Culture + Creativity has a significant positive social impact. So why isn’t it getting the attention of our politicians?
Dr Chris Arnold
Thought Architect. Social Impact Strategist. Public Speaker. Ethical Marketing. Branding. Creativity. Innovation. Ex director Saatchi & Saatchi.
Elections are a time when important matters come into focus: housing, the economy, law and order, welfare, NHS, immigration, education… just a few of the many subjects we were hearing politicians talk about (or avoid).
However, one key area that often gets overlooked is Culture + Creativity. Despite being a significant part of the economy, it rarely featured prominently in political discussions. Ironically, it has a positive impact upon many of the key electorial issues.
As elections go, the UK July 2024 was a complex one for voters with so many issues, so no surprise many were conflicted and undecided, even if it was a landslide for Labour and a disaster for the Tories.
And while most of Europe is swinging to the tight, the UK has swung to the left which means more focus on people not profit.
THE CREATIVE ECONOMY
The Creative Economy (aka the Orange Economy) is one of our key economies, and the UK is top in many creative areas – publishing, TV, video, films, animation, music, gaming, fashion, events, design, architecture, and even advertising (though I think we have lost the creative crown).
Some areas, like film and TV are thriving - official 2022 statistics reveal a record ￡6.27 billion film and high-end television production spend in the UK
But it's an area also under threat. The UK's games industry is globally highly respected, employs over 76,000 people and generates over ￡6bn a year for the UK economy. But it's also a sector in the middle of a crisis, over the last 18 months thousands of workers worldwide have lost their jobs and studios have been shut down.
THE POSITIVE SOCIAL IMPACT OF CULTURE + CREATIVITY
Beyond economics, there is a growing recognition that Culture + Creativity has profound positive social impacts; it helps build communities, improves social values, enhances well-being and mental health, reduces social divides, encourages sustainability, and lowers crime rates. These benefits are being increasingly recognised worldwide, with many cities integrating innovative cultural projects to improve local communities and urban societies.
Many cities across the world (half the world’s population now lives in cities and cities account for 80% of global GDP*) are embracing new thinking around Culture + Creativity, integrating innovative projects and inspiring projects to improve society. [*source World Cities Culture Forum]
The Department for Digital, Culture, Media & Sport (DCMS) estimates that the creative industries generated?￡126bn?in gross value for the UK economy (6% of GDP) and employs over 2.4 million people, that’s a lot of people. [source 2022 ONS data]
To add perspective, tourism generated ￡26.4bn, financial services generated ￡73.8bn. [source 2022 ONS data]
One of the challenges of the Culture + Creativity sector is that it can be hard to measure its value in numeric terms, and the reality is, that bureaucrats like numbers, and get to decide budgets and what’s important. Alas, bureaucrats tend not to have a leaning towards Culture + Creativity as they tend to be less creative and more linear thinkers. Some even see creativity as disruptive and unnecessary (there is no hope for a few).
This is why this sector is often reliant on grassroots Culture + Creativity Activists who dedicate themselves to creativity and running activities, festivals and venues with no pay or financial reward, motivated by the love of Culture + Creativity and the desire to bring it to a wider community. I know, I am one of those.
And while the Arts Council does support a lot of creative activities it’s minor in financial terms, and under the Tories, budgets have been slashed - ￡56 million worth of cuts to London's arts funding alone over the next three years. Culture + Creativity is never a high priority for the bean counters and not seen as a vote winner.
Many councils across the UK treat it as a low priority, knowing that even without funding, creative people will create and deliver great projects and events.
One exception is Wandsworth Council, who have a dedicated team and budget to run one of the best arts festivals in London, the Wandsworth Arts Fringe Festival. They were this year’s 'London Borough of Culture'.
In Haringey, which is nominated as the London Borough of Culture in 2027, they have a wealth of festivals and events, including The Crouch End Festival, one of London’s biggest community arts festivals, and now in its 15th year. The Festival (and numerous sub-festivals and events) is run by a small group of passionate volunteers and is self-funded through support from local businesses. This is typical of many community festivals across the UK.
“Creativity in the UK is underfunded, under-supported and undervalued. As a consequence, the UK is losing its creative edge and relying more on talent from abroad.” [London Community Arts]
THE DEATH OF LIVE MUSIC
According to the Association of Independent Festivals (AIF), over 100 festivals (many non-commercial) will close this year for economic reasons. Since 2019, 182 have closed.
One of the reasons is climate change, young festival goers are reluctant to buy tickets in advance for fear of bad weather. Organisers need advance ticket sales to secure bands. The solution? Shockingly, they don’t have one. (The actual solution is obvious if you apply creative economics.)
While some of us spent a small fortune to see Taylor Swift, many more (myself included) enjoy small local clubs, bars and venues for a more original night of music. These are the places that cultivate the next generation of real musicians (not AI simulated ones like the K-Pop band 'Eternity') and important talent incubators.
But while event organisers like Live Nation celebrate growing profits (with an income of $1.86bn), our grassroots venues are under threat? - a combination of economic challenges and loss of live music audiences (you could blame TikTok but it's more complicated). This is also true for venues that support art, drama, theatre and film
This is one area politicians could be taking more of an interest in. But they aren’t.
I came across this extraordinary fact. “Of the 366 small music venues Ed Sheeran played while learning his trade, at least 150 are now closed.” [source Music Venues Trust] Globally, Ed is now worth over ￡300m, which is great income for the UK government. Sadly, the UK music industry is going the same way the UK car industry went.
?The Music Venues Trust (MVT) is very active in lobbying the government to do more, pointing out that:
? The UK music industry is worth ￡5.2bn and invests over ￡248m into developing new UK artists.
? Grass root venues across the UK employ over 28,000 people and support far many more indirectly.
? UK music venues generate over ￡500m a year for the UK economy.
MVT have suggested a number of ways forward including, ￡1 grassroots investment contribution from every arena and stadium ticket sold to support Grassroots Music Venues (similar to what happens in football). Both MVT and the AIF want zero VAT on tickets, and reduced business rates.
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More importantly, as the world’s second biggest producer of commercial music (after the US) the UK is the nursery that cultivates our future talent which is future income.
CREATIVE CITIES
Many cities are now embracing and investing in cultivating creativity, like Barcelona which hosts various creative events and has the Art Factory project (F?briques de Creacio) that repurposes old buildings as creative centres. They now have 11 across Barcelona with a broad mix of creative areas covering performance art, dance, drama, music, art, design, poetry, writing, film and even circus skills.
The positive social impact of Culture + Creativity is now being seen as an essential part or urban regeneration across many cities in the world. And many abroad are seeing it as an investment in society, not a cost. In fact, it could be argued that a ￡1 spent on cultivating Culture + Creativity could save ￡2 later on.
While politicians, understandably, are focused on the more popular issues, Culture + Creativity is as important, if not a critical area, we need to support. Unlike many other areas governments of the day have to deal with, there are millions already trying to make it happen and unlike the NHS that just needs more and more cash, we need more support. And while it is unlikely that any government will pump extra money in, there are ways to help the industry in other ways.
How?
Rethink how we think about the area of Culture + Creativity. Be creative in how we find solutions to the challenges we face.
Both the government and local councils need to create a new role - Head of Culture + Creativity (only Haringey has that title). Staffed by people who know the sector and its value.
Additionally, they need a Head of Social Impact, to apply a different lens to strategy, policy and delivery. Working together, the two can make a significant positive impact.
THE POLITICS OF DOING GOOD WHY LABOUR NEEDS TO FOCUS ON HUMAN ECONOMICS
What defines the difference between the Tories (right of centre) and Labour (left of centre) is the lens they use.
The Tories lens is numeric - since Margaret Thatcher thay have used numbers and data to try and justify their actions, even when the outcomes don't match up. It's all very well claiming you are pumping ￡50bn into the NHS, but if you can't see a doctor, you are waiting 2 years for a basic operation and there aren't enough medical staff, to the public it means nothing. The public thinks emotionally, they judge you by what you do and the outcomes, not what you say - only accountants see the world through a spreadsheet.
By contrast, Labour, a socialist-based party, sees things through the lens of the people, community and society (PCS). Numbers are not important - the average person in the street has no idea what $50bn is - what they care about are outcomes. Reducing waiting lists, being able to see a doctor today.
But the danger is, they adopt teh same narrative as the Tories.
The day after the election I wrote to a senior advisor to Keir Starmer suggesting they appoint a Head of Social Impact, with the aim of seeing all policies, strategies, and actions through a different lens - people, community, and society. (Yes I would love that job.)
My advice - sStop talking numbers, focus on human outcomes - it's called human economics.
As a creative strategist (who also did economics) I believe that we need to apply creative minds to the economic challenges that face us. Think differently, because old thinking isn’t the way forward, we need to look at things through a different lens.
Discuss…
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Chris Arnold is a Dr of Business, a specialist in ethical marketing, social impact strategy and community engagement. He’s a former Creative Director and board director of Saatchi & Saatchi and founder of Creative Orchestra Advertising, CONNECT2 and My Social Impact - a dynamic consultancy - defining Social Purpose, developing Social Impact Strategies, Creating Social Impact Campaigns and measuring Social Impacts.
He is founder and artistic director of London Community Arts CIC, the Crouch End Festival, the Tower Music Festival, üF-Beat Fringe Music Club and the Intimate Space venue.
He is the architect of Explore Music More, a campaign to encourage young people to go to more grassroot venues.
He is the author of Ethical Marketing & The New Consumer and FLIP – Unthink Everything You Know.
Contact: [email protected] ?? 07778 056686? (no sales calls)
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Remember the 2012 Olympics when we let Danny Boyle run with what the UK stood for and we were the Isle of Wonders. It’s truly remarkable how Brand Britain and its creative super powers have been trashed.