Creative Industries and Covid19 Support

Dear constituent,

Thank you for contacting me about income protection for the buildings, businesses, self-employed and freelancers in the creative industries in response to coronavirus. I appreciate your concerns and sympathise with the desperate situation facing many in the arts, entertainment and media industries. The creative industries are one of the UK’s greatest success stories. However, they are also among those hit hardest by the impact of coronavirus.

According to the Office for National Statistics, 65% of businesses in the arts, entertainment and recreation sectors were closed in early June and not intending to re-open in the next fortnight. Of those continuing to trade, 64% said the outbreak of coronavirus had seen a decrease in their turnover of more than 50%.  It is therefore of enormous concern that the nature of employment in the sector means that many who work in it fall outside of the Government’s coronavirus income support schemes. Indeed, a survey carried out by Bectu, which represents workers in the media and entertainment industries, has found that only half of creative industries workers have been able to access support through a Government income support scheme.

As you highlight, the arts, entertainment and media sector has many people who work on a series of short-term PAYE contracts, who have been self-employed for less than a year, who operate through limited
companies, or who have portfolio work both through direct employment and self-employment. Those working in the sector include people required to work through personal service companies in order to secure work and those on low incomes employed on zero-hours teaching contracts who use self-employed live
performing to top up their income. We must not allow these individuals to fall between the gaps in our economic response to coronavirus.  I believe the Government must listen to the concerns and proposed solutions coming from the creative industries and continue to look at those who are excluded from the support it offers.

It is critical for the future of the UK’s creative industries and all those working in them that we act urgently to support those who have fallen through the gaps in protection for the self-employed.

The Government has just announced support for the creative industries and I will examine the package to establish if it is comprehensive enough to assist the industry.

Yours sincerely,

Peter Dowd MP