The recent victory of the Labour Party in the UK promises to bring significant changes to the creative industries, aiming to reverse the challenges faced under previous Conservative administrations. So, are there reasons to be optimistic, some indications are ‘yes’. The Labour government, led by Sir Keir Starmer, has laid out a comprehensive strategy to support and enhance the arts and cultural sectors, emphasising their vital role in the UK’s economy and national identity.
The UK Government’s Promises for the Creative Industries
In Labour’s ‘Creating Growth’ manifesto – they lay out their plans for the arts, culture and creative industries. These commitments include a variety of initiatives designed to bolster the creative industries. These initiatives focus on expanding access to the arts, fostering talent from grassroots levels, and ensuring sustainable funding models. Labour states they plan to work closely with key stakeholders like the Creative Industries Council and Arts Councils to attract diverse funding sources and support arts organisations in achieving long-term sustainability. Additionally, they state their aim to integrate arts education into the curriculum, supporting a rich and inclusive educational framework that emphasizes creative subject. (Artlyst) (Bectu).
Comparative Analysis: Labour vs. Conservative Policies
Under the Conservative administration, several incentives were introduced to support the creative industries. These included over £1 billion in new tax reliefs for film studios, a permanent extension of tax reliefs for theatres, orchestras, museums, and galleries, and increased support for visual effects costs in film and high-end TV (The Creative Industries). These measures aimed to maintain the UK’s competitive edge in the global creative sector.
However, despite these efforts, the creative industries have faced substantial challenges, including funding cuts and increased bureaucracy. The Conservatives also focused on reducing National Insurance and providing specific support for freelancers and small creative businesses (Bristol Creative Industries).
Labour’s approach, in contrast, places a stronger emphasis on systemic support and collaboration with industry stakeholders. Their plans include a Creative Compact to drive growth, address issues like long working hours and mental health challenges, and ensure diversity and fair remuneration in the sector (Bectu), a call echoed by Annabella Coldrick (CEO) of the Music Managers Forum.
Industry Reactions and Future Projections
Key figures in the creative industries have responded positively to Labour’s plans. Mark Davyd of the Music Venue Trust, which has been vocal about the precarious state of grassroots music venues, expressed optimism about the potential for revitalizing these essential cultural spaces. The MMF (Music Managers Forum) has warned of a culmination of issues approaching the music industry due to ongoing financial pressures and the impact of Brexit. Labour’s policies ‘could’ provide much-needed relief and stability, potentially fostering a healthier environment for music and entertainment venues (Bectu).
In PwC UK ‘UK Entertainment & Media Outlook 2022-2026’ they project continued growth in the creative sectors, driven by digital innovation and Get in touch global demand for UK creative content. Labour’s proposed measures could enhance this growth by ensuring robust support structures and sustainable funding, potentially increasing the sector’s contribution to the economy even further. As ever, polticians’ promises in oppostion, can often fail to materialise in a position of power. Budget issues and funding are clearly high on the agenda, but early indications could lead to a reasonably justifiable level of optimism.
What role is there for Insurance and Risk Management?
Insurance brokers in the entertainment sector play a crucial role in helping creative businesses navigate these changes. Tailored risk management solutions, from brokers and niche insurers in the space, can assist businesses in mitigating uncertainties related to funding, regulatory changes, and the ever-present operational risks. This support is essential for ensuring that the creative enterprises can thrive in a rapidly evolving landscape. Protecting the balance sheet of any enterprise in this sector, is in some cases, a matter of survival.
In conclusion, the Labour government’s plans for the creative industries are ambitious and aimed at fostering long-term growth and sustainability. By addressing systemic issues and enhancing support for creative professionals, Labour claims its aim is to transform the sector into a leading light of the UK economy. Choosing the right Insurance brokers and risk management strategies will be pivotal in supporting this transition, ensuring that the creative industries can navigate the challenges ahead and capitalise on new opportunities.