MD2963 Culture and Creative Industries Unit Budget

Creative Economy Growth Programme

2.1.    The objectives of this investment are to:

• support creative businesses across film, television, animation, visual effects, games, fashion and design to trade, export and make new sales
• deliver new inward investment and employment opportunities
• increase workforce diversity through the Equal Access Network; and showcase diverse talent through the London Games Festival, London Fashion Week, the London Film Festival and the London Design Festival
• maintain London’s global reputation as a world leader in the creative industries.

2.2.    The GLA investment of £2.678m will deliver the following outputs:

• inward investment activities in film/TV/animation: Film London’s London Filming Partnership, Business Engagement and Inward Investment programmes
• annual trade shows and festival events: London Fashion Week, the London Games Festival, the London Design Festival and the London Film Festival
• sales support schemes for fashion businesses: the London Fashion Showcasing Fund and NEWGEN
• export schemes for film and games: London Screenings, the Film Production Finance Market and the Games Production Finance Market
• diversity schemes: the Equal Access Network and the London Games Festival’s Ensemble showcase scheme.

2.3.    This will support the funded organisations to achieve quantified outcomes each year regarding inward investment, jobs and training:

• up to £13m in sales and exports for up to 600 design businesses
• up to £15m in games inward investment
• up to £60m in fashion sales
• up to £600m in film investment Year 1, £675m Year 2 and £750m Year 3
• up to 10,000 film/TV crew employment opportunities Year 1, 11,000 Year 2 and 12,000 Year 3
• 90 games jobs
• 200 training and employment opportunities through the Equal Access Network (with at least 40 per cent of beneficiaries from Black, Asian and minority ethnic backgrounds). 

24-Hour London

2.4.    The objective of this investment is to: 

• support night time businesses and workers to recover from the pandemic
• help local authorities and their partners put night time strategies in place
• grow London’s 24-hour economy
• make sure more high streets are safe, welcoming and well used after 6pm.

2.5.    GLA investment of £239,000 will deliver the following outputs for local authorities and their partners:

• four Night Time Borough Champions meetings
• up to 12 Night Surgeries
• a 24-Hour City summit
• six boroughs helped to develop night time strategies
• night time data purchase
• up to five business-friendly licensing projects supported with grant funding 
• evaluation of key 24-Hour London programmes by an external evaluator.

2.6.    This will achieve the following outcomes for local authorities and their partners:

• businesses, community organisations and the public sector actively working towards a shared vision for their area after 6pm
• priorities identified for improving the economy, public realm, and civic and public life after 6pm
• boroughs and their partners kept abreast of the latest developments in 24-Hour City policy from around the world through sharing innovative practice
• more business-friendly licensing practices introduced, as a result of trial projects and data sharing, to boost London’s recovery at night
• data used to make evidence-based decision-making at a local level
• Night Time Enterprise Zone learnings are shared with boroughs and businesses to help more areas to introduce this initiative and benefit from its impacts.

2.7.    It will also deliver the following outputs for night time businesses and workers:

• research into the issues affecting night workers, with recommendations on how employers and policy makers can better support night workers
• four meetings of the LGBTQ+ Venues and Promoters Forum
• eight workshops, events and e support sessions for night time businesses.

2.8.    This will achieve the following outcomes:

• GLA, local authorities, TfL and business groups understand the issues affecting night workers and the actions needed to improve night time jobs
• night time businesses are better equipped to keep staff and customers safe
• licensed premises, including music venues, LGBTQ+ venues and clubs, report improved resilience, financial sustainability, better partnership working with the police and local authorities and increased ability to deal with future challenges such as terrorism, climate change and infectious diseases.

London Music Fund

2.9.    The objective of this investment is to provide grant funding to the London Music Fund to enable young Londoners on the scholarships programme to learn a musical instrument and develop their musical talent.

2.10.    The GLA investment of £26,000 will:

• enable instrumental lessons for young London musicians
• provide access to weekend music tuition and special projects.

2.11.    This will achieve the development of the musical and social skills of young Londoners from low-income families, including those from under-represented backgrounds, through participation in instrumental tuition, projects and performances which have the potential to improve life chances.

Creative Workforce Diversity Programme 

2.12.    This investment will deliver the following objectives:

• pilot and test specific policy and programme interventions which the Mayor can make in partnership with relevant stakeholders
• establish programmes of work that will have the greatest impact in helping London’s creative workforce become more diverse
• identify new links across GLA policy on workforce diversity, joining up programmes where relevant.

2.13.    The GLA investment of £210,000 will deliver the following outputs:

• delivery of capacity building within JobCentre Plus for up to 150 participants (for Business Managers and Job Work coaches)
• delivery of training to new entrants to the job market and those with transferable skills
• up to four boroughs participating in the programme
• delivery of a mid-career coaching programme for up to 15 participants
• up to 10 training events to be delivered
• production of films to show the array of roles and careers in the creative industries to be used by JobCentre Plus internally to train coaches and managers and externally for clients 
• production of two evaluation reports on the impact of the Creative Jobcentre Programme, which helps unemployed Londoners, especially Black, Asian and minority ethnic Londoners, to roles in culture and the creative industries
• further research, guidance, stakeholder engagement and training events.

2.14.    This will achieve the following outcomes:

• develop and scale up the JobCentre Programme into other creative industry sectors
• opportunities for policy and programme interventions that the Mayor can make in partnership with the Department for Work and Pensions to improve ethnic and gender diversity in the creative industries workforce
• direct engagement of JobCentre Plus and creative industry employers
• increased awareness of creative industry employers and their engagement with Jobcentre Plus and their candidates
• reduction in existing barriers between Jobcentre Plus and the creative industries, benefitting job-seeking Londoners.

Culture and Community Spaces at Risk and Cultural Infrastructure Development 

2.15.    The objectives of this investment are to:

• safeguard at-risk cultural and community assets that are under threat and move them towards long-term sustainability
• secure spaces operated by user-led grassroots organisations who are delivering vital support to those most at risk through recovery
• innovate new approaches to Good Growth, ensuring spaces that serve local communities, contribute to social integration and are part of the cultural and creative industries ecosystem are secured within development
• increase the provision of cultural infrastructure in high streets, town centres, strategic industrial land, and opportunity areas
• ensure that new cultural premises supporting or led by diverse communities are created
• pilot and test specific policy and programme interventions which the Mayor can make in partnership with relevant stakeholders, including transition to zero carbon and circular economy practices.

2.16.    GLA investment of £247,000 will achieve the following outputs: 

• research, guidance, stakeholder engagement and training events 
• culture and community infrastructure data for distribution in the Cultural Infrastructure Map, data notes and the High Streets Data Portal
• 12 local authorities and public landowners engaged and supported to deliver best practice cultural infrastructure, placemaking and public realm projects 
• development of a case for the International Centre for Creative Industries
• guidance for the culture and creative industries to support transition to decarbonised cultural sector, focussing on theatre sector and the retrofit for existing cultural infrastructure.

2.17.    This will achieve the following outcomes:

• decrease in immediate and long-term risk to cultural and community infrastructure
• venues and spaces which serve local communities, and the cultural and creative industries ecosystem secured within developments
• improved models of inclusive regeneration as part of Good Growth 
• increased ownership and supply of robust new cultural and community infrastructure which serves communities and the cultural and creative industries for the future
• new cultural infrastructure typologies including those which are more sustainable adopted in developments and by the industry 
• opportunities for policy and programme interventions that the Mayor can make in partnership with relevant stakeholders, including local authorities, funders and industry associations.

Culture, Health and Wellbeing Programme 

2.18.    The GLA’s 2022-23 investment of £121,000, together with the Baring Foundation grant of £30,000 (approved through MD2811) will deliver the following objectives: 

• help cultural social prescribing become a routine and visible part of community support across London, ensuring equality of sustained access for Londoners
• increase understanding of the benefits of culture in supporting children and young people experiencing mental ill health
• support the Dementia Friendly City goals through new culture-led approaches to working with older people to live well with dementia 
• demonstrate the social and economic benefits of improved connections between culture, health and social care. 

2.19.     This will achieve the following outputs: 

• creative health and wellbeing pilot and report to test viability and scalability
• a three-year action plan for children and young people supporting those experiencing mental ill health through cultural activities 
• a £60,000 micro grant-funding programme responding to new action plan for children and young people
• expanded Dementia Friendly Venues Charter network supporting cultural venues developing dementia-friendly programmes
• four integrated care system and culture sector roundtables; and four London action for culture and health meetings.

2.20.    This will deliver the following outcomes: 

• increase the sustainability of cultural social prescribing across London, and develop partnership hardwiring cultural engagement into city life through health
• improved provision for Londoners to live well with dementia when visiting cultural organisations and programmes across London
• partnerships with the newly constituted integrated care system regions for London
• leadership development in creative health and wellbeing with councils, creative practitioners and integrated care systems.

Culture strategy

2.21.    This investment will deliver the following objectives:

• ensure that the Mayor’s statutory duties are met, including keeping the Culture strategy under review, with the support of the MCLB
• ensure policy and strategy are underpinned by a breadth of up-to-date research on the sector
• maximised opportunities, such as collaborative working, that benefit culture, 24-hour London and the creative industries, informing policy, programme development and advocacy.

2.22.    The investment of £80,000 will deliver:

• research into the post-pandemic needs of the culture and creative industries sector; the investment will also cover the publication, communication and dissemination of research
• support for the statutory MCLB including meetings and events; research and initiatives from the Board; and an allowance to attract and retain freelance members of the Board authorised through MD2946. 

2.23.    The investment will deliver the following outcomes:

• future cultural strategy and policy that is underpinned by up-to-data evidence and research
• communication of new research and policy to stakeholders including the culture and the creative industries sector, London boroughs, and national government
• expanded network of advocates for culture, 24-hour London and the creative industries 
• opportunities for policy and programme interventions that the Mayor can make in partnership with relevant stakeholders, including local authorities, funders and industry associations and organisations for the sector for the benefit of businesses and the workforce.

3.1.    Under Section 149 of the Equality Act 2010, as a public authority, the Mayor of London must have ‘due regard’ to the need to eliminate unlawful discrimination, harassment and victimisation; and as to advance equality of opportunity, and foster good relations, between people who have a ‘protected characteristic’ as defined in the Equality Act 2010 and those who do not. 

3.2.    The proposed programmes outlined in this decision form will enable the continued creation of opportunities for Londoners, providing social and economic benefits in the capital, as well as helping to ensure maximum support to those particularly vulnerable to the impact of COVID-19. The programmes and projects seek to ensure that all Londoners – regardless of whether they have protected characteristics or not – are able to enjoy, experience and benefit from being creative and taking part in London’s cultural offering. 

3.3.    The CCI Unit will continuously look at how we diversify the team’s workforce and embed EDI throughout the unit. This happens in various ways: we have an active EDI task-and-finish group; several team members sit on the Good Growth directorate Equality, Diversity and Inclusion group (GG EDI group), which is co-chaired by two team members; members of the team are part of the recruitment task-and-finish group which addresses achieving greater diversity in recruitment and several team members have joined the Responsible Procurement group to ensure supplier diversity. The above helps us to ensure that we are embedding all areas of EDI internally. 

3.4.    The GLA’s creative industries funding will help to increase diversity in the creative workforce and showcase diverse talent. Film London will embark on all programmes to be reflective of London’s diversity; Film London’s Equal Access Network is creating new training and employment opportunities for diverse Londoners; the London Games Festival is running an annual programme for diverse talent; the British Fashion Council provides funding and showcasing opportunities to new and emerging designers from diverse backgrounds; the London Design Festival will support, collaborate and showcase diverse talent and undertake a scoping exercise on barriers to entry for diverse businesses.

3.5.    The 24-Hour London Programme helps to protect the vulnerable LGBTQ+ community; improve women’s safety at night; and ensure safe access to high streets for all. The 24-Hour London team also supports the Culture and Community Spaces at Risk Programme.

3.6.    The Culture and Community Spaces at Risk Programme provides priority support to organisations led by and/or serving groups that have been, and continue to be, under-represented in the built environment. The most recent Community Spaces at Risk Fund provided direct grants and business support to 101 organisations, with 41 per cent of organisations led by and/or serving Black, Asian and Minority ethnic people; 30 per cent women-led; 9 per cent Deaf and disabled-led; and 7 per cent LGBTQ+-led. Furthermore, 51 per cent of the organisations that received support were in the top 20 per cent most deprived wards in the country. 

3.7.    The London Music Fund specifically provides: opportunities for young people from low-income backgrounds to realise and fulfil their potential through musical education, increasing their confidence and skills; and an equal opportunity to nurture their musical talents and pursue musical aspirations.

3.8.    The growth of social prescribing sits within strategic objective 33 of the Mayor’s EDI Strategy for London: 
“To co-produce with partners, including the and Community Sector, NHS and local authorities, a social prescribing vision and next steps for London that set out the approach to expanding social prescribing across London and particularly with the most deprived communities including the elderly, those with long term medical conditions and those with complex medical and social needs.”

3.9.    The CCI Unit’s Creative Workforce Diversity Programmes will specifically provide awareness of careers within the creative industries. The Creative JobCentre Programme will increase awareness of the careers in the screen and fashion industry for entry-level jobseekers; and support jobseekers transferring from other sectors. It will support the screen industries to recruit from a more diverse workforce, no matter their background, and support Black Asian and Minority Ethnic mid-career professionals progressing into more senior roles.

3.10.    The CCI Unit will ensure that all organisations that are in receipt of GLA grant funding, or are contracted by the GLA, have equality policies in place, and are committed to: proactively applying the principles of the Equality Act 2010; and regularly refreshing their equality and diversity policies and practices. 

4.1.    In addition to support the Mayor’s missions and foundations, the programmes and policies outlined in this decision also link to the following Mayoral strategies: 

• Culture for All Londoners, the Mayor's landmark strategy for culture, which outlines an ambitious vision to ensure all Londoners can engage with and contribute to the capital’s rich cultural offering on their doorsteps. 
• The Mayor’s objectives for Healthy Streets, which are more welcoming to people and encourage them to make active and sustainable travel choices – for example, by contributing to the Healthy Streets’ aspiration of ‘things to see and do’.
• Inclusive London, the Mayor’s EDI Strategy, which sets out that a successful city needs to work well for all residents. Everyone should be able to share in its prosperity, culture and community life regardless of age, social class, disability, race, religion, gender, gender identity, sexual orientation, marital status, or whether they are pregnant or on maternity leave.
• The Mayor’s Health Inequalities Strategy and Health in All Policies approach, which supports Londoners to feel comfortable talking about mental health, reducing stigma as well as empowering people to improve their own and their community’s health and wellbeing. 
• The Mayor’s Social Integration Strategy, which aims to improve social integration in London. This means enabling people to have more opportunities to connect with each other positively and meaningfully; and supporting Londoners to play an active part in their communities and the decisions that affect them. It involves reducing barriers and inequalities, so that Londoners can relate to each other as equals. 
• The Mayor’s Vision for London as 24-Hour City (diversifying London’s night time offer and making it more safe, welcoming and accessible for a wider range of people). 
• The Mayor’s Police and Crime Plan (Women’s Night Safety Summit).
• The London Plan, which contains strategic policies for supporting London’s night time economy and its diverse range of arts, cultural and entertainment enterprises; and the cultural, social and economic benefits they offer to its residents, workers and visitors. 

Impact assessments and consultations

4.2.    The MCLB is a statutory group comprising senior leaders from across the creative and cultural industries. These ambassadors shape the Mayor’s Culture Strategy and represent diverse voices from the industry. The Board will meet to offer advice on the London Recovery Programme. 

4.3.    In addition to the MCLB, London Action Group – a newly formed advisory group – has been formed to enable Londoners to participate in policy design and development. This was trialled through ACCESS, a cultural network funded by URBACT, an EU-funded European exchange and learning programme promoting sustainable urban development. 

4.4.    During the pandemic, the GLA held a programme of workshops and roundtables with cultural organisations and 24-Hour London stakeholders to ensure its response is industry and local authority-led. This programme of engagement has helped shape recovery activity in relation to culture. 

Subsidy control

4.5.    The British Fashion Council (BFC) is a not-for-profit organisation providing a unique range of services that other organisations do not, so it is unlikely to distort competition. The ultimate beneficiaries of GLA funding are the businesses (primarily micro, small and medium-sized enterprises), freelancer workers and supply chains who participate in London Fashion Week. The GLA also funds non-commercial activities such as the model zone and business support schemes (London Fashion Showcasing Fund, NEWGEN), which either would not exist without the GLA’s funding or would be considerably scaled back with fewer businesses benefiting.

4.6.    London Design Festival is the only organisation providing services of its kind, so it is not likely to distort competition and would not exist without the GLA’s support. It delivers services not provided elsewhere, correcting a market failure (coordination failure) to enable small design businesses to come together at the same time in order to attract international buyers and consumers. The ultimate beneficiaries of the festival are therefore the design businesses and also commercial design fairs who showcase during the festival period. The GLA also funds work to focus on diversity and sustainability which is non-commercial.

4.7.    The London Games Festival was previously run by UKIE, the games industry trade body, but closed due to lack of investment (the same coordination market failure that exists in creative-industry trade festivals all over the world). The GLA funds Film London to deliver the London Games Festival. It is the only organisation of its kind so does not distort the market. The festival is overseen by a steering group of industry professionals to ensure it responds to the needs of industry. As with the London Design Festival and London Fashion Week, the ultimate beneficiaries are the small businesses that make sales, exports and inward investment during the festival.

4.8.    Film London is the only organisation of its kind, and would not exist without the GLA’s support. Publicly funded film agencies similar to Film London exist across the UK’s nations and regions; they include the Film Agency for Wales, Creative England and Screen Yorkshire. Countries and cities all over the world fund public film agencies to attract inward investment to their territories. Film agencies provide production support, develop skills and talent, and run education and audience development programmes. They do not operate in a commercial market and are publicly funded. The beneficiaries of Film London’s work are thousands of businesses, freelancers, artists and crew – including those from across the UK and internationally who can use Film London’s services (free of charge) to help them shoot productions in the capital.

Risks 
 

Conflicts of interest

4.9.    There are no conflicts of interest to note for any of the officers involved in the drafting or clearance of this decision form. 

5.1.    Approval is being sought for expenditure on the Culture and Creative Industries Programme for the period 2022-25. This includes annual expenditure of £2.678m for the three years on the Creative Economy Growth Programme, and expenditure of £0.977m on the Core Programme for the 2022-23 financial year only, which includes the receipt of partnership income of £0.054m to supplement the Diversity Programme. This is set out in the table on the next page.

5.2.    In relation to the expenditure for this programme, the costs of £3.655m will be funded from the 2022-23 Culture and Creative Programme budget (£3.601m), subject to the GLA’s detailed 2022-23 budget being formally approved in March 2022 and as per above, the balance of £0.054m will be funded via partner contributions supporting the Diversity Programme. 

5.3.    The proposed annual expenditure of £2.678m for 2023-24 and 2024-25 relates to the CCI Unit’s Creative Economy Growth Programme; these budget allocations are currently indicative and not formally approved. This proposal would constitute a pre-existing commitment against these budgets. In order to mitigate any risk of these programmes not being sufficiently resourced in future years to cover costs following the annual budget-setting process, the associated grant agreements will include break clauses that could potentially be exercised if required. 

5.4.    The CCI Unit will seek further third-party contributions in the form of grant income and sponsorship to enhance programme delivery in 2022-23 for which delegation is also being sought via this decision for the Executive Director, Good Growth, to accept any further funding that is secured. At this stage, other than the £0.054m that has been confirmed for the Diversity Programme, no further contributions have been secured.  

5.5.    It should also be noted that commitments against third-partly income streams will only be entered into once a contractual agreement has been secured with the grantor and/or sponsor. All appropriate budget adjustments will be made. 

6.1.    The foregoing sections of this report indicate that the decisions requested of the Mayor fall within the statutory powers of the Authority to promote and/or to do anything that is facilitative, of or conducive or incidental to, economic development and wealth creation within Greater London; and in formulating the proposals in respect of which a decision is sought, officers have complied with the Authority’s related statutory duties to:

• pay due regard to the principle that there should be equality of opportunity for all people
• consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom
• consult with appropriate bodies.

6.2.    In taking the decisions requested of him, the Mayor must have due regard to the Public Sector Equality Duty – namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010; to advance equality of opportunity between persons who share a relevant protected characteristic (race, disability, age, sex, sexual orientation, religion or belief, pregnancy and maternity, marriage and civil partnership, and gender reassignment); and persons who do not share it; and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.

Exemptions form the Contracts and Funding Code

6.3.    Officers are seeking approval to vary the GLA’s existing contract with Publica Associates Ltd. The original contract was valued at £80,587, whilst the proposed variation is valued at £69,000. Section 9 of the Authority's Contracts and Funding Code (the "Code") requires that the Authority undertake a formal tender process or make a call off from an accessible framework for procurements with a value between £10,000 and £150,000. However, section 10 of the Code also provides that an exemption from this requirement may be justified on the basis that the proposed services amount to the continuation of existing work, from which they cannot be separated. Officers have set out at paragraph 1.24, above, the reasons the procurement of Publica Associates Ltd falls within the said exemption. Accordingly, the Mayor may approve the exemption, if he be so minded.

Grant Funding

6.4.    Officers are seeking approval of grants to Film London, the London Design Festival, the British Fashion Council, the Safer Business Network, the Music Venue Trust, the London Music Fund and the Museum of London. Whilst the proposed grants to most of the recipients fall below the subsidy control de minimis threshold, the value of the grants to Film London, the London Design Festival and the British Fashion Council all exceed that threshold. To that end, the GLA, in providing the grants, must ensure that: 

• it does not confer an economic advantage on the recipient to the extent that the recipient is offering goods or services which are competing in a market with other organisations
• it does not have an effect on trade or investment between the regions of the UK, or between the EU and the UK.

6.5.    Officers have set out at paragraphs 4.5 to 4.8, above, the reasons the proposed grants do not:

• confer an economic advantage on the recipients
• have an effect on trade between the regions of the UK and between the EU and the UK. 

6.6.    Furthermore, officers are reminded to use the Authority’s long-form grant agreement in relation to the said grants, so that there is: 

• an obligation on the recipient to procure competitively any goods and services, which it requires to further the funded activities
• a mechanism for the recovery of the grant funding in circumstances where any part of it later be found to be an unlawful subsidy.

6.7.    To the extent that the budget of this MD be used for further grant funding, officers are reminded to comply with the requirements in section 12 of the Code; and to ensure that an appropriate funding agreement be put in place between the Authority and the recipient, before any of the funding be paid.     

Procurement

6.8.    Where officers use any of the requested budget for the procurement of goods or services, they are reminded to ensure that they comply with the requirements of the Code; and seek assistance from Transport for London’s Procurement and Supply Chain department. Furthermore, officers are reminded to ensure that a contract be put in place between the Authority and the counterparty, before the services commence.

Delegation

6.9.    Any function exercisable by the Mayor on behalf of the Authority may also be exercised by a member of the Authority’s staff – albeit subject to any conditions, which the Mayor sees fit to impose. To this end, the Mayor may make the requested delegation to the Executive Director, Good Growth, if he so chooses.