3Support for the creative industries in Scotland
18.As culture is a devolved matter, the Scottish Government and a number of Scottish public agencies lead on support for the creative industries in Scotland. There are also bodies which provide support to these industries across the UK. Given our role as a Committee of the UK Parliament we have focused our consideration on the role of UK bodies and the collaboration between UK and Scottish bodies. The Scottish Parliament’s Economy, Energy and Tourism Committee’s inquiry into the economic impact of the creative industries in Scotland looked at the role of Scottish agencies involved with supporting the creative industries.29
Public sector support for the creative industries in Scotland
19.The agency which leads on support for the creative industries in Scotland is Creative Scotland, which was established by the Scottish Government in July 2010, taking over the functions and resources of Scottish Screen and the Scottish Arts Council.30 Creative Scotland was also given responsibility for the “creative industries” more broadly, and in particular the task of promoting and supporting commercial activity focused on the application of creative skills. Its purpose is to support the development of the arts, screen and the creative industries across all parts of Scotland. Creative Scotland coordinates Scotland’s Creative Industries Partnership (SCIP), which is made up of the Scottish Government, Scottish Enterprise, Highlands and Islands Enterprise, Skills Development Scotland, the Convention of Scottish Local Authorities, the Scottish Funding Council and Scottish Development International.
20.While Creative Scotland leads on cultural support, Scottish Enterprise supports the economic development of a range of industries in Scotland, including the creative industries. They provide individual company and business support to companies with high growth ambitions. Scottish Enterprise’s current business plan refers specifically to the “opportunities for creative industries in the creation, distribution and commercial exploitation of digital content”, and states that its own role is to “attract new companies as investors to Scotland as well as seeking out and delivering global opportunities”.31
The role and focus of Scottish public agencies
21.Since Creative Scotland was established in 2010, replacing Scottish Screen and the Scottish Arts Council, there has been considerable debate about its role and the roles of other public agencies involved in supporting the creative industries. The Scottish Parliament’s Economy, Energy and Tourism Committee found that the “different remits of Creative Scotland and Scottish Enterprise have led to confusion in the sector about the roles and responsibilities of each”.32 They found that the cultural focus of Creative Scotland and business focus of Scottish Enterprise meant that it was not clear which agency led on support for sectors such as computer games and television, which have both cultural and business elements, and, as a result, no agency was championing these industries
22.In evidence to this Committee, we have heard similar concerns about the role of Creative Scotland and Scottish Enterprise, and how well they are able to support the commercial creative industries.33 Although Brian Baglow, Director of the Scottish Games Network, praised the support SCDI and Scottish Enterprise had given the games industry, he also said that it was not clear exactly what the role of each organisation was, and that “many companies find it off-putting, not knowing exactly what each organisation can do to help them on a practical basis or indeed who they should be talking to on an ongoing basis.”34
23.Other witnesses argued that the separate roles of Creative Scotland—focusing on the creative side—and Scottish Enterprise—focussing on the business side—made sense.35 David Smith, Director of Creative Industries at Scottish Enterprise, told us that a diverse Scottish creative sector “requires and asks for, to some extent, a diversity of organisations with particular remits to complement and support that body or the breadth and diversity of the creative industries”. He told us that in terms of who was providing support:
we are very clear that the enterprise agencies lead on business support, Creative Scotland lead in relation to the overall screen sector and overall cultural support, and Skills Development Scotland take a lead on screen, and we all work together under the chairmanship of Janet Archer in Creative Scotland to ensure that all of our activity is co-ordinated.36
24.When asked about the relationship between Scottish Enterprise and Creative Scotland and the lack of clarity about which organisation would provide support, Janet Archer, Chief Executive, Creative Scotland, accepted that “perhaps things were not working as effectively as they could have done, and there was confusion in terms of who could go where for what” but said that this had improved in recent months as Creative Scotland worked towards its creative industries strategy,37 which was published in draft in October 2015.38
25.As well as concerns over the relationship between Creative Scotland and Scottish Enterprise, some witnesses suggested that the breadth of industries Creative Scotland is responsible for was itself an issue and that the current approach was well-intentioned but lacking in focus. Chris van der Kuyl, Director of 4J Studios—a games company based in Dundee—argued that “someone somewhere who has responsibility for this needs to pick the winner” and that “Right now, it is like taking a tiny sliver of butter and spreading it over everything; nobody tastes it. We need to focus.”39 With regards to public support for the games industry in Scotland, he went on to say:
Either we decide that this is such a focus that we are going to get a games champion and put them into a position of strength so they are able to pull in the right agencies, come up with strategies, implement them quickly and have real teeth to do that, or we just have reactive generic agencies that we will all come knocking at if we so feel like it. But to go with the bit in the middle, where we pretend to do it, is a waste of everybody’s time and money.40
26.Janet Archer told us that Clive Gillman, their Director of the Creative Industries, would be “championing the games sector”, and had already met with industry representatives.41 It is not clear to what extent this will respond to the criticisms we have heard about the focus given to the computer games industry, or suggestions that an approach focusing on certain industries would be more effective than the broad approach being pursued at present.
Scotland’s Creative Industries Partnership
27.As noted above, Creative Scotland coordinates Scotland’s Creative Industries Partnership (SCIP), which brings together the various Scottish agencies involved in providing support to the creative industries. Janet Archer told us that, given the number of agencies involved, effective coordination was crucial to ensure that services were not duplicated, that agencies were able to signpost correctly and that public resources were used in the most effective way.42 David Martin, Creative Industries Sector Manager at Skills Development Scotland, told us that the successful co-ordination between the various public agencies had been demonstrated in drawing up the skills development plan for the creative industries, which required engagement from across the sector as well as from public partners.43
28.We have been told that the SCIP has been successful at bringing together public support for the sector, but that there is a need for greater industry involvement.44 This principle was recognised by Fiona Hyslop MSP, who told us that a key consideration was “how you make sure that the voices of industry are driving the decisions about what we do”.45
29.Janet Archer suggested that a focus on industry involvement missed the purpose of the SCIP which was to “bring together the different public sector agencies and public bodies in Scotland that are involved in the creative industries to ensure that best use of public sector resources is always in effect”.46 In terms of industry engagement, Ms Archer told us that there were industry groups to inform the SCIP’s work, but acknowledged that there was a question about “whether or not we should formalise that engagement through industry being part of the wider SCIP membership”. David Martin, the Creative Industries Sector Manager at Skills Development Scotland, told us that they had set up the Creative Industries Skills Forum, to provide an “industry-led public partnership”, when working on the skills development plan for the creative industries.
30.Scrutiny of Scottish public bodies is a matter for the Scottish Parliament, but we note the evidence we received from Creative Scotland and Scottish Enterprise that they have taken on board criticisms about their relationship and respective roles. However, representatives of the creative industries still expressed concerns about how public agencies engage with industry, whether the current broad range of support is useful and whether a more targeted approach would be appropriate. We hope the evidence we have received on this area is of use both to the agencies involved, and also our colleagues in the Scottish Parliament should they wish to conduct any further inquiries into this subject.
The role of UK-wide bodies
31.For the most part, it is Scottish agencies which are responsible for supporting the creative industries in Scotland, but there are also bodies which operate on a UK-wide basis. UK Trade and Investment (UKTI)—the UK’s agency for supporting businesses to succeed in international markets—is involved in promoting exports and inward investment across the UK, and the British Film Institute (BFI) is responsible for distributing National Lottery funds to support British film on a UK-wide basis.
32.Both UKTI and Scottish Development International—Scotland’s international enterprise agency—have a role in promoting trade and investment in Scotland. The evidence we received from the UK Government stated that “UKTI works closely with the Scottish Government on specific areas of the creative industries international strategy, particularly on inward investment and Scottish Government priority areas such as screen and games.”47 Several of our witnesses highlighted the importance to the creative industries of attracting inward investment,48 and noted the role of UKTI in supporting the Scottish creative industries in international markets.49
33.In June 2014, UKTI’s Creative Industries Sector Advisory Group launched the Creative Industries International Strategy, the stated aims of which were to double the value of creative industries exports to £31bn, double the amount of creative businesses that UKTI helps (from 7,500 to 15,000), and double the value of inward investment in creative UK businesses by 50%.50 The strategy did not set out UKTI’s plans for different parts of the UK. Ed Vaizey MP, talking about the role for UKTI in promoting video games, acknowledged that it was “important that UKTI has a comprehensive understanding of what opportunities are available in Scotland”.51
34.The BFI funds a range of film-related activities in Scotland, many of which it runs in partnership with Creative Scotland.52 These include film education activities, skills development, film festivals and awards to film makers. In terms of the level of spending in Scotland, Amanda Nevill, the Chief Executive Officer of BFI, told us that “If we were to look at just the lottery investment, the per capita […] is just slightly higher [in Scotland] than that in England”.53
35.In light of the success of BFI as a distributor of National Lottery funds to the British film industry, we have been told that there are opportunities for new UK-wide initiatives which could benefit the creative industries in Scotland. Nesta—a charity focused on supporting innovation—told us that the UK Government should establish a National Lottery distributor for the video games industry, following the model of the BFI, stating that this would “enable burgeoning Scottish games talent and leading Scottish games companies alike to benefit from targeted funding”.54 The evidence we received from TIGA suggested that the UK or Scottish governments should consider introducing a “Creative Content Fund” to provide loans to small studios to “encourage new studio formation, stimulate creativity and co-fund new content generation and IP generation.”55 Along similar lines to this concept, the Government recently created a Video Games Prototype Fund, which will provide £4 million from 2015 to 2019, aimed at helping smaller companies get concepts off the drawing board and into production.56
36.Although the Scottish Government and Creative Scotland lead on support for the creative industries in Scotland, both UK Trade and Investment (UKTI) and the British Film Institute (BFI) operate across the UK. The evidence we have received about UKTI and BFI’s role in Scotland has been broadly positive, but it is important that UK-wide organisations bear in mind the need to work effectively for all parts of the UK, and are able to demonstrate that they are doing so.
37.We have heard that a National Lottery distributor for the computer games industry, following the model of the BFI, could support the burgeoning games industry in Scotland and across the UK. We recommend that the UK Government consult with the video games industry in early 2016 and respond to this proposal, including consideration of how it would work in concert with measures such as the Video Games Prototype Fund.
Public funding for the creative industries in Scotland
38.Because of the mix of Scottish and UK-wide bodies which support the creative industries in Scotland, public funding for the creative industries is provided by both the UK and Scottish governments. We have been told by both governments that it is extremely difficult to establish the exact level of public funding which goes to supporting the creative industries in Scotland, but the main sources of public support are set out in the table below.
Table 1: Public funding for the creative industries in Scotland57
|
Scotland |
UK |
|
Creative Scotland grants (£81 million for 2015/16) |
BBC spend (£90 million network TV spend in Scotland, for 2013) |
|
Production Growth Fund for film and TV (£1.75 million over 15/16 and 16/17)* |
Skills Investment Fund (£4 million, across the UK, for 2015-16) |
|
Scottish Government funding for National Performing Companies (£23 million in 2013) |
Video Games Prototype Fund (£4 million, across the UK, for 2015-19) |
|
Scottish Funding Council grants (£26 million in grants, to educational institutions focussed on the creative arts, in 2013/14) |
British Film Institute support for British film (£34 million, across the UK, in 2014/15) |
|
Business support services |
Creative industry tax reliefs |
*This fund includes £1 million of existing Creative Scotland funds
39.When we asked Fiona Hyslop MSP about overall public funding for the creative industries in Scotland, she told us:
There is a challenge in identifying all the different pockets of money, because you have skills from Skills Development Scotland; you have the Scottish Funding Council. […] I am not sure you would necessarily be able to pinpoint that.58
40.Similarly, when we asked Ed Vaizey MP whether there was comprehensive data on how UK funds benefited different parts of the UK, he told us:
I think it is a challenge to me that I should take up […] I think it will be a very useful thing when we take away what I now regard as a work programme from the Chairman, in terms of taking a comprehensive look at the creative industries’ data and speaking to each of the organisations that have a national remit, such as the HLF.
[…] I am sure the BFI will also have data on what films are made in Scotland. […] You have given me the opportunity to think more creatively about how we publish that data to show not only how Scotland benefits, but how other parts of the United Kingdom benefit from these national schemes.59
41.It is disappointing that neither the UK nor Scottish governments have a clear understanding of the level of public spending on support for the creative industries in Scotland. In the absence of such information, it is hard to see how either government can be sure that the level of funding is appropriate, or going to the areas where it will be most effective. We welcome the UK Minister’s encouraging response that he would think about how to show the benefit to creative industries in different parts of the UK from national schemes intended to provide support to those industries.
42.We recommend that the UK Government work with the Scottish Government to clarify what level of public funding is provided to the creative industries in Scotland, and include this information in its response to this report. This assessment should cover the various Scottish and UK-wide funds that support these industries in Scotland.
29 Scottish Parliament, Economy, Energy and Tourism Committee, The economic impact of the film, TV and video games industries, March 2015
32 Scottish Parliament, Economy, Energy and Tourism Committee, The economic impact of the film, TV and video games industries, March 2015
33 Dr Bell Doyle (CIS0009) para 1.5, University of the West of Scotland (CIS0013), Screen Facilities Scotland (CIS0023), Professor Robin MacPherson (CIS0031), Channel 4 (CIS0047), Equity (CIS0048) para 40, STV (CIS0051), Publishers Association and Publishing Scotland (CIS0064)
34 Q12
35 Q15 [Professor Gregor White], Q29 [Malath Abbas]
36 Q174
37 Q176
38 Creative Scotland, Creative Industries Draft Strategy open for feedback, October 2015
39 Q26
40 Q29
41 Q189
42 Q175
43 Q175
44 Q12 [Professor Gregor White], Q88 [Alasdair Smith]
45 Q206
46 Q178
48 Q6, Q8 [Dr Jo Twist], Q163 [Charlotte Wright], Q239 [Amanda Nevill]
49 Design Council (CIS0036) para 14, UK Music (CIS0041) paras 23-24, Scottish Government (CIS0056), Scotland Office (CIS0066) Annex C, Q185 [David Smith]
50 UK Trade and Investment, UK Creative Industries – International Strategy, June 2014
51 Q267
53 Q227
56 Department for Culture, Media and Sport, £4m fund to kick-start the next ‘Tomb Raider’, October 2015
57 Creative Scotland Creative Scotland Annual Plan 2015-16, 2015, Scottish Government, Growing film and TV production, September 2015, Scottish Funding Council, Annual Report and Accounts 2013/14, Scottish Government, National Performing Companies Two Year Annual Report on Activities April 2012 to March 2014, January 2015, written evidence from the BBC to the Scottish Parliament, Economy, Energy and Tourism Committee, HM Treasury, Budget 2015, March 2015, Department for Culture, Media and Sport, £4m fund to kick-start the next ‘Tomb Raider’, October 2015, British Film Institute, BFI Annual Report and Financial Statements: 2014-15, July 2015
58 Q204
59 Q261
© Parliamentary copyright 2015
Prepared 12 January 2016