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Creative Industries

My Lords, I appreciate being allowed to make this brief contribution in support of the education and research which underpin what other noble Lords have shown to be the huge success of the creative industries. I argue—I declare an interest as chief executive of Universities UK—that this success has been built on the foundations of forward-looking education and research in higher education institutions, yet I am concerned that, in the laudable effort to promote study and research in traditional science subjects, we risk losing sight of the importance of the arts, humanities and social sciences, all of which play a role in underpinning our efforts in the creative fields. Research and education in fields such as design, interactive media and digital content, as well as more conventional creative subjects such as art, drama and music, are the lifeblood of our creative industries. Therefore, I ask the Minister to comment on just one issue. Is it correct that the current definitions of R&D inadvertently position research for the creative industries and other arts and humanities outside the current R&D and innovation agenda? As I understand it, the guidelines for R&D tax credits state: ""Work in the arts, humanities and social sciences, including economics, is not science for the purpose of these Guidelines"," thus excluding knowledge transfer activity relating to the creative industries, as well as R&D within the creative industries themselves, from tax relief of this kind. Therefore, a sector of industry which is often characterised by SMEs and which thrives on cutting-edge research does not receive the incentive to invest in that research. So I urge Ministers, in considering how to achieve the best value for public funds, not to forget the lesson of the creative industries. We need education and research in the arts, humanities and social sciences. They are an integral part of the intellectual ecosystem of the UK—a part that, yes, provides powerful economic benefits but so much more as well.