is that in fast-changing markets, specialist skills are in short supply. The ability for small businesses to hire skilled freelancers is vital. Freedom of movement of people with those skills is crucial; including, for instance, music artists going on tour in Europe or to festivals. This is important also when considering film, games and advertising production, or fashion and publishing here in the UK, particularly when it comes to digital skills. The Prime Minister has promised that the brightest and best can come here, but current changes to the tier 2 visa regime are going in precisely the wrong direction—so much for being truly global. So, too, it is not enough just to recognise the need to guarantee the right of those EU citizens already here to remain in the UK. That is already within the gift of the Government and should be granted immediately.
Another common theme has been about the future of intellectual property enforcement and co-operation. Although the broad principles of IP law are covered by international treaties, the shape of copyright exceptions are largely determined at European level, and so too are the enforcement levers on matters such as breach of copyright and counterfeiting. For instance, European co-operation has been of huge importance to initiatives on infringing online sites, such as Follow the Money. Will this continue? Will we continue to treat historic decisions on IP matters by the ECJ as binding? Will European trademarks no longer have protection in the UK? Will our artists continue to have the benefit of artists’ resale rights? Then there is the community design right, which is so important for the fashion industry, giving much more extensive rights to designers than the UK design right. Will we preserve that?
There are many EU proposals currently on foot which will impact on our creative industries if we do not have a seat at the table to argue their corner. In that context, will the Government be publishing their response to the recent consultation on EU copyright reforms? In the same context of the creation of the EU strategy for a digital single market, will we be able, on the way out of the EU, to protect the territoriality of copyright, which is so important to the financing of our film and television productions, or take advantage of the new transparency rights for creators?
What is the Government’s response to the Arts Council’s suggestion of a review to see how our intellectual property can be enhanced and maintained outside the EU? Will we achieve the right result on the draft directive on online sales for our games industry? In its recent report, the BIS Select Committee said:
“The decision to leave the European Union risks undermining the United Kingdom’s dominance in this policy area. We could have led on the Digital Single Market, but instead we will be having to follow”.
Forty-two per cent of UK digital exports go to the EU. As the Select Committee asked itself, have the Government really started to get to grips with this? Is there any real appreciation in government about the implications of Brexit for the UK’s access to the digital single market?
There are the implications of the loss of funding from Creative Europe, the European Regional Development Fund and Horizon 2020, on which my noble friend Lady Bonham-Carter will expand. All the creative industries have real issues about the prospect of lack of access to EU markets but I want in particular to highlight the issues relating to the audio-visual industry—in other words, the film and television sector—which I know the noble Lord, Lord Puttnam will be focusing on later.
The Audiovisual Media Services directive sets out the vital country of origin principle which ensures that our television channels gain access to the EU market without further regulation. As all industry commentators have said, without it there would be significant harm to the industry, especially as the principle could be extended to satellite in future. However, its continuance would have to be negotiated—it cannot simply be preserved by a great European reform Bill—otherwise I can see television channels substantially relocating in order to stay within the AVMS directive. Likewise it is vital that the AVMS directive continues to classify programmes made in countries covered by the European Convention on Transfrontier Television, not purely the European Union, as European works. How alert are the Government to that?
Convinced leavers claim that the world is full of opportunity for trade deals to be done outside the EU but as CETA, the Canadian European Trade Agreement, exemplifies, cultural exceptions are a besetting aspect of trade agreements. What assurance can the Government give about how high up the agenda our creative industries will be in any trade negotiations? These industries need the maximum possible strategic certainty in order to minimise disruption to decision-making, investment and people’s jobs.
We need a commitment to action by the Government on Brexit which supports our creative industries. We need an industrial strategy for the creative industries which incorporates all the above elements. It should also include a raft of domestic action to extend the investment support through tax relief schemes—there is a good case to extend them to music—to build on the strengths of the different regions of the UK and their creative clusters, and on synergies between the creative industries and other sectors of the economy, particularly in the development of skills.
Everything I have outlined is not some special pleading but a hard-headed calculation of what is necessary for the continuing success of the UK creative industries after Brexit. They need to be able to compete in a global environment. We have competition from players operating with larger domestic markets and many up-and-coming agile competitors. Leaving the EU makes us vulnerable without robust action and negotiation, especially if the Prime Minister and Mr Davis envisage that we may leave without any deal at all or with minimal transitional arrangements. The Government need to demonstrate that they grasp these issues and are pursuing a strategy to deliver a trade agenda and an industrial strategy for the creative industries that meets the case.
Peers criticize Ebacc
In a debate initiated by Lib Dem President Baroness Sal Brinton Peers, including myself decried the drop in creative subjects taken at GCSE as a result of the the the Government's EBacc measures which focus on STEM not STEAM i.e. the arts are excluded with all the consequent impact on the creative industries and the skills they need to develop.
This is the debate.
This what I said
The dropping by AQA of the history of art A-level forms an important part of the worrying context of the debate today. AQA said in its briefing that, although it recognises the huge importance of the study of the history of art, in the process of developing and obtaining accreditation for its new A and AS-levels in history of art, it had concluded that the new qualifications, developed from the Government’s criteria, would be extremely challenging to mark as a result of the large number and specialist nature of the options creating major risks when it came to awarding grades safely. I interpret this to mean that AQA’s decision to drop history of art A-level was partly based on the fact that there were insufficient experienced examiners. This rightly had the Sunday Times art critic Waldemar Januszczak choking on his carpaccio.
The second reason appears to be the low number of students taking the subject. As AQA said, these issues are exacerbated in the context of very low student entry numbers for these key stage 5 qualifications. Why is that? As my noble friend said, since the introduction of the English baccalaureate, we have seen a decline in the take-up of creative subjects. I shall add only one fact and figure to my noble friend’s dismal facts and figures: 21% fewer arts GCSEs were taken in 2016 compared to 2010. The provision of creative subjects has fallen most significantly in schools with a higher proportion of pupils on free school meals. It is clear that despite assurances by successive Secretaries of State for Education, the introduction of the English baccalaureate has sent a clear message to schools, teachers, parents and students about which subjects are seen as of value. For the sake of completeness, I should add that AQA is adamant that this decision is not driven by commercial or financial factors.
There is great concern at the decision to drop this A-level. The Association of Art Historians has commented:
“The decision to withdraw History of Art at Key Stage 5 marks a considerable loss to young people’s access to—and understanding of—a range of different cultures, artefacts and ideas”.
It also said that the symbolic space,
“the subject occupies within the school system is also fundamental in developing awareness of art history at undergraduate level and beyond”.
It is that “beyond” that creative industry leaders, in all disciplines, are worried about. These industries are grappling with some real issues, particularly skills gaps and shortages. For example, several creative occupations are currently featured in the tier 2 Migration Advisory Committee’s shortage occupation list, which is for non-EEA recruits. One can only imagine how this will look if there is a hard Brexit. Universities specialising in creative industries are keen to recruit their students from the widest pool possible, because talent and skills in these industries are at a premium.
There can be no argument about the importance of our creative industries. They are celebrated for outstanding economic performance in addition to their contribution to the UK’s culture and soft power. The Prime Minister herself has recognised our creative industries are a key strategic sector. For example, the success of UK television and film production, highlighted in official government figures last week as one of the,
“best performing sectors of the UK economy”,
which has helped to,
“maintain growth in a time of post-Brexit vote uncertainty”,
is attributed not only to the tax breaks that the sector enjoys but to the skills and talent base for which it is internationally admired. We simply cannot afford to lose this.
We need therefore to ensure that our education system supports the sector and that a good range of relevant creative subjects are taught in schools. As the Creative Industries Federation’s recent paper on the possible impact of Brexit, mentioned by other noble Lords, points out:
“Long-standing skills shortages in the creative industries stem from inadequate training and provision at schools … Brexit will compound this problem … It is crucial that education and training policy is formulated with a proper understanding of the needs of industry”.
How will the creative industries flourish if creative subjects are elbowed out of the curriculum? These subjects are opening horizons and signposting to possible careers. They can accelerate learning, attainment and success in students following a more traditional academic structure—including the so-called sought-after STEM subjects. My noble friend referred to the Creative Industries Federation’s other paper last month on the creative education agenda, which recommended four matters to the Government. It has done us a service with those recommendations. First, it says:
“Drop the 90 per cent target … The EBacc should not be the headline assessment measure for schools, but used as part of Progress and Attainment 8”.
Head teachers would be able to offer creative subjects as part of a balanced curriculum and it would send a clear message that the wide variety of skills and knowledge that they represent are important to our economy and our society. Secondly:
“Limit ‘outstanding’ to schools that warrant it”,
a point made, I think, by the noble Baroness, Lady Nye, and my noble friend. It goes on:
“A school must teach at least one creative subject, in lesson time, in order to be eligible for an ‘outstanding’ rating”.
Thirdly:
“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”.
Fourthly, and finally:
“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”.
These are all sensible proposals and should be adopted. I look forward to the Minister’s reply.
New All Party Parliamentary Artificial Intelligence Group Being Formed
Lord C-J calls for restriction on PSPO's
Back in the Summer buskers, civil liberty campaigners and many others protested about the increasing use of PSPO's a subject on which I have been campaigning ever since the Anti Social Crime and policing Bill became law.
See here
https://youtu.be/hI4oGE9JxSk
Recently I held a debate in the House of Lords to highlight the growing problem and the many examples where these powers had been used inappropriately and without proper authority or accountability. Our aim is to get the Government at the very least to change the guidance given to Local Authorities (the "Statutory Guidance") to make sure the powers are properly exercised and if that is enough to amend the original Act.
My Lords, I have for many years been passionate about the future of live music and am only too well aware that many of our most famous acts can have small beginnings, with many well-known artists starting their careers performing in small clubs and pubs or busking on the streets. It was for that reason that I promoted the Live Music Act 2012 and why, on my Benches, we became concerned about the impact of public space protection order powers under the Anti-social Behaviour, Crime and Policing Act 2014.
In response to concerns expressed by my noble friend Lady Hamwee on Report, the noble Lord, Lord Taylor of Holbeach, confirmed the importance of the statutory guidance, which would be consulted on. Ominously, he said that the essence was to allow councils maximum flexibility on the exercise of the new powers. That, I believe, is the root cause of the problem today.
Shortly afterwards, in January, I raised a Question in the House seeking further assurance on busking policy to make sure that local authorities would not resort to a PSPO before they had first exercised their noise-abatement powers. The noble Lord, Lord Taylor, said:
“The Government are certainly not seeking to restrict reasonable behaviour and activity, and we do not believe that these powers do. Live music and street entertainment play an important role in community life and can generate a positive atmosphere that is enjoyed by all”.
He also said:
“We believe that the tests and safeguards set out in the new anti-social behaviour powers will ensure that they will be used only where reasonable”.—[Official Report, 21/1/14; col. 571.]
In June of the same year, I raised issues regarding police attitudes to busking and received an equally positive reply from the noble Baroness, Lady Williams of Trafford, who I am delighted is replying to this debate. She said that,
“the Government are clear that appropriate busking can enrich a community’s quality of life and generate a positive atmosphere that can be enjoyed by many people”.
She also said that,
“we have undertaken … to include reference to busking in the guidance for the new anti-social behaviour powers for use by the police and others. This will be published shortly, in advance of the new powers commencing later in the year”.—[Official Report, 30/6/14; cols. 1531-32.]
Later in the year, in a different context, during the passage of the Deregulation Bill, both in Grand Committee and on Report, my noble friend Lord Stoneham and I pointed out the considerable powers that were already available to prevent noise nuisance. At the same time, we raised our continuing concern that public space protection orders would be used in a heavy-handed way. The Government, this time in the form of the noble Lord, Lord Gardiner of Kimble, gave assurances on both occasions that they were clear that busking can enrich a community’s quality of life and generate a positive atmosphere enjoyed by many people. But later he said:
“The Government do not start from the position that busking requires regulation and control”.—[Official Report, 11/11/14; col. GC 46.]
So right from the start we received a series of ministerial assurances about how the new PSPO would be exercised. Nevertheless, very soon, signs began to emerge of inappropriate use of the PSPO powers.
In February 2015, I asked an Oral Question about the operation of the Act and what use had been made of it to prevent or control busking. In reply, the noble Baroness, Lady Williams, said:
“We have made it clear in the statutory guidance for front-line professionals that they should not use the new powers to stop reasonable activities such as busking or other forms of street entertainment that are not causing anti-social behaviour”.—[Official Report, 12/2/15; col. 1354.]
Despite those ministerial assurances, it was becoming clear a year and a half ago that these powers were being used extensively in an inappropriate and disproportionate way. In fact, they were not just being used inappropriately to ban busking, they were being invoked for much wider purposes—for instance, to ban the homeless from the streets. In February this year, the Manifesto Club published its report, PSPOs: A Busybodies’ Charter, reflecting this, pointing out the extensive and disproportionate use of these powers and calling for proper limits to be placed on them.
In response to an Oral Question this February, I received yet more assurances from yet another Minister, this time the noble Lord, Lord Ahmad of Wimbledon. He said that,
“we have made it clear in the statutory guidance that anti-social behaviour powers should not be used against reasonable activities such as busking, where this does not cross the line into anti-social behaviour”.—[Official Report, 1/2/16; col. 1585.]
Despite a succession of assurances given over the years by at least four government Ministers, the problem of the inappropriate use of PSPOs worsens. Buskers are now falling foul of laws designed to break up dangerous public gatherings and risk being branded as criminals. The problem goes much wider. The Manifesto Club report shows that PSPOs are being used not only to criminalise busking but also the everyday lives of ordinary people, including the activities of the homeless, charity collectors, teenagers, skateboarders, parents dropping off kids at school and even those wearing head coverings.
Sefton Council’s ban on head coverings would include hats. Other councils, such as North East Derbyshire, have prohibited or are seeking to prohibit the carrying of golf bags, or the carrying of skateboards, as in Colchester. At least five have banned rough sleeping. Others, such as Gravesham Council, have prohibited lying down in public, which would prohibit lying on the grass or falling asleep in a public place.
At least six councils have banned or restricted music or street art. Hammersmith and Fulham Council has banned busking and public speaking in the area outside Shepherd’s Bush Tube station after 6 pm. At least 16 have created new criminal offences of loitering or congregating in groups in a public place. Hillingdon Council has prohibited people from gathering in groups of two or more unless at a designated bus stop, and Bassetlaw Council has banned young people aged 16 or under from standing in groups of three or more.
Kettering Council has banned skateboarding and created a curfew for under-18s, meaning it is now a crime for a 17 year-old to be out after 11 pm or before 6 am. In Oxford, the council has proposed a ban on any activity it judges makes people feel uncomfortable, and a city-centre PSPO has banned aggressive begging, street entertainment that causes a nuisance, remaining in a public toilet without reasonable excuse, and allowing dogs to enter any covered space. Hillingdon Council has banned noisy remote-controlled cars and pigeon feeding from its parks. Swindon Council has banned pavement art, thereby criminalising its resident and well-known pavement poet Danny Lake, even though 68% of the public voted against this.
So far, 80 councils have introduced PSPOs and more are threatening to bring them in. Police and local authorities, often based on the decision of a single official, and without consultation or a council decision, are throwing new orders about like confetti. A huge number of people are being dragged into the net of the criminal law. Clearly, the problem of improper use of these new powers extends well beyond busking: it is high time we took stock of this and amended the statutory guidance and, if necessary, the primary legislation, before our freedoms are eroded any further.
However, there may be a ray of sunshine. After my Oral Question last February, at the invitation of the noble Lord, Lord Ahmad, I, together with the Manifesto Club, the Kennel Club, Liberty, Keep Streets Live, the MU, UK Music, and others, wrote to him and his then Home Office colleague, Karen Bradley, to set out the current issues and demonstrate why changes are needed to the legislation and statutory guidance. Karen Bradley—now, I hope, in her new role stoutly upholding the rights of street performers and their contribution to local culture—wrote back defending PSPOs and the procedures used. She did, however, offer to consider amending the statutory guidance, and I replied in July, setting out what campaigners believe are the key problems and the changes needed to solve them. Let me spell these out.
First, PSPOs are targeting activities that are not in themselves harmful. The most problematic examples have banned activities that do not in themselves cause significant public nuisance or harm, such as rough sleeping, begging, loitering, standing in groups, swearing or skateboarding. We want to see a much stronger test before powers are used. PSPOs must target only activities that are causing significant public nuisance or harm; councils should not be able to use them for activities that some people just find annoying or unpleasant.
Secondly, the majority of PSPOs are being passed by single council officers. The Manifesto Club’s research found that out of the 56 councils that have passed a PSPO and provided data, half—that is 28 councils—have done this. Seventeen councils—30%—passed the order through a committee, but only nine—16%—passed it through a decision of the full council. They must be passed only after a debate of the full council and not based on decision of a single officer.
Thirdly, PSPOs are not being consulted on adequately. Although most councils have held a public consultation, in many cases these have been of extremely low quality. There must be a requirement for proper consultation, so that they cannot be imposed having asked just a few vague questions of residents.
Fourthly, the grounds and methods of appeal are too limited. We believe that the Government intended that these powers should be partly checked through the courts. There should be a much better right of appeal. Currently, appellants have very narrow grounds to appeal to the High Court, only six weeks to appeal and have to bear all the costs if they fail. The grounds of appeal should be expanded to something more like the test for judicial review, which would allow the worst cases of unreasonable PSPOs to be challenged and checked in the courts.
I am sure that we are here in the area of unintended consequences. Given Ministers’ assurances, I am sure that they did not intend the Act to be used in this way—banning rough sleeping, placing curfews on teenagers and so on. It is urgent and vital that they recognise that there is a fundamental problem with the Act. This may or may not be resolvable by changes to the guidance. I hope that we are making some progress and that amendments to the statutory guidance are being drafted as we speak but, in the light of the history of ministerial reassurances on this, I do not take anything for granted. I should like to hear specifically what is proposed.
Hence this debate about how the Government plan to ensure that these powers are invoked and exercised in an accountable, appropriate and proportionate manner: to find out whether demands for change, particularly to the statutory guidance, will be met. We cannot have local authorities and police services cracking down on our culture, ripping out the heart of our town centres and destroying the vibrancy of our local communities.
I have a note here from the Salvation Army. It states:
“Thank you for sponsoring a debate on the operation of the 2014 Act. We have had three of our front line locations raise concerns about the way in which Local Authorities are using Public Space Protection Orders in connection with homeless people spending time in public spaces … We would ask that government clarify their guidance to Local Authorities saying that PSPOs are not to be used to disperse homeless people rather than engage with them”.
I hope the Minister can today give cast-iron guarantees that the Government intend to make vital changes and will see them through.
Lord C-J: Blueprint for Creative Industries needed post Brexit vote
I am seriously concerned like many others for the future of the creative industries after the Brexit vote in the referendum. Here is what I said in the Lords debate:
Last weekend I took part in the March for Europe from Park Lane to Parliament Square. It consisted largely of young people and families, all utterly concerned about and opposed to our leaving the European Union. All of them up to that point had seen their identity as bound up with Europe and now see an uncertain and more isolated future. I could not help reflecting while on the march on how my generation had let theirs down by voting in the way that it did and on how many in politics had failed to deliver a more positive message about the benefits and impact of being in the EU over the years, or to create a fairer society of the kind so well outlined by my noble friend Lady Manzoor yesterday and by the most reverend Primate. But whatever our regrets, we cannot afford to sit back and be buffeted by the consequences of Brexit. We need a steely determination to make the best of it and demonstrate to the no doubt overwhelmed Brexit unit how we can mitigate the risks and take the opportunities that arise.
Our tech, digital and creative industries currently punch way above their weight globally. We now need to develop a blueprint to show how they can continue to thrive despite not being in the EU and despite the uncertainties of the exit process, so they will be able more than ever before to benefit from the UK’s creative skills and culture. This depends on the UK in general and London in particular remaining a global hub for creative businesses. The essence of this is our continuing ability to retain, recruit and develop the best and most diverse talent from around the world.
Our film and video games studios, publishers, advertising agencies, music recording facilities and design and post-production houses depend on this flow of talent, failing which other locations within the EU—eastern and central Europe, for example—will appear more attractive. It would be deeply damaging if we or the EU erected barriers equivalent to those in the US, which mean that many UK musicians who plan to perform there find that visa-processing problems mean cancelled tours and postponed engagements. The truth is that the lack of free movement of talent will mean a less creative and diverse culture in the UK and will spell danger for the UK as a creative hub.
Individual parts of the creative sector have many unknowables. Will advertising services, that powerhouse of our creative economy, be subject to EU barriers when sourced from the UK if we are not in the internal market? Activities carried on by the audio-visual group are particularly vulnerable. The audio-visual media services directive has, since 1989, had a major impact by limiting applicable regulation to the country of origin. Almost a quarter of its exports are to the EU. It risks being caught between being unable to relocate production as it would fail to qualify as a British product—but, if so, not being treated as EU content. Once the UK is outside the EU, unless we specifically achieve a negotiated deal, the UK will no longer be able to come within the quotas applied by other European countries for their television broadcast services, which in some cases are as high as 70%.
In funding this type of product, every market matters, and if the EU falls out of the equation it could well mean that investment is no longer forthcoming to the same extent. Amanda Nevill, CEO of the BFI, has also warned of the impact on independent film-makers of the loss of EU funding from the Creative Europe programme. This adds up to the need to put in place at the very least greater government support for investment in these audio-visual products.
Then we have the digital economy, which is a vital part of our future. The digital single market being developed by the EU up to now was seen to be a cornerstone for the future of our tech and creative industries. We will now lose our influence on how regulations and intellectual property reforms are shaped, especially as regards the exceptions to copyright protection which are being developed.
We may also need to adopt safe-harbour provisions of the kind currently required between ourselves and the US in respect of data. Then there are the resources that will be needed now by government here and overseas through our diplomatic and consular services and UKTI in counteracting the impact of Brexit and, as Sir Martin Sorrell has said, targeting fast-growth markets. We need to redouble our efforts to promote Britain as a place to invest in, partner and do business with, especially in the creative industries. Just boosting the budget of the GREAT campaign will not be enough.
When we are outside the EU state aid rules, there may well be some opportunities through improved tax incentives to counteract some of these risks and to maintain the attractiveness of the UK as a destination for the creative industries. But I can see many other industries clamouring for special treatment, too.
I will continue to fight for the closest possible relationship with the EU. But what we need for this sector, as for others, is a cool appreciation of the actions we need to take and the deals we need to do to safeguard them. I am pleased that the Creative Industries Council is taking on this task, constituted as it is largely by a wide range of private sector players in the creative and digital industries, including television, computer games, fashion, music, arts, publishing and film, but co-chaired by Ministers from both BIS and the DCMS.
The Ministers and departments sponsoring our tech, digital and creative industries must immediately, as a priority, start working with the Brexit unit and with Justine Simons, the new deputy mayor for culture and the creative industries in London. It is vital, as she said last week, that we,
“maintain the flow of ideas and creative talent and shore up our cultural economy”.
I sincerely hope that this Government, whoever heads it, take heed of those wise words and recognise the importance of these industries to our future.
Reduce FOBT stake to £2 says Lord C-J
Earlier this year I put forward a Private Members Bill in the Lords to reduce the FOBT maximum stake currently set at £100 to £2. This is the argument I made.
Through the Bill I am today pursuing a matter of considerable concern that has been raised in this House on a number of previous occasions by myself and my noble friends in particular, and which reflects great concern outside in the country.
Fixed-odds betting terminals—FOBTs—are touch-screen roulette machines in betting shops that allow the user to bet up to £100 every 20-second spin. They have transformed the betting sector since their introduction in 2001, and the Gambling Act 2005 classified FOBTs as B2s. The noble Baroness, Lady Jowell, stated at the time that if evidence of harm emerged, the £100 stake could be reduced as FOBTs were “on probation”. It is clear that the experiment to allow high-speed roulette in easily accessible betting shops has been a disaster and it is notable that as a result, the noble Baroness, Lady Jowell, herself recently called on the Government to act as the evidence of harm continues to build.
The essence of my Bill is to reduce the stake to £2 a spin. This is the maximum stake on gambling machines in all other easily accessible venues such as arcades and bingo halls. It will reduce gambling-related harm, prevent further betting shop clustering and restrict high-street money laundering.
The human misery caused is enormous. I will not rehearse all the harrowing stories, but many have been reported and they are extremely distressing. Clinical psychologist Anna Henry, who treats gambling addicts, said that FOBTs are designed to foster addiction:
“Basically the industry has created casinos in the High Street … These machines isolate the player, there is nothing to distract him from that screen. Its speed is to encourage frenzy. And thus more spending”.
More crime takes place in betting shops than in any other gambling venue. A freedom of information request to the Gambling Commission revealed 11,232 incidents in 8,980 betting shops from January to December 2014—an average of 1.25 incidents per premises, up from 0.82 the previous year. This compares to just 479 incidents related to the remaining 2,747 venues. These incidents account for 97% of police call-outs to all gambling venues.
The reality is that these machines are highly dangerous products which are a catalyst for problem gambling, social breakdown and serious crime in communities. Just take the case of a gambler in Leeds who was given a two-year sentence for attacking a betting shop worker
with a knife. The man had lost £1,000 playing FOBTs—money that was intended to be a deposit on a flat. He said that he was “utterly possessed” by the machines.
FOBTs are also useful to money launderers, as huge amounts of cash can be inserted into the terminals to legitimise the proceeds of crime. There were 633 suspicious activity reports in betting shops last year related to money laundering, but much of it goes unreported. A Gambling Commission report that will be considered by the Treasury said:
“The betting sector is regarded as high-risk relative to other gambling sectors. The customer base is varied, and often customers remain anonymous to the operator within the non-remote sector. The reporting and detection of suspicious transactions in the non-remote betting sector is often frustrated by the ability of a customer to remain anonymous”.
Bookmakers have a legal duty to comply with the licensing objectives of the Gambling Act 2005, but how can they comply and keep gambling crime-free and harm-free when the FOBT stakes are so high? Each betting shop is permitted four FOBTs, which now account for more than half of bookmakers’ profits. One has only to look at the importance of these machines in the recent figures for William Hill and Ladbrokes. The gross win on each machine is worth £1,000 a week. That led to a 43% increase in the number of betting shops on the high street between 2004 and 2012.
While planning authorities are in a better position to refuse applications, licensing authorities are still required to aim to permit betting shops. They are still powerless to stop the proliferation of betting shops and FOBTs on the high street. One street in the London Borough of Newham has 18 betting shops. As a result, 93 local authorities led by Newham Borough Council submitted a proposal under the Sustainable Communities Act. They called for the stake to be cut to £2 due to the anti-social behaviour, crime and problem gambling that the machines are causing in their local areas. This unprecedented step represents the widest support that any Sustainable Communities Act proposal has ever received. The Government rejected that proposal last year, but the Local Government Association has since resubmitted it under the terms of the FCA. What will the Government’s response be in the coming months, when discussions are due to take place?
There are wider economic arguments. There has been much scaremongering about the economic impact of any action to restrict FOBT machines. The ABB has claimed that 7,800 betting shops and 39,000 jobs would be at risk if there were a reduction in the maximum FOBT stake from £100 to £2 per spin. However, a report by NERA Economic Consulting, The Stake of the Nation—Balancing the Bookies, concluded that cutting the stake on these machines would reduce the number of bookmakers by about 800, primarily where clusters had developed. Moreover, it found that the move would create a net positive 2,000 or so high-street jobs as money returned to other, more labour-intensive and productive high-street shops.
Elsewhere, other Governments are concerned about the impact of these terminals. The machines are already banned in Ireland. Above all, there is the impact of
FOBTs on the vulnerable and the disadvantaged. Research published last year by SPICe, the Scottish Parliament Information Centre, found that problem gambling is seven times higher in deprived areas, seven times higher among harmful drinkers and six times higher among the mentally ill. A 2014 survey by 2CV found that 80% of all betting shop users think that FOBTs are addictive, rising to 89% among FOBT users. The survey found evidence of harmful levels of gambling. Users playing weekly or more often account for 63% of session activity and 90% of cash inserted into FOBTs.
We have all seen that the Responsible Gambling Trust is now facing problems with the Charity Commission as a result of conflicts of interest on its trustee board. I do not want to add to its woes but its lengthy research programme failed to carry out its primary purpose—establishing whether FOBTs are safe. It did, however, provide some insight into worrying trends in machine gambling, including the fact that a person gambling with higher stakes is more likely to make a poorer judgment than when gambling with lower stakes, that the number of people betting the maximum £100 stake doubles between 10 pm and midnight, and that 37% of FOBT gamblers are problem gamblers. The Gambling Commission has stated that, in interpreting the available evidence where the evidence is mixed or inconclusive, it will take a precautionary approach in accordance with its principles for licensing and regulation. So surely, in the face of this evidence, the stake should be reduced until there is an indication that it can be safely increased above £2.
The fact is that government measures to date have been ineffective. After months of grass-roots pressure and concerns expressed across the country, last year the Government introduced the Gaming Machine (Circumstances of Use) (Amendment) Regulations 2015, which were implemented on 6 April. These regulations require FOBT customers to authorise stakes of £50 or more either via account-based play or via over-the-counter staff authorisation. In January 2016, the DCMS published an evaluation of the impact of the regulations. However, a study by Landman Economics has demonstrated that the DCMS was completely unable to determine whether the regulations on the £50 stake had led to an increase in player control, let alone a reduction in the number of problem gamblers. The DCMS argues that increased session length may have led to more considered decision-making, but the time between spins increased only very marginally. It is much more likely that players who used to stake up to the £50 to £100 range are simply losing their money more slowly. This would not represent more controlled play. The report concludes that the DCMS evaluation is flawed and cannot realistically be used as a reliable guide to policy.
Where one has regard to the scale and nature of the problems that FOBT machines are causing, on the precautionary principle a very much more serious and more appropriate response is required, as set out in the Bill before us. The time for tinkering has gone, and there is no doubt that the public support action against FOBTs. In fact, a YouGov poll showed that only 4% of the public would oppose a ban on them, with 58% of those who gamble more than once a month being in favour of an all-out ban. ComRes polling showed
that two-thirds of people in marginal constituencies believe that FOBT machines are harmful and they support the reduction of the maximum stake to £2. FOBTs are destroying lives and damaging communities. The Bill will reduce the maximum stake on FOBTs to £2 a spin. I believe that it will reduce the serious harm caused by the machines, deter money laundering and reduce betting shop clustering on the high street.
I am an optimist and I very much hope that the Government will support the Bill. Modest though it is, if the Government reject it, and especially if they claim that they can achieve the same goals by other means, I believe they will be obliged to answer some vital questions. Will the Minister confirm when the next review of stakes and prizes is due to take place, and that the issue of FOBT stakes will be included within it? Does he agree that, as proposed by the Gambling Commission, and given the evident harms that FOBTs are causing, the Government should act on a precautionary basis and reduce the stake on FOBTs? In that context, does the Minister believe that a substantial review of FOBTs stakes is the best way to deal with the harms the terminals are causing? Will he make sure that FOBTs are properly regulated through harm-mitigation measures to ensure that they no longer present a risk to the vulnerable? If so, how? And how will the Minister ensure that the Government properly address the money-laundering risk that FOBTs present?
The remainder of the debate and the Minister's reply is at :
http://www.publications.parliament.uk/pa/ld201516/ldhansrd/text/160311-0001.htm#16031122000325
Lord C-J promotes Agent of Change amendment to save Live Music Venues
Following my debate on the future of threatened live music venues last December, on the Committee stage of the Housing and Planning Bill I called for the introduction of the Agent of Change Principle into planning law as follows|:
"Some of the concern about the fate of live music venues derives from a report, London’s Grassroots Music Venues Rescue Plan, produced last year by the Mayor of London’s Music Venues Taskforce, which suggested that while London’s music industry is generating billions of pounds for the economy, a vital part of this important cultural as well as economic sector is under threat. The task force, set up by the mayor last year and chaired by the Music Venue Trust, undertook an audit of grass-roots music venues and found that from 2007 to 2015 London had seen the number of spaces programming new artists drop from 136 to just 88.
The situation was mirrored more recently in UK Music’s Bristol live music census, published only this month by Bucks New University. It found that 50% of the city’s music venues were affected by development, noise or planning issues. Those issues pose a direct threat to the future of Bristol’s vibrant ecosystem, which generated some £123 million towards the local economy in 2015 and supported 927 full-time equivalent jobs. So it is an important issue in both those localities and not confined to the metropolis.
One problem faced by live music venues arises when residents move in to an area where noise is emanating from long-standing music venues. The residents make complaints about the noise, and, despite the fact that in most cases the volume levels have remained the same for many years, a complaint has to be dealt with by the local authority and often results in additional licensing restrictions. Such restrictions can limit the venue’s ability to generate income and can be extremely costly to put in place, so this is a major issue when new residents move in and are affected by existing venues.
The London rescue plan advocates, among other policies, support for what is called the agent-of-change principle, and this is reflected by these two amendments. The agent-of-change principle puts the responsibility for noise management measures on the agent of change—that is, the incoming individual or business. This could be a resident moving into a flat near an existing music venue, or a developer that is building a new music venue near an existing residential building. The principle has already been adopted elsewhere—for example, in parts of Australia and the United States—and is proving successful. At present, developers have no legal obligation to sound-proof new residences, forcing developers to spend significant amounts fending off noise complaints, abatement notices and planning applications. The Music Venue Trust has warned that the Government’s 2013 amendments to permit offices, car parks and disused buildings across the country to be converted to residences without planning permission have made the potential situation for venues even worse.
The genesis of these amendments to the Bill is that they were tabled in Committee in the Commons. It appears that Ministers were sympathetic to the case being made but did not, at the end, accept the amendments. Amendment 99 would ensure that residents of buildings converted to residential use are protected from factors, particularly noise, affecting their amenity and enjoyment when buildings are converted to residential use by virtue of a general permitted development order. Such measures would become the responsibility of the agent of change of the permission. Amendment 100 would ensure that residents of buildings converted to residential use are protected from factors, particularly noise, affecting their amenity and enjoyment. Such measures would, again, be the responsibility of the agent of the change of the permission.
Things have moved on since the debate in the Commons. A letter dated 10 March was sent by Brandon Lewis, the Minister for Housing and Planning, and his colleague the Minister for Local Growth and the Northern Powerhouse. It indicates that the Government are amending the permitted development right to include a provision to allow the local planning authority to consider noise impacts on new residents from existing businesses in the area. This is a significant change in the current position. I very much welcome the contents of that letter and I believe that the necessary regulation has now been laid. It is worth quoting part of the letter:
“From the 6 April, a developer will be required to seek prior approval from the local planning authority in relation to the noise impacts on new residents before a change of use from office to residential can be carried out under permitted development. It will in effect allow local authorities to take account of national planning policy and guidance on noise, in a similar way to a planning application, as well as any material concerns raised by owners of music venues in relation to noise. This will help to ensure that before residents move into new housing in close proximity to well-established businesses, including music venues, local authorities are able to require the applicant to put in place noise mitigation measures where appropriate”.
That is all very welcome, but there are quite a number of questions about how this is to be interpreted when the new regulations come into effect on 6 April. For example, is there any intention to apply these regulations to situations where new build as opposed to conversion takes place? If not, why not?
This change is also being effected by secondary legislation not primary legislation and is in fact only guidance. That means that, essentially, this is exhortatory to local authorities as I understand it. It allows them to—but does not necessarily mean that they have to—take into consideration the principle of the agent of change. I would very much like clarification from the Minister about the interpretation of that particular change envisaged on 6 April. If it is only exhortatory, it very much means that local authorities will not arrive at a common position on these cases and in many areas there will still be a threat to music venues.
This territorial application is to England only and not to any other part of the country. Are the Government having any conversations that might take this more widely in other devolved Administrations? Is there any retrospective or transitional element to the guidance? Where relevant permitted developments have been granted in the three-year trial period for when protections for noise were not provided, would venues be entitled to pursue compensation if forced with closure if residents complained once they move in? There are some welcome elements, but there is still some uncertainty surrounding what is proposed and I look forward to what the Minister has to say."
This is what the Minister, Baroness Williams of Trafford, said in reply:
[ these] Amendments would insert into the Bill requirements on local authorities and others where there are already appropriate protections in national planning policy and guidance to address these issues. National planning policy already incorporates elements of the agent-of-change principle by making it clear that existing businesses wanting to develop in continuance of their business should not have unreasonable restrictions put on them because of changes in nearby land uses since they were established.
The Government recognise concerns about the impact of new residents moving into an area with an established live music venue. As the noble Lord said, my ministerial colleagues met industry representatives in January to discuss this matter. We have responded to their concerns by including a provision in the office-to-residential permitted development right. This enables local authorities to ensure that mitigation measures address noise impacts from existing businesses on the residence. It will both help to protect residents’ amenity and to ensure the sustainability of established businesses.
The noble Lord asked about Scotland and Wales. Of course, planning is devolved there. He also asked if there is a plan to apply new prior-approval measures in relation to noise impact to new builds and not just to buildings undergoing a change of use. The permitted development rights take effect on 6 April and apply to changing the use of buildings from office to residential. The application for new build residential property will be considered under the NPPF, which incorporates elements of the agent-of-change principles. The noble Lord also asked if the regulations will only allow local authorities to take noise into account, not oblige them to do so. The regulations allow local authorities to take account of noise where it is relevant rather than obliging them, because that would be an inflexible requirement."
This was my response:
" I am afraid that even as regards Amendments 99 and 100, the Minister has only a partially satisfied customer. As my noble friend has said, it is important that we look in a rather more granular fashion at some of the points that I have raised, particularly on the retrospective aspects and the difference between guidance and putting this on to the statute book.
I am concerned about precisely the point mentioned by my noble friend, which is the example of The Fleece in Bristol, where the local authority played a perfectly proper role. It took account of the NPPF and so on, but in the end it was the Planning Inspectorate that was the real problem. If the local authority is allowed to consider noise impact and then does so, what is the difference between that and the inspectorate perhaps being free or not to take that into account, and therefore it does not impose the same conditions as the local authority? Would it be different if we had something rather more obligatory on a local authority? Would that impose a higher duty on the Planning Inspectorate in those circumstances, thus avoiding the situation that The Fleece found itself in?
I am rather concerned about how strong this particular guidance is going to be. I recognise that the principle is floating around, but how much of a fix do we have on it in order to make sure that the future of our music venues is protected? I am not going to go any further at this time of night, but I would welcome a fairly detailed letter from the Minister. "
So let's see what kind of letter answering the questions is produced!
Lord C-J calls for Action on Creative Skills
On the 28th January 2016 the Lords held a debate on Adult Education and the Skills Needed in the UK Economy. I called for action on skills in the Creative and Tech Industries.
http://www.publications.parliament.uk/pa/ld201516/ldhansrd/text/160128-0002.htm#16012842000917
- The challenge is that the vast majority of those businesses are small. Freelancing, too, constitutes 30% of the sector overall. There is a shortage not only of digital and software skills but craft and technical skills as well. In the tech sector, it is clear that we need 1 million tech jobs to be filled by 2020 to keep up with demand. There are also concerns about the quality of business skills in the creative sector, too.
- There are key questions about how the new apprenticeship levy will operate. . Will contributions from the creative industries be invested for the benefit of those industries? Will government investment continue alongside the levy? Will there be transparency in how contributions are invested? Will there be a joined-up, UK-wide approach in line with an industrial strategy for the creative industries? Will businesses be able to set some of their internal costs incurred in developing standards and administration against the levy through an allowable expense system?
- Achieving diversity is also a major challenge for the industry. Access to career pathways is obscure for those without connections. Unpaid internships are all too common. Interns can be useful, but they must be paid. Overall in the creative media, women, BAME people and the disabled are badly underrepresented. We need to attract, develop and nurture their skills to the maximum to identify and develop them faster. Mentoring, as NESTA has identified, is crucial
- We particularly need to take action to encourage more women into the tech industry, where women hold only 17% of the jobs. We must do more at the entry level; the process must start at school. In the creative sector, PSBs and the independent sector need to show leadership in efforts to increase diversity and social mobility.
- I welcome changes to the national curriculum so that it now includes coding and computer science but is disappointing that the Government seem so intent on a STEM rather than a STEAM agenda in our schools. The truth is that we need students going into the creative industries to be multidisciplinary
- There are many other issues on skills in the creative industries: visas for international entrants where skills are at a shortage; the importance of clusters; the relationship between universities; and in particular the AHRC knowledge exchange hubs in London and the nations and regions, such as the Creative Exchange and Creativeworks. What support are the Government giving to those hubs? What action are they taking to ensure that the two skills councils work ever closer together and merge into a powerful and effective body to make sure that we plan and make the right strategies for the creative industries.
How Does London Become the new Silicon Valley?
I recently gave a speech at Kings College Student Think Tank on the subject of how London could develop into Silicon City .
Here's what I said
I am delighted to be here at the launch today to talk about tech and what we can do to make sure that London really becomes Silicon City. I would in fact like to see Silicon Nation!
will.i.am says “Tech is new Rock N’ Roll” . He also says London is the centre of the world. And of course he's right!
We are already doing well –after all the UK is generating more $1bn Unicorns than any other country in Europe. It is already the pre-eminent location worldwide for Fintech. Just five years after the launch of Tech City, venture capital into London is now 10 times higher than in 2010.
Tech firms in the capital secured almost $1.4billion in venture capital financing over the course of 2014, double the figure for 2013 and 10 times the figure of 2010. In just the first three months of 2015, the City’s tech companies secured more than $682million in VC financing. Over the next ten years the number of digital technology companies in London is expected to rise to 45,000 and create more than £12 billion of economic activity, according to research by Oxford Economics
Of the 17 UK tech unicorns, 13 are based in London. More than the total of Sweden and Germany put together.There was a 92% increase in new digital companies incorporated in Inner London between 2010-13. 251,590 are in digital employment across Inner London, more than any other city in the UK Over the next ten years there are expected to be 46,000 more digital jobs in London, according to research by Oxford Economics
London has become the FinTech capital of the world – With more people employed in the sector than any other city worldwide, standing at 44,000 (1,000 more than New York). London is a major hub for big data. There are an estimated 54,000 big data workers within 25 miles of London, compared to 57,000 for New York City and 98,000 for San Francisco/Silicon Valley
I had the privilege of launching the Manifesto of TechUk the body that represents the UK tech industry shortly before our General Election this year. It strongly reinforced and complements the Start up Manifesto from COADEC published shortly before and the Report "Connected Cities" from Jim O'Neil's City Growth Commission published in July.
All of them in their own way tackle a series of policy initiatives and developments which UK Tech companies perceive they need to take effect to enable them to grow and prosper in the UK in the context of what is a global digital revolution which we are all experiencing and which TechUk’s Presdent Jaecqueline de Rojas has described as “Irreversible and Unstoppable”. In each case they want to build on success.
In a non political way everyone is now singing from the same hymn sheet. Let me tell you why.
Access to Finance and Commercial Advice
First we need to ensure that Tech companies at every stage-start up and beyond have access to the Finance they need to grow and can stay in London. This has been the subject of a great deal of activity in the past 5 years
Over time UK start up Tech companies have a benefited from a range of Government investment and support schemes giving them access to early stage equity finance through the Government's Seed Enterprise Investment schemes. It's one of the most generous early stage tax breaks available anywhere in the world
Tech companies have also benefited from a range of Government investment and support schemes, including the Business Growth Fund, Enterprise Capital Funds (ECF)and the Enterprise Finance Guarantee (EFG),
It is in two stages of equity finance where we are behind Silicon Valley and Nasdaq in New York. Problem of business accessing finance to achieve scale. There is a danger of businesses moving to the US at this funding stage. A recent report by Sherry Coutu on Scale Up highlighted this saying: “There is a lack of follow-on capital in the UK, compounded by short term investor mind-sets”
In response the London Stock exchange has created the new High Growth Segment to encourage companies to list here which is having an impact. It has also developed the ELITE programme of structured engagement developing and supporting ambitious private companies through their next stage of growth.
(Partnered with Imperial College Business School) ELITE delivers a three part service of education, business support, mentoring and access to an ecosystem of professionals fostering growth Companies enter an 18-month programme to give them a mix of education, training and direct contact with Europe's financial and advisory community. Elite shows company management teams how to get access to the most suitable funding to help them grow, which could be VC investment, private equity or stock market flotation
As regards debt finance with very limited exceptions the banks are failing SME's and start ups. They are only really interested in established businesses.
But in different ways BgF (Business growth Fund) and BBB (the new British Business Bank) go some way to addressing these issues. since its launch in 2011, BgF has directly invested over £400m of growth capital in more than 70 British scale-ups, with more than £200m deployed in the past 15 months. The British Business Bank has invested almost £150 million in a number of growth finance funds and lenders in the UK scale-up sector
There is however the government backed Start up Loans company that has made 33,000 loans for start ups since 2012 amounting to £181 million. The average loan size is £5000.
The Start Up Loans Company was established in September 2012, when Lord Young identified that if self-employment was rooted in the British mentality and considered as a viable career path this would lead to increased job creation. Their mission is to ensure the provision of affordable finance, free mentoring and support for those who cannot obtain funding from alternative sources.
The Start Up Loans Company is supported by the British Business Bank, with a further £330 million of government funding confirmed. 51% of loans have been to the under 30’s.
Then there is Crowd funding is beginning to have a real impact. Loans through UK Crowd funding have hit the £2bn mark at the end of last year.
Nicola Horlick:
“Crowdfunding is all about cutting out the middle man and allowing small businesses to get the funding they need without banks taking a slice of their margins in fees from when firms take out business loans," she said. "For savers, these ventures offer the potential for much greater returns."
It is good that funds such as Funding Circle are receiving government support through the Business Finance Partnership scheme (BFP). But in the wake of British drone startup Zano's recent bankruptcy after heavy funding from Kickstarter questions are being asked about the crowd funding model.
There is more to be done however . There is no magic wand but we should be facilitating new entrants to the banking sector, including through public procurement policy, so that there is much more choice and variety of competitors in banking, in particular business banking .I hope that the many new challenger banks such as Metro, TSB etc now emerging will make a difference but it should be much easier to establish a new bank and to switch Bank accounts especially when the customer has an overdraft.
Public Funding
I was pleased to see in the recent Autumn Statement that that the science budget has been ring fenced and more ‘Catapult’ innovation and technology centres, essentially business innovation accelerators, will be rolled out. This kind of public support is crucial
Commercial Mentoring
There is also a need for more commercial mentoring and support for start ups quite apart from the finance. This includes backing not just micro businesses but individuals as well. We should be giving them more support at the so called “Friends and Family” stage. Some sectors like the British Fashion Councils New Gen programme which identifies talent and nurtures and mentors it towards commercial success are a model of how this can work.
I came across an innovative new business the other day called Entrepreneur First. Unlike accelerators and seedfunders like Techstars, Y Combinator and Wayra, although they have impressive track records, EF focuses on finding and funding talented individuals, not just promising companies and using Venture Partners to mentor them on a weekly basis. They say “It's only a matter of time before EF produces some seriously big tech companies, possibly even unicorns." as a result.
Universities
Of course there is a role as well for serious tech, creative and R&D inspiration and help for start ups and micro business and that is where universities with their ever increasing enterprise agendas often come in.
For instance I went to a presentation lat week about The Creative Exchange which is a collaboration between Lancaster University, Newcastle University and the Royal College of art, who bring expertise of their PhD students in digital design to assist micro businesses develop their ideas and meet practical challenges.I know you at Kings are part of Creative Works London in partnership with QMUL and others, also Funded by the AHRC
Thirty-eight London-based universities, colleges, museums, libraries and archives. They work with businesses who are interested in exploring areas such as entrepreneurial development, emerging markets, new ways of engaging London’s diverse audiences, and the development of digital resources and media content. Having seen the Google Campus in Shoreditch in full swing I know that can be a source for help and inspiration too.
Understanding how to access these great schemes and skills for individuals and micro businesses is crucial however and there is more that could be done by government, the tech hubs (Tech City /Tech North) LEP’s and government sponsored catapults in helping them navigate to where university partners can be found.
Skills
The talent available however is far below what we need. Start ups need a mixture of technical and creative skills to develop their new digital services.
The Tech UK manifesto says we need 1 million tech jobs to be filled by 2020 to keep up with demand.
I welcome the mandatory inclusion in the curriculum of coding/computer science from this September for 5-16 year olds, the first in the G20 Also welcome the involvement of the tech sector in Code Clubs. Now of course we have the Raspberry Pi zero for $5 so there’s no excuse for not getting started!
But even if the pipeline from schools and universities is finding the right talent ,. subsequent training and proper apprenticeships are hugely important. We need to increase the number of apprenticeships both post school and university and improve their quality
I don’t know how many of you are from overseas but that said we will still be reliant on the skills of overseas undergraduates and post graduates and we should welcome them. We shouldn’t chase unrealistic targets in trying to reduce in net migration at the expense of growth in the digital economy. We should remove students from our immigration targets given their temporary status. In particular too we need to go further and reinstatement of the post study work route visa.
Good news on one front however. Attracting the best and brightest tech talent to the UK got easier today as the Home Office has published renewed eligibility criteria for the Tech Nation Visa Scheme (Tier 1 Exceptional Talent).
Following the announcement of plans to revise the criteria on 16th October 2015, the visa route is now officially open for applications under the new eligibility criteria.
This route is now open to candidates, who although assessed against the same criteria, will be considered to have ‘Exceptional Promise.’ This aims to open the route to a broader base of aspiring talent from outside the EU.
We shouldn’t just be talking about skills for entrepreneurs/ start ups, what about the customer, the audience-whatever we like to call them? The Tech Uk manifesto urges that digital exclusion is tackled. We still have many families without access to a computer or to internet facilities at home. There is still a lack of universal digital skills in Britain. 23% of adults lack basic digital skills.
Norway/Sweden by contrast have 97% basic digital literacy. We need commitment by Government to fund the teaching of basic digital skills through initiatives like Martha Lane-Fox’s Doteveryone initiative and Go On UK the digital skills charity she founded to combat digital exclusion.
On skills still I am delighted that industry is becoming less male dominated. We should use all available skills and encourage young women to go into STEM subjects as well as young men.
I mentioned the President of TechUk, we also have a whole range of other prominent women in tech. Eileen Burbridge who is the UK Ambassador for Fintec, Sherry Coutu who I have mentioned and is an important angel investor, Nicola Mendelsohn the V-P of Facebook and Chair of the Creative Industries Council, and not least Baroness Joanna Shields, the former CEO and Chair of Tech City and is now the internet safety and security Minister.
Clusters
The TechUk manifesto clearly recognizes the importance of geographic and sectoral balancing of our economy . Correct when the Manifesto says tech economy “more geographically extensive than is often recognized”
And this leads to the importance of clusters. Tech City yes-with 15,000 startups last year and the year before.
70,000 people now employed there. The Tech sector has accounted for 30%of new London jobs since 2009.
But there are so many other places,
- Newcastle Silicon Shore,
- Liverpool with the Baltic Triangle
- Brighton’s so called Silicon Beach
- Dotforge in Sheffield
- Software City Sunderland
Yes Manchester, Edinburgh, Leeds, Bristol. Birmingham, and Bath all have creative and tech clusters of different kinds . The role of our World class universities like Kings and their networks and enterprise and spinout activities is crucial in delivering all of this.
But RSA's City Growth Commission chaired by Jim now Lord O’Neil took the view that too many of the UK’s urban areas outside London are failing to achieve their growth potential. Compared with London these cities are still weak economically. How can we strengthen our clusters?
That's where the Northern Powerhouse Strategy comes in with development of the city region/combined authorities developed from policies started under the last (Coalition) government. So far we have Liverpool and Sheffield City Regions and the West Midlands Greater Manchester Tees Valley and North East Combined Authorities.
The plan is to devolve more economic decision making to local areas and away from national government. Cities will have greater powers, especially over finance. Currently 90% of tax is collected by central government. That is going to change entirely by 2020 ands city regions will have entire control over their income and budgets by then.
And the Cities are thinking big : I recently spoke at a Conference entitled " Manchester: From Regional Hub to Global Incubator!"
We also need to ensure much better transport and digital connectivity between our Metro areas outside London for instance and hopefully the investment in Transpennine line will do this along with the creation of Transport for the North.
International/The EU
We are already the highest net exporter of computer and information services among the G7 countries and our tech/internet economy accounts for a greater percentage of GDP in the UK than in any other G20 country.
We need digital markets to remain open and to break down the barriers to E-commerce across the EU to create a genuine European Digital Single Market. That is high up the agenda of the EU
The tech sector want the UK to help drive the reforms that Europe needs to become more open, innovative and competitive. As a result an overwhelming majority of the tech industry want the uk to stay in the EU.
We should embrace TTIP the US/EU free trade agreement in the offing.
The Role of Creative Content
There were some areas however where in my view the tech UK Manifesto could have been more explicit.
As well as recognising the need to be at the forefront of the Digital Economy our tech industries ands start ups need to acknowledge the increasing convergence between platform and content or design, between tech and the creative industries. There is no doubt that each sector is increasingly making use of relevant skills in the other.
All this means of course that Intellectual property protection through copyright enforcement is a subject of increasing importance in the digital age both as to product design and creative content. Attracting investment becomes more uncertain and more unattractive without proper protection of this vital asset. Business models are changing rapidly but all to a greater or lesser extent depend on good IP protection.
Digital copyright infringement sanctions need to be enhanced in the digital space. There are other initiatives eg Follow the Money which we could to ensure that infringing websites do not benefit from advertising and credit card company agreements.
However, combating piracy and unlawful copying is not simply a matter for the law. In both our countries we need to combat the idea that copyright infringement is socially acceptable through education and we need to make sure that there are legal ways of accessing copyright works at reasonable cost. Initiatives like Creative Content UK by the creative industries and ISP’s are important
The key too is improved licensing. One of the most exciting developments is the creation of the U.K. Copyright Hub which is a portal by which copyright works of all kinds can be identified and then licensed. It will I hope develop into an international resource. But it needs funding by government to ensure this happens.
Realize I haven't addressed the fundamental question of our broadband infrastructure. Could talk for hours about this but I will resist the temptation!
Rural areas are still beset by slow speeds. Despite a £1.2 billion procurement programme, we are still a long way from universal high-speed broadband. As a report from the Commons public accounts committee (PAC) last March detailed, red tape and the monopoly position effectively occupied by BT have stymied the programme.
Or housing. The Standard recently highlighted the fact that we may be Silicon City with some massively growing businesses like money transfer World Remit or holiday firm Secret Escapes but they won’t be able to expand if there no where for them to live. So housing policy is vital. We should do much more to encourage the provision of mixed studio/office living space with special tax breaks.
Lord C-J Demands Action from Government on Venue Closures
In the light of huge concern expressed at Venues Day 2015 and in the Rescue Plan put together by the Mayor's Music Venues Taskforce I recently instituted a debate in the Lords about what plans the Government have to support small grass-roots music venues.
This is what I said.
According to UK Music’s latest figures, the music industry now contributes £4.1 billion to the UK economy, generates £2.1 billion in exports and employs more than 117,000 people. The sector as a whole grew by 5% in 2014. While our music industry is succeeding in many aspects, behind these impressive figures, elements of the sector are not doing as well. The focus of this debate, and of my remarks today, concerns what plans the Government have to support small grass-roots music venues. I am delighted that so many other music-loving noble Lords are joining in today’s debate.
Earlier this year, the Mayor of London established a Music Venues Taskforce. Chaired by the Music Venue Trust, and involving the Musicians’ Union, UK Music and representatives from two London venues—the 100 Club and Village Underground—the task force published its Rescue Plan in October to address the 35% decline in grass-roots music venues in the capital since 2007. While a lot of the publicity for grass-roots venue closures has been centred on London, the issue of grass roots is not unique to the capital. Venues such as Leicester’s Princess Charlotte, TJs in Newport, the Duchess of York in Leeds, the Picture House in Edinburgh and the Roadhouse in Manchester have all closed due to a number of issues that add up to the same thing: running a grass-roots music venue is becoming increasingly challenging.
In the task force’s Rescue Plan, the Music Venue Trust came up with a definition of a grass-roots music venue—as distinct from other premises—centred primarily on its cultural and social role and based on music programming being the establishment’s raison d’être. Furthermore, being a grass-roots venue means being a beacon of music and a key generator of night-time economic activity, and taking risks with programming and acts.
I am sure that many noble Lords have been enjoying the latest album from UK artist Adele, 25, which has set records around the world for sales and is likely to be this year’s global music success story. Adele played her first gig at the 12 Bar Club in London, whose Denmark Street venue is now closed. She went on to play support slots and small shows across the country, building her skills and her experience in front of small audiences in the manner that has enabled UK artists to thrive for the last 50 years. Had it not been for thevital grass-roots music venue circuit, it is difficult to see how an artist such as Adele could have cultivated her creativity. In 1994, a little-known band by the name of Oasis undertook a 25-date tour of the UK which transformed them into the world’s leading live band. Of those 25 venues, only 12 remain open.
The UK’s ability to create more acts like Adele and Oasis is being challenged by a number of threats to these important institutions. These threats include rising property prices and rents, increased demand for housing in big cities, increases in business rates, lack of specific guidance on how to treat music venues in planning law, increased deregulation of the planning system—notably the permitted development right from 2013, which allows offices to be converted into homes without the need for full planning permission—and increased conditions put on other aspects of a venue’s licence, despite the exemptions put in place by the Live Music Act.
There has been a lack of central government legislative support when contrasted with other key music markets such as the USA or Australia. In financial terms, across continental Europe, the grass-roots music venues sector has attracted significant direct government or industry subsidy, which distorts the market, making it difficult for our venues in the UK to compete for international talent. Thankfully, there are a number of sensible actions that the Government can take in order to alleviate the problems for grass-roots music venues.
First and foremost, the Government should introduce the agent of change principle into planning law. This principle would mean that when a planning development is granted, the onus is on the incoming individual or business to take responsibility for any changes needed to deal with noise from businesses that existed in the vicinity before permission was granted. Such a provision would significantly reduce the financial and administrative burden placed on venues when new development occurs. The principle has already been adopted in some states in Australia and the US. The Mayor of London has indicated that the agent of change principle will be adopted in the London Plan 2018.
Will the Minister undertake to look at how primary legislation can be strengthened in this regard? An opportunity exists in the Housing and Planning Bill, where amendments to introduce the agent of change principle have been debated in the Commons. In the debate on Tuesday, Planning Minister Brandon Lewis rejected the amendments as unnecessary. He claimed that the National Planning Policy Framework incorporated the principle and so did the guidance—I suppose that he meant paragraph 6 of the noise planning guidance.
However, he said that he is trying to meet the music sector on this in conjunction with Culture Minister Ed Vaizey who pledged to arrange a meeting with a delegation when he attended Venues Day 2015, the annual national gathering of grass-roots music venues from across the UK, which is organised by the Music Venue Trust. UK Music has followed up on this but no date has been confirmed. Can the Minister undertake that this will happen before Report in the Commons on the Housing and Planning Bill?
Will the Minister also consider how the ground-breaking deed of easement of noise in the recent Ministry of Sound case can be further promoted as good practice in resolving cases between developers and venues? Will he also commit to a biannual meeting of key Ministers to consider, develop and monitor strategies of support for venues?
Secondly, the Government should introduce full relief from business rates for grass-roots music venues. As I have already outlined, business rates are problematic for music venues. A small London venue may pay tens of thousands of pounds a year in business rates, making it economically unviable without financial support. The Government are conducting a review into business rates relief for local newspapers. This creates a potential precedent for the Government to review rates for grass-roots music venues. Such a measure would go some way towards correcting the imbalance in cultural subsidies with our European competitors.
In monitoring the impact of the Live Music Act and further entertainment deregulation from earlier this year, the Government should review whether local authorities and the police are utilising and over- regulating other licensing conditions to regulate certain music venue activities which should otherwise benefit from the full impact of the coalition Government’s entertainment deregulation reforms. Internal government co-ordination is also key to this issue. This debate is being responded to by the noble Earl, yet other aspects of government such as DCLG, Defra and the Home Office also have a strong interest in this.
At Venues Day 2015, Minister Ed Vaizey firmly backed the idea that grass-roots music venues should have access to cultural funding. What steps are the Government taking to ensure that that happens, and specifically what can be done to ensure that any available funding acts directly to improve the infrastructure in those venues so that they are attractive places for touring artists to play?
Finally, will the Government make a specific response to the Mayor of London’s Music Venues Taskforce report, and what further work are they planning to undertake with other large cities and communities in the UK to promote the vital role of grass-roots music venues?
We protect and support our theatres, arts centres, civic centres, museums and galleries by recognising their cultural priorities. The Government should do all they can to ensure that these vital incubators of the live music industry are able to access similar levels of support and recognition from national government and local authorities as those received by other spaces. These issues are urgent for the future of live music venues and I hope that the Minister will respond appropriately.
The Minister's reply is here:
http://www.publications.parliament.uk/pa/ld201516/ldhansrd/text/151210-gc0001.htm#15121057000162
It showed they are taking the matter seriously particularly on the planning front. We will be testing their intentions when the Housing and Planning Bill comes to the Lords shortly and we will be putting down amendments to introduce the principle of the Agent of Change into primary legislation.